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]

Joel Robinson

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."

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[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

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

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

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The Gold Coast prestige market sector was impacted heavily by the GFC in 2008.
It only started seeing signs of improvement in late 2014 and early 2015, the valuation firm HTW recently noted.
Improving rapidly during 2016 and throughout 2017 with a number of large prominent sales evident at strong prices (a number of which were in the range of $9 million to $25 million) there was then a staggering $16.5 million spent in May 2017 for a large, luxury dwelling on Virginia Drive at Hope Island on the northern Gold Coast.
More recently, HTW have noticed a slowing of market activity with local real estate agents reporting fewer sales, increased stock levels in some market segments and reduced buyer demand with fewer enquiries from overseas buyers over the past six months after a sustained run of strong transactions, particularly to Asian buyers.
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"This is, however, highly segmented and the level of improvement is very property and price speci c and properties that are selling are generally still achieving strong price levels," the HTW report noted.
The latest HTW report on prestige housing noted the most prestigious suburbs on the Gold Coast for housing are Hope Island, Paradise Point, Mermaid Beach, Main Beach, Surfers Paradise and Broadbeach Waters.
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The majority of the prestige townhouses or duplexes are located at Hope Island and have price points starting at around $2 million.
The vast majority of prestige units are located at Main Beach, Surfers Paradise and Broadbeach with a smaller amount found at Burleigh Heads and Coolangatta.
The more significant improvement has been evident for established, near new, luxury housing in the prime waterfront and coastal suburbs particularly Isle of Capri at Surfers Paradise which recorded an $8.8 million dollar sale of 31 The Corso in February 2018.
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The market segment for luxury apartments on the Gold Coast upward of $3 million saw improved buyer demand over the past 12 to 18 months, however remains very thinly traded and sales are few andfar between. There have only been seven sales to date during 2018 with a standout sale being the Chevron Renaissance penthouse which sold in January 2018 for $9.5 million to a local buyer.
The two-level penthouse, situated over the 39th and 40th floors was previously used as an of office space for the developer and after the company folded, it was sold off to HomeCorp CEO, Ron Bakir for $1.2 million, who together with Sunland Group chairman Soheil Abedian took the floor space back to its shell and spent $7 million transforming it into a luxury apartment and importing Italian furniture.
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Other standout sales of luxury apartments include the $5.3 million dollar sale of the Xanadu North penthouse sold by Robert Graham at Ray White. This two level penthouse unit is situated over the 23rd and 24th oors providing 4-bedroom, 5-bathroom accommodation with four basement car spaces, a private indoor plunge pool and panoramic 360 degree views incorporating distant hinterland views to the west, Broadwater and Southport skyline views to the north-west, coastal views up to the Spit to the north and unobstructed beach and ocean views to the east and north-east.
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Robert also sold the three level, XXV Breaker Street Residences penthouse in late February for $3.05 million which comprises 3-bedrooms, 5-bathrooms, a rooftop terrace featuring a private plunge pool and four basement car spaces situated on the 23rd, 24th and 25th floors.
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Buyers of prestige acreage property can be very discerning and hence, not all properties receive similar levels of demand or achieve similar sale prices. Consequently, sale prices (and selling periods) in this market segment can be heavily in uenced by individual buyer preferences and speci c property attributes that will appeal differently to individual buyers. These attributes include, but are not limited to, land size, topography, views, size and quality of improvements, level and quality of ancillary improvements, vegetation, creek or river frontage and dual living potential.
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HTW advised the Gold Coast’s rural residential market up to one hectare has had no sales over $3 million from 2016 to date.
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Further afield, there have been very few recent sales for larger sized properties over $3 million and have been for more rural or rural lifestyle properties in excess of five hectares being heavily improved with equine facilities.
One standout sale in particular was the 9.55 hectare property at Riverstone Crossing in Maudsland which provided a 4-bedroom, 4-bathroom dwelling constructed circa 2007 on a low lying and cleared river and creek front allotment.
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Another well located, rural residential property is currently under contract at 173 Stewart Road in Clagiraba.
The property is improved with two dwellings of good quality as well as a cottage. The 14.48 hectare parcel provides predominantly low lying cleared land with frontage to the Coomera River.
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"We note that bank lending policies have tightened and for larger rural holdings, require substantial deposits which in turn only enables potential purchasers with stronger nancial standing to complete the sale. This has resulted in limited transactional evidence from a small pool of buyers over the past 18 months in the Gold Coast and Scenic Rim localities."
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From 2017 to date there have been very few larger sized property transactions and all have been within the Scenic Rim locality.
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Less demand from overseas buyers in Gold Coast trophy home market

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EXPERT OBSERVATION
In a recent letter to all Australian authorised deposit-taking institutions (ADIs) entitled ‘Embedding Sound Residential Lending Practices,’ APRA indicated that lenders need to limit lending at very high debt to income levels.  
The actual wording of the comment was, APRA expects ADIs to commit to developing internal risk appetite limits on the proportion of new lending at very high debt to income levels (where debt is greater than 6 times a borrower’s income), and policy limits on maximum debt to income levels for individual borrowers.  
This doesn’t suggest that there is any hard limit on loan to income (LTI) ratios above 6 times but it does suggest that there will be less appetite for mortgages which are in excess of 6 times incomes.
Utilising gross household income data that has been modelled by the Australian National University (ANU) Centre for Social Research and Methods we can take a look across the individual capital cities at what the impact of limiting debt to income ratios to six times would be.  
The following charts look at annual gross household incomes with a comparison to median values at the end of 2017.  Incomes are elevated six times for comparison to median prices.  
The high median value relative to incomes implies the typical Sydney household would probably be targeting properties across the lower quartile of values rather than around the middle of the valuation range. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg1.png" alt="2018-05-25--blogimg1" width="1102" height="480">
 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg2.png" alt="2018-05-25--blogimg2" width="1102" height="480">
Six times the median gross household income in Sydney is calculated at $688,764.  
The median house value in Sydney is $1,058,306 and the median unit value is $774,124.  
What this means is that if a buyer wanted to purchase the median house under this scenario they would need a deposit of $369,542 and for the median unit they’d need a deposit of $85,360. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg3.png" alt="2018-05-25--blogimg3" width="1102" height="480">
 
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At the end of 2017, Melbourne’s median house value was $832,735 and the median unit value was $574,052.  At the same time, the median gross household income was $1,553/week with six times this annual income was recorded at $605,787.  Based on these figures, at 6 times income, borrowers in Melbourne can still afford the median unit but would need a deposit of $226,948 to be able to borrow below six times their income for the median house.
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg5.png" alt="2018-05-25--blogimg5" width="1102" height="480">
  
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Unlike Sydney and Melbourne, households on the median income in Brisbane can still afford to borrow enough for the median valued house or unit.  The borrowing power for someone on the median income is $608,830 which is lower than both the median house ($531,248) and median unit ($383,752) value.   
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg7.png" alt="2018-05-25--blogimg7" width="1102" height="480">
 
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The typical household in Adelaide can still afford the median house and unit.  As at December 2017 the median house cost $458,806 and the median unit $331,325.  Based on the median gross household income of $1,277/week someone on this income could borrow up to $498,161.  
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg9.png" alt="2018-05-25--blogimg9" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg10.png" alt="2018-05-25--blogimg10" width="1102" height="480">
  Based on the median household income for Perth, someone borrowing six times their annual income could borrow $616,088.  Based on this figure, a borrower purchasing the median property would be comfortably below six times their annual income whether they’re purchasing a houses ($484,562) or a unit ($408,488). 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg11.png" alt="2018-05-25--blogimg11" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg12.png" alt="2018-05-25--blogimg12" width="1102" height="480">
   A borrower in Hobart on the gross household income ($1,248/week) borrowing six times their annual income could borrow up to $486,823.  The $486,823 figure is lower than the median house ($424,251) and median unit ($335,289) value for Hobart. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg13.png" alt="2018-05-25--blogimg13" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg14.png" alt="2018-05-25--blogimg14" width="1102" height="480">
 Median household incomes in Darwin are quite high at $2,200/week.  Based on a borrower’s ability to borrow six times the household income, the median household could borrow up to $858,063.  Median house value ($469,083) and median unit values ($356,992) are significantly lower than $858,063. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg15.png" alt="2018-05-25--blogimg15" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg16.png" alt="2018-05-25--blogimg16" width="1102" height="480">
  Like Darwin, Canberra also has relatively high median household incomes at $2,170/week.  Someone borrowing six times the annual income would be able to borrow up to $846,358 which is significantly higher than the median house and unit values which are recorded at $669,642 and $431,048. Of course median values don’t tell the whole story, as many properties are valued below as there are above however, it is valuable in providing a guide for what impact limiting high loan to income lending would have.  
In Sydney the median household can’t afford the median house or unit if there was a LTI limit of 6 times and in Melbourne the median household can’t afford the median house.  Were hard limits on LTI to be implemented it would have a much bigger impact on Sydney and Melbourne than any other areas of the country.  Any limit would still have some impact on households outside of Sydney and Melbourne, not to mention those that are purchasing properties additional to their principal place of resident.
Also keep in mind that these figures are only looking at a single scenario.  In most instances a lender will not allow a borrower to borrow 100% of the value of a property and if a borrower has a deposit of less than 20% they will need to pay lenders mortgage insurance (LMI).
So far there is no indication of a hard cap on LTI ratios.  What is clear is that APRA would like to see high LTI lending dialled back and that will have an impact on some borrowers, particularly those purchasing more expensive properties and/or those that have multiple properties.
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What would lending caps of six times your income look like?

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EXPERT OBSERVER
CoreLogic’s recently released Pain and Gain report highlighted a growing divergence between houses and units for loss making resales. 
Unit markets recorded a higher proportion of loss making resales relative to houses across every broad region of Australia over the June quarter.  
The latest CoreLogic Pain and Gain report provides a summary of gross profit and loss making resales across the country. The results show a consistent and long underperformance across the unit sector, and more recently, a growing divergence between the proportion of houses and units reselling at a gross loss. The June quarter report revealed that 14.3% of units that resold across the capital cities transacted at a gross loss; roughly double the rate of loss making house resales. Across the combined regional areas of Australia, loss making unit resales comprised 16.1% of transactions while a lower 10.3% of houses resold at a gross loss.
Every capital city and rest of state region across the country has seen the unit sector record a larger proportion of loss making sales across the unit sector compared with detached housing, however the differential is substantial in those cities where unit values have fallen more materially.
Across the capital cities, Darwin stands out as showing the highest proportion of loss making unit resales, with 71% of units reselling at a loss over the June quarter. Considering Darwin unit values have fallen 44% since peaking in May 2010, the high rate of loss on resales should come as no surprise; in fact Darwin unit values are back to the same level they were in February 2005. Darwin house values haven’t fall any where near as much, down 11% since peaking.  
Regional Western Australia has recorded the second highest level of loss making resales for units (56.7%) followed by Perth at 47.8%. Both regions have seen unit values fall substantially more than house values. Since peaking in January 2008, regional WA unit values are down 47.5% and are now back to levels seen in 1988. In Perth, unit values are 18.2% lower after peaking in July 2013 and are now worth the same value as they were in May 2006.
Amongst the capital cities, Brisbane also stood out for a high rate of loss making unit resales, with 29.2% transacting at a gross loss over the quarter compared with only 4.1% of houses selling at a gross loss. Brisbane unit values are back to where they were in August 2007 after declining by 10.8% from their 2008 peak.  
The lowest rates of loss making unit resales were in those regions where unit values have shown more buoyant conditions. Hobart recorded the lowest portion of loss making unit resales, with only 2.9% reselling at a gross loss over the June quarter. Hobart unit values are at a record high after recording solid capital gains over the past few years. It was only five years ago, after a long period of weak housing market conditions, when 25% of Hobart units were reselling at a gross loss.  
The Sydney unit market was showing the second lowest proportion of loss making unit resales over the June quarter. Despite rising levels of unit supply, only 3.5% of Sydney units resold at a gross loss over the quarter. Unit values are down 2.6% since peaking in November last year, and values remain 43% higher relative to five years ago. With a recent history of such strong capital gains, the vast majority of Sydney unit owners are still in a positive value position relative to their purchase price, however as values continue to slip lower and supply levels rise, we are likely to see loss making resales rise.
Click <a href="https://www.propertyobserver.com.au/images/2018/9/24/tim%20lawless%201.jpeg" target="_blank">here</a> to enlarge
 <img src="https://www.urban.com.au/images/2018/9/24/tim%20lawless%201.jpeg" alt="">
There are a variety of factors that could be contributing to the higher proportion of loss making sales across the unit market. 
For starters, units are more likely to be owned by investors. Around 68% of units are investor owned, 51% of townhouses are owned by investors and only 22% of houses.  CoreLogic Pain and Gain data shows investor owned dwellings have a higher propensity to resell at a loss which is probably attributable to the fact that investors can take advantage of taxation benefits such as offsetting their losses against future capital gains.  
Unit markets can be more prone to oversupply. This trend has been evident across the Brisbane and Melbourne inner city markets to different extents.  Focusing on some of the key inner city unit markets, Brisbane’s inner city recorded 32% of unit resales at a loss over the quarter and Melbourne’s inner city recorded 22% at a loss. Unit construction has been winding down across Queensland since late 2016, but remains at record levels across Victoria and close to record highs in New South Wales. With unit values now falling in Sydney and Melbourne and the pipeline at, or close to record highs, its likely that loss making resales will diverge further in these markets.
There is also the factor of the underlying land value. Even though dwelling values are sliding in some markets, land prices have generally held firm or continued to trend higher.  Detached houses have a stronger relationship with land values which is likely contributing to the long run trend of higher capital gains for houses relative to units.
Click <a href="https://www.propertyobserver.com.au/images/2018/9/24/tim%20lawless%202.jpg" target="_blank">here</a> to enlarge
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/24/tim%20lawless%202.jpg" alt=""> 
Tim Lawless heads up the CoreLogic RP Data research and analytics team
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Unit owners are more likely to record a loss at sale: Tim Lawless

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EXPERT OBSERVER
There has been a surge in demand for properties located in coastal and hinterland ‘lifestyle’ regions and towns.
While a great deal has been written about the resurgence in the so called ‘sea change’ phenomenon, many of the prime hinterland regions within close proximity to Australia’s capital cities have also benefited from a renewed ‘tree change’.
Here is an analysis on the trend around tree change activity in Australia, with some interesting results.
I found that although the pace of capital gains is generally easing, a variety of factors have contributed to renewed demand for properties outside the cities. A large part of it must be attributable to the ‘wealth effect', where home owners (particularly those in Sydney and Melbourne) have seen a substantial wealth boost via their property holdings. Couple this with a large cohort of baby boomers seeking out holiday homes or relocation options as they shift into retirement age, and the demand picture becomes more pronounced.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%201.JPG" alt="">
Perhaps another element is the growing acceptance and popularity of ‘telecommuting’ thanks to faster internet speeds, wider employer acceptance of working from home and broader availability of technologies such as VPN, which provides a secure virtual office environment for staff working remotely.
A final piece of the puzzle comes back to housing prices and affordability. It’s often the case that hinterland properties will provide a lower entry point to the market relative to their coastal or big city counterparts, especially when you take into consideration that typical block sizes are much larger. Looking across some of the most popular hinterland regions adjacent to the capital cities shows a broad range of values and historic growth conditions.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%202.JPG" alt="">
Across the selected regions, the hinterland areas of the NSW Southern Highlands and the Macedon Ranges in Victoria show the most significant value premium. The median dwelling value across the Southern Highlands of NSW is just over $735,000, while the Macedon Ranges have a typical dwelling value of roughly $700,000 – not cheap, but both regions show a lower median dwelling value relative to their respective capital cities.
At the other end of the spectrum is Tasmania’s Central Highlands, where the typical house is worth just over $200,000. The regions to see the strongest growth over the past five years are generally very different to the best performers over the past twelve months. The hinterland areas peripheral to Sydney have dominated the capital gain stakes over the past five years, however growth in those areas has slowed substantially over the past twelve months.
The regions to see the strongest growth over the past five years are generally very different to the best performers over the past twelve months. The hinterland areas peripheral to Sydney have dominated the capital gain stakes over the past five years, however growth in those areas has slowed substantially over the past twelve months.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%203.JPG" alt="">
The past twelve months has seen the Gold Coast hinterland record the fastest rate of capital gain, with dwelling values up 8.1%, followed by Vic’s Macedon Ranges where growth seems to have rippled away from the previously more popular Yarra Ranges.
Gold and Sunshine Coast hinterland regions
The South East Queensland hinterland regions are continuing to see values rise, although the trends are moving in different directions across the Gold Coast and Sunshine Coast hinterlands. The Sunshine Coast hinterland has seen the annual pace of capital gains ease from 6.0% a year ago to 2.2% over the twelve months ending August 18. Conversely, the Gold Coast hinterland is recording an acceleration in capital gains, with the pace of annual growth rising from a recent low of 1.2% per annum earlier this year to the current annual pace of 8.1%.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%204.JPG" alt="">
Sydney and Northern New South Wales hinterland regions
Each of the selected hinterland areas of NSW have seen a consistent reduction in the pace of capital gains, with the Blue Mountains slipping into negative annual growth for the first time since early 2012. Dwelling value growth was stronger across the markets adjacent to the Sydney metro area over the recent growth cycle. Both the Blue Mountains and Southern Highlands have seen dwelling values rise at slightly more than 9% per annum over the past five years, pushing dwelling values substantially higher relative to hinterland region of northern NSW where the average annual growth rate has been much lower at 3.9%.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%205.JPG" alt="">
 Melbourne hinterland regions 
The Yarra Ranges have substantially outpaced the Macedon Ranges based on capital gains over the past five years. Properties within the Yarra Ranges have recorded an average annual rise of 7.8% over the past five years compared with the Macedon Ranges where values have tracked 2.6% higher each year on average. Despite the strong capital gains across the Yarra Ranges, Macedon Range properties hold a $26,000 premium over Yarra Range properties based on the median value across both regions.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%206.JPG" alt="">
Hobart and Adelaide hinterland regions
While growth conditions slow down across Hobart, the Central Highlands has seen some momentum gathering with the pace of capital gains accelerating over the past year. Values were up 6.8% over the past twelve months compared with the five-year average rate of growth tracking at 5.1%. The Adelaide Hills shows far less volatility, however values are in across the hinterland region of Adelaide continue to trend higher, up 0.8% over the past twelve months, down from 2.1% annual growth a year earlier.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%207.JPG" alt="">
Perth hinterland regions 
Perth’s eastern hinterland regions have shown a similar trend the broader Perth metro region, with dwelling values generally tracking lower since 2015. The Kalamunda region has seen dwelling values fall by 15.9% since the market peak, while values have fallen even further across Mundaring, down 19.9% since the market peak. The silver lining to the downturn is that housing prices are now around the same as they were in 2006/2007.
<img src="https://www.urban.com.au/images/2018/9/27/Timothy%208.JPG" alt="">
Tim Lawless is CoreLogic's head of research
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Tree change and hinterland property markets back in vogue: Tim Lawless 

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Cecille Weldon believes that —within not too many years— you could well be trading on energy markets, the way people today trade shares, using dedicated apps to get higher prices for the energy you capture and store through your home’s solar and batteries. 
More importantly, she says there is a quiet revolution building in real estate that is starting to impact property value. When you’re ready to sell or rent a home, a new property appraisal will allow you to showcase how many “Liveability Features” the home has to make it more marketable. 
I worked with Weldon while I was CEO at LJ Hooker. In fact, I put her on that company’s Executive Leadership Team. Today, I talk to her about how the power of Liveability is changing the way we Australians live in our homes – and how much we pay to do so.
Challenged to think differently by a Famous Father
Weldon isn’t just any random visionary. She has vision in her genes.  
Cecille is daughter of famous Australian publisher and entrepreneur Kevin Weldon, whose publishing empire came to rank alongside big mining and manufacturing companies as one of the country’s 200 largest exporters. Kevin Weldon also helped found the International Lifesaving Federation and Earthwatch Australia. His latest venture “The Ripper Group” is behind the world’s first drone surf rescue. He received the Order of Australia from a grateful nation in 1994.
With this kind of father, it’s no surprise that Cecille Weldon started her first business while still in high school – manufacturing silkscreened shoulder bags for the travel industry. 
“I didn’t realize 16-year-olds weren’t supposed to call up marketing managers and ask for a meeting,” she told me. “Business was part of everyday conversation with Dad, and you felt compelled to act on your ideas, not just talk about them”
Changing the Way We Value Our Homes
By the time she joined LJ Hooker, Weldon was already a recognized brand expert and an innovative thinker. The company hired her to identify and qualify future brand opportunities and give its agents an advantage. But her work is now recognized on a national level. It stands to benefits every property owner, buyer and renter in Australia.
Back in 2010, Weldon identified the first signs of what is now recognized as a key factor in a new value proposition, enabling home owners and investors to unlock the hidden value in their homes and connect to an exciting new market in residential real estate. Fundamental to its success was specialist training for real estate professionals. She developed the 17 key features that have been proven to make a home more comfortable and affordable to live in. 
Under her guidance, agents trained in her new Liveability Real Estate Framework began helping vendors and investors highlight these 17 features in their property marketing. In many cases, this was delivering a new perceptions of value, creating the opportunity to achieve a higher price in a shorter time frame. That made everyone happy.
The <a href="https://liveability.com.au/">Centre for Liveability Real Estate</a> was established as it become clear that what Weldon had created at LJ Hooker was too big and important for just one agency. When CSIRO acquired it, Weldon joined with them to turn the framework into a nationally consistent independent platform empowering both consumers and the property industry to deliver better more trusted information about home’s Liveability Features at point of sale or rent.
Innovation Is More Powerful Than the Word Sustainability 
The 17 Liveability features that Weldon identified are:
1. Climate Zone of your city
2. Living Locally 
3. Orientation 
4. Cross-ventilation 
5. Zoning 
6. Insulation 
7. Density of Building Materials 
8. Windows 
9. Shading or Sun Control 
10. Efficient Heating and Cooling Devices 
11. Energy Efficient Lighting 
12. Efficient Hot Water System 
13. Solar Photovoltaic (PV) System 
14. Low Water Garden 
15. Water Efficiency Devices 
16. Rainwater Tanks 
17. Home Energy Rating
Many of these features are often associated with the idea of sustainability, but don’t tell that to Weldon.
“The word “sustainability” is paradoxically a barrier in this situation,” she said. “Liveability Features deliver a better home in every measure of the word – one that is healthy, efficient, comfortable, and affordable to run. And also one that has less of an impact on the environment. The word ‘sustainability’ limits our understanding of ALL the benefits available from these features, which are really just an aspect of good building design.”
Weldon points out that housing affordability and energy prices are two of Australia’s major preoccupations, but they are seldom looked at together. 
“They are actually two sides of the same affordability debate: afford to buy and afford to run,” Weldon says. “We all know you can have a cheap house that is really expensive to run. The costs of paying for your home and of paying to operate your home should be considered as the one measure of affordability in the value chain. That’s the only way you can accurately decide how much you can afford to pay for a property.”
At any open for inspection, Weldon says research shows that nine out of 10 people are wondering in the back of their minds how much the property is going to cost to run. 
“We’ve been tracking how many people ask to see a power bill when looking at a house. That’s a way of saying, ‘I want to know the running costs.’ The real estate industry with the right tools and training, can now be a catalyst to deliver better, more trusted information on a property’s true Liveability features.”
Advice to Vendors and Landlords
Weldon’s advice for vendors and landlords who want to get the most when they sell or rent their property is to make sure their agent has upskilled with this award winning Liveability Real Estate Specialist Training, so they can showcase your home’s verified Liveability Features in their marketing campaign. 
“You don’t want to feel like. ‘Why has my agent ignored all these other features I have invested in? I could have gotten a higher price,’” she says.
In any property that you own, Weldon says, over time you should focus your renovations on reducing running costs and increasing comfort and convenience. This is the new value opportunity for Australian property. It means that the renovation will deliver a more comfortable, healthy home that’s cheaper to run. This benefits you when you’re in the home and now you’ll be rewarded when you’re ready to sell the home.
You may even be able to get a government incentive to do so. Weldon says many state governments are working on the idea of tax relief to encourage investors to upgrade with some of these Liveability Features because many rental properties are too expensive to run. 
“If landlords don’t start upgrading things like the hot water system and heating and cooling devices, then their properties will struggle to maintain their rental value.
“Rising running costs are responsible for a significant share of rent defaults, higher vacancy rates, and shorter tenancies,” said Weldon. “On 7:30 Report a few months ago, a tenant said the bills were so high they had no alternative but to leave.”
Believe it or not, the two most cost-effective improvements you can make are not solar panels or rainwater tanks, even though they are the poster children for sustainability. 
“The features that give you the biggest bang for your buck and are easiest to do,” she told me, “are ceiling insulation and shading. The shading stops that sun from hitting the window in the first place. For most of Australia (except the Top End) the shading that matters is on the north and the east/west sides.
A Bright Future
 In our conversation, Weldon ticked off some of the changes she thinks are coming to the way we Australians live and invest in our homes.
There’s a new breed of real estate agent coming down the line with better, more relevant, and future focused property knowledge about what really matters.
Renovators are going to start to look “beyond the bling” when they’re creating their property wish list … bringing in these new Liveability Features to deliver health, comfort, and lifestyle with the assurance of ongoing affordability.
If you are an investor, Weldon says there some exciting opportunities for both you and your renter to benefit. Initiatives like <a href="https://www.suntenants.com/howitworks/">SunTenants</a> can help you purchase solar panels and how much you can increase your rent to help pay for the investment. This is matched by a 100% guarantee to the renter that the saving on their energy bill will always be more than the rent increase. 
“The running costs are absolutely going to impact property value,” said Weldon. “It won’t be long before your solar panels, battery, and electric car will all work together to keep your costs as low as possible. More and more homes will be energy positive – meaning they produce more energy than they consume. This will open a whole new opportunity to gain value from our homes.”
That will be good for you, your budget, and for Australia’s environment.
GEORG CHMIEL, the chairman of Juwai, a Chinese website for buyers of overseas property, was speaking to Cecille Weldon in his regular column giving insight into the leading minds of Australian property experts.
He has spoken with LJ Hooker agent Bill Malouf about the ins and out of the Sydney market, REINSW president Leanne Pilkington about women in real estate, developer Larry Kestelman about developing your first property, Harcourts boss Mike Green on real estate investment secrets and Ironfish chief Joseph Chou on investing in today's market. 
 
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Georg Chmiel talks with liveability guru Cecille Weldon about unlocking a home's hidden value 

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EXPERT OBSERVER
While media obsesses over price data as the only market measure worth talking about, the forgotten barometer is residential rentals.
Not only does mainstream media misunderstand and misinterpret median price data, but it largely overlooks the fundamental importance of what’s happening in the rental markets of our major cities. 
Vacancy rates and rental growth figures are important because they’re often a pointer to future rises in dwelling prices.
Before Sydney got on its growth path with price rises, it had a couple of years of strong growth in rents. Hobart, currently the price growth leader in capital city Australia, also had notable growth in rentals before prices started to rise. 
According to the latest SQM Research figures, Hobart still has the lowest vacancy rate among the cities and it’s still delivering significant rental growth alongside the price growth - still rising in double digits, according to some (but not all) research sources).
This is a pattern that, according to the research, is common - rents rise before prices do. This makes patterns with vacancies and rents worth noting.
So I’ve looked at the latest rental data from two key sources, Domain and SQM Research.
The market leader is a toss-up between Canberra and Hobart. This makes sense when you understand that these two cities have stood out for the past couple of years as the places with the tightest rental markets, both with vacancy rates well below 1 percent.
In the national capital, both Domain and SQM have house rents rising between 8 and 9 percent in annual terms, while apartments rents are up 7 percent (Domain) or 5 percent (SQM).
In Hobart, the two research sources agree that rents have risen markedly for both houses and apartments, but the numbers are quite different. Domain has rents up 11 percent for houses and 9 percent for apartments; SQM’s growth figures are 5 percent for houses and 14 percent for units.
So it’s pretty clear-cut. Canberra and Hobart have been the leading cities for low vacancies and strongly rising rentals.
But what is the third-ranked city in those terms? The answer is the city no one (other than me) ever talks about, Adelaide.
Adelaide’s vacancy rate has been hovering around 1 percent, according to recent SQM figures. Some sectors of the Adelaide market, such as the City of Marion, have vacancy rates closer to 0.5 percent.
And recently the SA capital has been producing solid rental growth figures. Domain records annual growth of 4.2 percent for houses and just under 2 percent for apartments, while SQM reports around 3 percent for houses and 3.4 percent for apartments.
Adelaide’s growth seems fairly moderate but, to put it in perspective, the two research sources have Sydney rents stagnating or falling. SQM, for example, has Sydney house rents down 3.6 percent and apartments falling 1.2 percent in annual terms.
In Brisbane, where vacancy rates have been high (although now trending downwards), rents have been fairly stagnant over the past year.
In Darwin, where vacancy rates have been elevated for several years, Domain has house rents down almost 4 percent and SQM records a reduction of close to 6 percent.
Domain records no change in Perth rents for both houses and apartments, although SQM suggests house rents are showing early signs of a return to growth - which would correlate to steadily improving figures on vacancy rates.
Melbourne’s rental data is moderate only, with both sources suggesting rises of 2-3 percent in the past 12 months.
So where do the vacancy/rental trends point us, in terms of predicting future growth in prices. I would suggest the best answers (particularly when considered alongside other evidence) are Adelaide, Canberra and Perth.
Canberra has very low vacancies and strongly rising rents. It also has a strong local economy and rising sales activity. Its price growth, currently solid but moderate, should improve. The top end of the market is already rising.
Adelaide has low vacancies and improving rental growth. It also has an improving local economy and a busy sales market. Price performance, already strong in the million-dollar suburbs, should escalate.
And Perth, where rents and prices have been falling in recent years, is poised to rise. Its vacancies are trending steadily downwards, there’s evidence of rising leasing activity and the first signs of a return to rental growth. As the state economy improves, sales activity is steadily rising - and price growth is already happening in the top end suburbs.
Terry Ryder is the founder of hotspotting.com.au
<a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20%5Cn%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;"></a><a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
 
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terryryder-YECXbqmri2

Top three Australian cities for rental growth and lowest vacancies: Hotspotting's Terry Ryder

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EXPERT OBSERVER
The seasonal surge in listing numbers is well underway, with fresh listings being added to the market up 16% relative to the end of winter, however, despite the upswing in new listings, fresh stock additions are tracking almost 4% lower than the at the same time a year ago to be at their lowest seasonal level since 2012. 
The low level of new listing numbers can be attributed to weak vendor confidence; no surprise given housing market conditions have weakened and selling conditions have become more challenging.
<a href="https://www.propertyobserver.com.au/images/2018/10/19/stock%20level%201.jpg" target="_blank">Click here to enlarge</a>.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/19/stock%20level%201.jpg" alt="">
Although freshly advertised stock is low, total advertised listing numbers have been trending higher as the rate of absorption slows. In fact, if the current trend continues, we will see the number of properties available for sale exceed the recent 2012 peak in total advertised stock levels. Total listing numbers are 10.2% higher than year ago and at their highest level for this time of the year since 2012.
The rise in total listing numbers isn’t due to a panicked surge in new listings. This is more about less demand which is causing a rise in relisting’s along with longer selling times and fewer successful sales at auction.
 
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The typical capital city dwelling sold by private treaty is now taking 53 days to sell compared with 42 days a year ago and discounting rates have risen to an average of 6.5%, up from 6.0% a year ago.
Click here to <a href="https://www.propertyobserver.com.au/images/2018/10/19/stock%20level%203.jpg" target="_blank">enlarge.</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/19/stock%20level%203.jpg" alt="">
More stock means more choice for buyers and harder selling condition for vendors – essentially abuyers’ market. Buyers have little sense of urgency under these conditions; they can negotiate hard, take their time to make a purchase decision, and if they feel a property price doesn’t reflect fairvalue, they can easily move onto the next property option.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/19/stock%20level%204.jpg" target="_blank">to enlarge. </a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/19/stock%20level%204.jpg" alt="">
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With so much competing stock on the market, vendors will need to be reasonable with their pricing expectations and ensure their marketing campaign is as effective as possible in order to stand out from other stock for sale.
Tim Lawless is the national research director of CoreLogic RP Data and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
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Buyers back in the driver's seat as stock levels surge to highest levels since 2012

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<div>Annual credit growth slowed to 4.5 per cent as at June 2018, well down from 5.4 per cent a year earlier, according to the Reserve Bank's latest Financial Aggregates. </div>
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<div>Broad money growth fell to an anemic 1.9 per cent year-on-year in June - the lowest level since Bobby Brown was #1 in the Australian charts with Humpin' Around in September 1992 - a disagreeable image I'm sure you'll agree (and the credit aggregates weren't too flash either).</div>
 
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<div>Personal credit shrank 1.3 per cent year-on-year, and the annual growth in business credit slowed to just 3.2 per cent.</div>
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<div>Housing credit held up reasonably well at 5.6 per cent.</div>
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<div>The monthly growth in mortgages was all driven by owner-occupiers, with total investment credit actually declining for only the third time since these records just before Bobby Brown. </div>
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<div>With more investors also now switching to paying down principal, investor credit as a share of total housing market outstanding loans fell to 33.5 per cent, which puts investor market share broadly back in line with the average level seen over the past 18 years since June 2000 of 33.2 per cent. </div>
 
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<div>Although housing credit as measured here is slowing, the APRA ADI figures also released today grew at a faster clip, implying in turn that non-ban lenders are picking up some of the slack. </div>
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<div>Of of the larger players Westpac recorded solid growth in its home loan book, while Macquarie, Commonwealth Bank, and NAB notched higher totals for investment loans for the month of June.</div>
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<div>In saying that, NAB's investor loan book has recorded only 2 per cent growth over the past year and CBA and ANZ are in negative territory, so there is potentially ample headroom for more investor lending to return forthwith (the 10 per cent growth cap has been shelved as redundant). </div>
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<div>Overall, housing credit still seems to be flowing freely enough, but the economy really needs to start generating household income growth to get things moving again. </div>
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pwargent-M4siyDbqQY

Credit strangle continues for property investors: Pete Wargent

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EXPERT OBSERVER
<div>Total seasonally adjusted housing finance resumed its slowdown in declining by 1.6 per cent to $31.23 billion in June 2018, with slower mortgage processing times and tighter lending procedures biting.</div>
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<div>You might argue the toss over the classification of loans between investors and owner-occupiers, but the smoothed trend figures for total housing finance confirmed a continuing decline for an 11th consecutive month. </div>
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<div>Housing finance tends to have a fairly good correlation with dwelling price action, though economists try a bit too hard on this point, curve-fitting charts with warped y-axes trying to prove a faultless correlation that doesn't quite exist. </div>
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<div>There are more factors at play, of course, as the residents of Hobart, Geelong, or indeed many suburbs of Brisbane would attest. The share of the stock of outstanding loans pertaining to investors continued to decline on the ABS numbers, broadly mirroring what has been reported by the Reserve Bank. </div>
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<div>State versus state (macropru hurts WA)</div>
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<div>New South Wales has seen an ongoing trend decline in the number of owner-occupier commitments, with Queensland the only state to record an increase in the month of June (up 2.1 per cent). </div>
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<div>Sydney's housing market downturn has now spanned 12 months, the same length of time as the 2008-9 downturn, and already longer than those seen in 1985, 1994-95 and 2015-16 respectively (hat tip to Cameron Kusher of CoreLogic for the stats). </div>
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<div>One of the consequences of macroprudential measures has been to hinder markets that are already struggling.</div>
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<div>In Western Australia the number of home loans dropped to 4,602 in June, the lowest figure since May 1995 (when the population of the state was 1.7 million, compared to 2.6 million today, as highlighted by Shane Wright of the West Australian). </div>
 
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<div>While some applications are clearly being knocked back, for borrowers of sound credit quality, there is robust competition from lenders.</div>
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<div>Indeed, the average loan size remains 5.6 per cent higher than a year earlier. </div>
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<div>First homebuyers accounted for more than 18 per cent of owner-occupier commitments, a 6-year high, with the average loan size at $349,800 the highest figure recorded for any month to date. </div>
 
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 There was a sharp 4.9 per cent drop in the number of commitments for new dwellings. Non-banks emerge
<div>A final point for today: Commonwealth Bank's release noted a loss of market share, a trend which is being echoed across the major banks.</div>
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<div>The trend in non-bank lending on the other hand is benefitting entities such as Liberty Financial, Pepper, Firstmac, RESIMAC, and others.</div>
 
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The wrap Soft housing finance result for June, and more softness is certainly expected for July. How long the tightness in lending persists is unclear, but it's all pointing down at the moment.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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Housing finance resumes slowdown: Pete Wargent

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Juwai chairman Georg Chmiel interviewed Ironfish CEO Joseph Chou on investing in property.
"Today, we talk to one of the most interesting, influential, and invisible individuals in the real estate industry."
"If this is the first time you are hearing the name Joseph Chou, that is just how he likes it. As CEO and Founder of <a href="http://www.ironfish.com.au/" target="_blank">Ironfish</a>, Chou leads one of the quietest but most powerful companies in the property sector. He is determined it will one day be worth $1 billion. Chou’s memoir, From Bicycles to Bentleys, is popular with Australian investors and a bestseller in Beijing."
"Chou is a native of China and a former diplomat who immigrated to Australia in 1991. Within 18 months of arriving, he and his wife Suzanne had already turned their $4,000 of savings into a $175,000 house and a new BMW."
He was justly proud but, he says, “I felt tired. I was literally working seven days and most evenings.” 
Around this time, Chou reunited with a former colleague who had not spent his earnings on a new car and home, but instead had invested in property. 
“He had turned cash flow into assets. I, on the other hand, bought the BMW and a home first.” 
Chou told me this is when he realised the only way he would be able to enjoy his prosperity was by creating assets that produced wealth for him — even when he himself was not working.
In the subsequent year, Joseph worked quickly to build up a substantial portfolio of his own. He then decided to get into the property business himself and eventually founded Ironfish. The company aims to help Australians build a portfolio of four to ten investment properties over a long period of time and to hold them until they double in value.
“That’s our Australian business,” he said. “Our core value is helping Australian families build a property portfolio to complement superannuation.” 
Tip's for Investors
When I asked him what he thinks of rent-vestors who buy their first investment property before their own home, he applauded them.
“That can be a good idea,” he said. “It is cheaper to rent and also own an investment property than just buying a first home.” 
Chou says Ironfish has many young professional customers in this category. “They are investing in a few properties first while their career is on the way up. Then, when they have more money and know where they want to settle, they buy their home.”
In fact, it seems Chou’s recommendation for first-home buyers is to take your time. 
“Don’t buy just to take advantage of government incentives,” he says. “If you get a mortgage prematurely it will affect your career, your ability to move around, or the opportunity to start a business.”
Once you have invested, Chou believes you should hold onto your investment property as long as possible.
“Our idea is to never sell unless you absolutely have to,” he says. “Property is the goose that lays golden eggs. There is no point in killing it.”  
Struggle To Triumph
Chou was born and raised in Nakou, about 50 kilometres from Beijing. By age 16, Chou had nearly died three times.
In one close call, he was saved at the last moment from being run over by a train. Then, he nearly drowned in the deep end of a swimming pool. Finally, a long metal stake impaled him in the eye.
“There was blood everywhere, and it felt like a bullet had lodged in my brain,” he writes. Luckily, he suffered no permanent damage.
Chou explains that, in China, if you survive three tragic accidents you are said to have good fortune for the rest of your life. 
“Looking back, surviving set me up to tackle life head-on. I thought, ‘There must be a purpose for my life if I have survived this far.’”
Australia’s natural beauty and its freedoms were the qualities that persuaded Chou and wife to start new lives here. 
“Living freely in Australia, we could make choices on how we would spend our time and live our lives. I wanted to go into business in Australia, attain wealth and achieve my goal of living a free life.”
Apartment Vs. House
One funny story Chou tells about his adjustment to living in Australia involves his first grass lawn. Having grown up in an apartment in China, he had no idea how to mow the grass in the garden of <a href="http://www.ironfish.com.au/blog/2017/09/29/inside-look-homes-successful-property-investor/" target="_blank">his first house</a>, in Denistone. A neighbour showed him how to use the mower, but Chou found himself generating plumes of dust because the mower blade was set too low. He was so flummoxed that he gave away the mower and hired a gardener. 
Perhaps this experience is one reason he believes houses should be part of your investment portfolio but not all of it. He encourages investors to balance among houses, townhouses, and apartments as each has its advantages.
I asked Chou what features create value over time. He said he looks for a convenient location, high quality design, and amenities that make people want to live there. He likes apartment buildings that have an owner occupier feel and he likes apartment buildings that appeal to both owner occupiers and investors.
“Also, we have what we call the PIE formula,” he said. “The area has to have a population that’s increasing, infrastructure investments, and employment growth.
Downturn?
Chou is a strong believer in property as a route to wealth. (You may want to note one quarter of the richest 200 individuals in Australia made their money in property.
“The key message is that Australian property is unique compared to other countries. There is a $7.5 trillion asset base. Only 5 per cent is traded every year, so it’s been very stable.”
Chou says investors have many good picks today. For a run-down of his current investment strategy, read his summary here.
Getting into Development
Development is something relatively new for Ironfish. In Melbourne, Ironfish jointly developed Whitehorse Towers and the project was priced below the competition. 
“We had to sit down with our development partner to negotiate with them on behalf of the buyers,” he said. “The reduction in pricing reduced the project’s profitability by millions of dollars.”
This is something unique about Ironfish. I don’t know of any other property company that makes leaving money on the table for buyers a cornerstone of their philosophy. Chou sees his company’s mission as helping Australian families build wealth through property.
Although he is too discreet to say so, Chou is very successful. 
He came to Australia with only $4000, and his first car (a 15-year old Mitsubishi Sigma) ate up 95 per cent of that total. Chou now has a large personal property portfolio, leads a successful company, and helps thousands of Australians build their own investment portfolios so they can achieve their own financial success. 
“To me, it was Australia that made this possible,” he says. “We are so lucky to live in this country. It is a nation that gives everyone a go, and I want to help all Australians to have the same good fortune as me.” 
GEORG CHMIEL, the chairman of Juwai, a Chinese website for buyers of overseas property, was speaking to Joseph Chou in his regular column giving insight into the leading minds of Australian property experts.
He has spoken with LJ Hooker agent Bill Malouf about the ins and out of the Sydney market, REINSW president Leanne Pilkington about women in real estate, developer Larry Kestelman about developing your first property, and Harcourts boss Mike Green on real estate investment secrets.
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