<p>Gold Coast-based developer <a href="https://www.apartments.com.au/developers/ignite-projects">Ignite Projects</a> has lodged a Development Application for a landmark $120 million precinct set to transform the southern gateway of the much-loved Spit.</p>

<p>Positioned at the most prominent entry point to the iconic peninsula, the project has been designed with a strong focus on architecture, public space, heritage and connectivity, delivering a revitalised parkland setting that invites locals and visitors to engage with the Broadwater.</p>

<p>Central to The Isles proposal is a significantly upgraded public realm, including landscaped open space, a new waterfront café, and a family-friendly park featuring a naval-themed playground, open lawns and improved pedestrian connections.</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="de83a270-6091-4b26-bed0-86f9248e7f9e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%201.jpg?VersionId=vt79HlCOwV9F7eLQe9.Z3bv9JGLMaSP2" /></p>

<p>The design retains and celebrates key elements of the site’s history. The training mast from the vacant and degraded naval cadet building, which forms part of a former Navy minesweeper, will be preserved. The existing Navy Memorial will be relocated and upgraded in collaboration with the RSL, allowing it to be publicly accessible for the first time in years.<br />
&nbsp;<br />
Heritage-listed Humphreys Boat Shed remnants will remain and be incorporated into the landscape, while the site’s established Norfolk Pines will be retained, reinforcing the area’s character and sense of place. The enhanced parkland will ultimately create a long-term community asset at the entry to The Spit.<br />
&nbsp;<br />
The Development Application (DA) lodged with Gold Coast City Council includes 28 waterfront apartments across three levels, ranging in size from 145sqm to 383sqm, designed as a feature landmark within the precinct and complement the public domain.</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="bbf94e00-b56a-47fb-a15d-3d17b0b1ec76" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%203.jpg?VersionId=A0vmBNE_KohYJo1EoZcmF5IVW4tT5aDo" /><br />
&nbsp;<br />
Ignite Projects Director Josh Foote said the project as a whole had been carefully shaped to deliver a meaningful outcome for the wider community, not just future residents.<br />
&nbsp;<br />
“This is about more than delivering opulent apartments – it’s about creating a welcoming and memorable gateway to The Spit that people can enjoy every day,” Mr Foote said.<br />
&nbsp;<br />
“We’ve worked hard to ensure the public realm is a central part of the project, from the landscaped parklands and family-friendly spaces through to the preservation and celebration of important local heritage.”</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="443bbde5-8221-45f8-a549-dad2623df20c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%204.jpg?VersionId=iUl6nc.sHkjMdo_1RigwbwUz_celHJ3H" /><br />
&nbsp;<br />
Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, The Isles adopts a considered subtropical approach, with the building form shaped to maximise natural light, cross ventilation and views to the Broadwater and surrounding parklands.<br />
&nbsp;<br />
Architect Rafael Contreras said the design responded directly to its unique coastal setting.<br />
&nbsp;<br />
“Rather than a typical built form, the architecture has been shaped by performance and experience – from optimising outlook and privacy to creating a strong connection to landscape and climate,” Mr Contreras said.<br />
&nbsp;<br />
“A central landscaped courtyard allows light, air and greenery to permeate the building, while the articulated façade introduces movement and rhythm inspired by the Broadwater.</p>

<p>“The Isles will create a place where people can gather, relax and connect with the water, while also delivering a refined residential product that responds to its unique setting.”</p>

<p><img alt="Ignite Projects unveils exciting details of landmark gateway precinct for the Spit" data-entity-type="file" data-entity-uuid="1089570d-1120-4302-9900-fb9f75c75c26" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/The%20Isles%205.jpg?VersionId=pl9qmKZNbaL3A7XjmD7sjhLwmXaqzzLZ" /><br />
&nbsp;<br />
The DA relates to the residential and public realm components, with a proposed boutique marina to be progressed as part of a future stage, subject to separate approvals.<br />
&nbsp;<br />
The Isles is being delivered under The Spit Master Plan, a collaborative vision to create a new residential, tourism, leisure, natural environment and cultural heritage hub on the iconic and much-loved peninsula.&nbsp;<br />
&nbsp;<br />
Ignite Projects has an established track record delivering premium residential projects across the Gold Coast, including The Monaco at Main Beach and Cabana at Palm Beach.<br />
&nbsp;<br />
Sales for The Isles are expected to commence in coming months from an on-site display suite, with construction targeted to begin later this year, subject to approvals.</p>


Joel Robinson

Ignite Projects unveils exciting details of landmark gateway precinct for the Spit

<p data-end="252" data-start="53">The Federal Government’s sweeping changes to negative gearing and capital gains tax could trigger an unintended consequence: a surge of investor demand into the new and off the plan apartment sector.</p>

<p data-end="558" data-start="254">While Treasurer Jim Chalmers has framed the reforms as a way to improve housing affordability and rebalance the tax system, the carve-outs for newly built housing are already positioning off the plan apartments as one of the few remaining tax-effective property investment plays.</p>

<p data-end="966" data-start="560">Under the changes handed down in the Federal Budget, investors purchasing established properties after budget night will no longer be able to access negative gearing benefits. The Government will also replace the long-standing 50 per cent capital gains tax discount with a new inflation-indexation model and introduce a minimum 30 per cent tax on gains from July 2027.</p>

<p data-end="1004" data-start="968">However, there is a major exemption.</p>

<p data-end="1268" data-start="1006">Investors buying new builds, including off the plan apartments, will still be eligible for negative gearing and will be able to choose between retaining the current 50 per cent CGT discount or adopting the new indexed model.</p>

<p data-end="1348" data-start="1270">That distinction is expected to reshape investor behaviour almost immediately.</p>

<p data-end="1625" data-start="1350">For years, established housing has dominated investor purchases because of its perceived lower risk, immediate rental returns and stronger historical capital growth. But with the tax advantages now heavily skewed toward new housing supply, the economics are changing rapidly.</p>

<p data-end="1685" data-start="1627">The Federal Government has been explicit about its intent.</p>

<p data-end="1926" data-start="1687">“The housing market and tax system are broken,” Chalmers said ahead of the Budget, arguing that existing concessions were disproportionately rewarding speculation rather than supporting housing supply.</p>

<p data-end="2115" data-start="1928">The Government says the reforms are designed to encourage investment into new housing rather than established stock, a move aimed at increasing supply during a prolonged housing shortage.</p>

<p data-end="2319" data-start="2117">According to the official Budget papers, limiting negative gearing to newly built homes is intended to “better align tax incentives with housing supply objectives.”</p>

<p data-end="2471" data-start="2321">For the apartment development sector, particularly the off the plan market, the changes could become one of the strongest investor tailwinds in years.</p>

<p data-end="2790" data-start="2473">Developers across Sydney, Melbourne and Brisbane have spent the past two years battling elevated construction costs, higher interest rates and subdued investor confidence. Many projects have struggled to secure sufficient pre-sales to commence construction, particularly in markets heavily reliant on investor demand.</p>

<p data-end="2839" data-start="2792">The Budget changes may now alter that equation.</p>

<p data-end="3036" data-start="2841">Investors seeking tax-effective property exposure will increasingly find themselves funnelled toward newly built apartments simply because established dwellings no longer offer the same benefits.</p>

<p data-end="3362" data-start="3038">Commonwealth Bank described the reforms as one of the most significant shifts to residential property investment settings in decades, noting that the package is centred around “limiting negative gearing for residential property to new builds” while replacing the existing CGT framework.</p>

<p data-end="3427" data-start="3364">That could have profound implications for the apartment sector.</p>

<p data-end="3813" data-start="3429">Off the plan apartments already hold several advantages for investors. Purchasers typically secure a property at today’s price while settlement occurs years later, allowing time for capital growth and reducing the upfront capital burden. Brand-new apartments also generally attract depreciation benefits, lower maintenance costs, and stronger appeal to renters seeking modern amenity.</p>

<p data-end="3943" data-start="3815">Now, they may also become one of the only residential property types still offering the full suite of historical tax advantages.</p>

<p data-end="4133" data-start="3945">Industry analysts expect investor demand to increasingly migrate toward projects that can clearly demonstrate strong rental demand, transport connectivity and long-term supply constraints.</p>

<p data-end="4429" data-start="4135">The shift is likely to be particularly pronounced in apartment markets already underpinned by structural undersupply, including inner Brisbane, the Gold Coast, parts of Sydney’s Lower North Shore and select Melbourne precincts where new apartment commencements have collapsed over recent years.</p>

<p data-end="4529" data-start="4431">The reforms also arrive at a time when apartment supply nationally remains critically constrained.</p>

<p data-end="4844" data-start="4531">Australia is already struggling to meet the Federal Government’s target of delivering 1.2 million new homes over five years. Construction feasibility pressures have delayed or shelved thousands of apartments across the country, particularly as building costs remain elevated and financing conditions remain tight.</p>

<p data-end="5045" data-start="4846">Critics of the Budget changes argue the reforms could reduce overall investor participation in the housing market and place upward pressure on rents by discouraging investment in established housing.</p>

<p data-end="5209" data-start="5047">Some economists estimate the measures could reduce housing supply over the longer term if overall investor appetite weakens.</p>

<p data-end="5331" data-start="5211">However, the Government is betting that redirecting investor capital into new housing supply will offset those concerns.</p>

<p data-end="5584" data-start="5333">“To continue to incentivise construction of new housing, investors building new residential properties will be able to choose either the 50 per cent CGT discount or the new arrangements,” the Budget papers stated.</p>

<p data-end="5762" data-start="5586">That wording has been closely watched by the development industry because it effectively positions new apartments as the preferred investment class within residential property.</p>

<p data-end="5840" data-start="5764">For off the plan developers, the reforms could become a powerful sales tool.</p>

<p data-end="6035" data-start="5842">Projects that have increasingly relied on owner-occupier demand may once again attract investors seeking to preserve the tax advantages still attached to newly built housing before the July 2027 changes take effect.</p>

<p data-end="6133" data-start="6037">The reforms are also expected to sharpen the divide between established and new housing markets.</p>

<p data-end="6303" data-start="6135">Rather than a broad investor retreat from property altogether, many analysts expect a redistribution of capital toward sectors still supported by Government incentives.</p>

<p data-end="6495" data-start="6305">That could create stronger demand for apartment projects in key urban growth corridors and transit-oriented precincts where population growth, migration and rental shortages remain elevated.</p>

<p data-end="6626" data-start="6497">The policy direction also aligns with the Government’s broader push toward increasing housing density in established urban areas.</p>

<p data-end="6941" data-start="6628">Across Sydney, Brisbane and Melbourne, planning reforms are increasingly encouraging higher-density apartment development around transport infrastructure and activity centres. By maintaining tax incentives for new housing, the Federal Government is effectively reinforcing that agenda from a taxation perspective.</p>

<p data-end="7126" data-start="6943">For apartment developers who have spent years navigating subdued investor confidence, the changes may ultimately become the catalyst that reactivates parts of the off the plan market.</p>

<p data-end="7259" data-start="7128">While the broader property sector is still digesting the long-term implications of the Budget, one thing is already becoming clear.</p>

<p data-end="7366" data-start="7261">The era of investors buying established apartments and houses primarily for tax advantages may be ending.</p>

<p data-end="7444" data-start="7368">But for off the plan apartments, the investment story may just be beginning.</p>

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<p><button disabled="disabled" type="button">You have not enough Humanizer words left. Upgrade your Surfer plan.</button></p>


Investors to flood off the plan apartment market?

<p>Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.</p>

<p>Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.</p>

<p>The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.</p>

<p>[smartcode_project:default project_id=151353 project_image_fid=353250]</p>

<p>A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.</p>

<p>Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.</p>

<p>The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.</p>

<p>[smartcode_project:default project_id=151353 project_image_fid=353254]</p>

<p>Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.</p>

<p>Inside the residences, interior architecture focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.</p>

<p>[smartcode_project:default project_id=151353 project_image_fid=353256]</p>

<p>Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.</p>

<p>Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.</p>

<p>One-bedroom apartments at The Anderson start from $1,022,000.</p>

<p>[smartcode_project_cta:default project_id=151353]</p>


How AJC designed The Anderson to bring oversized apartment living to Chatswood

<p><a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.</p>

<p>The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.</p>

<p>The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.</p>

<p><img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" /></p>

<p>According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.</p>

<p>“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.</p>

<p>“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”</p>

<p>The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.</p>

<p>BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.</p>

<p>“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.</p>

<p><img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" /></p>

<p>The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.</p>

<p>The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.</p>

<p>The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.</p>

<p>Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.</p>


First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

<p>National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.</p>

<p>The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.</p>

<p>Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367993]</p>

<p>Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.</p>

<p>Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.</p>

<p>"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.</p>

<p>"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=368000]</p>

<p>Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."</p>

<p>"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367999]</p>

<p>In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.</p>

<p>While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.</p>

<p>[smartcode_project:default project_id=108736 project_image_fid=367991]</p>

<p><a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.</p>

<p>Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.</p>

<p>Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.</p>

<p>Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.</p>

<p>[smartcode_project_cta:default project_id=108736]</p>


Goldfields sets the stage as Quartet Milton launches

<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 results of a recent household income and wealth survey conducted by the Australian Bureau of Statistics (ABS) are not necessarily what you’d expect according to CoreLogic research analyst Cameron Kusher.</p>
<p>He said, “The results state that higher income households are more likely to be over-indebted than lower income ones and determined those households that are over-indebted and those that are not.”</p>
<p>The 2015-16 household income and wealth survey results, which includes household debt and over-indebtedness considers a household to be over indebted if their debt is either three or more times their income, or 75% or more of the value of their assets.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.20%20am.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.20%20am.jpg" alt=""></p>
<p>Mr Kusher said, “On these measures the ABS considers 21.6% of households to be over-indebted, 51.9% of households to be not over-indebted and 26.4% of households have no debt.”</p>
<p>According to the results, households with the lowest disposable income are the least likely to be over-indebted while the fourth quintile households are most likely to be over-indebted.</p>
<p>The end results, according to Mr Kusher, is that households with higher incomes are less likely to be debt free and are more likely to be over-indebted than lower income households.</p>
<p>He said, “Lower income households are more likely to be debt- free compared to higher income households which is reflective of many lower income households having paid off their debt.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.28%20am.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.28%20am.jpg" alt=""></p>
<p>“The data shows that 94.6% of households which are either not over- indebted (37.8%) or without debt (56.8%) have no persons in the labour force which is reflective of retirees or people that are in a position to choose not to work.”</p>
<p>Households with mortgage debt are more likely to be over- indebted than those households that either rent or own their home outright; only 3.5% of households that own without a mortgage are considered to be over-indebted compared to 47.0% of household with a mortgage and 9.1% of rental households.</p>
<p>Lone person households are likely to be those persons who are living debt free (45.9%), while single family households with a couple and dependent children (10.7%) are the least likely to be living debt free.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.36%20am.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.36%20am.jpg" alt=""></p>
<p>Interestingly, the data indicates that group households are among those least likely to be over-indebted (16.2%) as well as being amongst the least likely to be without debt (20.8%).</p>
<p>Mr Kusher said, “This probably reflects the fact that university students and young professionals are most likely to live in group households while studying and prior to purchasing their own home.”</p>
<p>The data also shows that households that are over-indebted spend 24.2% of all goods and services expenditure on housing costs compared to not over-indebted households spending 16.8% of their expenditure on housing costs.</p>
<p>The report shows that on average, over-indebted households spend more than double ($150.54) each week on their mortgage repayments than households which are not over-indebted ($73.44).</p>
<p>Mr Kusher said, “Households with no mortgage debt, most of which are retiree households, are least likely to be over- indebted.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.47%20am.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/Screen%20Shot%202017-09-21%20at%2011.15.47%20am.jpg" alt=""></p>
<p>“On the other hand, higher income households with a family that have outstanding mortgage debt are those most likely to be over-indebted.”</p>
<p>“While you could say that families of working age with higher incomes are better able to service their debt, interest rate hikes or reductions in the value of their assets could have a significant impact on their ability to service their debt.”</p>
<p>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</p>
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Almost three quarters of Australian households are indebted: Cameron Kusher

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<p>GUEST OBSERVER</p>
<p>The Australian Bureau of Statistics (ABS) released their biennial survey of household income and wealth earlier this week.  </p>
<p>The release has a huge amount of valuable data but at least initially I thought it was pertinent to look at the dwelling tenure data.  </p>
<p>The information is provided from 1994-95 up until the latest release (2015-16).</p>
<p>The tenure data is premised upon who is currently residing in the property, this is important to understand because when we look at the proportion of residents who own without a mortgage for example this doesn’t necessarily represent the total number of dwellings owned outright.  The reason being that some of those properties that are occupied by renters may be owned outright by the person who is renting that property out.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/22/2017-09-18-articleimage1.png" alt=""></p>
<p> <br>As at the 2015-16 release 30.4% of households were lived in by someone that owned that property outright.  </p>
<p>This figure was lower than the 31.4% in 2013-14 and as the above chart shows it has been steadily trending lower over recent years.</p>
<p>In fact, at the peak throughout the timeframe shown, 42.8% of households had no mortgage in 1995-96.  This is an interesting statistic when you consider than many people suggest that lower mortgage rates result in improved housing affordability.  </p>
<p>In June 1996 the standard variable mortgage rate was recorded at 9.75% compared to a mortgage rate of 5.4% in June 2016.  The ongoing decline in mortgage rates has pushed dwelling values higher and although it has made servicing mortgage debt easier it has not led to a greater proportion of the population living mortgage free.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/22/2017-0918-articleimage2.png" alt=""></p>
<p> <br>With fewer households owning their home outright, there has been an increase in the proportion of households that live in a home that they own and still carry mortgage debt.  In 2015-16, 37.1% of households had mortgage debt which has increased from 35.8% in 2013-14.</p>
<p> At its low point over the period highlighted on the chart, 28.1% of households had mortgage debt in 1995-96.  Since 2003-04, there has consistently been a higher proportion of households with mortgage debt than those without.</p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/22/2017-09-18-articleimage3.png" alt=""></p>
<p> <br>As the rates of outright home ownership have fallen there has been a rise in the proportion of households which are rented.  </p>
<p>Whereas outright home ownership has continued to fall and ownership with a mortgage has risen, it is interesting to note how the proportion of rental households has actually declined since the last survey.  </p>
<p>The latest data shows that in 2015-16, 30.3% of households nationally were rented compared to 31.0% in 2013-14.  Back in 1994-95 only 25.7% of households were rented.  </p>
<p>Click to enlarge</p>
<p><img src="https://www.urban.com.au/images/2017/09/22/2017-09-18-articleimage4.png" alt=""></p>
<p> <br>As the prominence of renting has increased over time, the responsibility to provide rental accommodation has increasingly fallen on private citizens rather than the public sector.</p>
<p>At its peak in 1995-96, 6.0% of households were rental properties which were rented from state housing authorities, by 2015-16 this figure had fallen to just 3.5%.  This is an important consideration for governments when considering potential changes to investment policies such as negative gearing.</p>
<p>Governments are clearly not as involved in providing housing as they have been in the past, if private citizens or companies are going to be responsible for providing that housing it is likely they will require some incentives other than just the rental income, escpecially considering how low rental yields are across Australian cities.</p>
<p>The charts presented highlight how home ownership is continuing to decline which is leading to a greater proportion of the population either being in mortgage debt or renting.  </p>
<p>As the population ages this can create challenges especially if an increasing number of Australians are retiring but still carry mortgage debt.  It also highlights that simply building more homes is not necessarily a solution to increasing home ownership rates.  </p>
<p>As we’ve seen over recent years during a housing construction boom first home buyer levels have been at near record-lows and housing investment levels have hit all-time highs.  Arresting the decline in home ownership in Australia will be no easy feat however, the data indicates that simply building more housing won’t necessarily solve the problem particularly if it isn’t at a price point which is reachable for lower and middle income earners.  </p>
<p>We would expect that over the coming years, the rate of home ownership will continue to fall especially given we have seen dwelling values continue to climb since June 2016.</p>
<p><span>Cameron Kusher is research analyst for CoreLogic. You can contact him </span><a href="https://blog.corelogic.com.au/about/" target="_blank">here</a><span>.</span></p>
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Home ownership rates continue to fall: Cameron Kusher

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<p>Popular watering hole, The Clovelly Hotel, in Sydney’s eastern suburbs has changed hands for $34 million in another high-profile deal involving pubs.</p>
<p>The deal comes close on the heels of another waterfront pub, the Beach Hotel in Byron Bay, fetching $70 million. It was snapped up by a Melbourne-based private equity firm backed by the wealthy Liberman family.</p>
<p>The Clovelly Hotel, popularly known as  ‘The Cloey’, overlooks Clovelly Beach and is home to celebrity chef Matt Moran.</p>
<p>In February 2017, MorSol – a joint venture between Matt Moran and Solotel Hotel Group – secured a long-term leasehold interest in the Clovelly Hotel.</p>
<p>The heritage-listed pub, built in 1859, was sold by Sam Arnaout’s Iris Group. Iris bought the hotel and tavern for $27.2 million in October 2014, The Australian reported.</p>
<p>The deal was negotiated by JLL’s John Musca and Colliers International’s Miron Solomons.</p>
<p>Occupying 1,708 sqm at the junction of Clovelly Road, the four-level pub has 15 pokies, a public bar, beer garden, gaming room and accommodation facilities.</p>
<p>It is believed to have sold on a yield of about 5 per cent, the Australian said citing sources.</p>
<p>The buyer is a little-known private local investor.</p>
<p>Matt Moran will continue to operate the pub.</p>
<p>A development application has since been lodged to increase the size and standard of the hotel’s short-stay options.</p>
<p>At present, it 14 hotel rooms with some offering sea views.</p>
<p>JLL’s Musca did not comment on the sale negotiations but added that the pub was keenly contested, with wide-ranging local, interstate and offshore interest.</p>
<p>“This was not surprising given the asset profile and the fact that residential property in the area is selling for nearly $28,000 sqm,” Musca said.</p>
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jonathanchancellor-7SQnKwU6yx

Sydney's Clovelly Hotel changes hands for $34 million as pub sales pick up

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<p>Leading real estate fund manager EG has acquired the former Roche Products Australia facility in Sydney for $55 million, in a new addition to its Yield Plus Infrastructure Fund No. 2 portfolio.</p>
<p>The facility at <a href="https://www.domain.com.au/property-profile/100-south-creek-road-cromer-nsw-2099" target="_blank">100 South Creek Rd, Cromer</a> is 20 km north of the Sydney CBD.</p>
<p>It is close to the newly constructed $1 billion Northern Beaches Hospital, the $500 million B-line project for improved bus services to the CBD, and the recently announced Beaches Link Tunnel project. It is also near to the Dee Why Town Centre, which is undergoing refurbishment. </p>
<p>The property has a net lettable area of nearly 26,000 sqm and sits on a landholding of 74,670 sqm. </p>
<p>EG’s fund No. 2 was launched in 2016 and worth $750 million. It follows the success of its Yield Plus Infrastructure Fund No. 1 (YPI 1), which is known for its strategic acquisitions with future development upside, such as the recently developed Flour Mill of Summer Hill.</p>
<p>The fund also acquired a storage facility in Northcote in January for $13.45 million. </p>
<p>Its investment strategy includes assets along new or upgraded infrastructure around Australia.   </p>
<p>“The proximity to new and upgraded infrastructure enhances the long term value of the site,” said associate director Capital Transactions Sean Fleming. </p>
<p>“There’s significant potential to reposition the asset into a multi-tenanted business park in the heart of the northern beaches. It can capitalise on the high levels of demand for quality industrial accommodation.” </p>
<p>The vendor was Roche Products Australia and the deal was brokered by Charles Gonzalez of Cushman and Wakefield. </p>
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Fund manager EG acquires former Roche Products site in Sydney's northern beaches for $55 million

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<h3 class="post-title entry-title"><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.15999984741211px;">SQM Research reported that vacancy rates fell across most capital cities in the month of August 2017.</span></h3>
<div id="post-body-4819303965695860274" class="post-body entry-content">
<div> </div>
<div>The national vacancy rate of 2.2 per cent was marginally lower than the 2.3 per cent seen at the same time in the prior year. </div>
<div> </div>
<div>Melbourne (1.7 per cent) and Hobart (0.4 per cent) in particular are seeing sharp increases in median asking rents, while the vacancy rate in Adelaide was down to just 1.6 per cent from 1.9 per cent a year earlier.</div>
<div> </div>
<div>In fact, Hobart has the lowest vacancy rate on record for any capital city, and both rents and prices are exploding higher.  </div>
<br><div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/09/21/SQM1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/SQM1.jpg" alt=""></div>
<div> </div>
<div>Vacancy rates ticked down from July in Brisbane (3.1 per cent) and Perth (4.6 per cent) in August.</div>
<div> </div>
<div>The rental market Perth needs to improve for landlords - median asking rents are some 34 per cent lower than at their peak according to SQM's asking rents index. </div>
<div> </div>
<div>Meanwhile Darwin has recorded seven consecutive declines in its vacancy rate, suggesting that the rental downturn may finally be over in the Northern Territory. </div>
<div> </div>
<div>Smoothing the last 6 months of figures suggests that the rental market is not deteriorating significantly in most capital cities. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/21/SQM2.jpg" target="_blank">Click to enlarge</a></div>
</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/SQM2.jpg" alt=""><br><div class="separator"> </div>
<span><br></span><span>Dwelling completions are expected to peak in early 2018, while immigration has picked up a notch.</span><br><span><br></span><span>SQM's Managing Director, Louis Christopher, noted:</span><br><div><strong> </strong></div>
<div>"We believe rents will likely rise at a faster pace 2018 than what has been recorded in 2017, thus far. </div>
<div> </div>
<div>We now have mounting concerns for significant rental shortages in 2019 in Sydney and Melbourne”.<br><br><span style="text-decoration: underline;">The delinquents</span><br><strong><span><em><br></em></span></strong>There is some correlation here with the performance in mortgage delinquencies.<br><br>Moody's reported that, by the month of May, 30 plus day delinquencies in Melbourne had declined to just 1.35 per cent, and in booming Hobart arrears had fallen very sharply to just 1.45 per cent.<br><br>In Sydney, the 30-plus delinquency rate was as low as 0.84 per cent, which is as low as we will ever see for Sydney as a city of more than 5 million persons, while the ACT had a reported delinquency rate of just 0.90 per cent.<br><br>On the other hand delinquency rates increased to 2.20 per cent in Adelaide, 2.66 per cent in Perth, and 2.82 per cent in Darwin.<br><br>And helping to tick 30-plus arrears slightly higher year-on-year from 1.50 per cent to 1.62 per cent, delinquencies were higher in the regional markets of all of the resources states and territories, including South Australia.</div>
<div> </div>
<div>
<a href="https://www.propertyobserver.com.au/images/2017/09/21/MOODYS.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/MOODYS.jpg" alt=""></div>
<br>Despite these increases, thanks to the Sydney and Melbourne weighting nationally delinquency rates remain well below the levels seen in 2011 and 2012 of 1.87 per cent and 1.81 per cent respectively.</div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
<p> </p>
</div>
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pwargent-M4siyDbqQY

SQM sees rental shortages by 2019 

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<p>Four times per year we get the unbridled pleasure of the official residential property price indexes.</p>
<div>Here, then, is a 60-second overview of the June 2017 quarter figures. </div>
<div> </div>
<div>The total value of Australia's dwelling stock rose by +$631 billion or +10.4 per cent to $6.72 trillion in the 2017 financial year. </div>
<div> </div>
<div>That now represents a +53 per cent increase in dwelling stock value from the $4.4 trillion recorded at the end of 2011. </div>
<div> </div>
<div>I'd take the data series back further, but since it only begins in Q3 of that calendar year, I can't.</div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/A1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/A1.jpg" alt=""></div>
<div> </div>
<div>The annual stock value gains were mainly driven by the two most populous states. New South Wales (+$336 billion) and Victoria (+$215 billion) accounted for some 87 per cent of the total increase. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/09/21/Aus%20Dwelling%20Stock.jpg" target="_blank">Click to enlarge</a></div>
<div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/Aus%20Dwelling%20Stock.jpg" alt=""></div>
</div>
<div class="separator"> </div>
<div>Detached houses have outperformed attached dwellings on average since 2003, reflecting rising land values and a relative scarcity of this dwelling type in the thriving, landlocked suburbs of Sydney and Melbourne.</div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/A3.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/A3.jpg" alt=""></div>
<div class="separator"> </div>
<div>Over the June 2017 quarter the attached dwellings index performed strongly, however, helped along by the +11.7 per cent year-on-year gain for attached dwellings in Sydney (with the harbour city retaining a healthy weighting for that dwelling type). </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">City by city</span></strong></div>
<div> </div>
<div>There were strong quarterly residential price index gains in June 2017 for Sydney (+2.3 per cent) and Melbourne (+3 per cent), with those two capital cities recording a twin +13.8 per cent annual increase. </div>
<div> </div>
<div>The Reserve Bank of Australia noted in its September Board Minutes released today that Sydney market conditions had eased in recent months, as reflected in softer auction clearance results and various other timelier measures. </div>
<div> </div>
<div>Annual price growth in Hobart notched up a pacy +12.4 per cent - with more to come later in the year - while there was steadier price growth in Canberra, Adelaide, and Brisbane. </div>
<div> </div>
<div>Perth and Darwin recorded further declines, but the pace of decline has slowed, and more timely measures suggest that conditions appear to be levelling out somewhat in these resources capitals. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/Resi%20Price.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/Resi%20Price.jpg" alt=""></p>
<p> </p>
<div>The mean dwelling price in Australia increased by $51,700 or +8.2 per cent in FY2017, to hit a record high of $679,100.</div>
<div> </div>
<div>In New South Wales, the mean dwelling price rose to $903,700, possibly helped along by the sale of Sydney's most expensive house in the second quarter of the calendar year (the 'Elaine' estate in Point Piper, which transacted for a lazy $75 million or so - punchy). </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/A4.jpg" alt=""></div>
<div class="separator"> </div>
<div>Finally, the number of dwellings increased by +2 per cent or +190,500 over the financial year to 9,906,100.<br><br>That's now well ahead of the rate of the official population growth, as the supply response hits its straps. </div>
<div> </div>
<div>There was a substantial increase of +2.35 per cent in Queensland's dwelling stock in FY2017, or +45,500 additional dwellings, reflecting the high volume of apartment completions in inner city Brisbane and elsewhere. The state population probably gr<span>ew by <span>~</span>75,000 over th</span>e same period. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/21/A5.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/21/A5.jpg" alt=""></div>
<p> </p>
<div>In absolute terms there was a robust uplift in the total dwelling stock of New South Wales (+50,900) and Victoria (+53,500), although in Victoria's case even this record rate of new dwelling construction is not keeping up with rollicking population growth.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>As always, the interesting stuff is in the detail, but the overview shows that Melbourne's housing market was still powering along in the second quarter of 2017, while Hobart will glide into top gear in the latter half of the calendar year. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
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Australia's mean dwelling price rises 8 percent to $679,100

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<p>A Chinese investor has snapped up Melbourne's Cyclone House on Hardware Lane for $6.71 million.</p>
<p>The sale, auction by Allard Shelton Director Joseph Walton, attracted a crowed of over 120 people.</p>
<p>It was the first time in nearly half a century the 400 sqm, three-level property was offered to the market. It was listed with $5.5 million hopes late last month.</p>
<p>Held by the same family since 1972, the property underwent an extensive renovation and lavish fitout.</p>
<p>The vendors $6.05 million reserve price was bettered after the bidding opened at $5.2 million, with five competitive bidders.</p>
<p>The buyer was the first and last to bid.</p>
<p>Walton said they are pleased with the response to the campaign.</p>
<p>“The result has again drawn attention to the market’s strong appetite for A-grade investments in Melbourne, both locally and off-shore," he said.</p>
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Melbourne's Art Deco Cyclone House sold for $6.71 million

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<p>Convenience stores could reinvent themselves by selling alcohol, takeaway meals and pharmaceuticals, according to a new report that looks into the Amazon challenge and other technology related disruptors.</p>
<p>The report, commissioned by the Australasian Association of Convenience Stores, says that the while the $8.3 billion convenience sector is facing disruption from the entry of Amazon and driverless and electric cars, it can position itself to cash in on changing consumer trends for "extreme convenience" and instant gratification.</p>
<p>The study was carried out by the Australian Centre for Retail Studies (ACRS) at Monash Business School.</p>
<p>It said convenience stores needed to become destinations for goods and services, rather than relying on impulse purchases when filling up fuel, partnering if needed with suppliers and partners to sell fresh food, take-home meals and provide home deliveries.</p>
<p>They should also aim to improve in-store experiences and use technology such as mobile phone apps, digital payments and beacons to make their locations even more convenient for traditional customers and to attract tech-savvy millennials.</p>
<p>"Previously, convenience stores used to be about desperation rather than destination," AACS chief executive Jeff Rogut told  The Australian Financial Review.</p>
<p>"With so many changes happening around things like driverless vehicles and electric vehicles, the bastion of selling petrol and hoping people will buy something else is a thing of the past," Rogut said.</p>
<p>He added that retailers needed to be agile as it was about “keeping the core and appealing to more, it's not about alienating our current customers”.</p>
<p>For the project, Convenience 2030, the ACRS interviewed convenience retail sector leaders and looked at trends in Australia and overseas, where 7-Eleven, for example, is making home deliveries in Japan for orders as low as 600 yen ($6.70) and selling heat-and-eat meals in the US, according to the AFR.</p>
<p>In Australia, Caltex has already entered into partnerships with fastfood companies such as Sumo Salad, Guzman Y Gomez and Boost Juice while also offering services such as laundry, parcel collection and meal kit deliveries.</p>
<p>Geelong-based Apco Group has opened 24-hour-a-day cafes and drive-through outlets in several locations in Victoria.</p>
<p>Oil giant BP too has plans to sell takeaway food, prepared meals and groceries in partnership with Woolworths, drawing on its alliances with Marks &amp; Spencer in Britain and Rewe in Germany, if its $1.8 billion acquisition of Woolworths fuel business is approved by the competition regulator.</p>
<p>Meanwhile, several convenience chains retailers were seeking alcohol selling licences after a Senate committee recommendation in March that convenience retailers be allowed to sell beer and wine.</p>
<p>Citing Japanese retailer Family Mart, Rogut said convenience retailers could have co-tenancies with pharmacy retailers such as Chemist Warehouse to provide handy locations with longer trading hours.</p>
<p>"Both could very successfully trade off each other's customers – it becomes more of a destination and enables pharmacies to open longer and improves security," he said.</p>
<p>Amazon could be more of an opportunity than a threat for the convenience sector, Rogut added, particularly if it launched its business-to-business service in Australia and enabled retailers to buy goods at cheaper prices than they currently did through wholesalers such a Metcash.</p>
<p>"That may be an opportunity for smaller operators to buy their products more efficiently and sell more competitively.” </p>
<p>The convenience sector grew 4.5 per cent in 2016, according to the AACS, outperforming the meagre 1.2 per cent growth in the $90 billion grocery sector, and Rogut expects similar rates of growth for the next few years.</p>
<p>"The industry is very optimistic and positive about the future," he said.</p>
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Amazon could be boon in disguise for convenience retail: Study

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<p>Peak Equities has purchased a  five-level, 5,420sqm office building in Camberwell Junction for $27.5 million.</p>
<p>The site of the Australian Pharmaceutical Industries (API) headquarters, <a href="https://www.realcommercial.com.au/property-offices-vic-camberwell-502378602" target="_blank">250 Camberwell Road</a>, generates $2 million per annum in net passing income from API and ground-floor café operator Camberwell Food Group, with leasehold interest from Melbourne Anglican Trust Corporation, resulting in a passing yield of 7.5 percent.</p>
<p>Colliers International’s Peter Bremner, Rob Joyes and Rachael Clohesy sold the property on behalf of Sydney-based investor and syndicator Bricktop Group through expressions of interest.</p>
<p>Mr Bremner said the long ground lease to Melbourne Anglican Trust Corporation expires on September 30, 2075.</p>
<p>“The purchaser recognised the quality of the asset in the prime Camberwell location and was seeking a higher-yielding investment so, while acknowledging the leasehold structure, they will enjoy an attractive 7.5 per cent yield based on the six-year WALE,” he said.</p>
<p>“If the property was sold with a freehold title, it would most likely have resulted in a sub-six per cent yield.</p>
<p>Peak Equities managing director Tom Borsky said the location of the property, in a tight office market where demand was expected to grow far more quickly than supply, was the principal driver of the purchase.</p>
<p>“Furthermore, our company sees the ground lease structure as an opportunity, rather than an encumbrance,” he said.</p>
<p>“Following global trends, this form of property ownership is likely to become more commonplace.”</p>
<p> </p>
<p>Bricktop Group purchased 250 Camberwell Road through Colliers International in 2013.</p>
<p>Bricktop’s managing director Michael Balkin saying now was a suitable time for the syndicate to realise its investment.</p>
<p> “We identified the inherent value in the leasehold interest when we acquired the property, something that we believed many parties did not understand at the time of the original sale,” he said.</p>
<p>“Accordingly, we were able to secure the purchase at an attractive price for our investors.”</p>
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Peak Equities buys API’s Camberwell headquarters for $27.5 million

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<p>A development site with approval for nearly 100 apartments in Sydney’s North Shore has been listed for sale through Savills.</p>
<p>The site at 2-8 Pymble Avenue and 2-4 Everton Street, Pymble comes with Development Approval for residential located within one of Sydney’s prestigious north shore suburbs.</p>
<p>According to Savills, the influx of residential development sites for sale throughout Sydney has surged in the past 12 months, but the Pymble site with 7,879 sqm area already comes in with all the approvals. </p>
<p>This site currently encompasses a consolidated single registered title of land containing three existing detached single and double storey dwellings. </p>
<p>The property is zoned R4 High Density Residential under the Ku-Ring-Gai LEP 2012 with a height limit ranging between 11.5 and 17.5 metres and a blended FSR of 1:1.</p>
<p>The site is DA approved for the construction of 98 oversized residential apartments and 1 x 100sq m ground floor neighbourhood shop together with basement parking for 156 vehicles. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/09/20/Pymble%20to%20CBD%20Marked%20Up%20Aerials2.jpg" alt=""></p>
<p>The DA Approved Gross Floor Area is 8,547sqm* and the site is perfectly positioned at the top of a ridge to capitalise on the views back towards the Sydney CBD and the Blue Mountains.</p>
<p>It is close to public transport. </p>
<p>The marketing is being done by Neil Cooke, Stuart Cox and Johnathon Broome of Savills Australia.</p>
<p>“In 2017, the amount of DA approved sites for circa 100 apartments has completely dried up particularly in blue chip areas such as Pymble on Sydney’s North Shore,” said Neil Cooke.</p>
<p>He added that the Draft Construction Certificate has already been issued for the site, and it states that all Pre-CC Conditions of Consent have been satisfied, and confirms that only the payment of the standard contributions is required in order for the Construction Certificate to be immediately finalised.</p>
<p>Cox added that there was “excellent continuing demand for premium residential apartments” in this location as evidenced by the success of recent project campaigns released within Pymble and surrounding suburbs.  </p>
<p>The site is being offered through expressions of interest with the EOI closing on October 19.</p>
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