South East Queensland developer&nbsp;<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>’s entry into the Gold Coast apartment market has progressed from pipeline to market, with its Chevron Island project Bronze on Chevron now formally available to purchase ahead of a planned 2029 completion.

The 119-apartment development on Mawarra Street marks the Brisbane-headquartered builder-developer’s first residential play in the Gold Coast, following its expansion south from Brisbane and the Sunshine Coast.

<a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-surfers-paradise-qld-4217">Bronze on Chevron</a> comprises a mix of two-, three- and four-bedroom residences, with pricing starting from just over $1.5 million. The project is being delivered under Gardner Vaughan’s fully integrated model, with the group acting as both developer and builder, a structure it has consistently applied across its South East Queensland portfolio.

[smartcode_project:default project_id=107520 project_image_fid=367182]

Architecture has been designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jeremy-ferrier-landscape-design">Jeremy Ferrier</a>. The building presents as a single-tower scheme, with a focus on maximising outlook across both the Surfers Paradise skyline and the Nerang River.

Apartments have been planned with open-plan living zones extending to generous balconies, a response to the site’s dual-aspect positioning between river and ocean. Interiors follow a restrained coastal palette, with two colour schemes offered, and an emphasis on natural light and cross-ventilation.

[smartcode_project:default project_id=107520 project_image_fid=367181]

Resident amenity is concentrated across more than 1,250 sqm and includes a resort-style pool, gym, yoga lawn and rooftop entertaining areas. A function space with catering facilities forms part of the upper-level offering, alongside north- and south-facing outdoor areas.

Ground level will incorporate two retail tenancies, intended to extend the existing village character of the surrounding streets.

&nbsp;

[smartcode_project:default project_id=107520 project_image_fid=367200]

The project sits within walking distance of Thomas Drive’s established dining strip, while maintaining proximity to <a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">Surfers Paradise</a> beach and broader Gold Coast amenity. The location, positioned on Chevron Island between the river and coastline, has increasingly attracted mid- to high-density development in recent years as the precinct evolves beyond its low-rise origins.

Gardner Vaughan’s move into the Gold Coast was first signalled in 2025, with the group identifying the region as a natural extension of its operations. Chief Executive Officer Simon Betteridge described the expansion as both “strategic and natural”, citing demand for well-designed apartments in lifestyle-driven markets.

Construction is expected to complete in early 2029.

[smartcode_project_cta:default project_id=107520]

Joel Robinson

Gardner Vaughan brings Bronze on Chevron to market as Gold Coast debut

One of the penthouses at Lily Lane, the latest stage of Carrington Place by Ellipse Property, has set a new local apartment price record.

The four-bedroom residence, purchased by a local downsizer, sold for $5.75 million—around 75 per cent higher than the previous record of $3.3 million.

Over 40 per cent of the first release of apartments at&nbsp;<a href="https://www.apartments.com.au/new-apartments/lily-lane-at-carrington-place-castle-hill-32-carrington-road-castle-hill-nsw-2154">Lily Lane</a> have already been snapped up just six weeks since it launched to the market.

&nbsp;

Located at 32 Carrington Road, <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a> and designed by award-winning architects <a href="https://www.apartments.com.au/architects/ptw">PTW</a>, Lily Lane is directly opposite the Hills Showground Metro station. It offers a total 213 units over two 12-storey towers - a mix of 67 one-bedroom, 100 two-bedroom and 46 three-bedroom apartments - with a ground-floor retail offering.

[smartcode_project:default project_id=151821 project_image_fid=368352]

Blake Schulze, National Director – Residential at <a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a>, says around 44 per cent of buyers are&nbsp;owner occupiers, with 35 per cent being investors and 21 per cent first homebuyers.

“Developments of this calibre are very rare in the Hills District, and Lily Lane’s sales success demonstrates the depth of demand for over-sized apartments that genuinely compete with freestanding homes," Schulze says.

"We are seeing particular demand from downsizers who want to remain in the area but transition into spacious, high-quality apartment living."

On the penthouse sale, it says it shows buyers&nbsp;are prepared to pay a premium for scale, quality, and direct access to the Metro.

[smartcode_project:default project_id=151821 project_image_fid=368351]

One-bedroom apartments are sized from 50-72 sqm with prices starting at $745,000, while two-bedrooms are priced from $990,000 with sizes from 75 to 132 square metres. Three-bedroom floorplans are sized between 97 and 182 sqm,, with prices starting at $1,395,000.&nbsp;

The three remaining penthouses, spanning up to 262 sqm, are priced from $2.9 million.

Over 75 per cent of apartments include dedicated studies, multipurpose rooms or family rooms, with select layouts offering walk-in pantries and laundries. Apartments are appointed with premium Miele appliances including ovens, washing machines, dryers, gas cooktops and dishwashers, while larger residences also incorporate integrated Miele microwaves, Fisher &amp; Paykel integrated refrigerators and five-burner Miele cooktops.

[smartcode_project:default project_id=151821 project_image_fid=360285]

Lily Lane will be constructed by award-winning iCIRT-rated builder <a href="https://www.apartments.com.au/builders/decode">Decode Group</a>, with construction to commence in mid-2026 and expected to complete early 2029.

Carrington Place comprises more than 800 apartments and is being delivered across multiple stages, with completion expected in 2032. Integrated with neighbouring bushland, the project will feature over 20,000 sq, of outdoor recreational area, including a one-kilometre boardwalk to Fred Caterson Reserve.&nbsp;

The Hills Showground Metro Station is just a two-minute walk away, offering fast connectivity to Sydney’s CBD, North Sydney, Chatswood, Macquarie Park and Norwest Business Park.

[smartcode_project_cta:default project_id=151821]

Ellipse sets Castle Hill apartment record with $5.75 million Lily Lane penthouse sale

Fresh off completing its Delano Crows Nest development, Lindsay Bennelong has lodged plans for its next project, this time turning its attention to the beach.

The developer, founded by Clarendon Homes founder Peter Campbell, is proposing a 37-apartment scheme at <a href="https://www.apartments.com.au/new-apartments/17-25-ashburner-street-manly-nsw-2095">17-25 Ashburner Street</a>, Manly, positioned between the southern end of <a href="https://www.apartments.com.au/developments/manly-nsw-2095">Manly</a> Beach and East Manly Cove.

Lindsay Bennelong called on local architecture firm Platform Architects to design the new building, given their success on The Finn, Lindsay Bennelong's current luxury apartment project on North Steyne.&nbsp;

According to the Design Verification Statement by Bridie Gough of Platform Architects, the proposal “relates to the current context but also the desired future character of taller buildings suitable to the new planning controls.”

The site has been identified as a Low to Mid-Rise Housing (LMR) location, given its position within 400 metres of the Manly Town Centre E1 Business Zone. The LMR controls are intended to unlock additional housing supply in well-located areas close to public transport, allowing developers to seek increased height limits to support greater density.

“The proposal seeks to provide this increased level of housing whilst being respectful of some of the smaller scale buildings also nearby,” the statement reads.

Lindsay Bennelong Development Director Leigh Manser said the project has been carefully aligned with the intent of the LMR controls. The proposal will significantly increase housing yield on the site, replacing four houses and 10 apartments, comprising 25 bedrooms, with 37 new apartments delivering a total of 94 bedrooms.

“Sydney is in a severe undersupply, and delivering more dwellings and more bedrooms than what currently exists is exactly what the LMR policy is designed to activate,” Manser said, noting that nine of the apartments will be allocated as affordable housing for frontline workers.

“We have already commenced discussions with our community housing provider to determine the rental levels that frontline workers can realistically afford in this location,” he said. “These will need to sit well below the standard affordable housing benchmark of 20 per cent below market rent, and that has been factored into our feasibility and pricing.”

<img alt="Manly" data-entity-type="file" data-entity-uuid="ad03000f-19f9-48b4-b27d-e85ca800a1da" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-30%20at%208.41.59%E2%80%AFAM.png?VersionId=a.txHwCZgbCInlQ6QXbIrI.umvW1T.r8" />

The design of the building incorporates a wave-like indentation running through the façade, referencing the nearby coastline and anchoring the building within its local context.

The&nbsp;Design Verification Statement says careful consideration has been given to the articulation of the building, ensuring the bulk is broken down to a more human scale through a defined four-storey podium."

The scheme includes a mix of one-, two- and three-bedroom apartments.

“The design ensures a high level of amenity, with apartments offering generous private open space, many with expansive views, and all with comfortable proportions."

<img alt="Bennelong" data-entity-type="file" data-entity-uuid="6a7f2812-72a1-4959-84b0-997e8cd88aed" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-30%20at%2010.15.50%E2%80%AFAM.png?VersionId=6iMxU3MkXmHVHAoNhYBjnqgka8CUZNbk" />

<a href="https://www.apartments.com.au/developers/lindsay-bennelong-developments">Lindsay Bennelong</a>&nbsp;is currently developing Finn Manly, just three full-floor luxury apartments on North Steyne. They recently welcomed residents to its 81-unit Delano Crows Nest development, a&nbsp;carefully scaled infill project designed to bridge&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a>’s lively village centre with its surrounding heritage streets.

Designed by&nbsp;<a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>,&nbsp;<a href="https://www.apartments.com.au/new-apartments/delano-crows-nest-27-57-falcon-street-crows-nest-nsw-2065">Delano</a>&nbsp;is arranged across three low-rise buildings, incorporating a mix of one, two, and three-bedroom apartments alongside a limited number of townhomes addressing Hayberry Lane. The architectural approach draws on the area’s Art Deco lineage, reinterpreted through contemporary detailing and framed by landscaped communal gardens.

The developer also has a development site in Maroubra.

First look: Lindsay Bennelong's new Manly apartment development revealed

Fifty-nine residences across 37 levels. No more than two per floor. With 80 per cent now sold, what remains at <a href="https://www.apartments.com.au/new-apartments/madeline-by-mosaic-broadbeach-22-mary-avenue-broadbeach-qld-4218">Madeline by Mosaic</a> is a short list.

Madeline was always conceived at a scale that sits outside the normal register of Gold Coast apartment living. The residences are half- and full-floor configurations, with the largest spanning more than 400 sqm, dimensions that place them closer to the penthouse end of the market regardless of where they sit in the building.

That scale is the organising principle of everything else: how the floorplans are laid out, how the materials read, how the connection between inside and outside works.

[smartcode_project:default project_id=150135 project_image_fid=355941]

The interiors were developed in collaboration with <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a>, the architecture practice&nbsp;<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic</a> brought in as design partner for the first time on this project. The palette runs to natural stone, textured timbers, and soft metallics, materials chosen as much for their tactile quality as their appearance.

Light cleverly shifts across surfaces through the day, and the design is explicit about wanting that to be noticed. Full-height glazing runs across the primary living areas, and where the building faces east toward the ocean, those walls of glass are doing real work: framing a view corridor that the site's position directly opposite Broadbeach State School's playing fields keeps permanently open.

That outlook is the site's most consequential asset. In a suburb where new towers continue to rise, a protected view line is genuinely rare, and the Mary Avenue address secures it. Residents at Madeline will look out over open parkland rather than the rear of another building, a distinction that becomes more meaningful with each new development approved nearby.

[smartcode_project:default project_id=150135 project_image_fid=355939]

The private outdoor spaces are sized to match the residences themselves. Terraces on the upper levels frame uninterrupted ocean panoramas, and the planning ensures that living areas extend into those outdoor zones rather than treating them as separate attachments. The flow between the two is part of the design intent, not an afterthought.

Inside, the finish specification reflects the same approach. Rich stone benchtops, warm timber joinery, bespoke hardware, each element specified to hold up over time rather than read as a moment in a particular trend cycle.

[smartcode_project:default project_id=150135 project_image_fid=3409]

Beyond the residences, the amenity offering extends that register. A lap pool and sun deck anchor the outdoor space, alongside a magnesium pool, cold plunge, steam room, and sauna.

A commercial-grade gymnasium, residents' lounge, library, and boardroom round out a programme that functions more like a private members club than a standard building amenity floor.

Construction has commenced under Mosaic's in-house building arm, with completion scheduled for late 2028.

[smartcode_project_cta:default project_id=150135]

Madeline by Mosaic delivers penthouse-level living across every apartment

Developer Fortezza Group is the latest to take its new apartment development, <a href="https://www.apartments.com.au/new-apartments/the-belvedere-5-7-church-street-nelson-bay-nsw-2315">The Belvedere in Nelson Bay</a>, to the NSW Government.

Fortezza, predominantly a South East Queensland developer, is the latest to apply for State Significant Development&nbsp; status through the NSW Government's Housing Delivery Authority, a pathway becoming favoured by developers to speed up the approval process.

They are planning 57 two- and three-bedroom apartments across 5-7 Church Street and 42 Donald Street, near d'Albora Nelson Bay Marina. The diverse apartment mix has sizes from just over 80 sqm to the largest three-bedroom penthouses that reach nearly 200 sqm.

<img alt="Fortezza" data-entity-type="file" data-entity-uuid="090360e1-66d7-43ad-b686-aba81f173bf2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-29%20at%2010.22.40%E2%80%AFAM.png?VersionId=DMqF96eBZolqSAAAcugX0l66ueWng66m" />

Fortezza calls the project a "piece of Istria in Nelson Bay,"&nbsp;referring to the largest peninsula in the Adriatic Sea, shared by Croatia (90%), Slovenia, and Italy, which is known for its Roman history, Venetian-style coastal towns and inland hilltop villages.

They say the The Belvedere is strategically positioned at the apex of Nelson Bay, offering unrivalled views of the ocean, the bay and captivating topography of the area.

"Our commitment to maintaining the integrity of every view and sight line has been relentless," Fortezza Group says.

"Through extensive modelling and analysis, we ensure that each apartment enjoys the natural beauty of Nelson Bay, regardless of future developments. Each design element is carefully curated to harmonise with our European heritage, drawing profound inspiration from the Roman architectural marvels in Istria. The arches, the cascades of greenery and the stonework that define our project pay homage to the structures that once exemplified Roman grandeur."

Residents will have access to a pool, communal green spaces, an office and a coffee shop.

First look: Fortezza Group takes The Belvedere, Nelson Bay apartment development, to NSW Government

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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First-home buyers will not reap any benefits from record low interest rates if developers don’t bring new stock to market, according to Yellow Brick Road’s Mark Bouris.
Bouris told David Koch on Sunrise that he hoped that in the current circumstances property developers would supply more new property to the market.
“If they do more developments there is more choice for people,” says Bouris.
“But if that does not happen, all that will happen is the prices will rise and the saving that new buyers would ordinarily get from an interest rate cut will be cancelled out because prices will adjust for it,” he says.
Overall, he expects little impact on the economy from the rate cut, commenting that since the GFC people “don’t actually go and spend the extra money they have in their pocket” so “we are not getting the stimulus in the economy we would ordinarily get”.
According to Bouris, the rate cut could spark a price boom, but not necessarily a transaction boom.
His advice to borrowers is to ask their banks what is the biggest discount they can offer them against their advertised rate.
“The rule thumb should be at least a 50 basis point discount with some lenders offering up to a full 100 basis point discount.
“But if you don’t ask you won’t get it.”
For those considering a fixed-rate home loan, he suggests they wait until the big banks bring out their next fixed-rate offerings – not to take up what they currently offer.
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lschlesinger-FZcF9M3vE6

House prices will rise unless developers bring new stock to the market: Mark Bouris

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Sydney may have forgotten Natalie Jean Wood. But Real Estate Agents haven’t forgotten to underquote; when it comes to auctioning a property.
I definitely have something to say about what I perceived may well be, blatant underquoting strategies used in the marketing of the Surry Hills property: 139 Kippax Street, <a href="/expert-insights/buying/surry-hills-terrace-listing-of-the-woman-sydney-forgot">the home once owned by Natalie Wood</a>.
It will take more than a coffee to calm me down, particularly after my client spent $4,000 doing Due Diligence (DD) prior to the auction.
The price guide that was given to me and other interested parties I spoke with at the time, was: $550,000-$650,000.
First cab off the rank, and to immediately dispel any misconceptions you may have. Misconceptions about me being a disgruntled buyer’s agent and particularly since I didn’t purchase the property, on behalf of my client.
<ol start="1">
<li>Part of the DD we undertook revealed that land in the area was worth approximately $10,000-$11,000/sqm.</li>
<li>There was some value in the building regardless of what the refurbishment works would cost, and</li>
<li>We were under no illusion that we would obtain the home for the lower end of the price guide which was given.</li>
</ol>
It’s not rocket science
It’s not rocket science to work out property (price-guide) values that are closer to true market values. To ascertain these we look at the following:
<ol start="1">
<li>Land value as compared to other sales in the local area.</li>
<li>Value of existing structure/building (taking into account what is required or not required to be altered, changed or fixed) and integrity of existing structure.</li>
<li>Aesthetic values including but not limited to: visual appeal, location, heritage, charm or story behind the property, views and surrounding landscape and demographics.</li>
<li>Calculate costs to repair/refurbish/build and compare with current properties on the market and recent property sales. properties that would be of similar ilk.</li>
<li>If still in doubt? call a professional valuer for their opinion.</li>
</ol>
Therefore, for an agent or agency to hide behind the worn and dated argument of “no comparable sales” is just sheer ignorance or intentional use of sleight of hand tactics. I have written about these issues previously.
1) The what-if test. 
2) Dumb to underquote and dumber not to know property values.
Dialogue with agency
Correspondence and conversations with the agent, all led us to believe that the agent truly didn’t know the value of the property. On the alternative, we also thought that there may be an underlying driver to draw a crowd. We know the latter to be under-quoting.
If other buyers were going to be persuaded by either one of the above premises, we believed that this would work in our favor.
The low-ball price-guide may actually keep the value of the property low, this is what we presumed anyway. We felt that the low price-guide coupled with the added features of the home; the circumstance of the deceased owner and the dilapidated condition of the property, was a mix that would work in our favor.
Nonetheless, our limit was set at $900,000 and this took into account our estimated land value as well as the intrinsic and heritage value of the property. Yes, and the history that came with the home.
Again, we knew that the agent was off the mark completely. However, the agent insisted that the “buyer’s feedback” was $550,000-$650,000 and with the interest obtained, it may reach the $700,000 mark. I beg to differ.
A professional agent would have done and assessed the value more along the lines of $850,000-$900,000 and thus presenting a correct price-guide. A guide that is not reliant on; “buyer’s feedback” nor left to ignorance. But, I was not engaged to teach them how to do their job.
Don't you just hate it, when you call an agent and ask for the 'price-guide' and they respond with: don't know at this point in time, once we hold a few opens we will gauge the "buyer's feedback". Get real !!! and moving on...
The outcome
Well, my buyer was not successful; as much as I tried to slow things down, there were others that wanted the property at all costs. The home sold for $1,105,000.
One may well say, ‘market forces’ were at play once the auction reached and went beyond the $950,000 mark. 
Warning to agents
Now, if you really want to accept the argument that: any so called out-of-line sale price is influenced by the lack of comparable sales to go by and play the ignorance card, or even take ill advice from vendors? Perhaps it’s time a Professional Valuer was called in, to assist you.
Obtaining and contracting the services of a valuer, is a better option to support and protect you as you. After all, you are the professional real estate agent. Don't hang your hat on statements such as: "market forces" nor "the vendor made me do it" in the belief that these will protect you from prosecution.
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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ealmedia-arK4DBYLjS

Sydney may have forgotten Natalie Jean Wood, but real estate agents haven’t forgotten to underquote: Edwin Almeida 

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<div>Australia's banks are mostly funded by domestic deposit these days, at nearly 60 percent of their funding composition.</div>
<div> </div>
<div>Equity accounts for a fair share of the remainder too. </div>
<div> </div>
<div>But what about their debt funding costs?</div>
<div> </div>
<div>Last week's Statement on Monetary Policy took a short look at this. </div>
<div> </div>
<div>And the answer is that debt funding costs have kept on falling in 2016.</div>
<div> </div>
<div>And what's more they will continue to do so in the near future. </div>
<div> </div>
<div><a href="/images/2016/11/07/RBA1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/11/07/RBA1.jpg" alt=""></div>
<div class="separator"> </div>
<div>After cuts to the cash rate May and August, the major banks’ debt funding costs also declined. </div>
<div> </div>
<div>The cost of short-term debt is now under 2 per cent (down from well above 6 per cent in 2007).</div>
<div> </div>
<div>Meanwhile, the marginal cost of long-term debt is a bit above 3 per cent.</div>
<div> </div>
<div>It is true that since the beginning of the year, these costs have declined by a little less than the cash rate.</div>
<div> </div>
<div>This was mainly because of changes to term deposit rates. </div>
<div> </div>
<div>But overall the difference was not material.</div>
<div> </div>
<div>And now funding costs are expected to fall further, since the cost of new wholesale debt remains below the cost of outstanding debt. </div>
<div> </div>
<div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
 
</div>
</div>
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pwargent-M4siyDbqQY

Funding costs keep falling: Pete Wargent

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Sydney’s established suburbs have just one thing in common when we talk about their existing houses in that for years now we have seen no new housing developments – they have simply dried up.
They no longer exist nor will we see any more new developments, so the number of houses in a particular suburb is all but fixed forever. Unlike outer Sydney where new housing estates are being released at the fastest rates ever witnessed before to meet the growing consumer demand – however the new markets are totally different from the established property markets.
It’s interesting to note that the established housing markets are contracting with less properties being offered to the marketplace which is underpinning property prices. Just as interesting is the observation that the overseas buyers are now strong participants in the established Sydney property markets followed by the local buyers in close pursuit.
This is what many are calling the perfect storm where if you removed the overseas buyers the Sydney established property markets would bear no resemblance to what we witnessed in 2015. With the NSW government now fixated on high – density residential strata developments many property buyers are observing that established houses are the best investments because production has ceased.
Whilst the NSW government has no problems encouraging the new residential subdivisions of airspace we certainly don’t envisage we will see any outdoor public spaces being converted to residential housing subdivisions.
We can also throw into the ‘perfect property storm’ record low interest rates where households are leveraging their borrowings to the maximum in order to take full advantage of the lowest rates in property history. When they leverage high this takes longer to pay down the principal home loan which in turn slows down the number of properties being offered to the market place which is exactly what we are witnessing today.
Just as interesting is that the last cash rate increase by the Reserve Bank of Australia (RBA) was back on November 3, 2010 when the RBA increased the cash rate +0.25 percent to 4.75 percent.
To show further proof a recent analysis by Digital Finance Analytics identified that 13 percent of households with an owner occupied loan would be in financial discomfort if rates were to rise at all. This is a smaller proportion to investment property owners who came in at 27 percent. However, more than one third of households said that they would be in difficulty if rates rose by 3 percent.
With many property owners closely following the cash rate musings emanating from the RBA – they may be better advised to watch their respective lenders a lot more closely.
Business analysts warned this week if there are no RBA cuts in 2016 then the banks would again act independently by announcing their own independent rate increases. Many quickly forget that in 2015 the big banks joined hands and raised their respective rates between 15 and 20 basis points.
Based on this data, for that to happen we would see the investment property hardest hit with a very distinct possibility of surging nervous investors trying to off – load their newly acquired investment properties. On the flip – side the major banks are most concerned that this newly created investment property loan portfolio has them exposed – so we in all probability will see them massaging their mortgage books in 2016.
This of course does not bode well for all the new developments awaiting release to the respective marketplaces where Melbourne has approximately another 20,000 new apartments ready to be released over the next five years with Sydney sitting at around 6,000 new apartments.
Then of course we have the dilemma with the apartments already sold off – the – plan with plenty of talk that many of those won’t proceed with their contracts. In particular the Big Four banks are only too well aware of their exposure to these new markets. That would explain why they have commenced their whisper campaigns – where we can expect to read plenty more in coming months.
When the property flows are weak the prices shoot up which is exactly what has happened to the established markets. The new investment markets are the ones that dominated in 2015 so there is a very good chance they may dominate conversations in 2015 for all the wrong reasons. What also needs to be factored in are the new developments where 100 per cent of these apartments were sold offshore. It’s anyone’s guess what may happen should we see these newly created markets start showing the first signs of panic.
<h5>MOSMAN – 2088</h5>
• Number of houses on the market this time last year – 58
• Number of houses on the market last week – 36
• Number of houses on the market this week – 45
• Number of apartments on the market this time last year – 43
• Number of apartments on the market last week – 32
• Number of apartments on the market this week – 38
<h5>CREMORNE – 2090</h5>
• Number of houses on the market this time last year – 8
• Number of houses on the market last week – 9
• Number of houses on the market this week – 11
• Number of apartments on the market this time last year – 18
• Number of apartments on the market last week – 11
• Number of apartments on the market this week – 15
<h5>NEUTRAL BAY – 2089</h5>
• Number of houses on the market this time last year – 4
• Number of houses on the market last week – 6
•Number of houses on the market this week – 6
• Number of apartments on the market this time last year– 37
• Number of apartments on the market last week – 23
*Number of apartments on the market this week – 27
 ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000. 
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Simply put, property will be as steady as she flows: Robert Simeon

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I was interested this week in a financial wellbeing survey, which focused on the gap between the size of superannuation, and what is actually needed for retirement. Just 23% of Australians are confident their super will fund a decent retirement. When it comes to superannuation, there are distinct phases: people in their teens and 20s don’t care; people in their 30s and 40s do care but they’re focused on career, mortgage and kids; and people in their 50s and 60s are panicking about retirement. Let’s start with the first group. Those new to the workforce don’t think about retirement, but their decisions now have ramifications 40 years later. The law says your employer has to put 9% of your wages into a complying super fund, so you start with the advantage of a developing nest egg with tax breaks. You owe it to yourself to shop around the funds and see what they offer. Secondly, I suggest you roll any super accounts your might have from previous employers into one super account. You should also put some extra super in each month and select which accounts your super goes into. Your super fund has various allocations, such as conservative, balanced, growth, international, property and so on. When you are young you should have your super in funds that ride the more volatile yet higher-yield shares-based funds. It gives you the best chance of having a large nest egg when you retire. Then we have people in their 30s and 40s. This is a difficult group to interest in superannuation because all of their earnings are going into mortgages and/or kids. But these are also peak earning years so income should be put away to be accessed later. In these years you should start with owning your own home. Secondly, you should be contributing more to your superannuation than the 9% your employer puts in. Fifteen per cent of earnings is a good target. And don’t forget to protect your earning power with life insurance, income protection insurance and total and permanent disability (TPD) insurance. With the complex interactions between tax, retirement savings and tax breaks, you can easily lose advantages that the law provides, so I suggest you get an adviser. The third life stage – people in their 50s and 60s – is the most complex because a certain amount of life has been lived and retirement is drawing closer. Start by knowing how much you’ll need to live on. Secondly, work on owning your home: either do this in your working years or use your superannuation to pay out the mortgage. Thirdly, you must get the most from super, especially if you own a business or you have a self managed super fund. Superannuation is designed to allow you to be a self-funded retiree. But you have to make it work to your advantage, and for most of us, that means taking advice.
Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/" rel="nofollow">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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Sorting your super at every age

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There’s a new wave of financial services migrating beyond the computer and onto phones and tablets, as well as moving into social media such as Facebook.
But as these services migrate onto a device that fits in the pocket, people still need something more.
In my current business, Yellow Brick Road, we’re opening branches at a rate of one per week nationally, simply because people still want face-to-face discussions about their affairs.
The key, in my opinion, lies in the difference between the financial services you can turn into a “product”, and those you cannot.
People are happy to use financial products, but they really want advice.
The Nielsen Pacific Global Survey of Investment Attitudes was released a few weeks ago: 70% of Australians used the internet for banking and investment transactions in the previous three months. But the same survey also found that 54% of Australians had visited a physical bank branch in the previous three months.
This shows a nation that is using products but still need to be able to talk about more complex matters such as mortgages, life insurance and super.
It’s a quaint picture of a technology-driven country with a traditional heart. But the problems are in fact, far from quaint. An example of this could include our superannuation system, which puts the onus for retirement investment on the individual.
The first port of call for most people with super is not an advisor, but a product. The super fund member is mailed a brochure with describes the various products and the member ticks the boxes and sends it back.
The Nielsen survey showed just 16% of Australians currently rely on a financial planner or adviser, while 57% preferred to be in charge of their investment decisions.
Now consider the fact that 70% of investment-focused Australians currently maintain a shareholding of stocks, the worst performing assets.
I believe there are many forces that have pushed Australians away from being advised on their investments and their retirements.
Most banks don’t offer advice unless the customer is a wealthy “private client”; stockbrokers don’t give you the full service unless you have a certain amount to invest; and the superannuation funds have become the product.
That leaves the independent advisers and planners, who many Australians avoid because there is either a trust problem or the costs are perceived to be too great.
More should be done by the superannuation industry, the ASX, the government and regulators to encourage people to seek advice around complex and crucial financial arrangements.
However, people have to show some initiative in these matters and decide what’s really important. Most people who seek expert advice get something out of it: an insurance broker reducing your premiums; an adviser finding a lower fee super fund; a mortgage broker finding you a better loan or an accountant getting you a better tax result.
Aussies need to rethink how they balance financial products with advice. A product fills a need; advice is planning for life.
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<div>Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/" rel="nofollow">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.</div>
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For more, <a target="_blank" href="/news">view our free webinar Refinancing and the Interest Rates Riddle.</a>
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Australians need to embrace wise financial planning

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Housing affordability improved for the seventh straight quarter in September to be at its highest level in three years, according to the latest HIA-CBA Housing Affordability Index.
Over the quarter, the index increased by 5.3% to 65.8% to be up by 15% compared with the same quarter in 2011.
Affordability improved due to the median dwelling price falling from $466,900 to $459,100, and mortgage rates falling from 6.4% to 6% over the quarter.
Affordability improved in all capital city and regional markets with Hobart the most affordable with an index score of 78.3 - up from 73.1, followed by the ACT (67.8 to 71.3) and Adelaide (70 to 71.1).
Sydney’s affordability score improved from 51.9 to 54.2 over the quarter, but remains the least affordable capital city market, followed by Melbourne (63.6), Perth (64.1) and Brisbane (68.5).
In Victoria, South Australia and Queensland, it is more affordable to buy in the capital city market than in the regions.
HIA chief economist Harley Dale says the run of consecutive improvements in some regional indices is even longer, “in some instances showing affordability has reached levels not seen since the early 2000s”.
“Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices,” says Dale.
“At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households’ willingness to engage in the residential property market.”
“Tentative signs of a recovery in transactions volumes should hopefully gather legs – another interest rate cut in early December would enhance the prospects of this occurring.
“An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity.”
A full explanation of how the index is calculated can be <a href="https://economics.hia.com.au/media/Affordability%20Index%20Methodology.pdf">downloaded on the HIA website.</a>
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Housing affordability improves to highest level since September 2009: HIA/CBA index

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The federal government appears happy to allow the state governments of NSW and Queensland to break their commitment to offer “universal” first-home owner grants following the two states' decisions earlier this year to only incentivise new home purchases.
Since September 12 in Queensland and October 1 in NSW, first-home owners qualify for a $15,000 state government handout if they buy or build a new home.
First-home buyers who purchase an existing home receive nothing.
These decisions, aimed at stimulating the residential construction sector, are in clear contravention of state government commitments to provide a “universal” first home owner schemes (FHOS) to all buyers".
This looks set to change with the <a href="https://www.gstdistributionreview.gov.au/content/Content.aspx?doc=reports/finaloctober2012/00executivesummary.htm#P130_11433" target="_blank">GST Distribution Review Final Report </a>released at the end of November recommending that the states be relieved of their obligation to offer a universal FHOS grant.
“It should become a matter for States’ own policy decisions as to what financial assistance should be offered for new home buyers,” says recommendation 11.4.
It is now up to federal treasurer Wayne Swan to make consult with the states before making his final decision.
However, the states have not had any kind of reprimand, despite offering an incentive that has been called nothing more than a “builders incentive” and flying in the face of logic, given that a higher proportion of first-home buyers wish to buy an existing home than a new home.
This iss borne out in the latest Mortgage Choice consumer survey, which found that more than 47% of first-home buyers looking to purchase in the next two years are looking to buy an existing property with less than a quarter (22%) considering building or buying a new – the remainder are undecided.
In response to a number of questions from Property Observer a spokesperson for the Federal Treasurer’s office said that “regrettably” there was not much that could be said.
Property Observer had asked what is the Treasury’s position was on NSW and Queensland breaching their obligations by adopting these new grant arrangements and whether the Treasury accepted the view that these have become “builders grants” not a first-home buyers grant?
Instead, Property Observer was directed to the following paragraph in the media release issued following the release of the GST Distribution Review Final Report.
“I look forward to discussing the Panel's recommendations with State and Territory Treasurers at the Standing Council on Federal Financial Relations meeting on 17 December 2012, prior to announcing the Commonwealth's position once the Government has given thorough consideration to the complex issues addressed by the Report,” said Wayne Swan.
Speaking to Property Observer in November, Ray White chairman Brian White said the new grants were distorting the market “and not in a healthy way".
“It’s no longer a first-home buyer’s grant but a builder’s incentive,” said White who labelled it deceitful to describe it as a first-home buyer’s grant.
His comments follows the <a href="https://www.propertyobserver.com.au/news/reia-says-all-first-home-buyers-should-get-the-fhbg-not-just-those-buying-new-homes/2012102557430">Real Estate Institute of Australia (REIA) voicing concern</a> at the decisions by the NSW and Queensland governments as well as plans by South Australian government to end its $7,000 universal first-home owner grant in June 2014.
"Not only is this in breach of the InterGovernmental Agreement (IGA) but it ignores the evidence that 70% of first-home buyers have a clear preference for established houses,” said REIA president Pamela Bennett.
“The IGA clearly states that assistance to first-home buyers will be uniform and that an eligible home will be new or established.
Bennett also claimed that first home buyers of established homes “often embark on a program of home-improvement and renovation, which helps stimulate the building sector”.
WA, Victoria, Tasmania, the ACT and the Northern Territory continue to offer a universal $7,000 first-home owner grant.
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Wayne Swan set to assist NSW and Queensland push towards 'builders' first-home owner grants

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I've been going through some personal challenges lately. While it's been emotionally very hard, it's made me realise something I was totally unaware of.
I treat and deal with my personal obstacles in the same way I do the challenges I encounter in property developing.
I hadn't thought too much about the way I work and the way I live and kind of assumed they were separated by an invisible line in the sand. But the longer I've been running my business, the blurrier the line has become.
Yesterday I had to go into a very unfamiliar space. I had to negotiate something of upmost importance to my family's future, but it was personal and highly emotive stuff.
To get through it, I put on my business hat and approached it in the same way I would if I was negotiating a property deal or managing a development issue.
By doing this I could emotionally remove myself from the situation and make some very straight calls. This helped me get through the day but more importantly, the result I had visualised for a few weeks leading into this actually materialised.
I felt that this mental preparation gave me a guideline or goal for an acceptable outcome. Let me explain what I mean by 'preparation'.  I'm literally talking about only a few minutes every couple of days thinking about what I wanted to happen. That's all.
I'm not sure if I'm noticing this more as I get older or it's because I'm more 'tuned in' but this whole visualisation thing works for me, in work, at home and in business. 
I'm certainly not a 'new age' type but I've found if you open yourself up to an outcome and allow some emotion reasoning behind why you want that outcome, then magical things can happen.
Apart from my personal results, I've also been very pleased with some business results this week. Property Bloom has completed a few developments for our clients, we've found some very good development sites and had tenants literally jumping to sign a lease on a completed dual occupancy project.
In order for these enthusiastic tenants to move into their new homes, we needed to handover the project. This means the final drawdown has to be paid by the developers bank into the builder's account before keys will be released. This process can sometime take weeks, but we didn't have weeks, only days.
Our ducks were lined up after we held an open house a few weeks before completion knowing that tenants will need to give two weeks' notice before they could move into the new villas.
We conducted our Practical Completion inspection on the duplex instructing our client to put the final invoice to the bank for payment – at the same time we managed some small items still to be finished on the build.
The bank's valuer inspected the duplex on Tuesday, the bank paid the final builder's invoice on Wednesday, funds hit the builder's account on Thursday and keys were delivered to the agent ready for the tenant to move in on Friday. This precise timing means our client has a rental income from the day after handover.
So how did visualising help?  Well I knew three weeks prior the day the tenant had to move in and while you cannot control this part of the development as we are relying on banks and payments to hit accounts, all we could do was ensure everyone had all the information they needed to do their jobs and 'know' (hope) that all would be well.
In this case it worked, but there has been others where it hasn't.  Where I've had a feeling someone is going to drop the ball, whether it's an impression I got from the bank or the builder or the valuer or the agent or the tenant. Whatever it is, you need to act on this feeling and adjust the finish line. It's about using your gut feel, intuition, experience or whatever you want to call it.
So refocus, and get your eye back on the prize.
<a href="https://www.propertybloom.com.au">www.propertybloom.com.au</a>
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Playing the property game, keep your eyes on the prize

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A preliminary weighted average clearance rate of 68.5% was recorded this week across capital cities compared to 67.8% last week and 70.4% this time last year.
This result is consistent with the year's trend. The year to date clearance rate for capital cities was 68.3% before this week.
In Sydney a preliminary clearance rate of 75.5%  was recorded compared to 71.9% last week and 79.5% last year. Despite the clearance rate not being higher than a year ago the auction market has improved with more homes being sold.
In Melbourne there was a preliminary clearance rate of 68% recorded compared to 70% last week and 68.6% this time last year. Concerns the auction market was beginning to weaken have not been added to this week.
Next week will prove an interesting test, with a record of around 1800 auctions scheduled.
In Brisbane a preliminary clearance rate of 50.5% was recorded compared to 48.8% last week.
Adelaide recorded a clearance rate of 50%  compared to 55.8% last week.
In Canberra a clearance rate of 50% was recorded.
In Perth a clearance rate of 60% was recorded.
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