Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

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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 Reserve Bank has lowered both its inflation forecasts and GDP growth forecasts, paving the way for future rate cuts while noting the subdued and uneven housing market in its lengthy monetary policy statement following the Melbourne Cup Day rate cut.
“Reflecting recent developments in both the domestic and global economies”, the RBA now forecasts GDP growth in 2011 to be around 2.75% “with the slow recovery in coal production accounting for a significant part of the downward revision since earlier in the year”.
“In 2012, growth is expected to be around 3% to 3.5% and to be a little stronger in 2013.”
RBA inflation forecasts have also been lowered with underlying inflation (excluding the effect of the carbon price) expected to be around 2.5% in 2012, half a percentage point lower than forecast at the time of the August statement and within the 2% to 3% target band.
“In 2013, inflation is expected to pick up a little, but still be consistent with the inflation target,” the bank says.
The RBA says it reduced the cash rate to 4.5% this week to a more neutral stance, with inflation “likely to be consistent with the medium-term target and that economic growth remained moderate”.
“At its future meetings the board will continue to set monetary policy so that it is consistent with achieving sustainable growth and 2% to 3% inflation over time.”
Once again the RBA noted that the housing market remains subdued, with nationwide measures of housing prices declining over 2011.
“Perhaps not surprisingly, the weakest markets have been those that had the largest run up over the preceding few years. At the aggregate level, the ratio of housing prices to income has been broadly steady for almost a decade now after its earlier large increase,” it says.
“Growth in housing credit is noticeably slower than in earlier years and is running at a little below that in household disposable income.
“Nationwide housing prices are estimated to have fallen by around 1.25% in the September quarter and by 3.5% over the year. Brisbane and Perth have been the weakest markets over the year, with prices in these cities falling by around 5%.
“Auction clearance rates are below decade-average levels in Sydney and Melbourne. Demand for housing finance has been subdued since the beginning of the year, although the value of loan approvals has picked up a little in recent months. While housing turnover rose in the June quarter, it remains at quite a low level,” the bank notes.
“Indicators of dwelling investment have softened over the year, with builders reporting that households are cautious about committing to contracts. However, there are divergences in the level of activity by type of building and state. While the number of building approvals for detached houses has fallen since late 2010 to relatively low levels, the number of approvals for higher-density housing (mainly apartments) has been higher than over recent years.
“Growth in the dwelling stock is currently quite strong in Victoria, reflecting growth in the building of apartments. In contrast, the growth in dwellings in New South Wales has been soft, and well below the rate of population growth.”
According to the RBA, the largest risk to its inflation and GDP forecasts is the sovereign debt and banking problems in the euro area.
“The bank’s central scenario continues to be one in which the European authorities do enough to avert a disaster, but are not able to avoid periodic bouts of considerable uncertainty and volatility. A worse outcome in Europe would adversely affect the Australian economy, and underlying inflation would be likely to decline,” it says.
As a consequence of these bouts of uncertainty and volatility, the bank’s central scenario for global growth over the next couple of years has been revised lower since the previous statement to about 4%.
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lschlesinger-FZcF9M3vE6

RBA lowers inflation forecast in November statement, suggesting more rate cuts possible

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{yoogallery src=[images/stories/november4bonniedoon]}
Property investor Richard Moseley’s Bonnie Doon holiday shack near Lake Eildon in Victoria – which featured in the comedy The Castle as the serene holiday home of the Kerrigans – has become no laughing matter with another reduced price adjustment.
Moseley proudly secured the property for $169,950 in 2006 but has wanted out since early 2011.
The two-bedroom cottage – located 115 kilometres from Melbourne – was initially listed at $195,000. After a bit of feedback, the price eased to $188,000, then $182,000 by June.
Now its asking price is back almost bizarrely at $169,950.
Moseley, a Sydney telecommunications technician, bought it sight unseen – other than of course having viewed the movie.
Dean Shipley and Andrew Houghton at RT Edgar Yarra Valley have the listing, which has been a popular rental.
Shipley says it is a unique opportunity to purchase the original holiday home of the Kerrigans from Australia's favourite movie, The Castle. The home consists of two bedrooms, open-plan kitchen, dining and living area, bathroom and laundry.
“Outside we have the famous veranda – with the mozzie zapper included – situated on a good-sized block opposite the lake and approximately 500 metres from the boat ramp.
“The property would make a great holiday home-cum-accommodation business when you are not using it yourself, and creates a high level of interest with holiday makers stopping for photos and to experience the serenity.
“With the lake full, recent good snow seasons and high tourist numbers visiting the area, it is the ideal holiday rental.
“And the right marketing – perhaps a good website and some items like stubby holders, T-shirts and caps – could provide extra income as well,” Shipley says.
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jchancellor-FAypfDUnLy

Kerrigans’ Bonnie Doon holiday shack back to its old price as investor abandons profit dream

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Leisa Milne, the wife of jailed millionaire entrepreneur Michael Milne, has listed their Neutral Bay abode on Sydney’s lower north shore. It’s one of two freestanding buildings set on a 1761-square-metre deep-waterfront block. It had been two apartments with the first bought by Leisa in 1987 for $999,999 and then Leisa paid $4.75 million for the other in 2005.
The renovation turned it into a six-bedroom house with views across Shell Cove to the main harbour. It has two marina berths, a jetty and pontoon.
Michael Milne, jailed for eight years last December for money laundering and tax evasion, is seeking to have the money-laundering conviction overturned in a case in the NSW Court of Criminal Appeal. Milne was caught in the Operation Wickenby tax probe. His wife raised a $5 million surety for his bail when he was initially arrested in 2008. Milne  was a client of Philip Egglishaw, whose Swiss firm Strachans sparked the $300 million Wickenby investigation.
The Shellcove Road house has been listed for sale by expressions of interest through Kingsley Yates of Ray White Lower North Shore.
 
 
 
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Wife of jailed entrepreneur Michael Milne puts Neutral Bay home on the market

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Purchasing your first investment property can be daunting and exciting at the same time. It is also often the most important purchase an investor will make. The property selection process will dictate whether the buyer will be able to grow her portfolio to a second, third, or fourth investment property. 
The selection process is the first and most crucial step to securing a property that will achieve a high level of capital growth and return on investment. 
In-depth research is imperative to gaining a compressive understanding of the property market, in order to identify out-performing suburbs and homes. The best investors spend time attending auctions, monitoring sales trends and tracking suburb growth figures to gain an insight into how much they should expect to pay for their properties. 
First-time investors should consider properties that have proven historical capital growth patterns. Melbourne areas that have performed well in the long term are the bayside, inner east and inner southeast areas, as well as select suburbs on the north and western side of the CBD. 
For investors who feel they have been priced out of the housing market in popular areas, apartments can offer a more affordable solution. Look for apartments of at least 50 square metres in quiet residential locations, with parking and outdoor space. 
It may be tempting to purchase a cheaper investment property further away from the city, however the rental demand in these areas isn’t as high and as a result rental properties have a higher vacancy rate. If your property is vacant, you’re left having to cover a larger gap in mortgage repayments than you had intended. 
Poor property selection is one of the biggest mistakes a first-time investor can make, because it sets them behind from the very beginning. Often soon-to-be investors approach us with very little knowledge of the local property market. As buyer advocates, we are able to use our knowledge and experience to select the best properties. 
Now is a great time for first-time investors to enter the market, as many capital cities across Australia have hit a soft patch. 
Sellers are having to vie for the buyers’ interest, providing buyers with the opportunity to negotiate a price that will deliver a good return on their investment. 
A well-researched investment property appeals to the rental market, ensuring a strong and consistent rental income for the investor, which will enable an investor to expand her investment portfolio, or use equity to purchase a dream home.
Lauren Staley is director of <a href="https://www.infolio.com.au/" target="_blank">Infolio</a>, a buyers’ advocacy and property management company.
For more advice on buying your first investment property, download our free e-book. 
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Your first investment property will set up the rest of your portfolio

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<img src="/images/stories/delmegequote.jpg">
 
- Anthony Walls at Max Walls International after the Bank West mortgagee sale of the resort-like Mona Vale beachfront residence of veteran property developer Max Delmege for about $3.5 million. <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/max-delmege-s-sydney-northern-beaches-property-finally-gets-over-the-line/2011102652087">It had a $9 million valuation after its 2008 renovation</a>.  Despite hopes of starting the auction proceedings at $6 million plus, the house was passed in without a bid through Ray White Prestige agent Michael King at that October 2010 auction.
 
 
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Quote of the week: Max Delmege's house result

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There was daylight between first and second place on RP Data's list of the top sales of the week, with the late arts patron <a href="https://www.propertyobserver.com.au/residential/ann-lewis-romantic-rose-bay-villa-fetches-about-%2415-million-after-auction-title-tattle/2011102752108" target="_blank">Ann Lewis’ house claiming the top spot at $15 million</a>. The second-place sale, 6 Penshurst Avenue, Neutral Bay, last sold for $1.3 million in 2005 but had been on the market since early 2009, when it was listed for $3,575,000. Its price expectations were reduced to around $3.39 million last month. It sold for $3,275,000 through Raine &amp; Horne Neutral Bay agent Stewart Robertson. A property from the ACT appeared in 10th spot on RP Data’s list.
1. 8 Bayview Hill Road, Rose Bay, NSW, six-bedroom, four-bathroom house, sold at auction on October 27 by Ken Jacobs of Christie's International Real Estate in conjunction with McGrath Estate Agents for $15 million




2. 6 Penshurst Avenue, Neutral Bay, NSW, five-bedroom, five-bathroom house, sold on October 28 by Raine &amp; Horne Neutral Bay for $3,275,000



3. 34 Chatsworth Road, Prahran, VIC, four-bedroom, three-bathroom house, sold at auction on October 25 by Marshall White Real Estate Armadale for $3,137,500



4. 18 Willowie Road, Castle Cove, NSW, four-bedroom, three-bathroom house, sold at auction on October 29 by Belle Property Mosman for $2.99 million



5. 132 Hargrave Street, Paddington, NSW, four-bedroom, three-bathroom house, sold on October 26 by McGrath Estate Agents for $2.9 million



6. 77 Grey Street, East Melbourne, VIC, two-bedroom, two-bathroom house, sold at auction on October 29 by Caine Real Estate for $2,832,500



7. 12 Rosemeadow Drive, Cabarita, NSW, four-bedroom, three-bathroom unit, sold at auction on October 29 by McGrath Estate Agents for $2.55 million



8. 26 Holt Avenue, Mosmand, NSW, four-bedroom, three-bathroom house, sold at auction on October 29 by Raine &amp; Horne Neutral Bay for $2,457,000



9. 70B Iris Street, Frenchs Forest, NSW, four-bedroom, two-bathroom house, sold on October 25 by Century 21 Robert Campbell for $2.45 million



10. 18 Wells  Gardens, Griffith, ACT, five-bedroom, four-bathroom house, sold at auction on October 26 by Luton Properties Manuka for $2,375,000.
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Daylight between first and second-place sale of the week: RP Data

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During the past four days days the latest monthly data on credit growth in Australia from the RBA and the latest quarterly house prices data and monthly building approvals data from the ABS have ll been released. Together, these confirm trends that I’ve identified on numerous occasions between the acceleration of mortgage debt and the change in house prices.
Building approvals plunged 13.9% in September, while housing credit increased by 0.5% over September (see the <a target="_blank" href="https://www.rba.gov.au/statistics/frequency/fin-agg/2011/fin-agg-0911">RBA release</a> for details), but this involved a further deceleration of mortgage debt, as figure 1 shows.
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Figure 1: Change and Acceleration of Mortgage Debt in Australia
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 As I explained in <a target="_blank" href="https://www.debtdeflation.com/blogs/2011/09/04/%E2%80%9Ca-much-more-nebulous-conception%E2%80%9D/">A Much More Nebulous Conception</a>, there is a complex causal link between the acceleration of mortgage debt and the change in house prices. In a nutshell, the two sources of monetary demand are income and the change in debt; these then finance the purchases of both newly produced goods and services, and the turnover of existing assets. There is thus a causal link flowing from change in debt to the level of asset prices, and consequently a link between the acceleration of debt and the change in asset prices.
That relationship is evident in the pattern of change in Australian house prices over the last two decades. The most recent figures – that prices fell 1.2% over the June to September 2011 quarter, and 2.2% from September 2010 to September 2011 (see the <a target="_blank" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6416.0Main+Features1Sep%202011?OpenDocument">ABS Release</a> for details) – confirm that mortgage debt acceleration, and not “population pressure” etc., is the key determinant of house prices.
Figure 2: The Mortgage Acceleration and House Prices Change Relationship (R^2 = 0.54)
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Of course, one can’t forget the role of government intervention in sustaining an asset bubble either, and here the Australian government has a peerless record – whether the conservatives (Liberal Party) or progressives (Labor Party) have been in power. Whenever the economy was facing a recession, its favourite tool of macroeconomic policy has not been fiscal stimulus, but stimulating the housing sector via the 'First Home Owners Scheme'.
It was first introduced by the Hawke Labor government in 1983, in response to the recession that had swept the previous Liberal government from power; it was reintroduced by the Hawke government after the share market crash of 1987, given fears then of a serious recession; the Howard Liberal government brought it back as a "temporary" measure to counter the impact of the GST in 2000 (and it has never been removed!), and then doubled it in 2001 to counter an imminent recession; and finally Rudd doubled (and for new homes, tripled) the grant as a counter-measure to the Global Financial Crisis in late 2008.
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Though restarting the housing bubble wasn’t the express intent of government policy, its 'collateral damage' included spikes in house prices as well (see figure 3). The turnaround from an 8% per annum rate of fall in real house prices to a 15% rate of increase was merely the latest (but not the greatest) such instance of government manipulation of house prices that has given Australia the most expensive housing in the Western world.
Figure 3: The First Home Vendors Scheme and House Prices
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 So will they try again? I’m sure they will be sorely tempted should yesterday's unemployment data reveal a rise in unemployment – against the conventional expectation that Australian unemployment should be falling. But I doubt that they will, for two reasons.
 
Firstly the “collateral damage” of such a policy – a further boost to our house prices – would be political suicide today. Though house price inflation was initially very popular – and it remains popular with those who are highly levered into house prices today – it would evoke huge opposition from the many who are now locked out of home ownership. The entry costs into home ownership in Australia are now prohibitive – even after the fall from its peak level, houses are still more expensive in real terms than they were before the Rudd government’s spin of the house price boost bottle.
Figure 4: Real House Prices are still above the pre-FHVB peak
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Buying a first home therefore involves taking out a mortgage that consumes a prohibitive share of the average wage – when First Home Buyers can be expected to be earning below average wages.
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 Secondly, the policy has only worked because it has gone in concert with the banking sector’s willingness to lever the grant with additional mortgage debt. The very success of this process is now the best reason why it won’t be tried again – or why, if it is tried, it might not work as it has in the past. Australian mortgage debt is now substantially higher than American (when compared to GDP), and though banks may still be willing to lend, willing borrowers are much harder to find. Our mortgage debt is once again falling when compared to GDP, and I doubt that anything the government can do can make it rise yet again from its already unprecedented peak.
Figure 5: Australian mortgage debt grew more rapidly than US, and now exceeds it
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The one trick that Australia does have up its sleeve for re-inflating the house price bubble is interest rate policy. Since the vast majority of Australian mortgages are floating rate, a cut to official interest rates rapidly translates into falling mortgage payments for borrowers (see figure 6). If rates fell substantially, this could encourage Australians to take on yet more mortgage debt, and thus re-ignite the Australian housing bubble.
Figure 6
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 Even this is, I think, unlikely – again, because the past success of this “asset price inflation as macroeconomic policy” game has made it unlikely that the same play will work again. Australian private debt levels have risen from the historically low level of 25% of GDP in the period from 1945-1965 to an unprecedented peak of almost 160 percent in early 2008. Government policy – especially the First Home Vendors Boost – merely temporarily delayed the deleveraging process from Peak Debt.
Figure 7: Private debt ratio now falling from unprecedented level
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 Since deleveraging results in falling asset prices as well as rising unemployment, it is unlikely that even substantially lowering interest rates will encourage Australians back into debt once more. Australia’s apparently stellar economic performance over the last two decades, which was primarily driven by accelerating private debt, may soon drop back to the pack now that the inevitable deleveraging can no longer be delayed.
Figure 8: Credit Accelerator drives change in unemployment (R^2 = -0.65)
<img src="/images/stories/keen91.gif">
 Steve Keen is Associate Professor of Economics and Finance at the University of Western Sydney and author of   <a href="https://debunkingeconomics.com/" target="_blank">Debunking Economics</a>  and the blog <a href="https://www.debtdeflation.com/blogs/" class="=article" target="_blank" style="text-decoration: none; color: #287bce; margin-top: 3px; margin-right: 0px; margin-bottom: 3px; margin-left: 0px; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; line-height: 14px; padding: 0px;">Debtwatch</a>.
This article originally appeared on <a href="https://www.businessspectator.com.au" title="Business Spectator" target="_blank">Business Spectator</a>. 
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Australia's housing bubble will burst eventually, with debt the main cause

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The expected improvement in consumer and business confidence on the back of the November 2 rate cut will have positive flow-on effects for the struggling retail property sector as well as provide to stability to office and industrial leasing markets, according to CBRE regional director of global research and consulting Kevin Stanley.
Stanley says there are already some “early signs of confidence returning to the household sector, which may have developed in anticipation of a rate cut and will only be further reinforced now the decision has actually been made”.
“For commercial real estate, a rise in retail spending will ultimately lead to higher turnover in retail outlets and shopping centres, which in turn will support growth in rents,” he says.
“It will also improve the viability of those retailers who’ve been feeling the effects of lower revenues and this in turn should reduce vacancy risk across the retail sector.  It may also ignite interest in leasing some of the vacancy which has emerged in the last couple of years.”
Stanley also expects the 25-basis-points cut to stabilise business sentiment toward reducing costs further, such as reducing area leased or the workforce.
“This is likely to lead to more stability in the office and industrial leasing markets, where business confidence is critical to decision making concerning occupancy.
“While the interest rate cut has flowed through to household mortgages, the cost of debt for commercial loans may not necessarily drop to the same extent, given banking exposure and attitudes toward risk in the commercial sector.
“It is interesting to note, though, that the long term cost of debt is now about 4.4% (the 10-year bond rate), which means the spread to commercial property yields is at its widest for almost 20 years – that’s compelling evidence of the current attractiveness of commercial property pricing.  It adds support to the notion there’s now plenty of room for prime commercial real estate yields to compress some.”
Overall, he says the small cut will be a “real positive for real estate”.
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Rate cut to add stability to commercial property market: CBRE

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The declining interest rate environment is combining with other factors including a lack of new development and rising rents to create an interesting trend in the real estate market: the clock is being wound back 10 years. 
There are signs of a repeat of the conditions experienced in the early 2000s, when lower interest rates stimulated the real estate market.
 
In recent years interest rates have moved in an upward direction before remaining steady for the past 12 months. A higher interest rate environment, while keeping inflation under control, adversely impacts the economy and this is where the market has found itself. 
But the Reserve Bank decision to lower the official cash rate could represent a crucial shift in outlook for the economy as a whole and the real estate market specifically. 
Ten years ago lower interest rates stimulated the property market, and we find ourselves facing similar fundamentals now. Values have shown recent declines but should stabilise in time, creating a soft market that presents attractive opportunities for first homebuyers, upgraders as well as investors to become active again. 
A compelling argument could be made for 2012 being the best year in the past decade to buy residential property. 
Laing+Simmons forecasts interest rates to decline by up to 1% by mid-2012, which should translate to an increase in consumer spending and stabilisation of property values. 
At a broader economic level, higher interest rates in recent times have had the effect of reducing consumer spending as people turned their focus to increasing their savings and reducing their household debt. 
Should a declining rate trend materialise we expect to see consumer spending increase and property values stabilise, particularly for lower priced properties close to the city. 
Property prices, which have been flat or declined over the last four to six months, should again show growth in the medium term as a number of influences converge. 
The long-term low supply scenario in Sydney, driven by a significant period of inactivity stemming from a continued lack of finance for developments, should ensure residential rents keep rising. 
Additionally, with the latest REINSW figures showing rental vacancy in Sydney is just 1.5%, the fundamentals for investors remain strong. 
For developers, the reduced availability of credit could necessitate substantial pre-sales be achieved to secure finance, compounding the contracted supply situation. These constraints should see values resume an upward trend over the medium term as population growth continues unabated and demand further outweighs supply. 
More immediately however, we can expect values to stabilise. There will be pockets where values will rise comparatively quickly, particularly in lower priced new residential developments close to the city, again driven by the lack of supply of properties at lower price points in good locations. 
Declining interest rates, stabilising values, lack of new supply, rising rents and a low vacancy rate are converging to create a most attractive environment for property purchases – a scenario the market has not experienced for 10 years.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
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Next year could be the best year in a decade to buy property

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The manager and trustee of  the Commonwealth Property Office Fund today announced its intentions to launch an off-market buyback tender for between $50 million and $100 million worth of shares in the A-REIT. The share buyback follows the sale of a number of prime CBD office assets held by the A-REIT over the last four months including 259 George Street in Sydney, which sold for $395 million July, (with settlement occurring this week); three Perth offices (1 Mill Street, 5 Mill Street and 197 St Georges Terrace) and a 50% interest in 5 Martin Place, Sydney, for a combined $589 million.
It also follows other property funds such as Stockland, Challenger Diversified Property Group and Investa Office Fund undertaking on-market share buybacks.
The fund could buy back between $50 million and $100 million worth of CPA units but reserves the right to buy back any amount up to 10% of units, or any amount below the anticipated range, depending upon market conditions.
The buyback is in line with the fund’s capital management strategy, which was outlined in August 2011.
The buyback scheme will not impact on CP retaining an appropriate capital and liquidity position for other initiatives such as the development pipeline and it also aims to maintain its distribution policy of distributing 70% to 80% of distributable income, or taxable income, whichever is the greater.
Charles Moore, fund manager of CPA, says the off-market buyback is considered appropriate given CPA’s capital position, and has the advantage that retail investors have the option of participating.
Participation in the buy-back is optional, with tender applications closing at 7:00pm, Sydney time, on Tuesday 13 December 2011.
The buyback is open to all eligible unit holders who are registered as at Friday, November 11, 2011.
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