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>
Esslemont, a 1916 Californian bungalow in Cremorne, has been sold by Kimberley McGurk.
McGurk's property developer husband, Michael McGurk, was murdered outside the Cranbrook Avenue property in September 2009.
The house last traded in 2000 for $1.65 million. More than $4.75 million had been expected when the heritage four-bedroom lower north shore Sydney house was listed earlier this year through Robert Simeon at Richardson &amp; Wrench Mosman.
The Esplin and Mould-designed house comes with a grass tennis court and pool on its 1,640-square-metre holding. It has a pitched roof, heavy timber beams, leadlight windows, sandstone foundations and an impressive veranda.
Clayton Utz, solicitor for the purchases, has lodged preliminary paperwork  before its upcoming settlement.
The price is yet to be revealed.
</body></html>

jchancellor-FAypfDUnLy

Cremorne house of the murdered Michael McGurk sold

<html><body>
For years governments have been lining their pockets at the expense of the housing market, and home buyers especially, to create the situation we have today. Affordability is at crisis point and the undersupply of housing cannot possibly meet the market’s needs.
The latest research highlights the absurdity of the taxation burden, particularly stamp duty, that the housing market in this country is faced with.
The<a target="_blank" href="https://www.propertyobserver.com.au/tax/hia-demands-tax-relief-for-new-housing-ahead-of-tax-summit/2011092951734"> CIE’s Taxation of the Housing Sector research report </a>makes numerous alarming findings, including:
<ul>
<li> In absolute terms, housing is the second largest contributor of tax to Australian governments;</li>
<li> New housing accounts for around 1.2% of value added in the economy but contributes 2.8% of government taxation revenues;</li>
<li> Most of the burden or incidence of taxation on housing falls on home buyers;</li>
<li> The most inefficient tax is levied at a state level, namely stamp duty; and</li>
<li> Due to the inefficiency of stamp duties, a mere $500 million cut to this tax would create a $738 million benefit to consumers and up to a $51 million benefit to producers.</li>
</ul>
The research was commissioned by the Housing Industry Association ahead of next week’s federal government tax forum.
Next week’s forum provides a perfect opportunity for reform at the federal level to recognise the disproportionate burden the housing market is being forced to carry and support an industry that is so vital from an economic and social perspective..
Stamp duty is the single greatest hurdle to affordability, and as this latest research identifies, is highly inefficient. This unfair tax is preventing the residential market and the economy as a whole from benefiting from a range of positive impacts and its abolition cannot come soon enough.
Developers occupy a vital position in the market but the sentiment at present is that there is little to be gained by proceeding with new projects. Excessive red tape and associated costs of development is not reflected in the margins achievable and so we are left at a standstill.
The massive housing undersupply and consequential affordability crisis has the market at a tipping point. A multi-pronged approach to reform that seeks to encourage new supply and support affordability is necessary from governments at all levels.
Let us hope the tax forum recognises and responds to this crisis before the great Australian dream fades to become merely a pipedream for many people.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
</body></html>

lpilkington-GWhcD9raad

Reduce burden of tax on housing before great Australian dream becomes a pipedream

<html><body>
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Are you searching for your next investment in the mining towns of Mt Isa, Kalgoorlie, Boulder, Cloncurry or Blackwater? Perhaps you should re-think your choice of location. Why?
Towns such as <a href="/news">Mt. Isa</a>, <a href="/news">Kalgoorlie</a>, Boulder, <a href="/news">Cloncurry </a>and <a href="/news">Blackwater</a>, as well as <a href="/news">Port Hedland</a>, <a href="/news">South Hedland</a>, <a href="/news">Karratha</a>, <a href="/news">Weipa</a>, <a href="/news">Moranbah</a>, <a href="/news">Dysart</a>, Kambalda and <a href="/news">Middlemount </a>were fantastic mining town hotspots. Some markets tripled in value from 2004 to 2007, however now they've become either stagnate or they're on a slight slide, as the homes in these areas have now reached their capacity for capital growth.
The markets referenced above performed very well during the commodities boom from 2003 to 2008. These areas grew rapidly as wages were very high while housing prices were relatively low. Wages averaged about $120,000 a year, or $2000 per week, while home prices started at $100,000 in 2003.
Higher wages caused housing prices to grow exponentially, until the growth was no longer sustainable. For the average miner to afford houses in these areas now, he would have to make $200,000 a year for an $800,000 house in Port Hedland to grow in value.
Rather than buy somebody else's capital growth, in tired markets, investors should look for certain key indicators when searching for the next mining hotspots.
<ol start="1">
<li>
Infrastructure spending is key to finding good growth markets. An investor should look for towns with more than $1 billion in planned private investment. One thing to note is that although the old boom towns have a lot of planned private investment in the works, investors would be smart to have a growth strategy in mind when choosing where to buy. Rather than buy homes that have reached their potential, thus buying somebody else's capital growth, investors should sink their funds into markets where house prices are still low.</li>
</ol>
<ol start="2">
<li>
Look for areas with multiple market economies. Markets that rely solely on one resource, for example, copper, will have economies that rise and fall with commodity prices, whereas areas with a more diverse economy can weather market fluctuations. Diversifying into dual market economies are an investor's best bet at getting decent rates of return for his portfolio. I'm now a believer, having lived the last market cycle to diversify into dual market economies. I saw house prices in Cobar reverse 30% in 2008, mainly as it's a single-market economy. Returns in <a href="/news">Cobar </a>were 10% and now they are 6%. Homes are worth 25% less because of the global financial crisis.</li>
</ol>
<ol start="3">
<li>Choose cities with aggressive councils that will set in place procedures to encourage growth and investment in the area.</li>
</ol>
<ol start="4">
<li>
Look for areas where large corporations are injecting billions of dollars in the area, expanding existing infrastructure and building new facilities.s</li>
</ol>
<ol start="5">
<li>
Keep in mind the demographics of the mining market when selecting homes in different areas. Each mining town has different areas that are worth buying in, however it's important to note that a typical miner may not want to live on certain streets because of lower socio-economic social issues. Also, the local demographic does prefer a reasonable standard of accommodation, so I would suggest relatively new properties rather than older ones, otherwise the miner may as well live in a mining camp! </li>
</ol>
<ol start="6">
<li>
Practise due diligence when searching out investment opportunities in mining towns to uncover any potential issues that may interfere with profits. The housing or dwelling type is less relevant than some of the idiosyncrasies a township may have. For example, some mining areas are subject to flooding and have environmental issues as a result from the local refinery. Also, some title towns and streets have title issues, mainly as the mines have covenants over the lands, providing a potential problem should the mines have a need for a mine extension underground. Most of Dysart, for example, is leasehold land, so you’re not even buying Torrens or freehold title in some cases.</li>
</ol>
Mining towns are a fabulous investment for individuals who are looking to invest for retirement. Right now investors can mirror what happened in the last mining boom by seeking out new mining markets that are expected to follow a new commodities boom that is taking place right now. Real estate is an investment that will certainly help you retire comfortably. Bearing this in mind, you need to ask yourself this final question in regards to mining towns: will the mine be yielding and operating the date I retire, or will that be the year they close or slow down production of that commodity and my valuable asset becomes significantly less valuable?
Recently I have read the rebuttals from speculators and many industry “experts” scaring people away from investing in mining towns – claiming towns can simply “disappear” if the mining town goes bust or relocates to other lucrative areas.  I have seen many experts advising people to invest in city locations over mining towns; however based on my investing experience and research there is not just one market in which I would “put all my eggs” so to speak!
I would like to stress that a savvy investor works towards a balanced property portfolio, a portfolio that has both cashflow properties and capital growth properties. So my strategy for profit would be to invest in strong cities and then diversifying to major regional markets that have significant property pressures. I really would not suggest a client goes into a mining town like Gladstone with high rental yields in preference over another investment in a city location with less rental yield unless I knew their particular financial and personal situation.
Sam Saggers is CEO of<a href="https://www.positiverealestate.com.au/ME2/Sites/Default.asp?SiteID=697F1E57F8A54C7F9582C3C49417EEC4" target="_blank"> Positive Real Estate.</a>
</body></html>

ssaggers-cYw3HLcXnJ

Rethink mining towns and don't invest in yesterday's hotspot

<html><body>
As we move into the summer months, I thought I would share with you my favourite vacation destination: <a href="https://www.kukio.com/">Kukio</a>, and the contiguous <a href="https://www.fourseasons.com/hualalai/">Hualalai Four Seasons Resort</a>, on the Big Island of Hawaii. 
I was actually married in a ceremony on the beach at Kukio, which you can see in the picture immediately below. As my wife and I stood before a Hawaiian celebrant, turtles and whales (and possibly the odd tiger shark) frolicked in the clear blue waters behind us. The portents were certainly promising.
<img src="/images/stories/kukio_0001_kukio1.png.jpg">
Kukio was the brainchild of Michael Meldman, founder of the <a href="https://en.wikipedia.org/wiki/Discovery_Land_Company">Discovery Land Company</a>, who you might have seen star in the TV show Entourage as a bidder for an NFL franchise. 
Another foundation investor in the project was the oil tycoon and philanthropist Billy Getty. I remember my brother-in-law bumping into Billy one day on Kukio’s golf course. He asked him what he did for a job. The billionaire’s response was, “Why son, I won the lottery of life.”
<img src="/images/stories/kukio_0002_kukio2.png.jpg">
Kukio is not actually a hotel, but one of the world’s most exclusive private clubs with circa 350 members. Membership does not come easily: you need to buy a home, which can be priced anywhere from US$3.6 million to $US50 million plus. Two of Kukio’s properties are rumoured to be individually worth more than US$100 million. 
The members themselves comprise numerous billionaires, such as the computer pioneer Michael Dell, and US celebrities. When my wife and I visited Kukio earlier this year we were lazing by the pool (pictured below) alongside Leonardo de Caprio, Cameron Diaz, A-Rod, Naomi Campbell and Toby McGuire. On the same trip we were sipping cocktails at the bar next to Lance Armstrong and Kelly Slater.
<img src="/images/stories/kukio_0000_kukio3.png.jpg">
Kukio is serviced by Kona’s small jet port, which is a 20-minute drive away. Landing over the harsh volcanic rock, which would make mincemeat of any unprepared aircraft, is a surreal experience. The airport itself is quite a sight, with the two tiny thatch huts (think a beach version of Cooma airport) typically enveloped by 50 to 60 private jets. 
At sea-level the Big Island of Hawaii resembles a moonscape with little flora able to survive among the very dry and ashen lava. Yet the island itself is massive (in fact, the so-called Big Island is larger than all the others combined). 
I took the following photo one morning on my BlackBerry. I was standing on the Four Seasons golf course, where it was about 30 degrees centigrade. Yet what you can see in the distance is a lava tube covered by white snow! People actually ski on the island’s highest peaks during the winter months. At sea-level in Kona, however, the weather is most remarkable for its predictable consistency: clear blue skies and 25 to 30 degrees centigrade for 365 days a year.
<img src="/images/stories/kukio4.jpg">
The service and quality of Kukio’s amenities are second to none. For just a few hundred members there are outstanding restaurants, two golf courses, a private beach with dedicated staff to help furnish every conceivable water sport, an enormous gymnasium and spa, three swimming pools, multiple tennis courts, a cinema, playing fields, and so on. 
The Fazio-designed golf course (see below), which has been carved into the volcanic rock above the resort, is a beautiful juxtaposition of the natural and built worlds with “rest centres” every few holes offering marble bathrooms and kitchenettes stocked chock-a-block with delights. The club staff will deliver you lunch on the course, including home-cooked, thin-crust pizzas.
<img src="/images/stories/kukio_0001_kukio5.png.jpg">
One of the great things about Kukio is that it is situated immediately alongside a fabulous <a href="https://www.fourseasons.com/hualalai/">Four Seasons Resort</a>, the freehold underlying which is owned by Michael Dell. So if you don’t know a member, you can stay at the Four Seasons, which is regarded by many as one of the best of its kind. Entry-level rooms are reasonably priced and can be booked for under $1,000 a night. 
If you are interested in buying at Kukio, check out <a href="https://www.propertyobserver.com.au/https://www.kukio.com/component/realestatemanager/view/41/16/71">lot 22</a> below, which is currently on the market for a cool US$15.5 million.
<img src="/images/stories/kukio_0000_kukio.png.jpg">
Christopher Joye is a leading financial economist and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
</body></html>

chrisjoye-JYhJsTrNRC

The best private resort in the world with prices that match the big-name guests

<html><body>
Global hotel investor interest will be sparked following the announcement that Colonial First State Global Asset Management will sell the three five-star Marriott hotels in Sydney, Melbourne and Brisbane that comprise its unlisted Commonwealth Property Hotel Fund. 
The hotels that will be put on the block are the 28-storey Brisbane Marriott acquired in June 2000, located at the Northern End of Queen Street and comprising 267 rooms; the 34-storey Sydney Harbour Marriott at the northern end of Pitt Street acquired by the fund in April 2001 and comprising 550 rooms and the 186-room Melbourne Marriott on the corner of Exhibition and Lonsdale streets in the theatre precinct acquired in February 2001. 
The Sydney Harbour Marriott is the most valuable asset in the portfolio, comprising 58% of its value. 
A global marketing campaign exclusively led by Jones Lang LaSalle Hotels Craig Collins and Mark Durran will commence in early 2012. 
In late 2009, the fund sold the Surfers Paradise Marriott Resort &amp; Spa for about $75 million to Indonesia’s Rajawali Group. 
John van der Wallen, fund manager for Commonwealth Property Hotel Fund, says the proceeds from that sale were used to pay down debt and to fund “extensive refurbishment works to set the remaining hotels up for the sale process”. 
The fund spent $18 million refurbishing the Sydney Harbour Marriott and $10 million on the Melbourne Marriott. 
“Refurbishment works included upgrading room accommodation, telecommunication and internet systems in Sydney and Melbourne, upgrading restaurants and bars in Sydney and Brisbane, while the façade and entry to the Melbourne Marriott is currently being improved,” van der Wallen says. 
Van der Wallen says the sale of the hotels “is in line with the realisation strategy of the fund and will allow investors to recycle their capital”. 
Collins says investor interest in the hotels is strong: “The sale of this portfolio is one of the most anticipated offerings in the Australian hotel investment market for some years. Over the past six months we have been constantly asked by investors when these hotels are coming to market. The time has finally arrived.” 
Collins believes the sale of this portfolio will be of particular appeal to major global investors looking for large-scale acquisitions.</body></html>

lschlesinger-FZcF9M3vE6

Three CBD Marriott hotels up for sale

<html><body>
Self-managed super funds overwhelmingly favour business property to residential property – sometimes to the detriment of the members’ retirement savings. 
ATO statistics shows that SMSFs have less than a quarter of their $58.9 billion direct property investments in residential. This immediately raising a straightforward question: Why? 
Martin Murden, director of SMSF consulting for services provider to accountants Partners Group in Melbourne, attributes a substantial part of the gap in popularity to the fact that many owners of small and medium businesses hold their business premises in their own funds. 
And Sean Preece, managing director of residential property adviser and buyer’s agency Capital 360, attributes the popularity gap to the higher average yield of commercial properties. As Preece explains, many fund trustees seek a higher yield to service investment loans on geared properties. 
However Preece, who advises many SMSFs on their property investments, argues that residential real estate is an “absolutely” appropriate asset for superannuation. 
Lower average yields aside, residential property potentially has a range of positive features for SMSFs including relatively low volatility compared with other growth asset classes, an inefficient market that opens up buying opportunities, and, historically, solid long-term capital gains on well-selected properties. 
And if a SMSF sells a property when the asset is backing the payment of a superannuation pension, no capital gains tax is payable. (This tax treatment, of course, applies to any growth assets.) 
Further, fund-held residential property can lend itself to some innovative, highly rewarding strategies. For instance, Preece says Capital 360 recently arranged for three SMSFs and three personal investors to each buy an apartment in a six-unit block. The owner of the block agreed to a 15% discount. And an inexpensive makeover of the flats boosted the yields. 
An innovative strategy for couple fund trustees is to buy their future retirement homes through their SMSFs. This strategy can provide excellent retirement savings, tax and lifestyle advantages. 
But be warned there are plenty of pitfalls for SMSFs when buying residential property – particularly if the property is geared.
For more on SMSF and property, see our e-book.
Tomorrow we will look at the top 10 tips for SMSFs investing in residential property.
</body></html>

mlaurence-vhAHaLZT8y

Why DIY super funds shouldn't snub residential property

<html><body>
Recently we gave a talk to more than a hundred high-net-worth individuals at the Sandringham Yacht Club for Peter Wilson of Godfrey Pembroke, where we involved the participants in a hands-on exercise that introduced them to “valuing” high-end homes.
There were three steps to the process. First we asked them to give their valuation of three 250-square-metre beachfront blocks in Sandringham that were up for sale. Then we informed them there was a conservative valuation of $5.4 million from a reputable valuer, and asked them to revalue the blocks in the light of this information. Then, after telling them the asking price was $8 million and there was possibly a winning consortium’s bid, we asked them to give a third and final valuation. Their final valuation had to be above the possible winning consortium’s bid – after all, there is no point coming second if you want to buy something.
Three clear things came out of this exercise:
1.            At the top end people have a very wide opinion of values: In this exercise the estimates varied from $3 million to $12 million on the same offering. People were genuinely trying to estimate correctly – there was self-interest involved.
2.            The power of suggestion: While the value range remained wide for the second lot of “valuations” after the $5.4 million value was tabled, not one participant’s valuation was now below $5.4 million. Once a credible suggestion had been given, it seems everyone put a floor under the price. Very interesting if you are the only taker on a home.
3.            <a href="https://www.propertyobserver.com.au/residential/a-smart-buyer-s-guide-to-step-quoting/2011091451554" title="A smart buyer's guide to step quoting" target="_blank">The power of step quoting</a>:  Scenario three produced a wide range of valuations but not one was below the valuation the respective participant had put in scenario two. In other words, for every one of the participants the price had gone up. This is again about the power of suggestion and the power of step quoting.
For buyers who believe that an asking price is an asking price and a valuation is a valuation – like rocks set in stone on which to build a platform of action – this scenario may seem a bit perplexing.
But the fact is that when you’re buying a property – especially at the top end – opinions, suggestions and questioning are how a final sell price is established.
When agents are dealing with buyers – including us as buyers’ agents – they use suggestion firstly to frame an area of thought e.g. a price range and then to move you the buyer up the price ladder. Depending on the agent’s credibility you will either go with that suggestion or you won’t.
Agents also use questioning to work out if you are actually on the price ladder – and if so at what position. They do this to ascertain broad interest which they report back to the vendor, and to ascertain your interest so as they can decide on a plan to take you up to the next rung.
As buyer’s agents our role is to do the reverse.  Our job is not to establish a credible floor, but to establish a credible ceiling. We use the power of suggestion to indicate to the selling agent where a client may be on the price ladder. We use questioning to gain information and to see if those suggestions have been effective.
Remember that in home buying there are three opinions that really count when it comes to forming or framing your price thoughts. Firstly: the vendor’s sell price (not asking price); secondly: the highest other bidder’s buy price (That is the only other buyer competition we are concerned about); and thirdly: your own thoughts on price. Which is actually the most important opinion on price.  Not the valuer, not the buying agent and not the selling agent, not Uncle Jim’s – but yours. If it is informed and considered then it is correct and more important than all others.
Some of you may view this all as a game and some may not want to be involved. But here in Melbourne, it’s the way homes are bought and sold (yes, even auctions). It’s called haggling or bargaining, and what that involves is a contest between seller and buyer. In many cases it’s unavoidable – and when it is, you might as well play the game as best you can.
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

maljames-vHwm28JUAa

The only valuation that matters is yours

<html><body>
The fate of Foster’s century-old Carlton and United Brewery building remains up in the air following the brewery’s acquisition by SABMiller for just under $11.5 billion.
The red-brick brewery complex covers more than 10 hectares of prime inner-city land on the banks of the Yarra River in Abbottsford and is just three kilometres from the Melbourne CBD.
The land is estimated to have a value of about $100 million.
Abbotsford is currently home to luxury residential developments projects including Hamton’s Haven on the River project scheduled to commence construction in late 2011 and Salta Property’s Green Square project – both on Victoria Street.<a href="https://www.propertyobserver.com.au/developments/trenerry-abbotsford-development-brings-residential-to-the-riverfront/2011091451544" target="_blank"> The Trenerry development</a>, on the banks of the Yarra, is slated to be complete in mid-2013.
A report carried out by investment bank Merrill Lynch in June last year found that Fosters could save between $150 million and $200 million a year on 55 million cases of beer produced at Abbotsford by relocating to a new brewery.
The savings would come from reduced electricity, water, labour, packaging and freight costs on each case of beer produced at the century-old brewery.
The CUB building has been home to Carlton &amp; United Breweries since 1904, when the beer-maker relocated from Swanston Street. The building is not heritage listed.
Graham Mackay, chief executive of SABMiller, says a decision on the building has not yet been made.
“To be quite blunt, if you're going to knock down Abbotsford brewery then you've got to build a new one,” he says.
Fosters has already sold off some parts of the brewery complex.
In 2007, Fosters completed a sale and leaseback agreement of 10 properties adjacent to the Abbotsford brewery site for $41 million to a joint venture comprising DPF, a managed fund of Charter Hall and the Perth-based Wyllie Group.
The sale included buildings used predominantly for offices, visitors and display centre together with open car parks used to accommodate staff working at the brewery.
The initial lease agreement was for 10 years with subsequent five- and seven-year options.
Charter Hall sold its 50% stake to the Wylie Group in 2009 for $18.3 million.
CUB’s former Swanston Street location in Carlton is currently the site of <a href="https://www.propertyobserver.com.au/commercial/it-s-becoming-easier-to-be-green-as-more-embrace-sustainable-commercial-design/2011072150878" target="_blank">Grocon’s $6 million “Pixel” building</a>, Australia’s first carbon-neutral office block.
</body></html>

Buyer has no draft plan yet for Carlton and United Brewery site

<html><body>
Owner-occupier demand for new housing is picking up while investor demand has shrunk, according to NAB’s September quarter survey of residential property. 
The increased participation from owner-occupiers comes as house prices fell 2.4% over the quarter, while gross rents rose just 0.7%. 
Demand from owner-occupiers increased by 6% over the September quarter to account for 52% of total demand while investor demand dropped to just 24%, after falling to 28% in the June quarter and 34% in March.
<img src="/images/stories/nabept281.gif">
According to NAB, the drop in investor demand is consistent with “recent data showing a slowdown in housing lending for investment purposes”. 
The drop in demand for new housing from investors is in line with declining expectations, with survey particpants (estate agents, owners, investors, etc) now expecting investors to account for about 25% of the market over the next 12 months, with owner-occupier demand expected to be up around the 50% mark. 
The shares of first home buyers and overseas buyers in the market were broadly unchanged at 17% and 6% respectively over the September quarter is expected to remain broadly unchanged over the next 12 months.
<img src="/images/stories/nabsept282.gif">
Overall, the NAB Residential Property Index – a measure of house price and rental expectations - fell to 14 points in September following a five-point drop in June. 
However, the index conceals considerable variation among the states, with conditions identified as being much weaker in Queensland, Victoria and SA/NT. 
NSW and WA bucked the national trend and managed to produce small index gains. 
Looking ahead, expectations have weakened relative to the last survey with the national index expected to be softer on the back of weaker house price expectations in Victoria and a more subdued outlook for rents in all states, bar NSW.
Survey respondents identified tight credit conditions as their most “significant” concern in the September quarter - a result that was consistent among all the states - but seen as being a “very significant” constraint in SA/NT and WA. 
Housing affordability replaced rising interest rates as the next biggest constraint on new property developments in September, with these concerns also assessed as  “significant” and slightly more so than in June. 
Housing affordability concerns were most prevalent in Victoria, which is consistent with HIA data showing that Melbourne was the least affordable place in the country to purchase a home during the June quarter.
</body></html>

Owner-occupier demand rises while house prices drop 2.4%: NAB

<html><body>
New home sales have concluded a dramatic bout of declines by rising 1.1% in August, according to latest figures from the Housing Industry Association, although improvements have been confined to a few states.
The figures show sales rose by 1.1% after plummeting 8% in July and 8.7% in June, strengthening the group’s push for industry assistance at next week’s Tax Forum.
HIA chief economist Harley Dale says although the result appears positive “there is a little bit of devil in the detail”.
“If you look at the results in Queensland, during the month of August this was actually the first month that the state government building boost came in,” he says.
“That has given the industry a small lift off a very low base.
“You’ve got a modestly better month in Victoria within an overall downward trend and that has been the healthiest markets.
“There are specific results that have led to the boost in the headline rate.”
The results show that detached home sales rose by 1.5% but overall are down by 15% over the August quarter.
Sales of multi-units fell by 2.2%. In Queensland sales of detached homes rose by a massive 9.8% while Victorian sales rose by 3%.
But Dale points out that New South Wales sales fell by 5.8% – the fourth straight decline – while sales fell by 4.7% in South Australia and by 0.7% in Western Australia.
<img src="/images/stories/hiasept28.gif">
Dale warns that while the results may show an improvement for this month overall they show a severe downward trend.
“Sales are still down by about 15% and we continue to get signs that new home building conditions are deteriorating, and those are deteriorating amid concerns about the global economy,” he says.
Lower consumer confidence has restricted sales and small businesses are collapsing as a result.
During the past six months various building and construction firms have been placed into receivership or administration due to lower demand for construction.
CommSec economist Craig James commented on the result by comparing them to a “dead-cat bounce”.
“Aussie consumers and home-buyers remain super cautious and that mood is continuing to constrain activity for retailers and housing dependent businesses,” he says.
“Anecdotally the recent drop in fixed term interest rates is boosting enquiry levels in the housing market but it is yet to show up in the data.”
Dale says the results in Queensland bolster the call for national stimulus.
“The case for stimulus is strengthening as the industry weakens,” he says.
This article originally appeared on <a href="https://www.smartcompany.com.au/property/20110928-new-home-sales-rise-1-1-but-housing-industry-still-concerned" title="SmartCompany" target="_blank">SmartCompany.</a>
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News