A new 25-storey apartment tower proposed for Mercer Street would push Geelong’s western gateway skyline higher, with Morphy Birrell Property Group lodging plans for a project directly beside one of the city’s most significant heritage streetscapes.

The <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>-designed development at <a href="https://www.apartments.com.au/new-apartments/65-67-mercer-street-geelong-vic-3220">65-67 Mercer Street</a> has now been referred to Victoria’s Planning Minister. The site sits opposite the Geelong rail corridor and immediately south of the heritage-listed St Peter and Paul’s Catholic Church and Ashby Hall precinct.

Rather than compete with the neighbouring ecclesiastical buildings, the proposal adopts a sculpted podium intended to reference the materiality and scale of the heritage context. Planning documents note the design draws cues from the “dark stone brick” church and surrounding masonry buildings, while the tower above transitions into a softer, curved form oriented toward Corio Bay and the Geelong waterfront.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="b797d10c-d4a6-47af-b8df-1aeaa3b382be" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/public%20square.png?VersionId=QGIpcz1x1hKB6lQLl2iobyHqb6PS2Ztc" />

The development forms “Stage 5” of Morphy Birrell Property Group’s broader Mercer Street precinct strategy, following the completion of the 21-storey Miramar tower on Cavendish Street and several additional approved redevelopment stages nearby. Planning consultants Ratio said the proposal “represents an exemplary development outcome” aligned with the strategic ambitions for Central Geelong’s continued urban renewal.

The mixed-use project would replace an existing low-rise commercial building and surface parking area on the 3,320 sqm corner site. FK’s urban context report describes the proposal as a residential development comprising apartments, resident amenities, commercial space, and integrated landscaping positioned to maximise bay views and northern sunlight access.

Renders show a deeply articulated tower with curved balconies stepping above a lower masonry podium that frames a landscaped forecourt facing Mercer Street. The design intentionally preserves sightlines toward the adjacent church buildings, with the podium scaled to reinforce the heritage edge before the tower recedes upward.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="2bdca91e-66f7-4ac7-8baa-2f93bd5b564e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/geelong%20site.png?VersionId=QOhbino4ZgzKYw5dW3QE14E.2yq.Sv87" />

The planning report highlights the site’s strategic location within 400 metres of key Geelong destinations including Cunningham Pier, the Geelong Station precinct, Deakin University, and the convention centre. Bus services run directly along Mercer Street, while the Corio Bay foreshore sits around 100 metres north of the site.

The proposal arrives amid accelerating redevelopment across central Geelong, where planning policy continues to encourage higher-density housing close to transport infrastructure and the waterfront. Mercer Street in particular has emerged as a focal point for taller apartment development due to its proximity to Geelong Station, the bay, and major civic infrastructure.

Joel Robinson

Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct

Development giant&nbsp;<a href="https://www.apartments.com.au/developers/hamton">Hamton</a> and joint venture partner Hostplus have revealed the next residential stage of their $3 billion Moonee Valley Park masterplan, lodging plans for 512 more apartments within the precinct on surplus racecourse land at 110 Wilson Street, Moonee Ponds.

The proposed development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/trackside-house-110-wilson-street-moonee-ponds-vic-3039">Trackside Gardens</a>&nbsp;in the planning application, follows the <a href="https://www.apartments.com.au/news/vic/first-look-exclusive-hamton-and-hostplus-reveal-sixth-stage-of-moonee-valley-park-masterplan">recent unveiling of the sixth-stage Cox Place Precinct</a> and continues the long-running transformation of the Moonee Valley Racecourse into one of Melbourne’s largest urban renewal projects.

Positioned on the north-eastern edge of the racecourse adjacent to CityLink, Trackside Gardens will comprise three residential buildings rising between 61.8 metres and 86.4 metres within a heavily landscaped precinct shaped by Hamton’s Nature Based Cities framework.

The project forms part of the broader Moonee Valley Park redevelopment being delivered by Hamton, Hostplus and the Moonee Valley Racing Club, which is reshaping the 40-hectare racecourse site into a mixed-use neighbourhood with housing, retail, commercial space, hotels, parkland and community infrastructure.

Trackside Gardens sits separately to the recently proposed Cox Place Precinct, a five-building stage comprising around 1,100 residences, two build-to-rent buildings, two build-to-sell towers, retail, office space, and a hotel overlooking the racetrack. Together, the projects continue to accelerate housing delivery across the precinct.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="5fc1941e-52d3-41c6-abc4-0f13fe8ae5ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/DA%20Edits%20%281%29.png?VersionId=7qwRHq5dcvXWNot2hNOgoQhN2GIWudNK" />

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a> with landscape architecture by Tract, Trackside Gardens has been conceived as a botanical-style residential precinct prioritising canopy planting, communal green space, and vertical landscaping.

“The architectural vision for the proposed development centres around buildings in a botanical park setting that champions the important role of nature,” the planning submission states.

“The proposal incorporates principles of biophilic design, with landscape and environmentally sustainable development influencing the ultimate design response of the buildings and prioritising the ground plane to ensure a high amenity for both occupants and visitors.”&nbsp;

Trackside Gardens will deliver 512 apartments across the three buildings, alongside 518 basement car spaces and 523 bicycle spaces. Around 20 per cent affordable housing is proposed across the broader North East Precinct, equating to around 158 dwellings.&nbsp;

The affordable housing component will be concentrated within the Wilson East building, while the remaining apartments are expected to be delivered as build-to-sell residences.

Trackside Gardens has been designed around Hamton’s Nature Based Cities initiative, founded by Executive Chair Paul Hameister OAM in partnership with the University of Melbourne, Urbis, Ark Resources and Tract. The initiative promotes integrating higher-density urban development with significant biodiversity, tree canopy and landscape outcomes.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="89353449-7b3c-42fd-8fd8-8bf64a5ef80f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_4.png?VersionId=X8jRt0P2L7fIWjLhfX6gPknXToXIBeLj" />

A comprehensive landscape strategy would introduce deep soil planting, vertical greening, communal gardens, and new pedestrian links throughout the site.

Planning documents state the development is targeting a 5 Star Green Star Buildings rating, a 7.5-star average NatHERS rating, and “Exemplary” Nature Based Cities certification.&nbsp;

The proposal joins an expanding pipeline of approved and proposed buildings within Moonee Valley Park, including the recently launched Eveline apartments and the approved Grandstand North and South towers.

Hamton has increasingly focused on precinct-scale, nature-led communities across Melbourne’s middle-ring suburbs, with projects spanning Hawthorn, Kew, and Moonee Ponds.

Hampton unveils Trackside Gardens, latest stage of $3 billion Moonee Valley Park masterplan

The Paul Gedoun-led <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Group</a> has achieved another milestone in its $1 billion transformation of Rainbow Bay on the southern Gold Coast with the completion of the company’s third project in four years, the $160 million <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a> residences.

Delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a> and designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker Architects</a>, Esprit buyers have now moved into the 94 apartments across two interconnected buildings at 217-227 Boundary Street.

The successful settlement of Esprit marks another astounding chapter in the S&amp;S story, which launched its highly successful Flow apartments three years ago and created its own ultra-luxury branded fingerprint on an area craving new luxury residences.

Most early purchasers have secured gains of well over $1 million since the project launched in 2021.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172129]

S&amp;S Projects Founding Director Paul Gedoun said the completion of Esprit reflects sustained demand for premium apartments in tightly held coastal locations.&nbsp; 
&nbsp;&nbsp; &nbsp; 
“Esprit has attracted buyers seeking a combination of quality design, considered amenity and a location that is becoming increasingly difficult to replicate,” said Gedoun.

“We identified some years ago that Rainbow Bay is a unique market where supply of luxury residences is limited, and we see the settlements in Esprit further underpinning this thinking - that for both owner-occupiers and investors.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172174]

A key feature of the development is ‘Club Esprit’, a 1,000sqm residents-only rooftop level combining wellness and recreation, believed to be a first for the Gold Coast, and which is fast becoming a signature of the S&amp;S brand.

Positioned to capture views across Snapper Rocks, Rainbow Bay and the Tweed River, the rooftop includes a 25-metre lap pool, gym, yoga lawn, sauna and steam facilities, ice bath, private dining spaces, outdoor cinema and landscaped areas for residents.&nbsp;

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> Director Jayde Pezet, who led the sales campaign for Esprit and S&amp;S’s Flow and Awaken apartments, said the project’s performance reflects both the strength of the product and the depth of demand for premium apartments on the southern Gold Coast.&nbsp;

“In some cases, we’ve seen values double since launch, which is a clear reflection of how tightly held Rainbow Bay has become and the level of demand for well-executed projects in this market,” said Pezet.&nbsp;

“Buyers recognised early what S&amp;S Projects was delivering here, and that conviction has been rewarded as the project has progressed towards completion.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=214819]

Esprit offers a mix of two- three and four-bedroom apartments and sits within walking distance of the beachfront, cafés and local amenities, reinforcing its appeal as both a lifestyle and investment destination.

The project is the third completed by S&amp;S Projects in Rainbow Bay, following Flow Residences and Awaken Residences, which together have contributed to the suburb’s emergence as one of the Gold Coast’s most sought-after coastal pockets. &nbsp;

S&amp;S Projects is continuing its investment in the area with Radia, a $215 million development currently under construction.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172175]

Gedoun said the completion of Esprit signals continued confidence in the southern Gold Coast market.&nbsp;

“We’ve seen strong interest in well-located, high-quality apartments, particularly in areas where future development opportunities are limited."

“That’s been a key factor in the performance of Esprit and the broader Rainbow Bay market”.

[smartcode_project_cta:default project_id=102921]

Owners move in as Esprit completes at Rainbow Bay

Few developers can boast a portfolio across South East Queensland's luxury markets quite like <a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a>.

The builder-developer, founded in 2004 by Managing Director Brook Monahan, has projects in planning, on the market, and under construction, from Burleigh Heads and Broadbeach to Kangaroo Point and South Brisbane.

With a pipeline exceeding $2 billion, Mosaic remains highly selective when it comes to development sites, having spent years refining its strategy around feasibility research and product planning. The group is set to continue growing into 2026 and beyond.

In Brisbane, Mosaic currently has three projects in the market. It is in the final release stage at <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford</a> in Kangaroo Point, which is approaching complete sellout ahead of its late 2027 completion.

[smartcode_project:default project_id=134792 project_image_fid=328123]

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, The Bedford comprises 128 two- and three-bedroom residences. A selection of ultra-luxury Masterpiece Series Skyhomes, positioned across the top levels, offer expansive floor plans and sweeping views of the river and city.

High-end inclusions, such as natural stone benchtops, bespoke cabinetry, and Miele appliances, feature throughout all apartments, alongside the Rooftop Recreation &amp; Retreat Sky Terrace. This includes a resort-style pool with sun deck and loungers, spa, cold plunge pool, sauna, steam room, private dining room with a full kitchen, residents' lounge, multiple barbeque and relaxation zones, an outdoor viewing deck, and landscaped gardens with water features, all oriented to sweeping city and river views.

A gym with indoor and outdoor zones, and a golf simulator, further enhances recreational choice within the building.

[smartcode_project:default project_id=134792 project_image_fid=328119]

A defining feature of the development is its integrated mixed-use component, which will deliver Kangaroo Point's first major supermarket, alongside a café and liquor store, bringing long-awaited convenience to the peninsula.

Monahan says The Bedford represents the culmination of a near-decade-long journey, after first identifying the A-grade Prospect Street site in 2016. While they came close to acquiring it at the time, the site was ultimately purchased by Woolworths' development arm, Fabcot. The opportunity resurfaced in 2024 when the site, vacant for nearly three decades, was brought back to market.

Monahan says Mosaic projects often begin years before any formal plans are drawn. Their new South Brisbane development is no exception, with the site first earmarked in 2018.

"We aren't opportunistic," Monahan says. "Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

[smartcode_project:default project_id=141711 project_image_fid=353495]

A similar story unfolded at <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a> in Kangaroo Point, opposite The Gabba. Like The Bedford, it is also approaching sellout of its 125 two- and three-bedroom apartments. The majority of sales are attributed to returning customers and referrals, with a balanced mix of investors and a strong majority of owner-occupiers.

BDA Architecture was again engaged to design the 22-storey building, which will feature a suite of wellness and lifestyle amenities, including a golf simulator and cinema, a commercial-grade gym, and a rooftop recreation level with a pool, steam room, sauna, cold plunge, teppanyaki bar, private dining spaces, and landscaped terraces.

Construction is on track for completion in mid-2027.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Mosaic's latest offering is its most ambitious yet, boasting a rare, north-facing riverfront position on Montague Road in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale by Mosaic</a> is a 39-storey tower comprising just over 200 residences and Masterpiece Series Sky Homes. Designed in partnership with Bureau Proberts, it will feature nearly 3,000 sqm of genuine, internationally benchmarked six-star, hotel-style amenities, including a wellness precinct, pool, gym, massage and treatment rooms, cinema, golf simulator, and extensive outdoor dining areas across a two-level rooftop deck.

Early works are underway, with full construction expected to commence in the second half of 2026, and an anticipated late 2029 completion.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Since 2012 alone, Mosaic has completed more than $2 billion in projects and is set to deliver another $2 billion worth of developments, comprising hundreds of luxury apartments, each defined by Mosaic's signature standards of quality, detail, and delivery.

"We never arrive, there is no finish line," says Monahan. "Our ambition is to keep evolving what luxury means, creating design- and lifestyle-led residences in incredible locations, places people genuinely aspire to and want to live, homes that are loved deeply and endure long beyond their moment."

Mosaic's Midas Touch

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> (Urban) has broken ground at Keira Place, its new major mixed-use residential precinct in the heart of Wollongong CBD.

Held at 120-122 Smith Street, the groundbreaking marked the commencement of construction on Stage 1 of <a href="https://www.apartments.com.au/new-apartments/keira-place-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, with the opening of the new display suite. 
&nbsp; 
Keira Place is a State Significant Development that will deliver new housing supply, affordable homes and inclusive living options within walking distance of Wollongong’s CBD, coastline, transport, hospital and education precincts.

[smartcode_project:default project_id=144442 project_image_fid=369868] 
&nbsp; 
Stage 1 is now under construction and will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, along with activated ground-floor retail and commercial space. 
&nbsp; 
Urban Co-CEO Patrick Elias said the groundbreaking represented a significant milestone for Wollongong and reflected Urban’s long-term commitment to regional cities.

“Today’s groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong’s city centre,” Elias said. 
&nbsp; 
“Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection.”

[smartcode_project:default project_id=144442 project_image_fid=369869] 
&nbsp; 
Hon. Paul Scully MP, Minister for Planning and Public Spaces, Member for Wollongong said Keira Place is exactly the kind of development Wollongong needs – delivering new homes close to transport, employment and services, while supporting the continued growth and renewal of the CBD.

"This project reflects the Minns Labor Government's commitment to increasing housing supply in well-located areas." 
&nbsp; 
Wollongong Lord Mayor Cr Tania Brown said Keira Place would deliver lasting community benefits for the city. 
&nbsp; 
"Keira Place is a welcome addition to Wollongong's CBD delivering new housing, affordable homes and activated street-level spaces that will benefit our community for years to come," Brown said. 
&nbsp; 
"Urban Property Group's investment reflects the confidence that quality developers have in Wollongong's future, and I look forward to seeing this precinct come to life."

[smartcode_project:default project_id=144442 project_image_fid=369867] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a>, with interiors by <a href="https://www.apartments.com.au/interior-designers/dko">DKO,</a> Keira Place prioritises liveability and long-term performance, with landscaped shared spaces, generous apartment layouts and a pedestrian-friendly streetscape along Smith Street. 
&nbsp; 
Residents will have access to landscaped podium areas, communal rooftop amenities with views to Mount Keira and the Wollongong skyline, and convenient ground-level retail.

The development will have 10-year Latent Defects Insurance by Resilience Insurance.

[smartcode_project_cta:default project_id=144442]

Groundbreaking marks start of construction at Keira Place in Wollongong CBD

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

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

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Net effective rents in the Sydney CBD office market rose significantly in 2016 across both prime and secondary buildings and the trend is expected to continue in 2017, according to Savills. 
The property firm’s Sydney CBD Office Briefing Report highlights an improved leasing environment with strong tenant demand, stock withdrawals and falling incentives resulting in significant net effective rental growth. 
Net effective rents in the Sydney CBD enjoyed year-on-year growth in 2016 of +60% for B Grade office space, +48% for A Grade and +26% for Premium. Helping this growth were sharp drops in incentives in 2016 of -34% in dollar terms for A Grade, -26% for Premium and -25% for B Grade. Net face rents rose +28% for B Grade, +14% for A Grade and +6% for Premium. 
<a href="https://www.propertyobserver.com.au/images/2017/01/24/SydCBDofficemetrics.png" target="_blank">Click here to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/24/SydCBDofficemetrics.png" alt="">
Savills Australia national head of Research &amp; Consultancy Tony Crabb said both prime and secondary rents are rising in Sydney on the back of a shrinking pool of secondary stock. 
“The scarcity of secondary space has driven up both face and effective secondary rents and has caused a similar effect, albeit more muted, in the prime market as tenants are forced to upgrade,” he said. 
“Net effective rental growth was most pronounced due to the effect of declining rental incentives as highlighted by the 60% jump in B Grade net effective rents year-on-year. There was also a substantial increase in A Grade net effective rentals (up 48%) and Premium net effective rentals (up 26%). 
“Looking forward, we anticipate that net effective rents will continue to increase, particularly for secondary and A Grade accommodation. This will be a function of continued demand from displaced tenants, the ongoing shortage of secondary stock and the ongoing effect of declining incentives.” 
Rob Dickins, Savills Australia national head of Office Leasing, said Sydney tenants will have a modest choice of options for prime accommodation in 2017 as some backfill space becomes available. 
“We estimate approximately 102,400 sq m will be released this year, however about two-thirds of this space is pre-committed. The majority of the 21,750 sq m of new supply entering the market is also pre-committed, such as the 15,000 sq m Darling Harbour Live building which CBA will occupy. These new options will be welcome news for tenants given the likelihood of further upheaval in the secondary market in 2017,” he said 
“Secondary stock withdrawals during 2016 totalled some 39,000 sq m for residential or hotel redevelopment purposes. This has effectively forced many displaced tenants to actively compete on B Grade space or upgrade their space requirements to either A Grade or Premium, as several have done. This has created upward pressure not only on secondary rents, but also in prime rents to a lesser extent.” 
“We expect this trend to continue in 2017 as further tenants are displaced owning to the withdrawal of a further 62,900sq m of mostly B Grade space for the Sydney Metro project.” 
<img src="https://www.urban.com.au/images/2017/01/24/SydCBDrents.png" alt="">
Simon Fenn, Savills NSW managing director, said the rental growth in the Sydney CBD office market is welcome news for owners and investors. 
“Sydney A Grade and B Grade markets offer investors the opportunity of increased rental returns as we anticipate continued reduction in market incentives over the short to medium term,” he said. 
“A Grade yields tightened 75 basis points during 2016 while B Grade yields tightened significantly by 113 basis points in the course of the year. Recent rental growth and the prospect of further growth bodes well for investment yields given the implications for total returns.” 
“Investment appetite from both local and international investors for core Australian office assets remains high and continues to benefit from the spread between property income yields and long-term government bond yields. This investment environment is expected to support continued investment demand for quality Australian commercial property assets.” 
Fenn said local buyers were dominant in the Sydney CBD office market during 2016, accounting for 70% of the capital transacted. Developers made up the largest portion (25%) followed by Trusts (22%) and Funds (15%) which is consistent with the high levels of development activity currently underway in the Sydney CBD. Chinese investors claimed half of the capital invested by foreigners, with US, German and Hong Kong buyers making up the remainder. 
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jonathanchancellor-7SQnKwU6yx

Sydney office rents rose sharply in 2016, trend to continue: Savills

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A fully leased office/retail building close to Bondi Junction in Sydney has sold for nearly $17 million through CBRE.
It's been bought by interests associated with Brent Maksimovich.
The property at <a href="https://www.realcommercial.com.au/property-offices-nsw-woollahra-502009110" target="_blank">156 Edgecliff Road</a> in Woollahra went on the market last year.
According to the agents, it sold for a “record yield” over and above the vendors expectations.
The corner property was sold via a public expressions of interest campaign and the final deal was struck at $16,970,352, according to RP Data.
The building has five established tenants and generates net income of $950,000 p.a. Its net lettable area is 1,125.7 sqm with an additional 180 sqm of FSR available subject to council approval.
Designed by Tzannes, the building was completed in December 2010.
The selling agents were Nicholas Heaton and Scott Gray-Spencer of CBRE.
It previously exchanged hands in 2013 for $5,750,000, according to RP Data.
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Fully leased commercial building in Sydney's Edgecliff sells for close to $17 million

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Multiplex has completed M&amp;L Hospitality’s makeover of 161 Sussex Street in Sydney's Darling Harbour.
The former Four Points by Sheraton Sydney was rebranded recently to Hyatt Regency Sydney, marking the Hyatt Regency’s return to Sydney.
The redevelopment included refurbishment of the existing hotel, a new 3,667 square metre convention centre and a 25-level tower including 13 new hotel levels and 10 levels of A-grade high rise commercial office space.
The additional 25-storey tower has added 222 new guest rooms to what was already Australia’s largest hotel, bringing the total number of rooms to 892.
A lot of construction took place over the top of the Western Distributor Freeway, a major feeder road from the Sydney CBD to the Sydney Harbour Bridge.
David Ghannoum, regional managing director at Multiplex, said a big challenge was building over an operating freeway and in a live hotel environment and care was taken to complete the works with minimal disruption to the 80,000 vehicles using the Western Distributor daily and the 600-700 guests staying at the hotel each night.
Work started in December 2014 and took two years to finish.  
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Darling Harbour sees return of Hyatt Regency to Sydney

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Commercial property sale in the Gold Coast fell in the three months to December 2016, according to CoreLogic's Cityscope.
The property data firm says 41 sales were recorded during the period for a total of $60 million.
Of this, $21.3 million was for commercial, $11.5 million was for commercial strata, $12.9 million was for retail, $5.9 million was for retail strata and $8.4 million was for other.
In comparison, the three months to late June 2016 recorded 53 sales for a total of $99.8 million.
Of this, $34.2 million was for commercial, $12.2 million was for commercial strata, $22.8 million was for retail, $5.4 million was for retail strata and $25.3 million was for other.
The latest data raises the 12 month total to over $587.2 million, over $202.8 million lower than the previous 12 month period.
The table below shows sales recorded for the past eight updates of Gold Coast Cityscope:
<a href="https://www.propertyobserver.com.au/images/2017/01/24/Gold%20Coast-1.jpeg" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/24/Gold%20Coast-1.jpeg" alt="">
The three most significant sales recorded this quarter together totalled over $21.9 million:
<ul>
<li>KRG Centre, 9-15 Bay Street, Southport – a four-level office building with a cafe. Sold for $12 million to Lionsgate Income Fund No 1 Pty Ltd as trustee for the Lionsgate Income Fund No 1 Unit Trust. Kevin Lonard and Darrell Woodfield of First National Commercial Gold Coast negotiated the sale, which represented an initial yield of 8.3% on passing income of $996,000.</li>
<li>Windmill Centre, 130 Scarborough Street, Southport – a two-level office and retail building with frontages to both Scarborough Street and Windmill Street. Bought for $5 millionby Grand Southport Two Pty Ltd as trustee for the Lawson Unit Trust. Adam Grbcic and Tony Grbcic of Ray White Commercial GC South negotiated the sale, which represented an initial yield of 7.2% on passing income of $360,000.</li>
<li>Robina Professional Centre, 36 Laver Drive, Robina – a four-storey office building completed in late 2006. Bought for $4.925 million by RPA Properties Pty Ltd. Mason Kidman and Nick Selbie of CBRE Gold Coast negotiated the sale.</li>
</ul>
<a href="https://www.propertyobserver.com.au/images/2017/01/24/Gold%20Coast-2.jpeg" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/24/Gold%20Coast-2.jpeg" alt="">
Properties currently listed for sale include:
<ul>
<li>3286 Surfers Paradise Boulevard, Surfers Paradise – a single-level, 277 sqm restaurant building. For sale by negotiation; agent, Ray White Commercial Gold Coast (Simon Robertson).</li>
<li>8 Frigo Court, Bundall – a 2,429 sqm vacant block of land. For sale by expressions of interest; agent, First National Real Estate Surfers (Rob Rollington and Bob Rollington).</li>
<li>SteelX House, 2 Boston Court, Varsity Lakes – a four-storey office building comprised of three separate units. For sale by expressions of interest; agent, CBRE (Peter Court, Mike Walsh and Brad Duncalfe). The property was initially advertised with passing income of $1,276,140 per annum (net).</li>
</ul>
Properties currently under contract (conditionally or unconditionally) include:
<ul>
<li>46 Scottsdale Drive, Robina – a 4,719 sqm vacant block of land with approval to build the third and final stage of Easy T. Under contract; agents, Robina Marketing Australia (Marcus Weld) and Knight Frank Gold Coast (James Branch and Mark Witheriff).</li>
<li>Piazza on the Boulevard, 3197 Surfers Paradise Boulevard, Surfers Paradise – a four-level retail and commercial building. Due diligence is currently being conducted; agent, CBRE Gold Coast (Jonathan O’Brien and Scott Gray-Spencer).</li>
<li>1 Bellvue Drive, Varsity Lakes – RP1 Building, a three-storey, split-level office building. Under conditional contract; agent, CBRE Gold Coast (Jonathan O’Brien and Brad Duncalfe).</li>
</ul>
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Gold Coast commercial property sales fell in quarter ended December: Cityscope

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Come in spinner or should that be spinners?
In a property week that can only be described as unprecedented we have had the prime minister, treasurer and newly elected NSW premier all declare that they are going to tackle housing affordability.
Previously housing affordability was a bit like going to your doctor for the annual check-up where after your consultation you advise the doctor that you don’t need to see the results. For years and years, our elected politicians have refused point blank to accept any responsibility for being the actual cause of this problem.
The new premier is already stumbling and stuttering where she stated that the heart of the problem is supply so NSW must build more properties. We all know that, this is only a part of the problem, so then the remedies moved to negative gearing (a federal problem) which explains why the prime minister has been silent following his announcement that he too, will personally pursue the housing affordability issues in Australia.
Next, the premier stated that she needed to make sure that the state’s finances are in order before she considers changing stamp duty. I would refer the premier to her media release on December 15, 2016. “NSW has recorded the lowest unemployment rate of the nation for 18 consecutive months and has widened its lead over the next strongest state, the latest ABS data shows. Our unemployment rate is by far the lowest in the nation and demonstrates our economic strength.”
Of course, the premier may always wish to investigate just why in Sydney we presently have public transport considered to be amongst the worst in the world. Back in November 2012 a global survey of 27 of the most important cities in the world ranked Sydney as fourth – worst for public transport. To make matters worse the survey also identified that Sydneysiders pay more for public transport than anywhere else.
Despite that embarrassing finding where our public transport would be even worse since that survey NSW continues to attract more than 50 per cent of the residential investment spend in Australia. On top of that it was revealed this week that the Sydney median house price had climbed a further ten percent in 2016 to now sit at $1,123,991 – another new record.
<a href="https://www.propertyobserver.com.au/images/2017/01/29/Investor-Lending.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/29/Investor-Lending.png" alt="">
Most people already know the answer to Australia’s housing affordability woes – look no further than the Henry Tax Review that was commissioned back in 2008 then published in 2010 only to be ignored by elected politicians because it was too hard and significantly threatened their parliamentary pensions. The report consisted of nine broad themes with point 8 stating – “Toward more affordable housing: substantially increase rent assistance, gradually move to a uniform land tax and remove transfer taxes (stamp duty), and gradually move to a neutral treatment of rental and owner – occupied housing.”
The Henry Tax Review has now come back with a vengeance and deservedly biting our politicians where it hurts. Although the real reason why NSW refuses to make changes to Stamp Duty is succinctly explained in the following graph.
<a href="https://www.propertyobserver.com.au/images/2017/01/29/NSW-Stamp-Duty.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/29/NSW-Stamp-Duty.png" alt="">
In Australia, currently the Top 10 taxes deliver 90 per cent of Australia’s taxation revenues. Three of the state taxes are in the Top 10 taxes by revenue collected, although these three state taxes are at the bottom of the Top 10 and represent less than 11 per cent of all tax revenues.
Many simply say increase the taxes for foreign buyers, although there are major issues on that horizon when this week two major Chinese private providers of home price data stopped publishing figures so what’s happening to the home-grown Chinese property markets? The Chinese Index Academy stopped distributing monthly housing price data for 100 cities which was usually made available at the commencement of each month. The Academy told Reuters last Friday, it had suspended distribution indefinitely and then politely declined to provide a reason.
Coincidentally on New Year’s Eve the Chinese government issued a statement that effectively makes it much harder for Chinese investors to now get their money out of China. In an email I received on January 5 here are the key points.
<ul>
<li>The individual annual foreign exchange purchase quota of $50,000 is unchanged.</li>
<li>Banks are “encouraged” to increase scrutiny of currency transfers.</li>
<li>Banks must report any overseas transfers by individuals of US$10,000 or more.</li>
<li>Starting in July 2017, banks and other financial institutions in China will have to report all domestic and overseas cash transactions of more than 50,000 yuan ($7,201), compared with the current amount of 200,000 yuan.</li>
<li>Beijing is signalling to banks, companies and individuals that it disapproves of foreign spending and investment, except for a few purposes that are explicitly defined by the government (e.g. buying foreign-made machinery to increase the efficiency of a Chinese factory).</li>
<li>Overseas property investment has been called out by at least one major Chinese bank as insufficient reason for transferring money abroad.</li>
</ul>
With great interest, we shall watch very carefully how the Chinese buyers perform in 2017 especially as very little (actually nothing) has been written on these forced changes by the Chinese government.
Housing affordability will be major election issues at forthcoming state and federal elections and that could not happen to a nicer group of politicians who have been complicit by neglecting these issues for decades.
Oh and on Australia Day, 2014 Mosman had 68 houses on the market, 2015 it fell to 58, then in 2016 it fell to 45 and this week it’s 25.
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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Politicians to battle housing affordability - an oxymoron? Robert Simeon

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<div>Within the Consumer Price Index figures, the ABS produces some very useful quality-adjusted figures on rental price inflation. </div>
<div> </div>
<div>The data series shows how rents can rise very fast when investors are spooked out of the market, such as between 1985 and 1987 (changes to tax legislation) and 2008 (global financial crisis).</div>
<div> </div>
<div>When investor activity is high, on the other hand, the growth in rents is likely to be weaker, and this is also the case when low interest rates make buying a home comparatively more attractive than renting. </div>
<div> </div>
<div>In this context, nationally annual rental price growth is at its lowest level in more than 22 years, at 0.6 per cent.</div>
<a href="https://4.bp.blogspot.com/-TapbS0WJLJA/WIiHzukMDfI/AAAAAAAAhak/ndXk6_mJwuYkNIMYlgamcTe_ZXRg6mH3QCLcB/s1600/A5.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-TapbS0WJLJA/WIiHzukMDfI/AAAAAAAAhak/ndXk6_mJwuYkNIMYlgamcTe_ZXRg6mH3QCLcB/s640/A5.jpg" width="640" height="340"></a> In Perth, annual rental growth has turned negative to the tune of -7.2 per cent. 
<div><a href="https://2.bp.blogspot.com/-uEibKl7v3wA/WIiHzuEUPiI/AAAAAAAAhag/SXTXMTsRc6glPmclKzhWpDZgTpWppJaLgCLcB/s1600/A3.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-uEibKl7v3wA/WIiHzuEUPiI/AAAAAAAAhag/SXTXMTsRc6glPmclKzhWpDZgTpWppJaLgCLcB/s640/A3.jpg" width="640" height="352"></a></div>
 
<div>Darwin is by some margin the weakest rental market, with rents declining by -8.2 per cent in 2016.</div>
<div> </div>
<div>On the other side of the ledger, Hobart is the tightest capital city rental market, with quality-adjusted rents increasing by 3.5 per cent in 2016. </div>
 
<div><a href="https://1.bp.blogspot.com/-UxoHSu6V94w/WIiHzDbkYtI/AAAAAAAAhac/dxkvE9U8dU8nCp-g_SVnqVl0DqN1_KvIgCLcB/s1600/A4.jpg" target="_blank"><img src="https://1.bp.blogspot.com/-UxoHSu6V94w/WIiHzDbkYtI/AAAAAAAAhac/dxkvE9U8dU8nCp-g_SVnqVl0DqN1_KvIgCLcB/s640/A4.jpg" width="640" height="358"></a></div>
 
<div>A look at the long-run figures shows that despite the supply response real rents in both Sydney and Melbourne continued to rise to all-time highs. </div>
 
<div><a href="https://4.bp.blogspot.com/-4bBihfkI2e8/WIiH0l1XAdI/AAAAAAAAhao/x9GcxFT-oyogKdHKJnWFu4ENGUXxTHbPQCLcB/s1600/A6.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-4bBihfkI2e8/WIiH0l1XAdI/AAAAAAAAhao/x9GcxFT-oyogKdHKJnWFu4ENGUXxTHbPQCLcB/s640/A6.jpg" width="640" height="340"></a></div>
 In real terms, at the city level Brisbane rents are certain to move lower in 2017 due to the inner city apartments overbuild. 
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>.
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Where capital city rents are falling further in 2017: Pete Wargent

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GUEST OBSERVER
The Australian Bureau of Statistics (ABS) released lending finance data earlier today and when it is paired with the earlier housing finance data release, the figures provide insight into the value of mortgage lending over the month in each state and territory. 
Over recent months investor demand for mortgages has been trending higher and this is being largely driven by resurgent investor demand in New South Wales and Victoria. 
Of course the capital cities of these two states have consistently recorded the strongest value growth of all capital cities over the past five years and also have the lowest rental returns.
<a href="https://www.propertyobserver.com.au/images/2017/01/25/chart-1-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/25/chart-1-3.jpg" alt="">
The data analysed is based on the value of mortgage finance commitments. 
Given this it is important to consider that more expensive markets (such as NSW) will tend to result in borrowers taking out larger mortgages whereas borrowers in more affordable markets will generally take out smaller mortgages.  More than half of all the mortgage lending to investors in November 2016 was lent in New South Wales and with a further 24.5 percent in Victoria, three quarters of all mortgage lending to investors occurred in the two most populous states.
<a href="https://www.propertyobserver.com.au/images/2017/01/25/chart-2-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/25/chart-2-3.jpg" alt="">
Looking only at new lending (that is excluding refinances) investors accounted for 56.7% of the value of lending in New South Wales in November 2016.  Looking over the past four years, the value of new lending to investors in New South Wales has been greater than new owner occupier lending for 42 of the past 48 months. 
Victoria was previously seeing slightly more than 50% of new lending to investors but was recorded at 45.0% in November 2016.  Across the remaining states and territories, the proportion of total new lending to investors in November 2016 was recorded at: 39.7% in Queensland, 37.1% in South Australia, 31.0% in Western Australia, 26.1% in Tasmania, 40.3% in the Northern Territory and 38.7% in the Australian Capital Territory.
It’s clear that demand for mortgages from the investor segment is picking up, particularly in New South Wales and Victoria, which are proxies for Sydney and Melbourne respectively.  With a low cost of borrowing and many owner occupiers having seen substantial increases in housing equity in Sydney and Melbourne over the past 4.5 years it is easy to understand why investor demand is rising. 
On the other side of things, you have a value growth phase that has now run for 4.5 years, largely focussed on two major cities and rental returns at historic low levels in these cities.  Investors should be considering the potential risks, especially as housing supply is responding and that the value growth phase is now quite mature.  While many have seen a substantial increase in the value of properties and may continue to do so, at some point growth will slow. 
With record low yields, slow rental growth and additional housing supply entering the market over the coming years, if investors need to start relying on rental returns rather than increase in the asset value, boosting those returns is likely to prove difficult.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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New lending to investors in NSW has accounted for more than half of all new lending for 42 of the past 48 months: Cameron Kusher

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A 26-year-old from Wollongong is a new man, literally, after having traded his $60,000-a-year accounting job for ownership of a tropical island courtesy which he won in a lottery.
Josh Ptasznyk, 26, now finds himself running a multi-million dollar resort on the tiny Micronesian Island of Kosrae. He won the resort from a $66 lottery ticket in July 2016 off a Gold Coast couple Doug and Sally Beitz, who earned about $4 million in ticket sales, according to a report in goldcoastbulletin.com.au citing the Daily Telegraph.
“My life has completely changed, it is really tough work but it has pushed me out of my comfort zone,” he was quoted in the report as saying.
Ptasznyk is now managing dozens of staff and has taken up paddle-boarding and kayaking.
“I’ve been doing heaps of activities and sports I wouldn’t normally try and to be honest I used to spend most of my time in front of a computer.
“I wake up early, open the restaurant and get to work. It is a lot different to my old job.”
Ptasznyk said he misses his parents and friends but says he made the right choice.
“It has been hard on my parents because they miss me heaps,” he said.
Ptasznyk says the news came while he was at a Trivia night with friends and got a call to be informed that he had won the resort.
“I thought it wasn’t true so I hung up but they kept calling and eventually I realised it was true and packed my bags.”
Ptasznyk’s friends are celebrating too. One of them has planned his 30s birthday on the island and more are planning trips.
The former accountant told the Daily Telegraph he would use his skills scouring the books to turn the resort into a long-term investment.
Currently, the biggest challenge is getting people to the Island.
It has an airstrip but most holiday makers will need to travel to Guam in Micronesia before catching a second flight to Kosrae.
After the airfares, rooms go for as little as US$119 a night or around A$160.
Guests will have access to the entire island and all its activities.
The resort runs diving classes and bushwalking sessions as well as offering fine-dining options along the coastline.
{mijopolls 147}
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Accountant looks to cash in on resort island business he won in a raffle

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There are many wonderful quotes on the subject of truth and lots of them are relevant to Australian real estate issues.
Mark Twain said “A lie can travel half way around the world while the truth is putting on its shoes” while Winston Churchill is credited with saying “Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened”.
Benjamin Disraeli gave us “There are three types of lies -- lies, damn lies, and statistics”, a reality which is seen every day in the press release-based coverage of Australian real estate.
But the one that’s most relevant to real estate today is this one from Nazi propagandist Joseph Goebbels: “If you tell a lie big enough and keep repeating it, people will eventually come to believe it.”
We see this revealed in the many surveys conducted on real estate issues. In simple terms, the prevailing view is the one most often reported in mainstream media, the truth notwithstanding.
So if media keeps stating a “national affordability crisis” as a fact, as it does daily, it’s no surprise when a survey reveals that most respondents are very concerned that young Australians are priced out of real estate ownership – everywhere in Australia, apparently.
Nor was it surprising when another recent survey found that foreign investors are the most popular culprits blamed for rising house prices in Australia. 
This results largely from a cynical exercise by federal politicians taken direct from a script of the iconic UK sitcom Yes Minister. If you want to show concern for an issue but plan to change nothing, here’s what you do: hold an inquiry, string it out as long as you can and, at the end of it, find an unpopular minority to blame for the problem – and then recommend holding another, more in-depth, inquiry.
That’s pretty much the scenario that’s played out in Canberra over the past 2-3 years. A long inquiry ended by blaming all the problems on dastardly foreign investors. Brilliant, because greedy foreigners are easy to dislike and they don’t vote in Australian elections.
So, while bringing on a second inquiry (the one that recently concluded by making no recommendations), the Federal Government indulged lots of wonderful sabre rattling and passionate speeches about clamping down on foreigners who break the rules, thereby creating a level playing field for young Aussie hopefuls.
There were a few highly-publicized instances of foreign buyers being forced to sell back mansions they’d bought in breach of the foreign investment rules. There you go, Australia, problem solved.
But you’ll notice that prices have continued to rise in our biggest cities. All the fluff and nonsense, all those press statements and acres of newsprint - and not a single house is cheaper in Sydney or Melbourne.
Why is it so? Because foreign investors have little or nothing to do with the cost of homes out there in the burbs where first-home buyers hunt. They’re a tiny percentage of the overall market and they mostly target high-end houses in the big cities or off-the-plan apartments. They’re not scouring Blacktown or Caboolture or Cranbourne seeking to outbid Aussie first-home buyers.
But 35 percent of respondents to a RateCity survey believed that the single biggest reason for high house prices was foreign investors. Why? Because media reports keep telling them so and your average punter doesn’t waste a lot of time on independent thought.
The next most popular culprits in the survey, Australian investors, are also unfairly maligned as the cause of real estate prices rising everywhere.
And, once again, the two worst offenders get off scot free, because media never talks about them.
The buying sector that most drives prices is the mob known as next-time buyers – home buyers other than first-time buyers. Most of the time they’re the biggest individual buying cohort and they have the ambition, aspiration and financial capacity to pay a top price. Investors have different motivations.
And when it comes to new dwellings, the biggest source of high costs are politicians are all levels of government. Local government, state governments and the federal government – they all treat the housing industry as a cash cow and load up the cost of new dwellings with taxes, fees and charges.
So when new NSW Premier Gladys Berejiklian declared that housing affordability was one of her top three priorities, she was (like everyone who has come before her) mouthing platitudes.
She’s refusing to even consider doing something about the worst of all home-buyer costs, stamp duty, which in Sydney borders on the obscene – nor about the contribution her government makes to the high cost of creating new dwellings.
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>
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NSW Premier Gladys Berejiklian's housing affordability platitudes

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The median dwelling price in regional Victoria is $300,000, up from $273,001 five years ago, according the December 2016 Housing Affordability Report from CoreLogic.
The median dwelling value across regional NSW now costs 6.6 times the median annual household income, according to CoreLogic. 
<a href="https://www.propertyobserver.com.au/images/2017/01/23/Screen%20Shot%202017-01-23%20at%201.54.41%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/01/23/Screen%20Shot%202017-01-23%20at%201.54.41%20PM.png" alt="">
Property Observer found this single level two bedroom family home at <a href="https://www.realestate.com.au/property-lifestyle-vic-enfield-7875154" target="_blank">80 Inglewood Drive Enfield</a> on the market for between $275,000 - $300,000. 
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