<p>Breaking into the Sydney property market has long felt out of reach for many first home buyers, particularly as median house prices sit above $1.6 million and unit prices push beyond $900,000.</p>

<p>But entry points still exist in pockets of Greater Western Sydney, where pricing, government incentives, and product mix are aligning to make ownership more attainable.</p>

<p>Understanding where those opportunities sit, and how the numbers actually stack up, is becoming increasingly important for buyers weighing up their next move.</p>

<h2>Work out what you can actually afford</h2>

<p>Sydney is expensive, but it isn’t uniformly expensive. The Greater Parramatta region continues to offer comparatively accessible entry points, particularly for buyers open to alternative configurations like studios.</p>

<p>There's an assumption that a first home needs to be a certain size, that anything smaller than a one-bedder is a concession rather than a choice. That assumption doesn't hold up against what well-designed studios in the right location actually offer: immediate liveability, strong urban amenity, and a price point that makes the deposit target realistic rather than theoretical.</p>

<p>At <a href="https://www.apartments.com.au/buildings/mason-main-merrylands-249-259-merrylands-road-merrylands-nsw-2160">Mason &amp; Main</a>, <a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a>'s multi-award winning precinct in Merrylands, studio apartments are unlike the typical studio configuration.</p>

<p>Starting from $498,000, the bedroom is fully enclosed, separated from the living area by a cavity sliding door, creating a genuinely private sleeping space that functions more like a one-bedroom apartment than a traditional open-plan studio.</p>

<p>[smartcode_project:default project_id=31751 project_image_fid=359814]</p>

<p>At 42 sqm internally, with an open-plan kitchen, built-in robes, modern bathroom, and separate laundry, the apartments are designed for everyday liveability rather than short-term use.</p>

<p>With a five per cent deposit under the Federal Government's First Home Guarantee, that equates to a deposit of around $24,200, achievable for many first home buyers without the added cost of Lenders Mortgage Insurance.</p>

<h2>Understand the real cost of renting versus buying</h2>

<p>For buyers weighing up the shift from renting to owning, the numbers are closer than many expect.</p>

<p>Here’s how the numbers stack up for a studio at Mason &amp; Main (based on a $498,000 purchase):</p>

<ul>
	<li><strong>Purchase price:</strong> $498,000</li>
	<li><strong>Five per cent deposit (First Home Guarantee):</strong> ~$24,900</li>
	<li><strong>Loan amount:</strong> ~$473,100</li>
	<li><strong>Estimated mortgage repayment (6.29% variable, 30-year term):</strong> ~$675–$695/week*</li>
	<li><strong>Estimated rental return:</strong> $590–$620/week*</li>
</ul>

<p>At this level, the gap between renting and owning is relatively narrow, particularly when factoring in long-term equity, with rental returns also making the apartments a viable option for investors.</p>

<p>The rental range reflects current asking rents for remaining studio stock in the development and, based on prevailing asking prices, equates to an indicative gross rental yield of around 5.8 to 6.2 per cent.</p>

<p>For buyers seeking more internal space, Mason &amp; Main also offers a range of one-bedroom apartments from $629,000, alongside larger one-bedroom plus multipurpose room configurations priced from $680,000 - all priced under $800,000 and eligible for first home buyer incentives.</p>

<ul>
	<li><strong>Purchase price:</strong> $629,000</li>
	<li><strong>20 per cent deposit:</strong> ~$125,800 (5% deposit on exchange: $31,450)</li>
	<li><strong>Loan amount 80%:</strong> ~$503,200</li>
	<li><strong>Estimated mortgage repayment:</strong> ~$720–$740/week*</li>
	<li><strong>Estimated rental return:</strong> $650–$680/week*</li>
</ul>

<p>One-bedroom apartments continue to present a balanced option for both owner-occupiers and investors, supported by steady rental demand across Western Sydney.<span style="font-size:small"><span style="color:#222222"><span style="font-family:Arial, Helvetica, sans-serif"><span style="font-style:normal"><span style="font-variant-ligatures:normal"><span style="font-weight:400"><span style="white-space:normal"><span style="background-color:#ffffff"><span style="text-decoration-thickness:initial"><span style="text-decoration-style:initial"><span style="text-decoration-color:initial">&nbsp;</span></span></span></span></span></span></span></span></span></span></span></p>

<p>[smartcode_project:default project_id=31751 project_image_fid=359812]</p>

<h2>Make sure you're across the government incentives</h2>

<p>Government incentives continue to play a key role in reducing the upfront cost barrier.</p>

<p>At Mason &amp; Main, studio, one, and two-bedroom apartments are priced under $800,000, allowing eligible buyers to access a full stamp duty exemption under the NSW First Home Buyers Assistance Scheme.</p>

<p>On a $498,000 purchase, that represents a saving of roughly $17,900 that would otherwise need to be paid at settlement.</p>

<p>Combined with the First Home Guarantee, which enables purchases with as little as a five per cent deposit, the total capital required to secure a home is significantly reduced compared to traditional lending pathways.</p>

<h2>No waiting, no uncertainty</h2>

<p>For first home buyers who want to move sooner rather than later, Mason &amp; Main removes one of the more common pain points from the purchase process entirely. The development is already complete and move-in ready, meaning buyers can walk through the apartments, inspect the finishes, and have full certainty about what they're purchasing before signing anything.</p>

<p>Coronation brought in renowned architecture firm <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> to design the development.&nbsp;</p>

<p>"The project's design drew inspiration from the area's rich heritage, in particular the nearby brickworks and aqueduct, infusing a contemporary perspective to seamlessly integrate historical influences into the design," Woods Bagot Principal Dom Alvaro says.</p>

<p>[smartcode_project:default project_id=31751 project_image_fid=736]</p>

<h2>Factor in location and lifestyle</h2>

<p>Beyond the apartment itself, the surrounding infrastructure matters, particularly for a first purchase. Merrylands Station sits 350 metres from the development, putting the Parramatta CBD a five-minute drive away and the Sydney CBD roughly 25 minutes via the Western Line. Directly across the road is Stockland <a href="https://www.apartments.com.au/developments/merrylands-nsw-2160">Merrylands</a>, one of Greater Western Sydney's major retail centres.</p>

<p>At street level, Mason &amp; Main's own retail and dining precinct has more than 30 tenants trading, including Iftar, Macelleria, Hayat, San Churro, Yuzu, and Fat Jaks. Residents also have access to a resort-style pool, a Technogym-equipped gym, private dining rooms, and a rooftop terrace with panoramic views across Parramatta, the Sydney CBD, and the Blue Mountains, all exclusive to the building.</p>

<p>Due to the mix of configurations, including studios which are rarely offered in today's new apartment market, first home buyers and investors have driven Mason &amp; Main to over 90 per cent sold.</p>

<p>Coronation Property Managing Director Joe Nahas says the development is driving a revitalisation of Merrylands, setting a high standard for future developments in the area.</p>

<p>Mason &amp; Main is move-in ready and is the latest in a series of award-winning mixed-use developments by Coronation Property.</p>

<p><em>Disclaimer: Mortgage repayment figures are estimates only, based on a 6.29 per cent variable rate over a 30-year term (Canstar, April 2026). Pricing and rental estimates are indicative and based on current listings and project information. Gross yield figures are indicative and derived from asking prices and estimated rental ranges. Stamp duty savings are indicative only. Buyers should seek independent financial and legal advice before proceeding.</em></p>

<p>[smartcode_project_cta:default project_id=31751]</p>


Joel Robinson

How first home buyers can enter the Sydney property market for under $500k

<p data-end="390" data-start="110">Australia’s housing debate has rarely been more urgent. The National Housing Supply and Affordability Council forecasts the country could fall around 262,000 homes short of housing needs by 2029, underscoring the scale of the challenge facing planners, governments and developers.</p>

<p data-end="514" data-start="392">In response, much of the conversation has centred on high-density towers around transport corridors and strategic centres.</p>

<p data-end="676" data-start="516">Diversified developer Coronation Property, while also focused on well-located, strategic sites, is incorporating an arguably underutilised typology, the terrace.</p>

<p data-end="983" data-start="678">Difficult to integrate into true high-rise developments, terraces have become a defining feature of Coronation’s lower-rise portfolio, including projects in Ashbury and Erskineville. <a href="https://www.apartments.com.au/buildings/ashbury-terraces-165-171-milton-street-ashbury-nsw-2193">Ashbury Terraces</a> places a stronger emphasis on this housing type, forming part of a broader community mix.</p>

<p data-end="1188" data-start="985">At its Erskineville development, <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, terraces are more limited, with just a handful&nbsp;included within the wider, predominantly apartment-led precinct, one of the first developments to launch in Erskineville in several years.</p>

<p data-end="1188" data-start="985">[smartcode_project:default project_id=135149 project_image_fid=368392]</p>

<p data-end="1524" data-start="1190">Terrace residents at Lillian benefit from many of the same advantages as apartment owners, the lock-up-and-leave lifestyle and access to shared amenities like the rooftop wellness space, but with significantly more space.</p>

<p data-end="1524" data-start="1190">Spanning multiple levels, the terraces also feature front and rear courtyards, providing direct access to the central landscaped gardens within the precinct.</p>

<h3 data-end="212" data-section-id="1n97jye" data-start="191">The terrace model</h3>

<p data-end="464" data-start="214">Terrace housing has long been part of Australia’s urban fabric. From Paddington and Surry Hills to Glebe and Annandale, rows of terrace homes have shaped neighbourhood streets, offering a housing form that sits between detached houses and apartments.</p>

<p data-end="631" data-start="466">The contemporary terrace, however, addresses many of the limitations of older designs, where narrow staircases and constrained layouts often compromised liveability.</p>

<p data-end="703" data-start="633">[smartcode_project:default project_id=135149 project_image_fid=368157]</p>

<p data-end="834" data-start="705">“Terraces represent one of the city’s most intelligent housing models,” says Joe Nahas, Managing Director of Coronation Property.</p>

<p data-end="1085" data-start="836">“They deliver density without losing the human scale that makes neighbourhoods liveable. In many ways, they provide a bridge between the Sydney we know and the Sydney we need to build. If Sydney is going to grow well, it can’t rely on towers alone.”</p>

<hr data-end="1090" data-start="1087" />
<h3 data-end="1124" data-section-id="1a7l0gw" data-start="1092">The evolution of the terrace</h3>

<p data-end="1262" data-start="1126">That thinking has shaped Coronation’s approach at Ashbury Terraces, where the terrace typology has been reinterpreted for modern living.</p>

<p data-end="1459" data-start="1264">Designed by SJB, the project recently received recognition at the 2026 Better Future World Design Awards, acknowledging its architectural clarity and response to the surrounding suburban context.</p>

<p data-end="1564" data-start="1461">SJB Director Adam Haddow says the intent was to evolve a familiar housing form rather than reinvent it.</p>

<p data-end="1723" data-start="1566">“The terrace is one of Sydney’s most familiar housing forms, so our approach at Ashbury was to reinterpret that typology in a contemporary way,” Haddow says.</p>

<p data-end="1888" data-start="1725">“The homes are designed to sit comfortably within the existing neighbourhood while introducing more light, landscape and shared spaces that support modern living.”</p>

<p data-end="2082" data-start="1890">Ashbury Terraces combines terraces, apartments and penthouses across a series of low-rise buildings, integrating contemporary architecture with landscaped communal spaces and resident amenity.</p>

<p data-end="2264" data-start="2084">That same typology is now being carried into Coronation’s Lillian development in Erskineville, where a smaller number of terraces sit within a predominantly apartment-led precinct.</p>

<hr data-end="2269" data-start="2266" />
<h3 data-end="2289" data-section-id="cazuws" data-start="2271">Buyer response</h3>

<p data-end="2486" data-start="2291">Coronation’s decision to include terraces at Lillian was informed by strong buyer feedback from Ashbury Terraces, where purchasers were drawn to the flexibility and scale the housing type offers.</p>

<p data-end="2588" data-start="2488">One resident, Sweta Pursem, purchased a terrace as a single buyer, citing its long-term versatility.</p>

<p data-end="2720" data-start="2590">“As a single buyer, it might seem surprising that I chose a terrace over an apartment, but I was thinking long term,” Pursem says.</p>

<p data-end="2851" data-start="2722">“The terraces are incredibly versatile, catering to a range of lifestyles while still offering the space and privacy of a house.”</p>

<p data-end="2962" data-start="2853">For Pursem, the multi-level layout provides a level of functionality not typically found in apartment living.</p>

<p data-end="3202" data-start="2964">“Having a separate living area from the bedroom and home office makes everyday living feel both functional and comfortable. When friends and family come to visit, the layout gives a sense of privacy while still feeling open and spacious.”</p>

<p data-end="3279" data-start="3204">Her terrace also supports a more connected, lifestyle-driven way of living.</p>

<p data-end="3537" data-start="3281">“I love entertaining, and the courtyard is ideal for relaxed weekend drinks with friends. I tend to use each level differently throughout the day, it creates a natural rhythm between work, downtime and entertaining, which I didn’t have in apartment living.”</p>

<p data-end="3692" data-start="3539">Ashbury Terraces is now complete and ready to move in, while Lillian in Erskineville is under construction and expected to welcome residents in mid-2027.</p>


Coronation champions terraces as a key piece of Sydney’s housing mix

<p data-end="255" data-start="66">Private equity real estate firm Conquest has entered into a $220 million partnership with Woolworths’ development arm, Fabcot, to deliver its long-awaited Waterloo project on Bourke Street.</p>

<p data-end="518" data-start="257">The Bourke Street development was first flagged by Fabcot back in 2021 as part of its push into Sydney’s residential market. However, progress has since stalled, with no activity on site amid a number of design revisions in consultation with the City of Sydney.</p>

<p data-end="677" data-start="520"><a href="https://www.apartments.com.au/developers/conquest">Conquest</a>, which is actively planning more than $6 billion worth of new developments, predominantly mixed-use precincts, is now set to move the project forward.</p>

<p data-end="978" data-start="679">The current plans include between 110 and 120 apartments across two buildings designed by Bates Smart at <a href="https://www.apartments.com.au/new-apartments/923-935-bourke-street-waterloo-nsw-2017">923 Bourke Street</a>. The scheme will incorporate a portion of apartments reserved for key workers, alongside premium commercial space at ground level, including a full-line Woolworths supermarket.</p>

<p data-end="1044" data-start="980">Construction is expected to commence in the second half of 2026.</p>

<p>Michael&nbsp;Akaawi, CEO of Conquest, said the partnership reflects the firm’s commitment to "convenience-led" urban renewal."</p>

<p>"We are preparing to commence construction in the second half of this year," Akaawi says.</p>

<p>"Along with Woolworths, we look forward to delivering the first major supermarket to the growing Waterloo community, integrated with premium new apartments and specialty retail shops. Our focus is on creating a seamless lifestyle hub where essential services are at the doorstep, saving residents time and enhancing their quality of life."&nbsp;</p>

<p><img alt="Conquest" data-entity-type="file" data-entity-uuid="d8beee83-ef9b-446b-a3b3-1e2fe596512b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-01%20at%2011.08.46%E2%80%AFAM.png?VersionId=raYhGepiLUJfx4InLPRRJduA3ftDJ_kS" /></p>

<p>The news comes just a week after Conquest went to the NSW Government to upsize its plans for Castlecrag's Quadrangle Shopping Centre.</p>

<p data-end="405" data-start="227">Conquest purchased the site for just shy of $70 million last year, with existing plans in place for a mixed-use residential and retail precinct comprising 38 luxury apartments.</p>

<p data-end="812" data-start="407">Those plans have now been significantly expanded, with the developer lodging a State Significant Development Application with the NSW Government’s Housing Delivery Authority for 150 apartments across two 11-storey buildings. The apartments will sit above a four-storey podium, incorporating specialty retail tenancies and five levels of basement car parking, on the 5,166 sqm site at&nbsp;<a href="https://www.apartments.com.au/new-apartments/100-edinburgh-road-castlecrag-nsw-2068">100 Edinburgh Road</a>.</p>

<p>Conquest has been increasingly active in the development space in recent years. The group acquired the&nbsp;<a href="https://www.apartments.com.au/developments/eastlakes-nsw-2018">Eastlakes</a>&nbsp;Shopping Centre redevelopment, where it plans to deliver more than 1,000 apartments above a new retail precinct, and has also lodged a $900 million State Significant Development Application for a&nbsp;<a href="https://www.apartments.com.au/news/nsw/conquest-unveils-900m-stanmore-village-vision-for-landmark-inner-west-site">mixed-use precinct in Stanmore</a>.</p>


Conquest partners with Woolworths to deliver mixed-use Waterloo project

<p data-end="319" data-start="100">A shift away from Sydney’s industrial past has left parts of the inner south defined by contrast, brick warehouses repurposed into dining precincts, former factory streets softened by landscaping and pedestrian activity.</p>

<p data-end="547" data-start="321">Rosebery is one of those suburbs. Over the past decade, it has undergone significant gentrification, anchored by The Cannery, which has helped reposition the area as one of the inner city’s most sought-after lifestyle pockets.</p>

<p data-end="832" data-start="549">What hasn’t kept pace with that transformation is new residential supply, which has remained relatively limited. Builder-developer Deicorp identified that gap early, securing a site in 2019 and delivering what is now one of the suburb’s most architecturally distinctive developments.</p>

<p data-end="980" data-start="834">To realise the vision, Deicorp engaged Candalepas Associates to design The Rothschild, a project that is immediately recognisable from the street.</p>

<p data-end="1440" data-start="982">Completed in 2025, The Rothschild comprises two buildings across Rothschild and Mentmore Avenues, delivering 176 apartments. The development replaces a former industrial site, retaining a material and structural dialogue with its past while introducing a more resolved residential framework. The scale is deliberate but not monolithic, broken into forms that engage both street frontages, with retail at ground level and two levels of basement parking below.</p>

<p data-end="1512" data-start="1442">[smartcode_project:default project_id=106843 project_image_fid=221665]</p>

<p data-end="2148" data-start="1514">From the street, the architectural intent is clear. Off-form concrete columns run through the façade, establishing a repeated structural rhythm that gives the building its visual weight. These are paired with deep-set arches and sections of exposed brickwork, creating a layered elevation that reads less like a typical apartment block and more like a reinterpretation of industrial architecture.</p>

<p data-end="2148" data-start="1514">The material palette is intentionally restrained, with concrete left exposed and brick used to define mass rather than decoration. The result is a building that stands out through proportion and repetition, rather than height or glazing.</p>

<p data-end="2647" data-start="2150">This approach continues internally. A central landscaped courtyard sits between the two buildings, anchored by an olive grove that acts as both a visual and spatial focal point. Rather than functioning as residual space, the courtyard is designed as a shared ground plane, where circulation paths, seating areas and planting come together to create a usable communal environment. Its positioning allows natural light to penetrate deep into the site while maintaining separation between residences.</p>

<p data-end="2719" data-start="2649">[smartcode_project:default project_id=106843 project_image_fid=221666]</p>

<p data-end="3056" data-start="2721">Within the apartments, the planning follows a clear and functional logic. Entry points lead directly into open-plan living areas, with kitchens positioned as central elements alongside dining and lounge spaces. These zones extend to balconies or external openings, maintaining a visual connection to either the courtyard or the street.</p>

<p data-end="3559" data-start="3058">Kitchens prioritise practicality, with generous bench space, ample storage and European appliances configured for everyday use. Bedrooms are typically set back from the main living areas, creating quieter zones within each residence, with separation achieved through layout rather than material change. Bathrooms are compact but efficient, incorporating mirrored cabinetry and integrated storage to maximise space. Across all residences, the emphasis is on clarity of movement and functional planning.</p>

<p data-end="3631" data-start="3561">[smartcode_project:default project_id=106843 project_image_fid=221669]</p>

<p data-end="4053" data-start="3633">At ground level, retail and hospitality uses extend the building’s presence beyond its residential function. A café or restaurant space, alongside communal amenities such as a music room and rooftop areas, positions the development as part of a broader urban network rather than a standalone project. These shared spaces reinforce a lifestyle where the building operates as an extension of the surrounding neighbourhood.</p>

<p data-end="4408" data-start="4055">Rosebery’s proximity to Green Square, The Cannery and nearby parklands supports this model of living, where much of daily life is within walking distance. The Rothschild sits comfortably within that network, contributing to the streetscape through its distinctive architecture, while internally organising space around light, structure and communal use.</p>

<p data-end="4497" data-start="4410">The Rothschild is now complete and ready to move in, with limited residences remaining.</p>

<p data-end="4548" data-start="4499">[smartcode_project_cta:default project_id=106843]</p>


The Rothschild reinterprets Rosebery’s industrial DNA into residential form

<p>KTQ has unveiled&nbsp;<a href="https://www.apartments.com.au/new-apartments/casilia-16-marine-parade-coolangatta-qld-4225">Casilia</a>, the final residential release within the Kirra Point precinct which really kicked off the boom in the area back in 2019.</p>

<p>The final stage comprises&nbsp;87 residences and marks the culmination of a long-term, family-led vision for Kirra Point, as the precinct moves toward completion in tandem with the development.</p>

<p>Around $100 million in sales have been achieved already, close to 35 per cent of the residences secured ahead of launch. There have been a significant number of buyers returning from the first stage of the development, Miles Residences, securing another property within Kirra Point.</p>

<p>[smartcode_project:default project_id=152295 project_image_fid=368410]</p>

<p>Selling agent Tim Keenan from Keenan Byrne said the response reflects both the scarcity of the offering and Kirra’s growing reputation as a premium coastal market.</p>

<p>“This is effectively Kirra’s final act, the last release within what has become one of the Southern Gold Coast’s most tightly held beachfront precincts,” Keenan said.</p>

<p>“We’ve seen exceptionally strong pre-sale interest, from VIP waitlists through to off-market enquiry, which speaks to both the quality of the product and the confidence buyers have in the precinct. What’s particularly compelling is the number of buyers returning from Miles, either upgrading or investing again, which is a strong signal of how the precinct has been received."</p>

<p>Keenan adds that at the same time, north-facing beachfront remains exceptionally rare in Australia, limited to places like Noosa, Byron and Kirra, which is underpinning long-term value.</p>

<p>[smartcode_project:default project_id=152295 project_image_fid=368415]</p>

<p>Positioned along one of Australia’s few true north-facing beaches, Casilia offers a mix of two and three-bedroom residences with pricing ranging from $1.87 million to $7.15 million and two exclusive penthouses. Residences are oriented to capture varying outlooks, from uninterrupted Pacific Ocean views across Kirra Beach to hinterland vistas, with upper levels and shared amenity taking in sweeping perspectives along the Gold Coast coastline.</p>

<p>At rooftop level, a north-facing pool deck captures expansive, uninterrupted views over Kirra Beach and north towards Surface Paradise. The space incorporates a heated resort-style pool, mineral spa, sun lounges and a covered BBQ cantina.</p>

<p>Buyer profiles are broad, typically aged between 40 and 70, with a strong skew toward second-home ownership, drawn by a combination of lifestyle, relative value, proximity to Gold Coast Airport and lower congestion compared to more established markets such as Byron Bay and Noosa.</p>

<p>[smartcode_project:default project_id=152295 project_image_fid=368414]</p>

<p>The project is being delivered by <a href="https://www.apartments.com.au/developers/ktq-group">KTQ Group</a>, a family-owned Australian property group with a diverse portfolio spanning residential, hospitality and commercial developments. The group has delivered a number of notable projects across sectors, including the award-winning Elements of Byron resort, demonstrating its depth of experience across both hospitality and residential development.</p>

<p>Known for its long-term approach to place-making, KTQ Group retains a vested interest in its projects, often holding assets within its portfolio, which has also helped build trust among buyers and reinforced confidence in both the vision and delivery certainty of the precinct.</p>

<p>“Casilia represents the final opportunity to secure a residence within Kirra Point and brings to market the last release within our long-term vision for the precinct," KTQ Group's Jeremy Holmes said.</p>

<p>"Kirra Point has been more than a decade in the making, and that timeframe reflects the care behind each decision, it takes listening, balance and vision to arrive at something that feels right for the location.</p>

<p>“Our approach has always been to deliver Kirra Point as a destination in its own right, a connected coastal neighbourhood integrating residential, hospitality and wellness, rather than a standalone project. It’s a vision that respects place, pace and permanence, and contributes to a sense of community that feels authentic to Kirra.”</p>

<p>[smartcode_project:default project_id=152295 project_image_fid=368411]</p>

<p>Once complete, the Kirra Point masterplan will incorporate a mix of dining establishments, bars and cafés, alongside the Kirra Point Health Club and a future 91-room independent resort hotel, creating a walkable, integrated lifestyle precinct.</p>

<p>Architecutue and interiors at Casilia have been designed by the experienced design houses of <a href="https://www.apartments.com.au/architects/little-boat-projects">Little Boat Projects</a> and O’Neil Architecture &amp; Interior Design, The design moves beyond the conventional coastal apartments, instead taking cues &nbsp;from the surrounding landscape - layering natural materials, soft curves and warm textures to create spaces that respond to light, airflow and the rhythms of coastal living.</p>

<p>Residences are designed with an array of floorplates, generous proportions and intuitive flow, while at ground level Casilia connects into the broader precinct, where future laneways, retail and hospitality offerings will contribute to a neighbourhood defined as much by how people live day-to-day as its beachfront position.</p>

<p>[smartcode_project_cta:default project_id=152295]</p>


The final residential release within the Kirra Point masterplan is set to launch, as strong pre-sales signal sustained demand for the Southern Gold Coast

A decade in the making: KTQ launches Casilia at Kirra Point

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>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.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><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" /></p>

<p>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</p>

<p>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.</p>

<p><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" /></p>

<p>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.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><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" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>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;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

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<p>The asking price of the Muckleford, Victoria property with a green-and-yellow W-class tram as its centrepiece, has been reduced to $410,000.</p>
<p>The three-bedroom, one-bathroom home, <a href="https://www.domain.com.au/property/for-sale/house/vic/muckleford/?adid=2011451303" target="_blank">10 A Frame Track, Muckleford</a>, had been initially marketed at $439,000.</p>
<p>Set on 20 acres, 130 kilometres north-west of the CBD, the home has been fashioned around the tram including mud brick sections.</p>
<div id="conditionalAd-300x250-pos-3">
<div id="google_ads_iframe_/6411/WATODAY/domain/realestatenews_13__container__"> The tram has been renovated to include multi-functional bedroom-study-living areas as well as a kitchen and dining area. </div>
</div>
<p>The trams were produced between 1923 and 1956 by the Melbourne and Metropolitan Tramways Board. </p>
<p>Owner Gary Markoff paid about $1000 to buy the decommissioned vehicle and haul it to the country about 35 years ago.</p>
<p>Cantwell Property, Castlemaine, agent Genevieve Cantwell, is selling the home.</p>
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jchancellor-FAypfDUnLy

Tram fare price at Muckleford comes down to $410,000

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<p class="Normal"><span style="line-height: 1.3em;">It’s sadly typical of real estate investment that the most popular places for buyers are also the worst places to buy.</span></p>
<p class="Body"><span style="line-height: 1.3em;">Investors are piling en masse into a series of off the plan unit markets that will be the ruination of many people’s wealth dreams. The top five locations in terms of sales volumes are all places that property buyers must avoid.</span></p>
<p class="Body"><span style="line-height: 1.3em;">It’s a commentary on two issues, which are among the core problems for property investors. One is that most investors fail to conduct genuine research before making decisions that involve hundreds of thousands of dollars. The second is that far too many of them think that reading media reports constitutes research.</span></p>
<p class="Body"><span style="line-height: 1.3em;">When I spoke at two Performance Property Advisory seminars in Melbourne earlier this week, I told audiences that most of what they read or hear about real estate in mainstream media is misinformation. Most of what they read or hear is press release material (i.e. someone’s propaganda) regurgitated as credible information. There is no journalistic oversight on the material that is published, in most cases.</span></p>
<p class="Body"><span style="line-height: 1.3em;">Among the most dangerous material is “research” which presents lists of, for example, the 10 best places to buy for high rental yields, or the 10 top buyers’ markets in the land, or the locations with the biggest growth in median prices in the past quarter.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body"><span class="Body__Char">These lists are presented by incompetent journalists with the inference that these are the places investors should be buying. It amounts almost to criminal negligence. Those lists of the places with the highest yields or the ones described as the best buyers’ markets in the land comprise places where markets are in serious decline. Many of these markets are basket cases.</span></p>
<p class="Body"><span class="Body__Char">Earlier this week we saw a list of the most popular locations for buyers in Australia. These are the suburbs with the highest numbers of sales. The treatment given to this press release material from a publicity-hungry research business inferred that these were all great places to buy. If everyone’s piling into these places, then so should you. The inference is that the herd mentality is a viable method of making investment decisions.</span></p>
<p class="Body"><span class="Body__Char">Eight of the top 10 locations on the list were all locations that investors must avoid, if they are to escape a financial disaster. Those eight locations were apartments markets with heavy marketing of off-the-plan high-rise units in locations that already have, or will soon have, serious oversupplies.</span></p>
<p class="Body"><span class="Body__Char">The No.1 location in the list was the Melbourne CBD. Most of the 1,500 buyers who have purchased apartments there in the past 12 months will live to regret their decisions. Also on the Top 10 list were neighbouring unit market suburbs, Southbank and South Yarra. This is oversupply central for Australian real estate – a place where unit towers are being built not for local consumption but to be flogged at inflated prices to offshore investors. It won’t end well. </span></p>
<p class="Body"><span style="line-height: 1.3em;">Four of the top 10 places were occupied by unit markets on the Gold Coast, with Surfers Paradise No.2 on the national list. You have to wonder how many people have to lose money in this fools’ paradise before investors get the message to steer clear.</span></p>
<p class="Body"><span style="line-height: 1.3em;">The Gold Coast has just spent five years absorbing the previous surplus of high-rise units, with property values falling in virtually every suburb in Gold Coast City. The median price for Surfers Paradise is still lower today than it was five years ago, but in the past 12 months another 1,255 buyers dived headlong into this investors’ graveyard, even as developers are working hard on creating the next massive over-supply.</span></p>
<p class="Body"><span style="line-height: 1.3em;">The Brisbane CBD, which is working hard to outdo its Melbourne’s counterpart as oversupply central, is No.3 on the list.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body"><span class="Body__Char">The latest research shows that only 10% of sales in the Brisbane inner-city unit market are to owner-occupiers. Investors are buying 90% of the stock and the great majority of them are distant investors – people from interstate and overseas. Many will wish they had left their money in the bank.</span></p>
<p class="Body"><span class="Body__Char">Vacancies in Brisbane’s inner-city suburbs range from 4% or 6.5% - and that’s before all the new supply now under construction hits the rental market. BIS Shrapnel research shows that a record number of new apartments will be completed this year, but more will be finished next year and even more the year after. These numbers are a red flag for sensible buyers.</span></p>
<p class="Body"><span class="Body__Char">Brisbane, like Melbourne and the Gold Coast, is building far too many apartments because they’re not being created for local consumption – they’re being conceived for sale to unsuspecting foreign buyers.</span></p>
<p class="Body"><span class="Body__Char">The developers will be happy because they will sell all their apartments and make lots of money, but the broader market and the people who own properties there will suffer, as high vacancies cause rents to fall, with values to follow.</span></p>
<p class="Body"><span class="Body__Char">If you’re an investor driven by the herd mentality or the FOMO (Fear Of Missing Out) syndrome, then you will dive into these markets. And when you lose money, you will thoroughly deserve it.</span></p>
<p class="Body"><span class="Body__Char">Be afraid, be very afraid.</span></p>
<p class="Body"><span class="Body__Char"><em>TERRY RYDER is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></span></p>
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terryryder-YECXbqmri2

Better in the bank than on Brisbane inner-city apartments: Terry Ryder

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<p>Investor activity has surged over recent years and now shows that in March 2015, investors committed to $12.9 billion in housing finance.</p>
<p>By comparison, investment mortgage commitments reached a recent low of $6.3 billion in April 2011.</p>
<p>The recent rise to $12.9 billion has seen the value of commitments rise 105% in less than 4 years.</p>
<p>While state data is seasonally adjusted, these markets tend to be a little more volatile. Nevertheless, it shows $13.5 billion worth of commitments in March 2015.</p>
<p>A state by state breakdown shows that nationally, NSW accounted for 46.0% of all investor mortgage commitments. The value of commitments in NSW was greater than the value of all states and territories combined except for WA. Of particular note is the fact that this data largely reflects what is happening in Sydney which experienced a significant rise in investment lending over the past 3 years.</p>
<p>Across all states the recent low in investment lending has been in either January or February of certain years and we’ve found that this time of year is a seasonally slower period for mortgage lending.</p>
<p>After APRA wrote to Australian banks, credit unions and building societies late last year re-affirming sound residential mortgage policies we have recently started to see many banks change their lending policies.</p>
<p>A large focus of these changes has been around investment mortgages and over the coming months we should eventually see investment lending start to slow.</p>
<p><a href="/images/2015/06/04/700_Statebreakout.jpg" target="_blank">Click to enlarge</a></p>
<p><span><img src="/images/2015/06/04/700_Statebreakout.jpg" alt=""></span></p>
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<p><a href="/images/2015/06/04/700_lending.jpg" target="_blank">Click to enlarge</a></p>
<p><span> </span></p>
<p> </p>
<p><span><img src="/images/2015/06/04/700_lending.jpg" alt=""></span></p>
<p><span>NSW </span>– in March 2015, investors committed to $6.2 billion in mortgages, a year-on-year increase of 37.2%. Over the past 3 years the value of investment mortgage commitments has increased by 155%. If you remove refinances, investors accounted for 60.0% of all new lending in NSW in March 2015.</p>
<p><span>Vic </span>– investors committed to $3.1 billion in mortgages in March, a 17.1% year-on-year rise. Investors accounted for 48.6% of new lending in March and the value of commitments is 70% higher over the past 3 years.</p>
<p><span>Qld </span>– at $2.2 billion in March, investor lending has risen by 43.1% year-on-year and is 69% higher over the past 3 years. Investors accounted for 47.2% of new lending over the month.</p>
<p><span>SA </span>– investment lending has increased by 28.3% year-on-year to March 2015 to $508.8 million and has increased by 32% over the past 3 years. Investors accounted for 43.0% of new lending in March 2015.</p>
<p><span>WA </span>– investors accounted for 39.0% of new mortgage lending over the month with $1.1 billion in commitments. Investor mortgage commitments have increased by 4.5% year-on-year and by 31% over the past 3 years.</p>
<p><span>Tas </span>– investors currently account for 30.5% of new mortgage lending <span>$</span>with a total of $70.8 million. The value of investment commitments is 21.3% higher over the year and has increased by 41% over the past 3 years.</p>
<p><span>NT </span>– at $103.5 million in March 2015, investment lending is -1.1% lower over the year. Investment lending has increased by 14% over the past 3 years and investors currently account for 55.3% of all new mortgage lending.</p>
<p><span>ACT </span>– at $168.3 million in March 2015, investment lending is 2.9% higher over the year. Investment lending has increased by 8% over the past 3 years and investors currently make-up 41.8% of all new mortgage lending.</p>
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ckusher-ujnxiKuFQs

Investment lending set to slow: Cameron Kusher

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<p><span>A three-level townhouse in the former R. M. Crockett &amp; Son cricket bat factory at Seddon failed to sell at weekend Jas Stephens auction.</span></p>
<p><span style="line-height: 1.3em;">A $700,000 vendor bid came from auctioneer Branko Lemaic today.</span></p>
<p><span style="line-height: 1.3em;">A second vendor bid of $720,000 prompted the the two-bedroom conversion being passed in. </span></p>
<p><span style="line-height: 1.3em;"><a href="https://www.realestateview.com.au/Real-Estate/3-138-charles-street-seddon/Property-Details-buy-residential-8437510" target="_blank">The reserve price</a> has been signalled as $769,000 for <span>3/138 Charles Street.</span></span></p>
<p><span style="line-height: 1.3em;"><span>In the 1960s the firm of </span><span>R.M. Crockett</span><span> &amp; Son came under the control of the Slazenger.</span></span><span style="line-height: 1.3em;"> </span></p>
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<div id="link-photo"><a class="photobox cboxElement" href="https://www.realestateview.com.au/portal/viewphotos?OID=8437510&amp;popup=photos"><img src="https://images.realestateview.com.au/pics/510/3-138-Charles-Street-Seddon-VIC-3011-Real-Estate-photo-1-large-8437510.jpg" alt="3/138 Charles Street Seddon VIC 3011 Real Estate Photo 1" title="3/138 Charles Street Seddon VIC 3011 House - Photo 1"></a></div>
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<div><span style="line-height: 1.3em;">A Melbourne auction clearance rate of 79 per cent was recorded this weekend compared to 76 per cent last weekend and 69 per cent this weekend last year.</span></div>
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<p> </p>
<p><span>There were 1291 auctions reported to the REIV today.</span></p>
<p><span style="line-height: 1.3em;"><span> </span></span></p>
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Bumper day, but with no bat or ball players, RM Crockett cricket bat factory residential offering passed in

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<div>The Lending Finance data released yesterday for the month of June 2015.</div>
<div> </div>
<div>Total lending was once again superficially very strong at a seasonally adjusted $74.7 billion for the month.<br><br>While this was only a moderate increase for the month, on a rolling annual basis total lending has increased to a new high of $857 billion.</div>
<div> </div>
<div>Note that the "commercial loans" category includes property investment loans, so the recovery in credit growth is rather more housing-focused than first it may appear.</div>
<p><a href="https://3.bp.blogspot.com/-hLjERfYhiNk/VcgOlQzorcI/AAAAAAAAXg4/GdmpPCJx3a4/s1600/A4.jpg" target="_blank">Click to enlarge</a></p>
<p><br><a href="https://3.bp.blogspot.com/-hLjERfYhiNk/VcgOlQzorcI/AAAAAAAAXg4/GdmpPCJx3a4/s1600/A4.jpg"><img src="https://3.bp.blogspot.com/-hLjERfYhiNk/VcgOlQzorcI/AAAAAAAAXg4/GdmpPCJx3a4/s640/A4.jpg" width="640" height="280"></a></p>
<p> </p>
<p><strong><span style="text-decoration: underline;">nvestor loans - Sydney investor credit explodes</span></strong><br><br></p>
<div>Drilling into the commercial lending figures we can see that the property investment loans by state data is telling. </div>
<div> </div>
<div>Up until the month of June, while the investor loan crackdown by the regulator APRA may have had an impact in aggregate, investor lending in Sydney was still rising fast.</div>
<div> </div>
<div>In fact, New South Wales investor loans accelerated in June to a record $6.55 billion to record a rolling annual total of an astounding $64.9 billion.</div>
<p><a href="https://3.bp.blogspot.com/-Abb1wPadxP0/VcgOkqurF_I/AAAAAAAAXgs/o7VArJh790s/s1600/A3.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://3.bp.blogspot.com/-Abb1wPadxP0/VcgOkqurF_I/AAAAAAAAXgs/o7VArJh790s/s1600/A3.jpg"><img src="https://3.bp.blogspot.com/-Abb1wPadxP0/VcgOkqurF_I/AAAAAAAAXgs/o7VArJh790s/s640/A3.jpg" width="640" height="278"></a></p>
<div>Thus while investor lending growth in aggregate had begun to slow by June, Sydney investors are now sitting on deep pools of equity following years of strong capital growth and this equity can often be used as 20 per cent deposits.<br><br>As a result as this stage investor loans may have been more impacted in other capital cities and regional centres where capital growth has been much weaker or in many cases non-existent.</div>
<div> </div>
<div>My information is that we should start to see investor loans slowing in the July and particularly August figures.</div>
<div> </div>
<div>However, as I looked at last week, the housing finance data also shows that owner-occupier commitments in New South Wales have now responded to low interest rates in booming to a record high $6.6 billion on a seasonally adjusted basis in June.</div>
<div> </div>
<div>Housing markets are the sum of their parts and therefore below I have charted the raw unadjusted "Original" data for New South Wales in a stacked columnar format.</div>
<div> </div>
<div>As you can see in the chart below, the month of June was by a significant margin the biggest month of lending on record for any state in Australia's history.<br><br>
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<div><a href="https://3.bp.blogspot.com/-pPjg2ax1nkM/VckXlsIKhOI/AAAAAAAAXiA/764PBQJU-qc/s1600/A9.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-pPjg2ax1nkM/VckXlsIKhOI/AAAAAAAAXiA/764PBQJU-qc/s1600/A9.jpg"><img src="https://3.bp.blogspot.com/-pPjg2ax1nkM/VckXlsIKhOI/AAAAAAAAXiA/764PBQJU-qc/s640/A9.jpg" width="640" height="276"></a></div>
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<div class="separator">
<span>A couple of observations here.</span><br><br><div>Firstly, note that the ABS Lending Finance data series records loans written domestically, suggesting that the boom in Sydney dwelling prices has been primarily driven by domestic investors (and now homebuyers).</div>
<div> </div>
<div>That said, foreign capital is playing its part to some extent too, as I've written here previously, particularly relating to new dwellings.</div>
<div>
<br>Recall that foreign buyers without Australian residency are generally granted permission to buy new residential property.</div>
<div> </div>
<div>Foreign buyers with no Australian residency typically cannot buy established residential property unless they have specific permission to do so from the Foreign Investment Review Board (FIRB).</div>
<div> </div>
<div>This permission may be granted in some instances, such as for development projects.</div>
<div> </div>
<div>Licensed real estate agents, buyers agents and solicitors have simple procedures in place to ensure that they only deal with legal purchasers of established property.</div>
<div>
<br>As the above chart clearly shows there is more than enough domestic business from Australian residents without needing to seek business from buyers without Australian residency. </div>
<br><strong><span style="text-decoration: underline;">Around the states</span></strong><br><br><div>As noted above New South Wales investor loans accelerated in June to a new high of $6.5 billion in June. </div>
<div> </div>
<div>On a 12mMA basis investor loans in New South Wales rose to a record high $5.4 billion.</div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-7KU4Mf3dxnY/VcgOkrmanCI/AAAAAAAAXgo/XHBtOBINfEE/s1600/A1.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
<div><span style="line-height: 1.3em;"> </span></div>
<div>
<div class="separator"><a href="https://1.bp.blogspot.com/-7KU4Mf3dxnY/VcgOkrmanCI/AAAAAAAAXgo/XHBtOBINfEE/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-7KU4Mf3dxnY/VcgOkrmanCI/AAAAAAAAXgo/XHBtOBINfEE/s640/A1.jpg" width="640" height="276"></a></div>
<br><div>Low interest rates and expectations of future price growth have also impacted investor loans in Victoria. </div>
<div> </div>
<div>It's impossible to call the market peak accurately, but it's my belief that - unlike Sydney - Melbourne has been overbuilding in the unit and apartment market in particular, and this will result in stagnant rents and prices in due course for certain sectors of the market. </div>
<div> </div>
<div>There may be a material price correction in time too, especially for new and off-the-plan builds.</div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-CqPJELW4MwI/VcgVHrv8GeI/AAAAAAAAXhY/WgovxM2s70o/s1600/A6.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-CqPJELW4MwI/VcgVHrv8GeI/AAAAAAAAXhY/WgovxM2s70o/s1600/A6.jpg"><img src="https://4.bp.blogspot.com/-CqPJELW4MwI/VcgVHrv8GeI/AAAAAAAAXhY/WgovxM2s70o/s640/A6.jpg" width="640" height="290"></a></div>
<br><div>Queensland's resources regions and regional centres may be struggling as the mining investment boom turns to bust, but house prices are now rising in inner Brisbane.</div>
<div> </div>
<div>For my money, Brisbane may well be the best performing capital city housing market in 2016, although asset selection will be important here (there is much high-density building taking place).</div>
<div>The trendline below which records investor loans on a 12mMA basis shows that Queensland investor lending in aggregate is now tracking at their highest level since April 2008.</div>
<p><a href="https://3.bp.blogspot.com/-QTEbjM-b_nE/VcgOklLIqVI/AAAAAAAAXgk/5ASN33dV5wE/s1600/A2.jpg" target="_blank">Click to enlarge</a></p>
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<div class="separator">Western Australia's property markets are now demonstrably into their downturn phase, and consequently despite low interest rates investor loans volumes are trending down.</div>
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<div class="separator"><a href="https://1.bp.blogspot.com/-tG0quakkE9U/VcgVOTlEbGI/AAAAAAAAXhg/wiGMtYBNMMw/s1600/A7.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator">Some property experts have painted themselves into a corner with regards to South Australia and will continue to recommend investing there come hell of high water.</div>
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<div class="separator">With very little building activity in the detached housing sector the Adelaide market has certainly been tightening nicely, yields are comparatively strong, and after 7 or 8 years of weak dwelling price growth there is plenty of value of money to be found, even close to the centre of Adelaide.  </div>
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<div class="separator">On a 12mMA basis investor loans in South Australia are now tracking at their highest ever level at $437 million.</div>
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<div class="separator">A word of warning, however,</div>
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<div class="separator">Barely a week passes without further news of redundancies in South Australia, with the unemployment rate having trended up alarmingly from 5.2 per cent in October 2011 to 7.9 per cent today...and rising.</div>
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<div class="separator">In fact, if you have a low budget, my personal belief is that a combination of foreign capital, a n ongoing depreciation of the Aussie dollar, record Chinese tourism spend and a tightening market will see Hobart emerge as the surprise package capital city housing market over the short term.</div>
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<div class="separator"><span>The longer term economic and demographic fundamentals in Tasmania are admittedly uncertain.</span></div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Pace of NSW investor lending accelerates: Pete Wargent

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<p><span style="line-height: 1.3em;">Getting started on your property investment journey can be daunting. I'm reminded of this when I hear from people who haven't yet been able to take that step forward. </span></p>
<p>It's something that comes naturally to me now after sourcing many properties and development sites for our Property Bloom clients but I can still remember very clearly my first investment property purchase. Man, was I nervous!</p>
<p>Some people seem to be able to make a quick (yet still educated) decision and others 'think' about it for weeks, months and sometimes years. Being decisive is a great skill to have. </p>
<p>I had a call the other day from a lady who said she'd been following my articles on Property Observer for years but couldn't ever get to the point of making a decision on how to buy her first property, where to buy it and how much she should spend. </p>
<p>In this time, she watched the Sydney market rise and rise until it was virtually unviable to her as an investment option. Then she was kicking herself for not getting in earlier.</p>
<p>The one thing I wanted to communicate to her was to "take small steps".  Break down the process so that it doesn't seem so overwhelming. </p>
<p>Start with your finance. How much can you borrow and service and how much do you feel comfortable borrowing? Once you have a budget then you've taken the first step. </p>
<p>With that budget in mind, look for locations with a median price point around the same as your budget. Choose a few different suburbs in this location and then spend time in these suburbs. Drive around, hang out in the shopping centre, study the people who live there. Strike up conversations and ask about what they love about living there... and if  there are any streets they wouldn't live. What are the schools like and are there good community facilities like sporting fields, skate parks, playgrounds, places for families to enjoy. </p>
<p>Once you get a 'feel' for the area and the people living there, then start some more detailed due diligence on the local economy, job opportunities, infrastructure projects, council's long term plans for the area, population growth, recent past sales, rental returns and vacancy rates. Attend auctions and talk to real estate agents about what tenants are looking for.   </p>
<p>There that's the next step taken, and all of a sudden you've become very knowledgeable and narrowed down the suburb where you'll invest.  Follow the sales market in the streets you like and you'll soon know what a good deal looks like. </p>
<p>Remember to look for development potential in a property; can you add value to it either now or in the future?  Search for large block sizes, dual access points, houses you can add a bedroom or upgrade the kitchen or bathroom to increase the rent.  Property located in a medium density zone means you'll have more options later to develop it. Find property that is close to shops, on public transport routes and within a short drive to the central business district or to the closest city.  </p>
<p>Finally, get ready to move quickly. When you find a property that ticks all the boxes and with a finance preapproval under your belt, you can confidently make an offer.</p>
<p>Don't be disappointed if you miss out as all this adds to your experience and there will be other properties that come up soon. By going through this process you'll establish relationships with locals and agents and soon that first small step will lead to an investment property purchase. </p>
<p><em>Jo Chivers is Chief Executive Officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Small steps will lead to big things: Jo Chivers

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<div>As a mainly passive investor in equities these days I must admit that I don't pay a huge amount of attention to the daily machinations of the share markets.</div>
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<div>That said, judging from the number of angst-ridden articles about why shares must be the way to go and definitely not property I'd say it's a fair assumption that Aussie share markets are now tanking again.</div>
<div> </div>
<div>And taking a look at the charts, yep, pretty much.</div>
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<div>Having briefly threatened to get back up to 6,000 after nearly eight years of trying the ASX 200 (XJO) is now deflating miserably again, all the way back down 5356.50.</div>
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<div>The technicals are looking rather shocking too.</div>
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<strong><span style="text-decoration: underline;">Property markets divergent</span></strong><br><br><span>Meanwhile, what's been happening in property markets since 2007?</span><br><br><div>The Reserve Bank of Australia (RBA) released its latest <a href="https://www.rba.gov.au/chart-pack/index" target="_blank">Chart Packs</a> during the first week of August recording the latest housing prices.</div>
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<div>As I expected, beyond the financial crisis the rising tide of household debt could no longer lift all boats, and so far capital growth has been strongest in the two largest capital cities, but considerably weaker elsewhere. </div>
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<div>Drivers of markets going forward will include jobs growth, population growth, real wages growth and foreign capital, among a number of other factors. </div>
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<div><span>Predictably the Sydney property market has been the clear standout, with house prices in round numbers having appreciated by <span>~</span>$400,000 (from <span>~</span>$550,000 to <span>~</span>$950,000), or more than a <span>~</span>70 per cent increase. </span></div>
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<div>The line denoting Sydney would look far steeper if it wasn't for the fact the RBA switched from using a linear scale to a log scale at the end of the first quarter.</div>
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<div>At the other end of the scale, Adelaide's median house price has appreciated by around <span>~</span>$100,000 from <span>~</span>$350,000 to <span>~</span>$450,000, or close to a <span>~</span>30 per cent increase.</div>
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<div>Regional house prices in aggregate showed the lowest price growth of under $100,000, the chart following a very similar trajectory to that of Adelaide. </div>
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<div>In Brisbane median house prices are below their 2010 peak according to <em>CoreLogic-RP Data</em>(albeit only very marginally) but are now rising. </div>
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<div><span>For my money, Brisbane offers the best "value" of any of the capital city markets, though investors need to be particularly careful about what they are buying, for the reasons well documented here previously. </span></div>
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<div><span><span>The trendline below which records investor loans on a 12mMA basis shows that Queensland investor lending in aggregate is now tracking at its highest level since April 2008 and rising.</span></span></div>
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<div><strong><span style="text-decoration: underline;">Shares and property</span></strong></div>
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<div>I wouldn't get too bogged down in the whole shares versus property debate, given that these are two fundamentally very different asset classes, both of which have their place in an investment portfolio. </div>
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<div>For average investors equities are often best viewed primarily as an income investment (just as well given that there has been no capital growth for close to a decade). </div>
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<div>A fundie would justly argue that through skilful stock selection they can beat the market consistently, thereby justifying their fees. </div>
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<div>That's fair enough.</div>
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<div>The same is true of property markets, really. </div>
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<div>Median house price growth across Australia has been fairly mixed in recent years, with Adelaide, Hobart, Perth and Brisbane recording almost no nominal price growth at all since their respective 2010 peaks.</div>
<div> </div>
<div>That said, property investors can and do aim to beat median house price growth with quality asset selection.</div>
<div> </div>
<div>I can think of at least a hundred ways in which it's possible to steal an edge on imperfect property markets, one of which is alluded to above - buying counter-cyclically. </div>
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<div>Another way to manufacture growth is through renovation.</div>
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<div>Over the long term a few other tactics might include buying property which is:</div>
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<div>-located within a 15 minute commute of the centre a large and growing capital city;</div>
<div>-in a land-locked suburb;</div>
<div>-within a 5 minute walk to a hard rail link or hub;</div>
<div>-comprised of a high land value; and</div>
<div>-an asset type which is in exceptionally high demand but has scarcity value.</div>
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<div>There are a great many others, of course. </div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Steal an edge on imperfect property markets: Pete Wargent

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<span style="line-height: 1.3em;">In the United Kingdom, Rightmove released it August 2015 House Price Index, which showed an average asking price for UK homes of <strong>£292,484</strong> and for London homes of </span><span style="line-height: 1.3em;"><strong>£606,826.</strong></span>
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<div>The result translated to the usual fall in August asking prices, with the index not being seasonally adjusted.</div>
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<div>However, Rightmove reported that the August decline of -0.8% was the smallest decline for the month of August in the eight years since before the credit crunch in 2007.</div>
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<div>Since 2007 the average August decline has been as great as -1.5%, with the decline having been more than 2% on three occasions in 2008, 2009 and 2014.</div>
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<div>A major driver of the supply-demand imbalance was identified as a significant 8% year-on-year fall in the number of sellers, which has become something of a vicious circle for UK property markets. </div>
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<div><strong><span style="text-decoration: underline;">Transaction costs</span></strong></div>
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<div>According to data reported by Lloyds Bank only 151,000 many Britons moved house in the first half of 2015 compared to some 327,000 in the first half of 2009. </div>
<div> </div>
<div>Buyers reportedly have been concerned about the costs of moving as well as being unable to find somewhere which they want to buy.</div>
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<div>Stamp duty in the UK is levied on transactions above <span>£125,000 and therefore rising prices naturally leads to bracket creep and more buyers on the lower rungs of the ladder being captured in the taxable bracket.</span>
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<span><br>The stamp duty on UK purchases above </span><span>£575,000 is an absolutely ridiculous 10%. Properties bought for more than</span><span> </span><span>£1.5 million are whacked with an even more ridiculous top rate of 12%, though of course even this has not stopped the campaigning for ever more punitive taxes.</span>
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<div><span>If you do somehow decide to stay in Britain, the inheritance tax takes care of most of the rest at 40% rate, another ingenious tax, death duties having accounted for the demolition of an estimated one sixth of Britain's country homes in the 20th century. </span></div>
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<span>Unsurprisingly the prevailing crazy rates of stamp duty act as a particular disincentive to relocate within the South East of England where most transactions (69%) fall in to the 5% bracket for sales greater than </span><span>£</span><span>250,000. </span><span>In London the equivalent figure is even higher at 89%.</span>
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<div>We have heard similar reasonings given by buyers and vendors in Australia, whereby stamp duties have acted as a disincentive for homeowners to move, and have in turn also led towards more investors adopting a trusty "long term buy and hold" mentality.</div>
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<br><strong><span style="text-decoration: underline;">Asking prices</span></strong>
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<div>The Rightmove House Price Index data from May 2003 to August 2015 is charted below for the United Kingdom and for London.</div>
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<div>UK average asking prices were up by +6.4% over the past year, while London prices were +9.7% higher.</div>
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<div><span>Given that the data is not seasonally adjusted, below is the same data for UK asking prices with a 12mMA trendline. </span></div>
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<span>Below is the data charted for London where asking prices appear to have consolidated above </span><span>£600,000 having come in above that threshold for the past three months.</span>
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<div>The strongest performing London Boroughs have included Greenwich where average asking prices have surged by 18% over the past year, spurred on the back of Crossrail activity. </div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Strongest UK August market since 2007: Pete Wargent

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<div>Another data series which doesn't really fit the narrative of tight or stretched household budgets, as trend new car sales moved to their highest ever level in July 2015. </div>
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<div>This follows on from recently compiled Reserve Bank data which shows that mortgage redraw buffers and offset account balances are also at their highest ever level as household enjoy low interest rates and cheaper repayments.</div>
<div> </div>
<div>Of course, it often doesn't feel this way at the individual household level - interviews with the world's wealthiest people have shown that financial stress never entirely goes away whatever the true state of one's personal finances.</div>
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<div><span>The Reserve Bank itself has mused<span>:</span></span></div>
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<div><em>"The continued concern about living cost pressures might arise because the standard of living that can be sustainably afforded by households’ incomes remains lower than many would like."</em></div>
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<div>Certainly although wages growth is soft at +2.3 per cent, this has to date at least remained well in excess of the increase in the cost of living for employee households.</div>
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<div><strong><span style="text-decoration: underline;">Record new motor sales </span></strong></div>
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<div>In any event it was another monster month for new motor vehicle sales at a seasonaly adjusted 96,388 which saw trend sales reach an all-time record high in July 2015, having increased by 3.7 per cent over the past year. </div>
<div> </div>
<div>The result was all the remarkable given the weak data evident in the resources states, a slowing rate of population growth, as well as the fact that the Aussie dollar has depreciated sharply in recent times. </div>
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<div><span>Looking at the "original" data on a rolling annual basis we can see that more than 1.13 million new vehicle sales have been recorded over the past year, while the 588,619 units sold over the past six months is a record for any half year period in Australia's history.</span></div>
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<div><span>It was another prodigious month for Sports Utitlity (SUV) sales at more than 34,000 seasonally adjusted from fewer than 30,000 one year ago (a +14 per cent year-on-yearincrease), the annualised number of SUV sales climbing inexorably to beyond 380,000.</span></div>
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<div><strong><span style="text-decoration: underline;">State versus state</span></strong></div>
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<div>New South Wales has been recording a number of king-sized seasonally adjusted results in recent months, firing total new motor vehicle sales to their highest ever level in the Premier State. </div>
<div> </div>
<div>On a rolling annual basis new motor vehicle sales are rising in Queensland too, but are now looking somewhat peaky in Victoria after a fine run. </div>
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<div>Sales have declined moderately in South Australia over the past year, and fairly sharply in Western Australia as the mining construction boom comes undone. </div>
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<div><strong><span style="text-decoration: underline;">State trends</span></strong></div>
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<div>The trend year-on-year increase in sales was particular strong in each of the most populous states, those being New South Wales (+8.1 per cent), Victoria (+3.4 per cent) and Queensland (+6.6 per cent).</div>
<div> </div>
<div>While somewhat immaterial at the national level, the surprise package is Tasmania with a trend +13 per cent year-on-year increase in units sold. </div>
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<div>The strength of the data in the three most largest states has more than offset the weakness in South Australia (-4.2 per cent) and the resources-impacted Western Australia (-11 per cent) and Northern Territory (-1.4 per cent).</div>
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<p><span><em>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>.</em><br></span></p>
<p><em>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>.</em></p>
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Stretched household budgets or not? Pete Wargent

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<p>I’ve spent almost 2 decades marketing and developing apartment projects of varied kinds, big and small, across lots of price brackets and in many locations, and I’ve been interested to observe how apartment living has evolved. We all know that more of us are now living in apartments, a trend that’s set to continue as we see much more high-density living becoming commonplace.</p>
<p>Over the past few weeks I looked at how important ‘place making’ has become as part of the development cycle as many inner-city areas are completely transformed. But there’s another more personal and communal side, a more everyday intimate side to apartment living that I think anyone associated with the development and marketing of apartments should be mindful of, and that’s the value of good neighbours.</p>
<p>Apartment living involves much closer connections between neighbours, a closer sharing of space and facilities. And while not living in the pockets of our neighbours, good relations and a friendly building in a high density community is always desirable.</p>
<p>While we have various area of legislation to help manage apartment buildings, even if the current rules are out-dated, which they are, just what makes a good neighbour and how people living in an apartment generally view the ups and downs of their lifestyle, gives some valuable insights.</p>
<p>Considering this topic further there are, as might be expected, some die hard and often repeated comments about neighbours and the ‘likes’ and ‘dislikes’ about apartment living.</p>
<p><strong>Community Connections</strong></p>
<p>Here’s a quote I recently came across. “<em>The human body has 7 trillion nerves, and you manage to get on every single one of them.” </em></p>
<p>The point is I guess that it’s more or less human nature that sooner or later someone or something will get on our nerves and when an apartment project is complete, or when a buyer comes into an already established building, there’s a neighbourhood, a vertical community that the buyer connects with.</p>
<p>In an apartment community, living in close proximity there’s some clear ideas on just what makes good (and unfortunately bad) neighbours. Most items on the list come down to some very basic things, some of which are addressed by rules and regulations, but there are some where improved planning and design can and does make a significant difference.</p>
<p><strong>Good Neighbours</strong></p>
<p>From experience and with lots of feedback from past buyers and my sales team, some of the key attributes of good neighbours revolve around predictable areas like parking, the use of common areas, security, noise, pets, rubbish, smells and building management.</p>
<p>It’s also thought-provoking, but I think not unexpected, that when you ask people, or read research about what individuals like and dislike about apartment living that many of the same topics are always on their list. On the downside many lists of ‘dislikes’ focus on smells, pets, noise and poor management. While the up-side the list often features cost (affordability), easy maintenance, security and personal safety and access to amenities, although in some markets cost might now be a more subjective measure.</p>
<p><strong>Common Areas a Common Concern</strong></p>
<p>Medium and high-density apartment living will always involve the use of shared areas, common property and when you look at some of the issues that people refer to here, I find myself thinking that ‘shared’ or ‘co-operative’ property could be a better way to describe such areas.</p>
<p>Well-designed key facilities that make up common property do play a big part in creating appealing projects, and good neighbours do not neglect or abuse common property. The key issues usually comes down to things like blocking parking access, the abuse of visitor parking, or leaving rubbish in common areas. It’s one of the reasons the building management is a common focus.</p>
<p>When it comes to subjects like smells, noise and pets there’s been lots of work done here, and I think that generally all new buildings avoid concerns of smells and noise and the rules around pets are usually very clear cut. I think that having foyer areas open to natural ventilation and the wider use of tiles have made a big difference to how buildings function and are maintained.</p>
<p>Building design does address noise, but it’s also important to have a well-connected community so that a friendly chat can help diffuse concerns over excessive noise.</p>
<p><strong>Building Management and Community</strong></p>
<p>While a review of Strata Legislation in NSW is hopefully soon on its way and has been a long time coming, good neighbours is still something that can not be forced into place by legislation. There’s always room and I think willingness for having good building community, a community of neighbours, where being social and friendly will usually occur naturally. Keeping an eye open on security, understanding that common areas are shared property and a co-operative approach to management will always be a positive.</p>
<p>In many markets a great deal of attention is paid to price movements and the demand for apartments, still I think we need to always remember that community and the value of good neighbours are important to buyers and all residents.</p>
<p>Market conditions are always evolving and I also consider that keeping these everyday issues in mind does help in planning and designing new buildings and also how we structure key marketing. I consider the value of community and good neighbours are part of what demographics aims to measure beyond the published figures we are all familiar with. A friendly and co-operative apartment community, no matter how big will always help sooth a majority of those 7 trillion nerves!</p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
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