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

Joel Robinson

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

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

DVB Projects to launch second Broadbeach apartment tower as demolition commences

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

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

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

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Established house prices across Australia’s eight capital cities declined by an average of 1.2% over the September 2011 quarter, led by a 2.5% fall in Brisbane, according to preliminary ABS estimates.
Brisbane has also registered the greatest annual fall, with prices down 5.2% since the September 2010 quarter.
All the capital cities registered a decline in house prices over the quarter with Melbourne registered the third biggest decrease in existing capital city house prices with a 1.7% decline.
Sydney house prices proved the most resilient with, just a 0.2% fall.
Perth house prices declined by 1.3%, Adelaide fell by 0.9%, Canberra fell by 2%, Hobart fell by 1% and Darwin fell by 0.4% over the quarter.
Year-on year, preliminary estimates show that the price index for established houses for the weighted average of the eight capital cities decreased 2.2%.
Annually, house prices decreased in the other capital cities were: Darwin (-4.4%), Perth (-4.2%), Adelaide (-3.2%), Canberra (-2.2%), Melbourne (-2.1%), Sydney (-0.3%) and Hobart (-0.3%).
</body></html>

lschlesinger-FZcF9M3vE6

House prices fall 1.2% in September quarter: ABS

<html><body>
The Melbourne Cup is not all about Melbourne, with several landmark properties having pedigree links to the big event. Indeed Archer, the cup’s first winner in 1861, called NSW home. Here are six NSW rural properties that hold a bit of Cup history.
<img src="/images/stories/baroona.jpg">
1. Baroona, Whittingham 
Baroona (pictured above), the striking High Victorian residence at Whittingham, near Singleton, is a 26-room house with observation tower. It stables, designed in the 1880s by architect John Horbury Hunt, stabled two-time Melbourne Cup winner Peter Pan. The marketing suggested the Victorian gothic stable block (pictured below) was the birthplace and final resting place of Peter Pan, who was born in 1929 and died in 1941.
<img src="/images/stories/baroonastables.jpg">
Baroona was known as Rosemount when the initial house was built by pastoralist John Lanarch in 1829. It expanded into a home of 1,115 square metres with a Benjamin Backhouse design after it was bought in 1869 by Albert Dangar, the son of Henry Dangar, the government surveyor. The spiral staircase and tower were designed by architect Frederick Menkens in the 1890s. The upstairs main suite opening to the veranda has a sitting and dressing room and en suite built in 1920 when the Prince of Wales, later King Edward VIII, was a visitor. Baroona sits on 33 hectares with Mudie Creek running through the property, set about 20 kilometres from the Hunter vineyards. It last sold through Alan Jurd at Jurd's Real Estate Cessnock in conjunction with Max Bailey First National, when listed with $3 million-plus hopes earlier this year.
<img src="/images/stories/camelot.jpg">
2. Camelot, Narellan
Narellan’s fairytale-like mansion Camelot (pictured above) has pedigree Melbourne Cup links. The three-storey 1888 house, originally known as Kirkham, was built for the Hon James White, the grand-uncle of author Patrick White. White was cashed up from his winnings from Chester, his racehorse, which had 19 wins – including the 1877 Melbourne Cup and VRC Derby – from 29 starts. Camelot got its name when Mrs Frances Faithful-Anderson bought the Kirkham estate in 1900. It seems that on seeing the property, she was reminded of the opening verse of Tennyson's The Lady of Shalott. Complemented by a beehive-shaped smoke house, an octagonal hen house and large stable block, the six-bedroom mansion was described by arts patron Leo Schofield as the best house John Horbury Hunt ever designed.
<img src="/images/stories/terrara3.jpg">
3. Terrara House, Terrara 
Terrara House (pictured above) was the South Coast home of the legendary dual Melbourne Cup winner Archer, under Etienne de Mestre's stabling. Approached by a long driveway of English elms, the seven-bedroom house, four kilometres from Nowra, comes with stables, tennis court, swimming pool and gardens, set over 6.8 hectares. It last traded at $5 million in 2004. Terrara House is now a wedding reception venue, where guests can sleep in the historic stables (pictured below). 
<img style="border-style: initial; border-color: initial;" src="/images/stories/terrara.jpg">
4. Ballalaba, Jembaicumbene
The 1840s Ballalaba cottage and its 1830s convict-built barn pre-date the establishment of the nearby township of Braidwood. The three-storey stone barn with skillion stables was owned by the free settler Thomas Molyneux Royds, whose stable included the mare Maid Of The Oaks, which foaled the first Melbourne Cup winner, Archer. The property  has views across the Shoalhaven River floodplain to the Bendoura Range.
<img src="/images/stories/thinkbigstud.jpg">
5. Inverness, Burradoo
Inverness, the Burradoo equine property (pictured above), is owned by the Malaysian businessman Dato Tan Chin Nam, for whom Bart Cummings trained Think Big to win the Melbourne Cup in 1974 and 1975, and Saintly in 1996. It has facilities for breeding, foaling, agistment and quarantine, plus irrigation from a registered bore. It was sold by Jack and Sue Woolridge, who have raced horses since 1970. It's now known as Think Big Stud.
6. Huntworth, Werai 
Huntworth, set on 117 hectares at Werai, was formerly owned by Bridget Woodford Smith, who stabled a number of well-known horses including 1981 Melbourne Cup winner Just A Dash.
Plus in the city:
Macleay Regis, Potts Point 
It was following their 1961 triumph that Sidney and Rachel Cohen paid £6,750 for their Macleay Regis, Potts Point apartment.  Cohen, a Potts Point garage operator, had owned the 1961 Melbourne Cup winner Lord Fury, the only horse since 1896 to lead the race from start to finish.
None are available for sale.
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jchancellor-FAypfDUnLy

Six NSW pedigree rural properties with Melbourne Cup-winning form

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September sales of new homes have declined to levels last seen in December 2000, according to the latest HIA - JELD-WEN New Home Sales Report. 
The number of new homes sold in the month of September fell by 3.5% to about 5,000, down by 14% over the September quarter, according to the HIA’s survey of major residential builders. 
Detached house sales fell by 3.3% in September and are down 15.3% over the September quarter. Sales of multi-units fell by 5.5% in September.
 <img src="/images/stories/hianov1.gif">
On the back of the introduction of the <a href="https://www.propertyobserver.com.au/residential/queensland-building-grant-to-boost-construction-after-government-induced-downturn-westpac/2011083151376" target="_blank">$10,00o state Building Boost</a>, the volume of detached house sales increased by 5.7% in Queensland in September. 
However, sales fell in all of the other four mainland states, with Victoria posting the largest monthly fall, with sales declining by 6.6% in September. 
Detached house sales fell by 4.7% in New South Wales, 5.9% in South Australia, and 3.5% in Western Australia.
The figures follow ABS building approval figures for August – a leading indicating of future construction – which revealed a 1% decline in private sector house approvals to just over 7,500. 
“The September figures highlight the present soft conditions facing new home building and reinforce the importance that the RBA board calls it right today by cutting interest rates,” says HIA acting chief economist Andrew Harvey. 
“Monetary policy is arguably the most powerful economic tool in modern open economies but interest rate cuts still take time to boost the economy – so any further deferral of the decision to cut rates would be the wrong move,” he adds.</body></html>

New home sales at 11-year low: HIA

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There is little doubt that a fall in interest rates would have a positive impact on new housing starts.  But despite calls from the development industry for rates to drop today, there really isn’t any real need to build more new dwellings at present.
While our market was undersupplied in 2009 – we only built enough new homes for 330,000 people but needed to build for 465,000 people – we have been oversupplying the market since then.  Last financial year, we built enough homes for 400,000 people but really only needed to house 310,000.
We consistently overbuilt during the first half of the noughties.  Many of these new dwellings were secondary homes – used for holidays and the like – or were built as speculative investments, where the promise of capital growth outweighed the need for a rental return.
The recent drop in population growth has caused the underlying demand for housing to drop by a third across Australia since 2009.  Queensland and Victoria have experienced even greater falls.
As a result, we now have considerable spare capacity in our housing market.  This explains why new dwelling sales continue to slide across the country.
In addition, we no longer need to build as many new homes as we once did.  Social and demographic changes – children living at home longer; increasing longevity (coupled with diminishing superannuation balances); an increase in the birth rate (baby bonus impact) and more migrants from countries with traditionally large families – have lifted our household size, resulting in fewer new dwellings per capita.
This financial year will be a slow year for new housing starts. Just 135,000 new dwellings are expected to be built over the next 12 months.  This is 15% fewer than last year.  This level of new supply would comfortably cater for the expected increase of around 325,000 in the Australian population next year.  This forecast also assumes stable interest rates for the next six to 12 months.
Forward estimates are for, on average, between 150,000 and 160,000 new housing starts each year over much of the next decade.
While a drop in interest rates would temporarily boost new housing starts, the only real reason why housing starts would need to rise across Australia would be to cater for higher levels of population growth.
When looking at the wider picture, the Australian economy is not suffering from a lack of demand.  Whilst we do have a three-speed economy, the overriding problem – apart from declining productivity (which is a serious issue and a topic for a separate missive) – is that we are still recovering from the enormous hit in the first quarter from the floods in Queensland, NSW, Victoria and Tasmania and Cyclone Yasi.
These combined to hit confidence levels, and cut production of coal, iron ore, copper and other minerals as well as many rural products.  This pushed the economy into the red in the March quarter, but as the national accounts showed, consumption grew by around 3% in the year to June.  Current projections are for a 3.4% increase this financial year.  According to the ABS we are close to full employment.  This is not a recession.
Nor is inflation tamed.  Far from it.  The third-quarter inflation figure is at odds with the longer-term trend and might actually be wrong.  This combined with our low labour productivity, union pressure on wages, rising global inflation driven by both developing countries and the West’s politically driven agenda of low interest rates and printing money plus the large resource spending about to start across the country means that we are facing higher inflation in the years to come.
Rates should have fallen earlier this year, immediately after the floods and cyclone.  But now the best course of action, I think, is to keep them steady and to do so for as long as we can.  A cut in our official interest rate later today could spook the horses.  Often a scared horse bolts, but sometimes they hide deeper in the corral.  We just might conserve ourselves into a recession.
It is quintessentially Australian, to be on a day off – as that is exactly what Melbourne Cup Day is – and still expect interest rates to fall.
Be careful what you wish for.  It just might come true.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
 
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michaelmatusik-49YzLvdmNv

Be careful what you wish for on interest rates: Michael Matusik

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The world’s population ticked over 7 billion this weekend. Australia hosts only around 0.3% of this and is one of the least densely populated countries in the world – and yet we’re struggling to provide adequate affordable housing close to jobs and needed amenities for an increasing number of new bodies.  A recent report from the Department of Infrastructure and Transport entitled State of Australian Cities 2011 highlighted some interesting facts.  Around 85% of our population live within 50 kilometres of the coast, and more than 700,000 dwellings are situated within three kilometres of the shore.  According to the Australian Bureau of Statistics the combined population growth of our capital cities increased by 257,800 in 2010 and accounted for over two-thirds of Australia's population growth – most of that growth was in Melbourne, with Sydney coming a close second.
When migrants land on our shores they have little choice but to head to the capital cities, where most employers are based and they stand the best chance of securing work.  The challenge our state governments face is where to place a growing number of bodies within our limited city borders without losing the level of lifestyle that attracts so many migrants to our shores.  The report made some bold statements, one of which points out that by in 2031 the projected population of lone-person households will be 28%.  It’s supposedly the fastest-growing type of household in Australia – outstripping the growth of family units and couples without children.  The data is broadly used to justify the accelerated construction of high-density accommodation in the inner-city suburbs – generally high-rise small one- and two-bedroom apartments.  However, a closer look at the numbers uncovers an interesting phenomenon which seems to contradict this prediction.
While it’s expected that loan person households would typically mean a decrease in the number of bedrooms per dwelling along with the number of people living in each property – which is exactly what’s happened in NSW – this trend hasn’t followed expectation in Victoria, Queensland or Western Australia.  In these states there has been an increase in the number of people per household and Increase in the size of dwellings – In other words, there may be more people projected to live alone, but when you break down the data, it’s not quite as cut and dry as presented.
Despite this evidence seemingly showing a reduction in demand for single-person accommodation there has been no slowdown in the churn out of high-rise construction. In Victoria there have been over 20,000 applications approved for high-rise apartments over the past two years – that’s a 35% increase, in Brisbane the government recently stated 1,725 buildings of 29 storeys each were needed before 2031 – it’s a trend being repeated nationwide. Yet who’s purchasing these properties?
When Melbourne’s Docklands were initially constructed selling agents were paid high commissions to flog the developments off to unwitting investors.  The apartments usually came with rental guarantees, which once expired, left the purchasers unable to achieve the same return.  Unit growth charts for Docklands read like a day’s trading on the stock exchange, with sharp rises and plummeting dips proving anything but stable capital growth. Averaged out the growth has been little more than 5% per annum – a level currently exceeded by many long term deposit accounts and a dim shadow of what other properties in Melbourne historically achieve.
How many of these apartments are currently sitting vacant is hard to assess, however SQM have the vacancy rate above 6%.  Considering our population growth and the predicted surge of single-person households, you’d expect these developments would be busting at the seams, however clearly they’re not attracting the level of demand that’s oft been spruiked.
The City of Melbourne’s website describes the new developments as being “relatively small one and two bedroom apartments largely targeted at the student market and owned by investors.” Construction is currently underway for 16,000 of them during the 2006-2031 period.  But with the investor market as the intended recipient, they are certainly not fulfilling the needs of home buyers, or – judging by the number of similar developments sitting vacant – renters.  It seems to me we’ve got the beginning of a high-rise property bubble forming.
Anyone who advocates purchasing one of these off the plan developments will have little – if anything – to prove that asset will continue to  appreciate.  Usually they have a lot of concocted figures based on what they think will happen and if everything goes to plan they are very good at showing the riches you can make in the short term. The question to ask with any purchase of this type is what will it be worth in five years’ time?  In short any option you consider needs to be assessed on its risk profile, and “high rise” has strong evidence to show it’s “high risk”.  There’s good reason why banks go through extra checks and balances before lending for this type of accommodation - an issue which I’ve addressed in previous articles.
We’re heading into a mass over supply for one type of property and not heeding to the real changing trend that’s taking place. New statistics have shown Melbourne's outer suburbs are growing faster than anywhere else in Australia – suburbs that cater for growing families.  This should be a clear signal to our governments that investment into increasing the liveability and amenities in the outer-suburban areas, as well as easing restrictions on development and decentralising jobs, is a greater need than disproportionally increasing inner-city density. 
Australia is a teenager compared with her Western counterparts.  There is no reason why we can’t grow our population comfortably and sustainably while maintaining the quality of lifestyle we’ve all grown accustomed to.  We live in arguably the luckiest country in the world – but if we’re going to flourish, we simply have to learn to spread outwards, and not just upwards.  The growth in high rise accommodation and the disproportionally high numbers owned by investors is creating a dangerous precedent for a bubble that can’t be underpinned by demand.
Catherine Cashmore is senior buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year.
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catherinecashmore-6LXia3pPQj

A high-rise property bubble looms: Catherine Cashmore

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Shareholders in commercial property trust Dexus has been rewarded with returns nearly four times higher the average return of the S&amp;P/ASX 200 Property Accumulation Index, the company has revealed at its AGM.
The company delivered a net profit to investors of $553 million for the 2011 financial year equating to a total shareholder return of 21.3% as measured by the S&amp;P/ASX 200 Property Accumulation Index, compared with an average index return of 5.8%.
Investors were reminded that only one company with a market capitalisation over $1 billion delivered better returns than Dexus.
“Since June [2011] our total return has continued to outperform the index and we have beaten the index on a three-year rolling basis every year to 30 June since we stapled in 2004,” said Dexus chairman Chris Beare.
The top-performing company in the index was Charter Hall Office REIT, which delivered total shareholder returns of 42.1%. Charter Hall has also been the top performing A-REIT over the month of October, with its share price up nearly 17%. Over this period Dexus share price gains have been a more modest 3.7%.
Developer Australand returned shareholders 26.9% over the year, but was only admitted to the S&amp;P Index in December 2010 while Charter Hall Retail REIT delivered an index return of 25.4% but has funds under management of less than $1 billion.
Australand shares are up 13% over October while Charter Hall Retail is up 4.5%.
Annual returns of investment of companies in the S&amp;P/ASX 200 Property Accumulation Index
<table width="348" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Security
</td>
<td valign="bottom" nowrap width="64">
Exchange
</td>
<td valign="bottom" nowrap width="145">
Description
</td>
<td valign="bottom" nowrap width="75">
30/06/2011
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
 
</td>
<td valign="bottom" nowrap width="64">
 
</td>
<td valign="bottom" nowrap width="145">
 
</td>
<td valign="bottom" nowrap width="75">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CQO
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Office
</td>
<td valign="bottom" nowrap width="75">
42.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
ALZ
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Australand Property
</td>
<td valign="bottom" nowrap width="75">
26.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CQR
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Retail
</td>
<td valign="bottom" nowrap width="75">
25.4%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
DXS
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Dexus Property Group
</td>
<td valign="bottom" nowrap width="75">
21.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
ABP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Abacus Property Group
</td>
<td valign="bottom" nowrap width="75">
20.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
GPT
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
GPT Group
</td>
<td valign="bottom" nowrap width="75">
18.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
IOF
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Investa Office Fund
</td>
<td valign="bottom" nowrap width="75">
17.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
GMG
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Goodman Group
</td>
<td valign="bottom" nowrap width="75">
16.5%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CPA
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Commonwealth Prop
</td>
<td valign="bottom" nowrap width="75">
7.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
BWP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
BWP Trust
</td>
<td valign="bottom" nowrap width="75">
4.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CFX
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
CFS Retail Property
</td>
<td valign="bottom" nowrap width="75">
2.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
MGR
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Mirvac Group
</td>
<td valign="bottom" nowrap width="75">
1.3%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
WRT
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Westfield Retail Trust
</td>
<td valign="bottom" nowrap width="75">
0.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
XPJ
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
XJO A-REIT
</td>
<td valign="bottom" nowrap width="75">
-0.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
SGP
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Stockland
</td>
<td valign="bottom" nowrap width="75">
-2.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
WDC
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Westfield Group
</td>
<td valign="bottom" nowrap width="75">
-3.0%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
CHC
</td>
<td valign="bottom" nowrap width="64">
ASX
</td>
<td valign="bottom" nowrap width="145">
Charter Hall Group
</td>
<td valign="bottom" nowrap width="75">
-3.5%
</td>
</tr>
</tbody></table>
Source: Atchison Consultants
Beare described the result as a “solid performance” due to the quality of its properties and the focus of its management team.
Dexus owns, manages and develops office and industrial property in Australia and the United States.
“While we are proud of our outperformance we know that for investors it is absolute performance that matters and the A-REIT sector including Dexus did not do well for investors through the GFC,” Beare said.
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Dexus returns four times better than S&P property index

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You read a lot in the media about the financial markets' "pricing" of RBA cash rate changes, or "probabilities" of a rate change in any given month. 
There are a number of ways to work these numbers out, but probably only one exact method. The ASX/SFE has listed a specific "interbank futures contract" that settles on the basis of the average RBA cash rate in the month in question (e.g., March 2012). Thus the pricing of this futures contract reflects the weighted-average expectation of the RBA's cash rate in the relevant settlement month. 
So take the November 2011 contract. The contract's price fluctuates daily. The price is the financial market's best guess at what the RBA's cash rate will be in November 2011. Working out the actual expectation is easy: it is simply 100 less the current futures price. So if the SFE's November 2011 interbank futures contract is, say, 95.25, then 100 less 95.25 equals 4.75. That means the market thinks the RBA's average cash rate over the month of November will be 4.75% (ie, no change). 
On Friday this particular contract closed at 95.455. Accordingly, the market was telling us that it felt the RBA's cash rate in November would be 4.545% (to be precise!), or lower than the current cash rate. More specifically, the market was pricing in 82% of one full 0.25 percentage point reduction in the RBA's cash rate from its current 4.75% level. 
With this background in mind, we can make sense of some interesting analysis. My first chart below shows the daily changes in the price of the November 2011 SFE interbank futures contract since the start of 2011 (i.e., the SFE contract that tries to predict the RBA's cash rate in November). 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov11.gif"><img src="/images/stories/nov11thumb.gif"></a>
Click to enlarge
The black dotted line is the current 4.75% cash rate, which relates to the left-hand-side axis. The red line is the market's prediction of the RBA's cash rate in November 2011. You can see that this has been as high as 5.1% in February 2011 (ie, 0.35 percentage points, or 35 basis points, above the current 4.75% level). 
More usefully, look how far the red line has plummeted below the black line at various times. Every time the red line goes below the black line, the financial markets are saying that the RBA is going to cut rates by November. They did this in March 2011, and have been doing so consistently since June 2011. The magnitudes of the cuts are striking. On different days the financial markets' best guess of the November 2011 cash rate has been as low as 3.57%, or nearly five standard RBA rate cuts of 0.25 percentage points, or 25 basis points, a pop.
The green bars denote the implied RBA cash rate change by November 2011 relative to the current 4.75% cash rate. This is measured in basis points (or fractions of a percentage point), and pertains to the right-hand-side axis. So currently the financial markets reckon we will get about 0.20 percentage points worth of cuts by November 2011, or, as noted before, 82% of a normal 0.25 percentage point cut. 
To make this pricing clearer, my next chart shows the probability of one normal 0.25 percentage point RBA rate cut. If the probability of a cut is 200%, the market is telling us that it expects two 25 basis point cuts, or 50 basis points in total. The big spike in the red line corresponds to the US and Euro crises when the financial markets somehow convinced themselves that the cash rate would be more than 1.2 percentage points lower than its current level. Of course, they were proven wrong, and by a rather wide margin! 
 <a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov12.gif"><img src="/images/stories/nov12thumb.gif"></a>
Click to enlarge
My final chart expresses the financial markets' pricing in terms of a normal RBA cash rate move. In the first couple of months of 2011 we had more than one RBA hike priced by November. Then in March there were no hikes, and, in fact, a small chance of a cut. By May the probability of hikes had surged again. Then in August the market dived from pricing in hikes to a series – of nearly five – RBA cash rate reductions. This coincided with the US debt ceiling and European sovereign debt crises. Since that time the probability of cuts has consistently fallen to less than one today. 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/nov13.gif"><img src="/images/stories/nov13thumb.gif"></a>
<p-->Click to enlarge
As the RBA has recently noted, and I have previously explained, financial market pricing for rate changes can get "technically" distorted by other influences. For example, if the global central banking community decides to diversify holdings of US, UK and Euro sovereign debt by allocating higher weights to very safe, AAA-rated Australian government bonds, there will be a tremendous increase in the demand for our debt. Central banks can hold this debt to maturity, and so don't, therefore, necessarily care about its price: they are much more focused on the high yields offered by Aussie bonds. This can have the effect of driving up all bond prices, and thus driving down market yields. Since the yield curve gives us the market's expectation of the future price of money, these estimates may be biased downward by an increase in the demand for the otherwise small stock of Australian government debt. 
So what do economists think will happen on Tuesday? In general, economist forecasts tend to be far less volatile than the financial markets’ pricing. They normally publish a view and stick to it until there is overwhelming evidence suggesting they should change it. Based on the latest Bloomberg survey results, economists slightly favour an RBA cut in November, with 15 forecasting a cut and 11 predicting no change.
Christopher Joye is a leading financial economist. The above article is not investment advice.
</p-->
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chrisjoye-JYhJsTrNRC

Financial markets versus the RBA

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Did you realise that some of the repairs you make to your commercial property are not necessarily deductible against your rental income?
Often, it comes down to something as simple as timing.
As a general rule: Any repairs made to a commercial property held for the purpose of producing assessable income are deductible — so long as they are not deemed to be of a capital nature.
In other words, your repairs must directly relate to "wear and tear". Or they must be as a result of a breakdown or damage caused, in the process of gaining rental income from the property.
Furthermore, your commercial property must continue to be rented on an ongoing basis for you to be able to claim these repairs as deductible. However, the property need not always be occupied — so long as it is being actively marketed for lease.
What are some of the exceptions to you being unable to claim deductions? Broadly speaking, they appear to fall into three categories.
These relate to items requiring immediate attention in order to rectify any defects or damage existing at the time you first acquire a commercial property. Such things may include fixing items of equipment, repairing sections of the carpet or simply repainting walls.
While these repairs may not be deductible against rental income, they can be added to your initial cost base for the purpose of reducing your capital gains tax down the track.
Once again, items of this nature are not immediately deductible. However, you may be able to depreciate a significant portion of them over your period of ownership.
Otherwise, they will also form part of your cost base for the purposes of calculating GST.
Here you're talking about things like complete replacement of the roof, air-conditioning or security system.
Again, these items would be treated as capital in nature and would form part of your cost base. But they can also provide you with some handy structural depreciation.
There is one line of thinking that these "replacements" could become "repairs", if they were spread over two financial years. But it would be best for you to explore that further with your tax lawyer or accountant.
Bottom line: It's always worthwhile to seek professional advice from the outset in order to maximise your opportunity to claim repairs to commercial property as tax-deductible.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Not all repairs on your commercial property investment are tax-deductible

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From the broad perspective of changes in median prices, there are few differences between the market for units or apartments and houses.
The rises and falls in median prices have generally matched each other in the past five years.
Differences are, however, apparent when comparing at auction the performance of each class of dwelling.
Units and apartments count for one in three auctions, and the clearance rate has been higher than that for houses so far this year. This repeats a trend from last year.
This year, the overall clearance rate is 57% from slightly fewer than 23,000 auctions. Last year, it was 72%.
There have been about 7,500 unit and apartment auctions, with 59%. This compares with a 56.6 per cent rate for slightly more than 15,000 house auctions.
The level of overall demand for units and apartments matches the result in the Melbourne city centre market, where there have been 472 auctions, with 59% selling.
While Docklands and Southbank are dominated by units and apartments, there have been only 75 auctions this year, with private sales the preferred sales method.
Although volumes were lower last year, the differential in the clearance rate was similar, with 72% of units selling compared with 70% of houses.
Enzo Raimondo is the CEO of the<a href="https://www.reiv.com.au/" title="REIV" target="_blank"> Real Estate Institute of Victori</a><a target="_blank" title="REIV" href="https://www.reiv.com.au">a.</a>
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enzoraimond-7fvRFHPR52

Melbourne units selling better than houses

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Capital city house prices fell just 0.2% in September to $450,000, their best result in seven months, suggesting the housing market may have turned the corner, according to the latest RP Data-Rismark Hedonic Home Value Index.
This was the smallest decline since February 2011 and reversed a trend of accelerating capital losses since the end of March 2011.
Over the first nine months of 2011, capital city home values have now declined by 3.6% while over the 12 months to September 30, capital city home values were off by 3.4%.
Despite the fall in values, houses have delivered total returns of 0.7% for the year to date and 0.9% over the last 12 months.
“Housing market conditions are starting to show some green shoots now.  While the September index declined further, the -0.2% result was the best outcome we’ve seen in seven months,” says RP Data research director Tim Lawless.
“The 8.1% lift in consumer confidence, as well as rising speculation that interest rates are heading south soon, are likely to be the drivers of this improvement,” he adds.
Regional house values rose 0.1% on a seasonally adjusted basis.
Speaking to Property Observer, Lawless said he would be surprised to see an increase in house prices at the macro level over the next few months due to the performance of Sydney and Melbourne and their heavy weighting in the index.
“It is doubtful we will see any real improvement in capital city values for some time,” Lawless says.
“Melbourne is a weak spot. Melbourne had been a solid over performer in 2007, 2009 and 2010 and is now entering a large correction phase. 
“Melbourne had a great deal of momentum, which carried house prices perhaps higher than they should have been. But there are now a lot of homes available to buy. We would need to have stock absorbed for any improvement,” Lawless says.
Looking at the performance of regional house prices, Lawless says regions associated with the commodities boom are the strengths in this market while lifestyle and coastal regions are countering any real growth – a two-speed situation.
Rismark’s Christopher Joye notes the overall strength of the housing market “notwithstanding the <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=harry%2Bdent%2Bproperty%2Bobserver&amp;source=web&amp;cd=1&amp;ved=0CBwQFjAA&amp;url=http%3A%2F%2Fwww.propertyobserver.com.au%2Feconomy%2Fmark-bouris-tackles-harry-dent-s-bearish-claims-christopher-joye%2F2011101951989&amp;ei=DdytTrrsBqOUiQf08ZDXDw&amp;usg=AFQjCNEU7X19tZ5Zi0w3ROIeMH8ljiuOEg&amp;sig2=8q4lBv4FMgXC1WgmFOoYqA">extraordinary hysteria whipped about house price bubbles</a> and so forth”, pointing to the gross total return of 0.7% generated by Australian housing in 2011  as  “very reasonable in the scheme of things”
“Indeed, it looks positively attractive compared to the extreme volatility, and stunning losses, sharemarket investors have had to endure,” he adds.
Over the month, the strongest performing capital city was Adelaide, with house prices rising 0.5% to $370,000 followed by Brisbane, up 0.4% to $415,000.
<img src="/images/stories/rpdataoct311.gif">
Source: RP Data/Rismark
Sydney recorded the biggest monthly drop of the major capital cities, with prices falling 0.6% to $500,000 to be down 1.2% year on year. The Sydney market is still the strongest-performing capital city market, delivering 12-month returns of 3.5% ahead of Canberra (3.2%) and Darwin 1.2%. 
Fall since peak (Click to enlarge)
<a href="/images/stories/rpdataoct312large.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpdataoct312.gif"></a>
Source: RP Data/Rismark
Over the three months to September, Darwin remained the best-performing capital city, with values down 0.3% on a seasonally adjusted basis. Hobart was the weakest capital city, with values down 6.6% over three months to August.
Darwin is also delivering the highest rental yields, with gross rental yield of 5.3% for houses and 5.8% for units.
Melbourne, where house prices are down 4.4% for the year, is returning the lowest rental yields with gross rental yields of 3.8% for houses and 4.3% for units.
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