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;

&nbsp;

[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

<html><body>
Six mostly inner-ring Sydney suburbs – <a target="_blank" href="/news">Edgecliff</a>, <a target="_blank" href="/news">Randwick</a>, <a target="_blank" href="/news">Ryde</a>, <a target="_blank" href="/news">Newtown</a>, <a target="_blank" href="/news">Surry Hills</a> and <a target="_blank" href="/news">Neutral Bay</a> – recorded annual rent increases topping 10% for new tenancies during the September quarter.
The average rent increase for new tenancies in the RUN Property Sydney data base was 7.7%.
It took new rentals $38 higher a week to $540 a week.
The figures are the average rent for new tenancies, not existing tenants who renew their leases.
The figures come from the latest quarterly rent report by RUN Property, Australia’s largest metropolitan property manager, which manages properties valued at more than $10 billion.
The solid rental returns for property owners in the September quarter compared with the same period last year follow similar results in each quarter over the past year, RUN Property chief executive Rob Farmer notes.
“The smart money is starting to flow back into investment property, especially now that the sales market is off the boil and there are buying opportunities out there,” Farmer suggests.
“Past experience proves that investor confidence slowly grows in the wake of improving rental yields, so there is a small window of opportunity for good buying in the next few months before the world wakes up to what is starting to evolve.
Edgecliff recorded the highest percentage growth up 13% – or $46 a week – to $403 a week.
In Sydney’s Paddington the typical new rental was $62 a week higher at $764 a week.
Ryde was the biggest performer outside the inner-ring suburbs, with an 11% jump to $473 a week.
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" colspan="2" width="121"></td>
<td valign="top" width="113">
Sept 2010 Weekly Rent Average $ 
</td>
<td valign="top" width="123">
Sept 2011 Weekly Rent Average $
</td>
<td valign="top" colspan="2" width="120">
Average Weekly Rent Difference 
</td>
<td valign="top" colspan="2" width="120">
Average Weekly Rent Difference % 
</td>
</tr>
<tr>
<td valign="top" width="119">
NEW SOUTH WALES 
</td>
<td valign="top" colspan="2" width="115">
$501.45 
</td>
<td valign="top" colspan="2" width="124">
$540.28 
</td>
<td valign="top" colspan="2" width="119">
$38.83 
</td>
<td valign="top" width="119">
7.7% 
</td>
</tr>
<tr>
<td valign="top" width="119">
EDGECLIFF
</td>
<td valign="top" colspan="2" width="115">
$357.02
</td>
<td valign="top" colspan="2" width="124">
$403.69
</td>
<td valign="top" colspan="2" width="119">
$46.67
</td>
<td valign="top" width="119">
13.1%
</td>
</tr>
<tr>
<td valign="top" width="119">
RANDWICK
</td>
<td valign="top" colspan="2" width="115">
$508.34
</td>
<td valign="top" colspan="2" width="124">
$568.72
</td>
<td valign="top" colspan="2" width="119">
$60.38
</td>
<td valign="top" width="119">
11.9%
</td>
</tr>
<tr>
<td valign="top" width="119">
RYDE
</td>
<td valign="top" colspan="2" width="115">
$334.81
</td>
<td valign="top" colspan="2" width="124">
$373.80
</td>
<td valign="top" colspan="2" width="119">
$38.99
</td>
<td valign="top" width="119">
11.6%
</td>
</tr>
<tr>
<td valign="top" width="119">
NEWTOWN
</td>
<td valign="top" colspan="2" width="115">
$526.78
</td>
<td valign="top" colspan="2" width="124">
$587.78
</td>
<td valign="top" colspan="2" width="119">
$61.00
</td>
<td valign="top" width="119">
11.6%
</td>
</tr>
<tr>
<td valign="top" width="119">
SURRY HILLS
</td>
<td valign="top" colspan="2" width="115">
$507.61
</td>
<td valign="top" colspan="2" width="124">
$562.48
</td>
<td valign="top" colspan="2" width="119">
$54.86
</td>
<td valign="top" width="119">
10.8%
</td>
</tr>
<tr>
<td valign="top" width="119">
NEUTRAL BAY
</td>
<td valign="top" colspan="2" width="115">
$446.11
</td>
<td valign="top" colspan="2" width="124">
$492.51
</td>
<td valign="top" colspan="2" width="119">
$46.40
</td>
<td valign="top" width="119">
10.4%
</td>
</tr>
<tr>
<td valign="top" width="119">
WOOLLOOMOOLOO
</td>
<td valign="top" colspan="2" width="115">
$528.84
</td>
<td valign="top" colspan="2" width="124">
$580.61
</td>
<td valign="top" colspan="2" width="119">
$51.77
</td>
<td valign="top" width="119">
9.8%
</td>
</tr>
<tr>
<td valign="top" width="119">
WOLLSTONECRAFT
</td>
<td valign="top" colspan="2" width="115">
$495.76
</td>
<td valign="top" colspan="2" width="124">
$543.75
</td>
<td valign="top" colspan="2" width="119">
$48.00
</td>
<td valign="top" width="119">
9.7%
</td>
</tr>
<tr>
<td valign="top" width="119">
GLEBE
</td>
<td valign="top" colspan="2" width="115">
$495.41
</td>
<td valign="top" colspan="2" width="124">
$541.99
</td>
<td valign="top" colspan="2" width="119">
$46.59
</td>
<td valign="top" width="119">
9.4%
</td>
</tr>
<tr>
<td valign="top" width="119">
KOGARAH
</td>
<td valign="top" colspan="2" width="115">
$330.48
</td>
<td valign="top" colspan="2" width="124">
$360.00
</td>
<td valign="top" colspan="2" width="119">
$29.53
</td>
<td valign="top" width="119">
8.9%
</td>
</tr>
<tr>
<td valign="top" width="119">
PADDINGTON
</td>
<td valign="top" colspan="2" width="115">
$701.99
</td>
<td valign="top" colspan="2" width="124">
$764.36
</td>
<td valign="top" colspan="2" width="119">
$62.36
</td>
<td valign="top" width="119">
8.9%
</td>
</tr>
<tr>
<td valign="top" width="119">
DARLINGHURST
</td>
<td valign="top" colspan="2" width="115">
$482.15
</td>
<td valign="top" colspan="2" width="124">
$522.88
</td>
<td valign="top" colspan="2" width="119">
$40.74
</td>
<td valign="top" width="119">
8.4%
</td>
</tr>
<tr>
<td valign="top" width="119">
CHIPPENDALE
</td>
<td valign="top" colspan="2" width="115">
$513.43
</td>
<td valign="top" colspan="2" width="124">
$556.13
</td>
<td valign="top" colspan="2" width="119">
$42.70
</td>
<td valign="top" width="119">
8.3%
</td>
</tr>
<tr>
<td valign="top" width="119">
BONDI
</td>
<td valign="top" colspan="2" width="115">
$523.67
</td>
<td valign="top" colspan="2" width="124">
$567.13
</td>
<td valign="top" colspan="2" width="119">
$43.46
</td>
<td valign="top" width="119">
8.3%
</td>
</tr>
<tr>
<td valign="top" width="119">
POTTS POINT
</td>
<td valign="top" colspan="2" width="115">
$377.83
</td>
<td valign="top" colspan="2" width="124">
$407.92
</td>
<td valign="top" colspan="2" width="119">
$30.09
</td>
<td valign="top" width="119">
8.0%
</td>
</tr>
<tr>
<td valign="top" width="119">
CREMORNE
</td>
<td valign="top" colspan="2" width="115">
$500.83
</td>
<td valign="top" colspan="2" width="124">
$538.19
</td>
<td valign="top" colspan="2" width="119">
$37.36
</td>
<td valign="top" width="119">
7.5%
</td>
</tr>
<tr>
<td valign="top" width="119">
BRONTE
</td>
<td valign="top" colspan="2" width="115">
$518.10
</td>
<td valign="top" colspan="2" width="124">
$555.49
</td>
<td valign="top" colspan="2" width="119">
$37.38
</td>
<td valign="top" width="119">
7.2%
</td>
</tr>
<tr>
<td valign="top" width="119">
LEICHHARDT
</td>
<td valign="top" colspan="2" width="115">
$583.11
</td>
<td valign="top" colspan="2" width="124">
$624.99
</td>
<td valign="top" colspan="2" width="119">
$41.88
</td>
<td valign="top" width="119">
7.2%
</td>
</tr>
<tr>
<td valign="top" width="119">
BONDI BEACH
</td>
<td valign="top" colspan="2" width="115">
$509.13
</td>
<td valign="top" colspan="2" width="124">
$545.57
</td>
<td valign="top" colspan="2" width="119">
$36.44
</td>
<td valign="top" width="119">
7.2%
</td>
</tr>
<tr>
<td valign="top" width="119">
PYRMONT
</td>
<td valign="top" colspan="2" width="115">
$578.14
</td>
<td valign="top" colspan="2" width="124">
$618.86
</td>
<td valign="top" colspan="2" width="119">
$40.72
</td>
<td valign="top" width="119">
7.0%
</td>
</tr>
<tr>
<td valign="top" width="119">
ARTARMON
</td>
<td valign="top" colspan="2" width="115">
$494.98
</td>
<td valign="top" colspan="2" width="124">
$529.68
</td>
<td valign="top" colspan="2" width="119">
$34.70
</td>
<td valign="top" width="119">
7.0%
</td>
</tr>
<tr>
<td valign="top" width="119">
LANE COVE
</td>
<td valign="top" colspan="2" width="115">
$418.33
</td>
<td valign="top" colspan="2" width="124">
$446.33
</td>
<td valign="top" colspan="2" width="119">
$28.00
</td>
<td valign="top" width="119">
6.7%
</td>
</tr>
<tr>
<td valign="top" width="119">
COOGEE
</td>
<td valign="top" colspan="2" width="115">
$540.33
</td>
<td valign="top" colspan="2" width="124">
$575.61
</td>
<td valign="top" colspan="2" width="119">
$35.28
</td>
<td valign="top" width="119">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="119">
ST LEONARDS
</td>
<td valign="top" colspan="2" width="115">
$499.54
</td>
<td valign="top" colspan="2" width="124">
$531.88
</td>
<td valign="top" colspan="2" width="119">
$32.35
</td>
<td valign="top" width="119">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="119">
HURSTVILLE
</td>
<td valign="top" colspan="2" width="115">
$359.48
</td>
<td valign="top" colspan="2" width="124">
$381.47
</td>
<td valign="top" colspan="2" width="119">
$21.99
</td>
<td valign="top" width="119">
6.1%
</td>
</tr>
<tr>
<td valign="top" width="119">
NORTH BONDI
</td>
<td valign="top" colspan="2" width="115">
$553.20
</td>
<td valign="top" colspan="2" width="124">
$586.26
</td>
<td valign="top" colspan="2" width="119">
$33.06
</td>
<td valign="top" width="119">
6.0%
</td>
</tr>
<tr>
<td valign="top" width="119">
ROSE BAY
</td>
<td valign="top" colspan="2" width="115">
$442.79
</td>
<td valign="top" colspan="2" width="124">
$468.73
</td>
<td valign="top" colspan="2" width="119">
$25.94
</td>
<td valign="top" width="119">
5.9%
</td>
</tr>
<tr>
<td valign="top" width="119">
CHATSWOOD
</td>
<td valign="top" colspan="2" width="115">
$593.33
</td>
<td valign="top" colspan="2" width="124">
$627.42
</td>
<td valign="top" colspan="2" width="119">
$34.09
</td>
<td valign="top" width="119">
5.7%
</td>
</tr>
<tr>
<td valign="top" width="119">
BONDI JUNCTION
</td>
<td valign="top" colspan="2" width="115">
$601.62
</td>
<td valign="top" colspan="2" width="124">
$634.95
</td>
<td valign="top" colspan="2" width="119">
$33.33
</td>
<td valign="top" width="119">
5.5%
</td>
</tr>
<tr>
<td valign="top" width="119">
SYDNEY
</td>
<td valign="top" colspan="2" width="115">
$616.08
</td>
<td valign="top" colspan="2" width="124">
$648.78
</td>
<td valign="top" colspan="2" width="119">
$32.71
</td>
<td valign="top" width="119">
5.3%
</td>
</tr>
<tr height="0">
<td width="138"></td>
<td width="1"></td>
<td width="113"></td>
<td width="123"></td>
<td width="1"></td>
<td width="119"></td>
<td width="0"></td>
<td width="119"></td>
</tr>
</tbody></table>
 Source: RUN Property
</body></html>

jchancellor-FAypfDUnLy

Sydney's six strong rental suburbs - mostly inner city, but Ryde gets aboard

<html><body>
A new report into the property market that takes issue with a traditional metric used to define affordability has found families earning more than $100,000 are less able to buy a house compared with couples earning only $60,000 to $70,000. 
The new Australian Housing and Urban Research Institute has also revealed workers earning less than $40,000 a year are becoming less able to buy property at all.
Report author Terry Burke says traditional metrics use a "30% rule", which states no person should spend more than 30% on housing.
"The problem with that measure is that it assumes every family has equal ability to afford housing, but more household types of have far different and higher expenditures," Burke says.
"For certain families, after meeting necessary expenditures their discretionary income is far less. So what we are proposing the residual market method, you look at the different housing types, different families, and then after expenditures, see what they have left."
Once this measure is applied, the issue of affordability becomes much more dire, the report argues.
"For the households examined, representing about 75% of all Australian households, the residual income method for the lowest 40% of income earners shows a much higher incidence of affordability problems," it argues.
"33.6% use a low-cost-budget-standard, compared to 23.9% by the 30/40 method."
The report also argues that renters have it worst off, particularly aged renters, while families are "problematic, particularly if they have younger children".
"Among households with children, 34.3% were below the low-cost-budget standard, but if the children were under five it was 68%. Why this is the case is probably a combination of the additional costs of the second children being less, and more importantly, a parent may have to drop out of the workforce for some time to undertake child-rearing functions."
Overall, the report found the usefulness of the residual income method is questionable.
"What this is showing," Burke says, "is that singles and couples have much greater capacity to afford housing than suggested by the 30% rule, and that larger households have less capacity to afford."
"You can imagine if you're a single person earning $100,000, then you have a lot to spend on housing, but if you're a family on the same amount, you have much less."
Analysing housing in Melbourne, the report found that families are gradually being pushed into the outer fringe of the city and that more singles are heading into the inner suburbs, resulting in a greater number of smaller apartments being built.
"You don't see a lot of affordable three bedroom apartments being built. It's all one-bedroom and two-bedroom apartments," Burke says.
However, the report stops short at putting forward a detailed proposal for solving the crisis. In the end, Burke says, it's up to the government.
"There is nothing new and radical in what we can suggest. It's a problem of land use, high policies around land, zoning permits, negative gearing, and so on."
"It's a problem of supply. We can't come up with any new solutions, because they're pretty well known. The government just has to do them."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/property/20111017-housing-affordability-measures-attacked-as-new-report-says-families-are-being-forced-to-fringe-suburbs">SmartCompany</a>.
</body></html>

cknowlton-QnEa6ntUYP

Housing affordability measures attacked as new report says families are being forced to fringe suburbs

<html><body>
<img src="/images/stories/philpottflicker.jpg">
A redundant electricity substation on a 77-square-metre block at Marrickville<a href="/news"> </a>suitable for conversion into residential use has been sold for $515,000. 
It’s one of the 1,000 substations that were built across Sydney from the late 1870s as the demand for electricity grew throughout the city.
There are approved plans by Tanner Architects to convert the <a href="/news">Marrickville </a>property into a 159-square-metre, three-bedroom, two-bathroom abode with roof terrace with louvered pergola. It sold to a family who plan to build.
Its BresicWhitney listing agent Matt Carvalho had expected $500,000 plus for the Philpott Street listing. There were six registered parties and four bidders after bidding began at $400,000. 
It’s been subdivided off the neighbouring Globe Mills apartment development.
While many are simple designs, the Marrickville substation was built to fit into the architecture of its factory surroundings. It comes with three high steel roller shutter doors.
Substations were camouflaged as everything from Federation homes and Californian bungalows to castle-like structures.
<img src="/images/stories/philpottplans.gif">
</body></html>

No shocks as redundant Sydney substation fetches $515,000

<html><body>
Melbourne’s median has dropped to $551,000, according to the Real Estate Institute of Victoria’s September quarter market update, given concerns about the international economy and negative consumer sentiment. The results equated to more than two-thirds of Melbourne's homes having either lost value or stayed flat in price over the past three months, with just 78 of the 272 reported suburbs growing in value over that time.
<img src="/images/stories/reivoct17large.gif">
Prices have come back $50,000, or 8.3%, from their peak last December.
“We are now experiencing a soft housing market,” REIV chief executive Enzo Raimondo says.
The 2.8% reduction was on the revised June quarter median house price of $567,500.
The result was similar in the unit market, where the median dropped by 2.3% from $467,000 to $465,500 on revised numbers.
The REIV had surprised the market when it initially gave Melbourne’s median house price as $590,000 in the June quarter, which represented a 5.4% jump. The REIV initially has Melbourne’s median unit price as $474,000, which represented a 3.2% rise.
“The recent trend of reduced demand in the more expensive segments of the market has continued,” Raimondo notes.
And the effects of the surge in population between 2005 and 2010 were still bolstering demand in the more affordable suburbs.
“Across Melbourne this means that the outer suburbs have recorded an overall better result than the inner ones have.”
With a 10% annual jump to $385,000, Deer Park topped the list of suburbs recording positive growth over the year.
Positive growth over the year has also been recorded in Wyndham Vale, Sunbury, Caroline Springs, Berwick, Hawthorn and Balwyn, which topped the list of suburbs with its September quarter growth.
Demand in regional Victoria has largely mirrored that in Melbourne, with the median price of a house dropping by 3.1% to $310,000 from $320,000 in the June quarter.
Of the main regional centres, Geelong recorded a 5.7% jump to a median house price of $390,000.
In Ballarat prices were stable, with the median of $285,000, and in Bendigo there was a 2.6% reduction to $277,500.
“The lesson from the GFC, when the median fell by 14%, is that the market will remain subdued until confidence improves in the economy or there is stimulus in the form of lower interest rates,” Raimondo suggests.
Top 10 Growth Suburbs, Houses (Annual)
Note: Only suburbs where a minimum of 30 sales recorded in each quarter are included.
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="108"></td>
<td width="133">
Suburb
</td>
<td width="77">
Sept-11 Median
</td>
<td width="77">
Sept-10 Median
</td>
<td width="80">
Annual Change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Deer Park
</td>
<td>
$385,000
</td>
<td>
$350,000
</td>
<td>
10.0%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Wyndham Vale
</td>
<td>
$350,000
</td>
<td>
$318,950
</td>
<td>
9.7%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Mount Eliza
</td>
<td>
$770,000
</td>
<td>
$705,000
</td>
<td>
9.2%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Hawthorn
</td>
<td>
$1,300,000
</td>
<td>
$1,205,000
</td>
<td>
7.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Frankston South
</td>
<td>
$552,500
</td>
<td>
$515,000
</td>
<td>
7.3%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
Balwyn
</td>
<td>
$1,590,000
</td>
<td>
$1,490,000
</td>
<td>
6.7%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
Sunbury
</td>
<td>
$373,000
</td>
<td>
$350,000
</td>
<td>
6.6%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Berwick
</td>
<td>
$490,000
</td>
<td>
$460,000
</td>
<td>
6.5%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Newport
</td>
<td>
$706,750
</td>
<td>
$665,000
</td>
<td>
6.3%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
Caroline Springs
</td>
<td>
$443,500
</td>
<td>
$420,000
</td>
<td>
5.6%
</td>
</tr>
</tbody></table>
 
Top 10 Growth Suburbs, Houses (Quarterly)
Note: Only suburbs where a minimum of 30 sales recorded in each quarter are included.
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="108"></td>
<td width="133">
Suburb
</td>
<td width="77">
Sept-11 Median
</td>
<td width="77">
Jun-11 Median
</td>
<td width="80">
Quarterly Change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Balwyn
</td>
<td>
$1,590,000
</td>
<td>
$1,280,000
</td>
<td>
24.2%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Deer Park
</td>
<td>
$385,000
</td>
<td>
$346,500
</td>
<td>
11.1%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Brighton East
</td>
<td>
$1,156,250
</td>
<td>
$1,050,000
</td>
<td>
10.1%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Newport
</td>
<td>
$706,750
</td>
<td>
$655,000
</td>
<td>
7.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Glen Waverley
</td>
<td>
$768,800
</td>
<td>
$722,000
</td>
<td>
6.5%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
Wyndham Vale
</td>
<td>
$350,000
</td>
<td>
$330,000
</td>
<td>
6.1%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
Boronia
</td>
<td>
$455,000
</td>
<td>
$432,750
</td>
<td>
5.1%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Narre Warren South
</td>
<td>
$410,000
</td>
<td>
$395,000
</td>
<td>
3.8%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Rowville
</td>
<td>
$550,000
</td>
<td>
$530,000
</td>
<td>
3.8%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
Carrum Downs
</td>
<td>
$355,000
</td>
<td>
$342,500
</td>
<td>
3.6%
</td>
</tr>
</tbody></table>
</body></html>

Melbourne median house prices fall in see-sawing market

<html><body>
Melbourne’s rental vacancy stands at 2.3% of rental homes managed by real estate agents, representing a small contraction since the 2.5% of July.
The vacancy rate has averaged 2% over the past six months, according to the survey of Real Estate Institute member agencies.
The last time the overall Melbourne market was in balance – a vacancy rate of 3% or higher – was back in January 2005.
Within Melbourne the greatest vacancies are in the outer suburbs, although the rate contracted from 3.2% in July to 2.9% in August.
The middle suburbs' vacancy rate was 2.4%, tighter than the 2.6% in July.
Melbourne’s inner suburbs’ vacancy rate contracted from 2.2% to 1.7%.
Real Estate Institute of Victoria chief executive Enzo Raimondo notes the vacancy rate remains lower in regional Victoria than in the capital, with 1.9% of rental homes vacant in regional Victoria, an increase from the tight 1.6% in July.
It was the highest for more than a year in the regions.
The Geelong region has the highest availability of the main regional centres, with 3.7% compared with 2.1% in July.
In Ballarat the rate tightened from 0.8% to 0.6%.
In Bendigo the rate eased slightly from 0.3% to 0.4%.
Warrnambool’s vacancy rate went from 3.3% to 4.6%, REIV figures show.
</body></html>

Melbourne's vacancy rate tightens to 2.3%

<html><body>
The property at 72-76 Bayswater Road, Potts Point is now 40 luxury apartments, next to the Vibe Hotel Sydney. The land was recently valued at $8.9 million. In 1982 my family owned this parcel of land there and had done for a very long time, in fact for over four decades. On the land they operated a 60-room bed and breakfast.  As people do, they grew weary of the property and the going concern of the bed and breakfast, therefore the duly sold the property for $200,000.  At the time, my parents spent the profit! My mother bought a Datsun sunny motor vehicles and a two-bedroom unit at North Bondi. Five years later 72-76 Bayswater Road, Potts Point sold for $4 million and has since re-sold again for more and now the land alone is worth over $8.9 million. 
So what did those original buyers understand about the property and the area that my parents didn’t? At the time Sydney’s Potts Point was very different landscape to what is today. Being the neighbouring suburb to Kings Cross it was the underbelly of undesirable activity. Being only two kilometres to the city, it was and is still a hotbed of action. 
At the top of Bayswater Road Potts Point, you have the most amazing views of the city and ability if high enough to see the majestic Sydney Harbour. I cannot help to feel that person who acquired my old family estate to be a visionary.  To see through the mist of undesirable activity and know that the property was a diamond in the rough would have taken a lot of market knowledge, surely?
 
Most people look at real estate retrospectively and those that do tend to be home owners not investors.  I think every family has a story about the property that got away from them.  Buying, holding and selling real estate takes some market understanding of the suburb the real estate is in and the suburbs ability to change.  In real estate we call this change to a suburb gentrification. 
The sole purpose of an investor is to turn a profit. Real estate is the only asset class that can be controlled by the people, its bricks and mortar, and it truly is “capital in the hands of the people”. No other investment offers the average Australian the ability to engage the powers of leverage and be able to have hands on self-managed approach to the owning an asset.  The challenge is usually not the ownership; it’s the lack of vision of the future that is the dominant mistake by amateur buyers. 
It is hard to imagine for those many who haven’t yet invested into this wonderful wealth creation asset,  as the assumption by many is that real estate is simply home ownership. The tone that is set by investors and visionaries in real estate is a very different to that of a home owner. Investors strive to invest where markets will grow and change and emerge for the better. Home buyers buy on affordability to nest. 
To understand where to invest in real estate, you need to follow the spending habits of government and the consumer habits of people and the places they inhabitant; success in real estate comes with understanding many aspects of the market in detail however one predominant  key to an investors success is researching or even scrutinising the town plan. 
See in the end, it was my family’s naivety to the “highest and best use” of the suburb that robbed them of an achievable small fortune. For in 1987, $4 million was a vast sum of money. Had they just learnt their local town plan, they would have understood the pending alterations to the town plan in Potts Point allowing zoning and infrastructure changes that eventually lead to the pursuant gentrification of the area! They surely would have held the property goldmine they were sitting on.....if they only knew! 
Town planning 
Explaining and understanding town planning is sometimes a little technical, so the easiest way I think of it is as follows: the thousands of moving parts to a city, town or suburb and how these parts relate to one another. Quintessentially it is “the greatest good for the greatest number”. 
When factoring in real estate and the town plan, its bests to break down town planning into just a few sections. 
<ol>
<li>People</li>
<li>Places </li>
<li>Infrastructure</li>
<li>The state town plan </li>
<li>The local environment plan or LEP ( NSW Terminology ) and the development control plan or DCP (NSW Terminology )</li>
</ol>
The principle behind examining the town plan is that investors can find a better property in more sustainable areas if the locality is progressive and well planned. Extracting value through real estate is most easily done when the market does that for you. Ultimately you want to control assets, add as much value to them or have the market provide a value add to ensure the yields remain high for as long as possible. You don’t want to buy real estate and sell it unnecessarily though a lack of education on what is a progressive town plan and what is not.  Let’s examine some of the variables. 
People – Anthropology is the study of people. Demographics is a huge driver in real estate and within any culture there are groups that make up and drive the economy.  People have a huge impact on property prices.  The key is working out where they want to live next and what they are likely to spend their money on. I always find demographics fascinating as the trends are constantly evolving with time. Each generation has sub cultures that they form! 
These changes in household structure mean Australians have an increased desire to re-shape what property looks like and means to them. See the house sizes in Australia are getting smaller. Research shows that many people no longer want the quarter-acre block and within 15 years 30% of all homes in Australia will be single-person households. 
Demographic influences have a wonderful impact on property; study the spending habits of people and you are sure to find a profit! Understand where people see value next and you will find an emerging suburb to buy in. The areas town plan may have already begun to accommodate the needs of the emerging community and will act as a gage as to whether to invest or not. In the 1900s there were five people to a house in Australia, now it’s around two. Everything we do affects housing, for example divorce!  One out of three couples gets divorced, that rate puts pressure on the property market, now mum and dad both need separate homes. 
Places
Linking the study of people and social movements takes vision!  So why is it, that some of the grungy, cheap areas we all know about with high crime rates and undesirables, become the areas that are trendy and fashionable that eventually leads to  spectacular dwelling capital growth and high house prices. Places like Collingwood Melbourne, Redfern or Marrickville Sydney or Fortitude Valley Brisbane are good examples of urban renewal and gentrification at work. 
The real estate market exposes itself to value and opportunity regularly but not every suburb has value thrust upon it at the same time. In real estate there is an old phrase, “It is better to buy the worst house in the best street, than the best house in the worst street.” However I would like to coin a second phrase. “It is better to buy into a suburb that is a blank canvas rather than into a suburb that is a Picasso.” 
If an area is starting to be exposed to change but full change hasn’t yet occurred that is wonderful sign that capital growth will be assured in the real estate in that area! Bowen Hills in Brisbane is a classic example of gentrification that is yet to occur but surely will.  Located just two km to the CBD of Brisbane it is a solid market with an extraordinary future town plan. Yet, it is currently a “blank canvas”! Conversely other suburbs that are a similar distance to the CBD of Brisbane offer fine coffee and one can eat, drink and socialise with an array of merchants to choose from, these suburbs are bustling small pockets of activity. However these suburbs are already “Picassos”. In other words people are paying top dollar to live in the area and if you buy there, you are just paying for someone else’s capital growth. The science of understanding gentrification is to buy in a neighbourhood that is due to become the next great work of art. 
 
Infrastructure - Developers and governments spend billions of dollars on Infrastructure each year. They provide roads, schools, hospitals, transport, and commercial and office infrastructure to boost the needs of the community. And in doing so, re-shape and redefine the planning requirements for both the state and local government areas. You will find growth if you can locate this emerging infrastructure spend. Be sure the infrastructure is real and forthcoming through, and not fictitious stories, political propaganda or a fanciful hope. Check the town plan and government reports to validate your position. 
Aligning your investment next to huge infrastructure spends is a sensible way to gage future growth. I always consider where the public listed property companies are choosing to invest. It would be naive to think they do not have the best town planners working for them.  I follow their investments with great interest and work out how to buy for less in the same area. Governments and listed companies will spend a fortune, literally billions and billions of dollars influencing areas. Capturing that influence is a very smart way of buying property for the long term. 
State town plan - Each state puts out a plan or vision for the future. It is usually a twenty five year agenda of what the city will look like.  Economic hubs such as cities are areas of state significance.  Where people work is typically high on the radar, when considering a suburb to invest in, when considering the states town plan there is llegislation requiring the consideration of the environmental impact of the state driven development.  The state tends to control the following elements. Understanding these elements can help you understand a whole range of drives, such as supply and demand, economics and population movements and whether to invest in that state at all. 
At age 18 I was a real estate agent in North Ryde in Sydney, a government planning imitative the “Chatswood to Epping” rail link was touted to unfold over a three years period.  As a result of the announcement by government many Investors speculated and bought in the area based on the news. It took some six years before a track was laid and ten years for the infrastructure to be delivered. So the lesson is to buy just as they start the construction. I have never seen a major road or rail network half built! But have seen plenty of false starts. 
The local environmental plan and development control plan or DCP (NSW terminology)
LEP – Each local government area puts out a plan or vision for the future. It is on display within the council. It factors in many aspects and is very useful for understanding opportunities and restrictions of an area. This change can literally be street by street. So you need to get an understanding of it.   The single biggest change that can occur in the local town plan is height and density changes.  This forms the backbone of subdivision and extensions and adding value principles for real estate. 
 
Development control plan or DCP - Each area has a development control plan, so when factoring in the “highest and best use of real estate” you need to engage the plausibility of approval. In other words will the parcel of land pass the development consideration that need to be taken into account? If it does, you could well be on your way, to extracting a profit!
Some elements of consideration are listed below:
<ul>
<li>Car parking</li>
<li>Height limits</li>
<li>Building lines – distance shadows etc</li>
<li>Laundry facilities</li>
<li>Water, sewerage, drainage and electricity </li>
<li>Beatification of unused land – landscaping </li>
<li>Minimum frontage and depth</li>
<li>Minimum block size</li>
<li>Plot ratio – number of floors</li>
<li>Density ratio – number of one-, two- and three-bedroom units</li>
<li>Ingress and egress, ( in and out) driveway, right of way, walkway</li>
<li>Fire ratings</li>
<li>Covenants, caveats, encumbrances </li>
</ul>
 
Town planning is a key education requirement for your journey through investing. It can be the difference between selling a property for $200,000 or for $4,000,000. By researching carefully what attributes the people and a suburb have by exploring the areas ability to embrace change via the town plan you may find opportunity. Often suburbs can be targeted for re-gentrification after similar suburbs have been re-vitalised. Property can reap the benefits of this catalyst for capital growth. Seeing the potential and understanding an area and judging change will serve you well. 
The study of real estate fundamentals is important. It will serve you well and serve you for a lifetime. If people took the time to understand and school themselves in real estate practices, wealth would not just be for a select few. Town planning is an imperative schooling for all investors.
Sam Saggers is CEO of<a href="https://www.positiverealestate.com.au/ME2/Sites/Default.asp?SiteID=697F1E57F8A54C7F9582C3C49417EEC4" target="_blank"> Positive Real Estate.</a>
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Successful property investment requires vision

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The shabby face of Fremantle may get a much-needed makeover, with the council entering discussions about the redevelopment of the languishing Kings Square site.
Fremantle entered into a memorandum of understanding with Perth private equity firm Sirona Capital Management, which owns the ageing Myer building on the site.
Sirona, which has retained property developer Luke Saranceni to run the project, plans to deliver 20,000 square metres of refurbished retail and commercial space worth $80 million in 2013.
Earlier this year Myer was considering closing its door after 40 years of trading there. A delegation from Fremantle Council visited Melbourne to persuade the retailer to stay. It currently trades from only two levels of the four-floor building, which Perth financier Kelvin Flynn’s Sirona bought earlier this year.
The council owns much of the property on the historic square and is considering putting a hotel on the site. The MOU allows feasibility studies negotiations with Sirona to take place until June 2012.
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Kings Square in Fremantle set for a facelift

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Philip Smith, the Colliers agent who helped facilitate the transformation of a Wollongong Hotel into a psychiatric facility, says similar transformations could prove beneficial for struggling regional tourism operators by providing alternative income streams. 
“We understand there are some Sydney hotels trying to deals with some major hospitals to take on post-natal mums with infants for the first days following childbirth,” says Smith, Colliers national director of transaction services for health care and retirement living. 
While he says such transactions are not common, he suspects more could follow, “particularly in relation to older properties that are no longer ‘fit for purpose’ or up to expectation standards. 
“There are some fundamental changes coming to the aged-care industry in Australia, and public hospitals are really stretched from post-op and medical patients. This may present an opportunity. 
“I worked in the UK for a long period, and saw some small hotels and B&amp;Bs open up their properties for emergency housing and interim care, key worker accommodation or even asylum seeker temporary accommodation.” 
Smith brokered the deal between Australian Property Trust, owner of the Rydges Wollongong and new tenant Evolution Health Care. 
Since the APT made the initial hotel investment in 2005, Smith says many new competitors have come in, effectively making Wollongong “over-bedded” in terms of hotel beds. 
At the same time he says the healthcare market has long recognised that the Illawarra region is poorly served in terms of private mental health facilities, but the costs associated with new build hospitals are generally prohibitive. 
“There is no private mental health facility in the Illawarra, and given the location near the city centre and public hospital or health precinct, it was logical that the property was better suited as a health facility, “he says. 
“Conversion of existing accommodation facilities are generally more cost-effective,” he says. 
“With APT, we explored this concept of a number of operators, and got a long way down the track with negotiations with another major operator, but final terms could not be agreed. Evolution Care then came in and both parties showed enough flexibility to ensure a sensible agreement could be reached,” he says. 
Smith says it took only around two months from beginning to end to complete the agreement. 
The trust weighed up the current value of the hotel against the cost of conversion to a sub-acute private hospital with a secure lease in place. 
It also undertook discussions with mental health specialists in the region to gauge the demand in the community for such a facility. 
“From there, it was a question of whether the lease payments were affordable,” Smith says. 
APT will undertake a $4 million refit of the hotel, and Evolution Care has committed to a long-term lease arrangement.
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More hotels could become hospitals in wake of ailing leisure sector

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A string of good or at least better-than-expected data this week has dimmed expectations for a rate cut next month, but a worsening of the European debt crisis would likely force the central bank's hand, economists say.

CommSec economist Savanth Sebastian says yesterday's official job figures showing the unemployment rate had dropped one percentage point to 5.2% had "muddied the waters to some degree", but a rate-cut decision would be driven by events in Europe.
"If the RBA is going to cut rates, it's going to be on global concerns rather than domestic conditions," Sebastian says.
"And if the Reserve Bank policymakers do cut rates, it'll be to shore up confidence rather than provide stimulus," using the example of the Reserve Bank of New Zealand's decision to slice rates after the Christchurch earthquake.
Sebastian notes that jobs growth detailed in yesterday's ABS figures – with 20,400 new jobs created, including 10,800 full-time jobs – mainly came from the mining states.
There were 7,300 new jobs in Western Australia, and 4,900 new jobs in Queensland, plus growth in Victoria (3,400) and South Australia (900). New South Wales lost 1,300 jobs, and Tasmania lost 400.
The number of part-time jobs, up 9,600 to 3.41 million, was a record. The participation rate was steady at 65.6%.
The ABS figures follow a better-than-expected National Australia Bank business survey released on Monday.
CommSec's Savanth Sebastian says although the RBA has watered down its rhetoric on monetary policy in recent weeks because of the turmoil overseas, it would likely be interested in sitting on the sidelines because of Australia's robust terms of trade.
"We'd be advocating view rates on hold, but if we see external shocks then a cut is likely on the cards," Sebastian says.
The Reserve Bank last week drew attention to the "softer" labour market and consumers "more concerned about the possibility of unemployment rising", as it chose to leaves rates on hold at 4.75%.
But Westpac Banking Group says the numbers "reflect the statistical noise you would expect in a soft labour market that does not have a strong trend."
"We forecasted positive jobs numbers for September, mindful that it took the post GST volatility (back in 2000) to generate three consecutive monthly negative prints on jobs. Even the GFC could not do it," Westpac says.
The bank describes the Australian labour market as "soft rather than robust or collapsing."
"The Australian economy has shed close to 5,000 jobs over the last six months so it is clear the labour market has going through quite a soft patch," it says.
"We are forecasting the unemployment rate to peak at 5.75 by mid-2012. While WA is set to improve, and QLD should lift from here, the drag from the southeast (VIC and NSW) will be enough to see a rise in overall unemployment."
ANZ says the result "certainly doesn't change the story that trend employment growth has weakened considerably in the last six months."
"It would be a brave forecaster that suggested that this signals a turning point, given leading indicators of employment (such as the ANZ job ads series) remain soft," its senior economist Craig Michaels says.
Michael says the rebound serves as a "welcome stabilisation" for the RBA, and might give the central bank confidence that the boom states and match the sort parts for the time being.
"Whether the RBA will give greater credence to the leading indicators of employment, which currently point to a further modest rise in the unemployment rate, will be a key determinant of the outcome of the Melbourne Cup policy deliberations," he says.
"Despite today's bounce, we think weak leading indicators for employment, flat trend employment growth and the now weaker outlook for inflation means there is scope for the RBA to deliver an 'insurance' rate cut next month, given still heightened global uncertainty."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/economy/20111014-string-of-good-data-might-stop-rba-from-cutting-rates-economists">SmartCompany</a>.
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String of good data might stop RBA from cutting rates: Economists

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Blacktown estate agents – who have been in the spotlight this week following the auction finale of Channel Ten series The Renovators –are seeing first-time home buyers aiming to take advantage of the state government’s reduced stamp duty offering on established cottages before the waiver runs out December 31.
Terry Li, the estate agent who sold the fibro cottage to Channel 10 for The Renovators series, says the market has marked changing characteristics.
“In a short-term period we will be experiencing a strong local market demand from first-home buyers, as there are already a large number who want to take the advantage of the stamp duty waiver,” Li says.
“But early next year we will be experiencing  a slower market as first- home buyers holds back and monitor the market movement.
“Investors have been on hold due to the lack of confidence in the share market. The past losses in the share market has yet to recover,” Li says.
He notes Blacktown is experiencing  4.6% annual growth, with a $365,000 median house price.
“The average discounting rate on houses at 7.1% makes it very affordable for the western suburbs, with a newly built shopping centre and train station upgrade and most recently car parking facility for the train commuters.
“The lowest for the suburb was back in 2007 with a $305,000 median price and a negative 4.7%.
“The market is gradually recovering,” he suggests.
James Lee at Comfirst Real Estate says the current market is still good.
“Buyers are mainly first-home buyers.
“I anticipate the market will slow down after the abolishment of stamp duty for first-home buyer exception from January 2012,” Lee says.
He suggests investors demand has slowed down in anticipation of a reduction in price after January 2011.
The properties in demand were priced between $350,000 and $400,000 for fibro houses and between $400,000 and $450,000 for brick veneer houses.
Lee doesn’t expect the Harold Street sale on The Renovators will affect the market.
Century 21 Joel Hollings, who assisted in the marketing of the $440,000 sale on The Renovators, says the market is relatively steady with a good mix of buyer and sellers.
He says the gap is widening between unrenovated houses and renovated  ones, which he says is a good sign for a true marketplace.
“In good times some of the unrenovated homes sell for more than what we expect as buyers get caught up in the hype and do not research properly,” he suggests.
He says the auction result has shown the Blacktown has lost its old stigma and “will be a choice of many more families to come”.
“We see the market staying stable in the coming months, although some commentators have said the market will drop after the first home buyers stamp duty exemption drops off.
“However as Blacktown is the lowest-value area in our basin we believe people will adjust their budgets from the more expensive areas as seen during 2008-2009 GFC and travel back into our market, thus counteracting any downturn caused by first-home buyers dropping off.”
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