<p>Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.</p>

<p>For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.</p>

<p>Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.</p>

<p>"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374893]</p>

<p>Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.</p>

<p>The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;</p>

<p>Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.</p>

<p>Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=269527]</p>

<p>Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.</p>

<p>"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."</p>

<p>The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.</p>

<p>"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374892]</p>

<p>Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.</p>

<p>Construction is underway with completion expected in mid-2027.</p>

<p>[smartcode_project_cta:default project_id=7354]</p>


Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

<p>Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.</p>

<p>The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.</p>

<p>The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.</p>

<p><a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.</p>

<p>The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359521]</p>

<p>The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359527]</p>

<p><a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.</p>

<p>"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.</p>

<p>"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.</p>

<p>"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.</p>

<p>"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359523]</p>

<p>The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.</p>

<p>Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.</p>

<p>EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.</p>

<p>WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.</p>

<p>"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.</p>

<p>"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."</p>

<p>Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project_cta:default project_id=145590]</p>


Vitale breaks Byron Bay records with EADE sales flurry 

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


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

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


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

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


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

<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>Off-the-plan buyers are understandably looking past the Coronavirus crisis.</p>
<p>The continued construction at apartment project work sites will bring on their completion close to their intended schedules.</p>
<p>It is one of the telling achievements of this time of pandemic.</p>
<p>Off the plan buyer interest continues too, abeit at reduced levels.</p>
<p>But the use of v<span>irtual property technology </span>has been key in off-the-plan projects enabling prospective buyers to see what their acquisition will provide.</p>
<p><span>With online tools like e-contracts, sales are being done.</span></p>
<p><span>Every day sales agents are also seeing potential buyers in their display suites, but digital tools are </span>assisting in a big way.</p>
<p>The sector’s embrace of digital tools, such as virtual inspections, amazing graphics and 3D, means buyers are able to see past the current uncertainty and make long-term decisions.</p>
<div id="outstream_holder_news">
<p>Customisation is an important offering these days.</p>
<p>Not only can buyers see what they are set to get upfront, they can also make selective changes to the floor plans so the property better suits their needs.</p>
<p>Some buyers may pick up two apartments and amalgamate them into a large three-bedroom apartment.</p>
<p>Others may turn a two-bedroom unit into a large one-bedroom apartment.</p>
<p>Most developers can offer buyers choices of finishes and a variety of upgrades.</p>
<p>A serious foodie might want the dream kitchen with the best appliances, stone bench tops and a pantry.</p>
<p>An asthmatic would probably opt for a timber or stone floor rather than carpet installation.</p>
<p>The current isolation will likely have long-lasting impact on the apartment design. Maybe it will see the installation of better functioning balconies. Some that are bigger, others that offer a Juliet-style garden patio.</p>
<p>Separate rooms being proposed rather than just open plan.</p>
<p>A real study - collaquallily known as Zoom rooms - not just a study nook in the hallway to provide picture-perfect, <span>acoustically sound</span> video conferencing opportunities.</p>
<p>Developers in their own isolation will be rethinking the ideal apartment interior.</p>
<p>Expect more inner city apartments that allow pets as they provide joy for their owners who can't all seek out<span> a sea or tree change.</span></p>
<p>Trendy architects are releasing that the apartment blocks of the 1920s got it right.  </p>
<p><span>When buying off the plan, buyers must rely on the reputation, honesty and goodwill of the developer which is why it's crucial to research the developer, their financial strength and capacity to deliver rectification after issues arises.</span></p>
<p><span>The economy ahead is going to remain challenging for the property industry, with <span>the risk of buying in a poor growth </span>markets, so buyers need to be prepared to withstand bumps along the way.</span></p>
<p><span>Especially since <span>many who purchased off-the-plan a few years ago are now going to have issues, perhaps given loss of income, along with the prospect of valuations coming in on completion at below contract price.</span></span></p>
<p><span>Ofcourse the apartment construction industry had hopes of seeing restored buyer confidence after the startling exposures during 2019 of neglectful building practices with t</span>he cracking at the Opal Tower high-rise just the tip of the industry poor practice.</p>
<p>Apartment markets across Sydney and NSW had reached new heights last year with record residential prices highlighted by a $100 million penthouse sale at Barangaroo.</p>
<p><span>While the pullback by buyers has taken momentum out of the market, and we could see some price falls amid a weakened rental market, the web traffic suggests buyer interest remains strong.</span></p>
<p><span><em>This article first appeared in </em>The Daily Telegraph<br></span></p>
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jchancellor-FAypfDUnLy

Off-the-plan buyers looking past Coronavirus crisis

<html><body>
<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">On Tuesday (24 March) I will be <a href="https://www.hotspotting.com.au/events/" target="_blank">hosting a lunchtime webinar</a> in which I will discuss the impact of the coronavirus on real estate with Rich Harvey of propertybuyer.</span> </p>
<p class="p1"><span class="s1">We’ve been inundated with registrations and it will the most popular webinar ever hosted by Hotspotting. Not surprisingly, with the virus impact dominating news media, people have an urgent interest in how this will play out for real estate.</span></p>
<p class="p1"><span class="s1">The virus impact is creating volatile share markets but I expect the outcomes for property markets to be quite positive by comparison.</span></p>
<p class="p1"><span class="s1">At times of extreme uncertainty and volatility, Australians tend to retreat to the solidity and relative safety of bricks and mortar.</span></p>
<p class="p1"><span class="s1">We saw that the last time there was a global crisis impacting on our economy and causing the Federal Government and the Reserve Bank to take special action – and that was in the wake of the Global Financial Crisis in 2008.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">At that time we were inundated with economists and others seeking their 15 minutes of fame by forecasting a collapse in housing values. Academic Steve Keen famously predicted that our property values would drop at least 40% in 2009. If he’d been right, it would have been an unprecedented demise of house prices, not only in Australia but anywhere in the world.</span></p>
<p class="p1"><span class="s1">And Keen was not alone. At that time, and in subsequent years, there was a seemingly never-ending line-up of doomsday forecasters for Australian real estate.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">One American spruiker, seeking to drum up publicity for an Australian seminar tour, claimed that house values would drop 60% and that land values would fall 90%.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">Renowned doomsday ranter Harry S Dent has claimed our property values were on the point of collapse on at least three separate visits to Australia over the past decade.</span></p>
<p class="p1"><span class="s1">Keen, Dent and all the other forecasters have one thing in common: they were all proven spectacularly wrong, every time.</span></p>
<p class="p1"><span class="s1">In 2009, at a time when Keen predicted a 40% drop in Australian property values, house values rose 13.6% - that’s the weighted average increase across the eight state and territory capital cities in calendar 2009, according to the Australian Bureau of Statistics.</span></p>
<p class="p1"><span class="s1">Every capital city except Adelaide recorded a double-digit rise in house prices in 2009.</span></p>
<p class="p1"><span class="s1">And in 2010 property values rose another 6%, according to the ABS, with all capital cities recording some level of growth, except Perth.</span></p>
<p class="p1"><span class="s1">One of the messages we received from those times, and from other periods when share markets have over-reacted to situations in the global economy, is that the Australian property market does not follow the lead of the share market.</span></p>
<p class="p1"><span class="s1">In fact, often it does the opposite.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">One of the factors that will keep residential real estate solid amid the virus crisis is the general shortage of homes in Australia, amid times of strong demand from owner-occupier buyers, including first-home buyers.</span></p>
<p class="p1"><span class="s1">There was relatively little construction of new dwellings in 2019. Vacancies across Australia are very low in most locations and listings of properties for sale remain well down on the levels of recent years.</span></p>
<p class="p1"><span class="s1">One measure showing the general shortage of homes is the vacancy rate figures published each month by SQM Research.</span></p>
<p class="p1"><span class="s1">Their latest report shows that, for the first time in many years, every one of the eight state and territory capital cities has a vacancy rate below 3%.</span></p>
<p class="p1"><span class="s1">In recent years both Perth, Brisbane and Darwin have had quite high vacancy rates and Sydney recently also had a vacancy rate above 3%. But now Perth is down to 2%, Brisbane is 2.2% and Darwin has dropped steadily lately and is now 2.7%. Sydney’s rate has also fallen and it’s now 2.9%.</span></p>
<p class="p1"><span class="s1">Hobart, Canberra and Adelaide all have vacancy rates around 1%, which means their rental markets are very tight. Melbourne has fallen lately and well as its vacancy rate is now just 1.9%.</span> </p>
<p class="p1"><span class="s1">So four of the capital cities are below 2% and all of them are lower than 3%.</span></p>
<p class="p1"><span class="s1">With availability of rental properties so low, we’re seeing rents rising in most of the capital cities.</span></p>
<p class="p1"><span class="s1">If vacancies are tight and rents are rising, prices are likely to heading north as well – and that’s certainly the case at the moment.</span></p>
<p class="p1"><span class="s1">The price report published by CoreLogic earlier this month showed prices had risen in the previous three months pretty much everywhere in Australia – in all eight capital cities and in all seven state regional jurisdictions.</span></p>
<p class="p1"><span class="s1">The SQM Research figures published on 17 March showed strong growth in our largest cities, with Sydney up 11%, Melbourne 9% and Brisbane around 7%.</span></p>
<p class="p1"><span class="s1">But Hobart still leads, according to these figures, with house prices 14% higher than a year ago.</span></p>
<p class="p1"><span class="s1">And there were also moderate rises in cities like Canberra and Adelaide.</span></p>
<p class="p1"><span class="s1">So, overall, the data shows that our property markets are very strong – and well placed to handle whatever outcomes arise from the virus crisis.</span></p>
<p class="p3"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s2"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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Coronavirus, a threat or opportunity for the housing market? Hotspotting's Terry Ryder

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<p class="post-title entry-title">EXPERT OBSERVER</p>
<p class="post-title entry-title">Globally there are now more than 657,000 cases of the Coronavirus, and more than 30,400 deaths.<br><br></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-HM41pHmKAsY/Xn7wR2xMvLI/AAAAAAAA08U/bG7s8MQo5zkSOQxZJbwM7OzigYI8UDjUQCNcBGAsYHQ/s640/LOG.jpg" width="640" height="450" data-original-height="569" data-original-width="806"></div>
<p class="post-title entry-title"><br>On a global basis new cases continue to climb to 65,000 per day and rising.<br><br></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-R6pcDJYkWbQ/Xn7wokBLYZI/AAAAAAAA08g/VMdwPR0gQL4wgpDxU9IL9VUU8mYRr9uaACNcBGAsYHQ/s640/C2.jpg" width="640" height="344" data-original-height="492" data-original-width="911"></div>
<p class="post-title entry-title"> </p>
<div>With the exponential increase continuing, it's only a matter of time before total global known cases ascend to 1 million and beyond. </div>
<div> </div>
<div>On the positive side of the ledger, China appears to have all but eliminated new cases, and a number of other countries appear to have arrested the virus. </div>
<div> </div>
<div>Germany now has more than 58,000 cases, but its curve does now appear to be flattening.</div>
<div> </div>
<div>Tragically, Italy has seen more than 92,000 cases and 10,000 deaths, but with luck here too the exponential growth may soon be curtailed. </div>
<div> </div>
<div>Spain's figures still look nasty, but the curve is gradually flattening. </div>
<div> </div>
<div>Increasingly the biggest disaster of all looks as though it might be in the US, where cases have exploded to 120,000 with little sign of any promising progress to date.</div>
<p class="post-title entry-title"><strong>Australia shutdown</strong><br><strong><br></strong>How about in Australia?</p>
<div>Today, new known cases increased by 460, taking total known cases to 3,640, with 14 deaths to date (mainly over those aged in their 70s or older). </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-U0VzMI3HDdc/Xn8hj5RCmgI/AAAAAAAA08o/1nU4s_mE34srRpq1lVS9p4-mJr9GaupiwCNcBGAsYHQ/s640/C1.jpg" width="640" height="400" data-original-height="593" data-original-width="946"></div>
<p class="post-title entry-title"> </p>
<div>That does represent an increase from 370 new cases on March 24, which was four days earlier, but at this stage the situation doesn't appear to be deteriorating catastrophically.</div>
<div> </div>
<div>Granted, a lot may change in this regard within a week or two. </div>
<div> </div>
<div>So we're by no means out of the woods yet, but for whatever reasons things do appear to be shaping up somewhat better in Australia than elsewhere.</div>
<p class="post-title entry-title"> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-aAbsD3Y4PHw/Xn8h6M-ybsI/AAAAAAAA08w/OMN88HSHX8U2YCeIm2eZi47L7kOC-lZ7QCNcBGAsYHQ/s640/CV1.jpg" width="640" height="470" data-original-height="656" data-original-width="893"></div>
<p class="post-title entry-title"> </p>
<div>And that's in spite of multiple cruise ship blunders and numerous earlier examples of flagrant disregard for social distancing rules.<br><br>And, indeed, it's in spite of more widespread testing per capita in Australia than in most other countries (Korea, Germany, and Russia have held more tests than we have, but of course their respective populations are far larger than ours, at only 25 million). </div>
<div> </div>
<div>Only a virologist can explain the possible reasons for this; perhaps the climate helps?</div>
<p class="post-title entry-title"><strong>A 9-point plan for re-opening Australia</strong></p>
<div>This is a global pandemic with global ramifications, but ultimately the world won't end, and figuratively speaking it'll be every man for himself when it comes to the critical question of how to kick-start national economies again.</div>
<div> </div>
<div>Here's a 9-point plan for how we might be able to achieve it soonest and most effectively, from the perspective of a perpetually under-qualified blogger, should the daily figures begin to improve over the next fortnight:</div>
<div> </div>
<div><strong>1 - Initiate a shelter-in-place order</strong></div>
<div> </div>
<div>States already have shelter-in-place action plans, so these should be used immediately for all non-essential workers and businesses. </div>
<div> </div>
<div>The Aussie economy has effective already had a coronary, so it's now imperative to get daily new cases of the Coronavirus under control as soon as humanly possible.</div>
<div> </div>
<div>The sooner we can do that, the sooner we can think about re-opening. </div>
<p class="post-title entry-title"><strong>2 - Wage subsidies</strong><br><br>The government has spoken much about its 'stimulus packages the equivalent of 10 per cent of GDP', but the truth is much of this has been in the form of loan facilities and other non-cash items.</p>
<div>Whether by following a similar model to Boris Johnson in the UK or through another approach using the existing transfer system, the government must announce wage subsidies for stood down workers to keep them solvent until such time that the economy can be opened for business again.<br><br>Retail workers are being stood down at an alarming rate, while hospitality and tourism is also being smashed.<br><br>But these workers can return to work soon too, provided that they can be tided over with subsidies.<br><br>Furthermore, with Treasury or RBA funding, banks may also be better served over the medium term to offer interest-only mortgage terms at an interest rate of, say, 2½ per cent to any borrowers in distress, for as long as needed (in addition to the arbitrary 6-month payment holiday terms already being promoted). </div>
<div> </div>
<div>Interest-only mortgage terms with the use of an offset account can be an ideal means for families and other mortgagors to begin building up a safety buffer as get back on their feet from a financial perspective.</div>
<div> </div>
<div>Rental relief measures will presumably also follow, perhaps implemented at the state level. </div>
<div> </div>
<div>These are extraordinary measures, but they're also extraordinary times.<br><br>Shutting down the economy is effectively a national disaster scenario, and it needs to be approached as such. </div>
<p class="post-title entry-title"><strong>3 - Set up a COVID-10 Delivery Unit</strong></p>
<div>Create a dedicated COVID-19 Delivery Unit to purchase, import, manufacture, or find any other ways to both stockpile and circulate facemasks, surgical masks, respiratory equipment, ventilators, gowns, protective gear, and treatment drugs, and prepare as many ICU beds as practicable around the country. </div>
<div> </div>
<div>Even <em>if</em> the virus gets under control in the short term, there could yet be a second, third, and fourth wave, so it's better to go hard here rather than die wondering (for want of a better phrase). </div>
<div> </div>
<div>If there's available funding for testing and research into vaccines, cures, and effective treatments, then implement that too. </div>
<div> </div>
<div><strong>4 - Fund a COVID-19 Testing and Tracing Unit</strong></div>
<div> </div>
<div>Australia must acquire millions of testing kits, and put in place widespread and rigorous testing and tracing regime, with an enforceable action plan for quarantining and treating those with symptoms, and tracing the recent contacts of any known infected persons. </div>
<div> </div>
<div><strong>5 - Government messaging</strong></div>
<div> </div>
<div>Testing and tracing will likely need to continue long after the curve of new cases is flattened, and to this end government messaging should encourage Aussies to keep a daily journal of their movements, and a daily record of folks they may have had close contact with each day (this is a suggestion I read about at the excellent <em>Calculated Risk</em>, and as usual it's a very thoughtful one). </div>
<div> </div>
<div>One of the best-known finance authors once reportedly said that people need to hear simple messages over and over again before they truly sink in...a point with which I concur.</div>
<div> </div>
<div>Therefore, appropriate messaging needs to be hammered home repeatedly on social distancing, the wearing of facemasks, washing hands, sanitising, hygiene, avoiding touching objects unnecessarily, and a raft of other key points. </div>
<div> </div>
<div>The wearing of facemasks has, to my knowledge, normally only been common practice amongst Aussies of Asian origin, but common sense says we should all consider adopting the practice (and maybe gloves too).</div>
<p class="post-title entry-title"><strong>6 - Re-open local economies with few cases</strong></p>
<div>The government faces the nigh on impossible task of balancing the public's health against the human and economic cost of keeping businesses closed.</div>
<div> </div>
<div>Take the example of the capital city of Darwin.</div>
<div> </div>
<div>The Northern Territory was already in recession before the COVID-19 issue surfaced, and now its borders must be closed and its businesses will be hit harder still by any restrictive measures. </div>
<div> </div>
<div>Yet the entire territory has just 15 known cases of the Coronavirus to date, and only one death.</div>
<p class="post-title entry-title"> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-9gbrFTI3xpE/Xn8mfKh2aeI/AAAAAAAA084/MmkNK0vSRMoQk9SnCFIDGM8SAMP5CISAgCNcBGAsYHQ/s640/C2.jpg" width="640" height="436" data-original-height="662" data-original-width="970"></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>At the appropriate point the towns and cities (and then states and territories) with the fewest cases will need to see restrictive measures lifted.<br><br>This can soon be an opportunity for Australia's regions to lead the economy forward again, which would make a pleasant change from the heavy reliance on Sydney and Melbourne of the past 7-8 years. </div>
<div> </div>
<div>Virus hotspots may need to remain shuttered for longer, but for towns and cities with the fewest cases the curfews and restrictive measures can be lifted soonest. </div>
<div> </div>
<div><strong>7 - Re-open the Aussie borders, but with mandatory testing</strong></div>
<div> </div>
<div>The capability should exist to introduce and maintain mandatory testing for all entrants into Australia on an ongoing basis. </div>
<div> </div>
<div>It goes without saying that those showing symptoms will need to be quarantined and appropriately treated. </div>
<div> </div>
<div>On the one hand these measures may seem draconian, but on the other hand, what might the alternative look like? </div>
<div> </div>
<div>Many of the cases in Australia apparently originated overseas, so airports and the border are evidently a high risk area. </div>
<div> </div>
<div><strong>8 - Allow businesses to re-open</strong></div>
<div> </div>
<div>As daily new known cases begin to decline, allow businesses and trading to re-open, but with social distancing still to be practised to the extent possible.</div>
<div> </div>
<div>Businesses should be encouraged to allow staff to work from home where practicable, and group meetings discouraged where possible.</div>
<div> </div>
<div>Moreover, an over-arching rule of common sense must apply. </div>
<div> </div>
<div><strong>9 - An ongoing fight</strong></div>
<div> </div>
<div>It's not yet entirely clear whether re-infection is possible, or whether there will be second and third waves of the virus in those locations where cases of the virus have initially been controlled. </div>
<div> </div>
<div>Therefore, we must remain vigilant well beyond the point that the economy is up and humming again.</div>
<div> </div>
<div><strong>A balancing act</strong></div>
<div> </div>
<div>There is, of course, no 'right' way to do these things. </div>
<div> </div>
<div>Every day that companies or self-employed workers are closed for business inflicts more pain, so there are many challenging decisions to be made in real time by those in power to balance the potential risks versus respective health and economic costs. </div>
<div> </div>
<div>Only in hindsight will experts know what could or should have been done with more certainty, but this 9-point plan is what's swirling around my head tonight.</div>
<div> </div>
<div><strong>In short: </strong></div>
<div> </div>
<div>- Issue shelter-in-place orders until the curve of new cases is flattened;</div>
<div> </div>
<div>- Go hard, fast, and early to wage subsidies for workers and cash payments for businesses, with further mortgage and rental relief packages to follow;</div>
<div> </div>
<div>- Build up a war chest of medical supplies, and introduce a nationwide testing, tracing, and quarantining program;</div>
<div> </div>
<div>- Hammer home the 'best practice' messaging, and encourage record-keeping with respect to personal movements and contact with others;</div>
<div> </div>
<div>- As daily new cases begin to decline, re-open locations and economies with the fewest known Coronavirus cases first, and gradually roll this re-opening out nationwide; and </div>
<div> </div>
<div>- Enforce mandatory testing for all entrants to Australia, with quarantine as required.</div>
<p class="post-title entry-title"><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
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A 9-point plan for re-opening Australia: Pete Wargent

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<p><span>EXPERT OBSERVER</span></p>
<p><span>Job vacancies had barely begin their decline by the end of February, holding up at about 227,000.</span></p>
<p><span>Vacancies were lower than a year earlier due to the bushfires, but not by much.</span></p>
<p>Click <a href="https://1.bp.blogspot.com/-KNa301clF_4/XoVRp1y5JiI/AAAAAAAA1DM/Oc-nvFUNd0Yj1oiu6d41CR0KXGHCg2XbQCNcBGAsYHQ/s640/A1.jpg" target="_blank">here</a> to enlarge.</p>
<p><img src="https://1.bp.blogspot.com/-KNa301clF_4/XoVRp1y5JiI/AAAAAAAA1DM/Oc-nvFUNd0Yj1oiu6d41CR0KXGHCg2XbQCNcBGAsYHQ/s640/A1.jpg" width="640" height="384" style="font-size: 12.16px;" data-original-height="816" data-original-width="1359"></p>
<div class="separator"> </div>
<div>There were about 700,000 unemployed persons at the end of the last month, so there never was any tight labour market in this cycle. </div>
<div> </div>
<div>We simply never got low or tight enough to see stronger wages growth. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-D28blnXsgiw/XoVRp2NX0DI/AAAAAAAA1DI/e6kSJ5tag6QHcqB-Cc5JlpCHJ-5qPwktwCNcBGAsYHQ/s640/A3.jpg" width="640" height="376" data-original-height="824" data-original-width="1398"></div>
<p><span>And full employment has remained elusive throughout the full cycle.</span></p>
<p>Click <a href="https://1.bp.blogspot.com/-d5OcMFYxtOs/XoVRprnURdI/AAAAAAAA1DE/VuLDAE0OyWoQ8tVThGIyatv2iax8ATpiACNcBGAsYHQ/s640/A2.jpg" target="_blank">here</a> to enlarge.</p>
<div class="separator"><img src="https://1.bp.blogspot.com/-d5OcMFYxtOs/XoVRprnURdI/AAAAAAAA1DE/VuLDAE0OyWoQ8tVThGIyatv2iax8ATpiACNcBGAsYHQ/s640/A2.jpg" width="640" height="370" data-original-height="814" data-original-width="1408"></div>
<div class="separator"> </div>
<div>Looking at the most timely available data from private data sets on job vacancies and other reads, it seems likely that unemployment is probably heading to about 10 per cent, although the situation is very fluid right now. </div>
<div> </div>
<div>At the state level, the resources states were tracking a bit better, as Sydney and Melbourne have moved beyond their respective peaks. </div>
<div> </div>
<div>Click here to enlarge.</div>
<div> </div>
<div class="separator"><a href="https://1.bp.blogspot.com/--rUsZxjmY2U/XoVRq0743RI/AAAAAAAA1DQ/0A7rMqDZHeM1ShxtFwsnDL6Px5T_8HbygCNcBGAsYHQ/s640/A4.jpg" target="_blank"><img src="https://1.bp.blogspot.com/--rUsZxjmY2U/XoVRq0743RI/AAAAAAAA1DQ/0A7rMqDZHeM1ShxtFwsnDL6Px5T_8HbygCNcBGAsYHQ/s640/A4.jpg" width="640" height="370" data-original-height="811" data-original-width="1400"></a></div>
<p><span>Challenging times ahead.</span></p>
<p><span><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></span></p>
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Job vacancies are getting set for a plunge: Pete Wargent

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<p><span>EXPERT OBSERVER</span></p>
<div>New listings fell in March according to SQM Research as more potential vendors decided not to list.</div>
<div> </div>
<div>However, total listings had already begun to increase (+3.7 per cent) as more 30-60 day stock banked up, having failed to sell. </div>
<p><span style="font-size: 12.16px;"><img src="https://1.bp.blogspot.com/-d2CQt-N3jio/XowhwDv7zpI/AAAAAAAA1IM/83eJ9Qa8bz0i2eCpwC4KlueT4ghuvHaLgCNcBGAsYHQ/s640/SQM1.jpg" width="640" height="388" data-original-height="830" data-original-width="1368"></span></p>
<p> </p>
<p>From a year ago total property listings remained -13 per cent lower than year earlier, mainly due to Sydney where listings were still -23 per cent below March 2019 levels, with Hobart also down -19 per cent year-on-year.</p>
<div><span style="font-size: 12.16px;"><img src="https://1.bp.blogspot.com/-LrJvfUcx3w0/XowhwMrVFKI/AAAAAAAA1IQ/2u2tYMooKcsELebZ2QC6lyCKmpIAn6IGwCNcBGAsYHQ/s640/SQm2.jpg" width="640" height="388" data-original-height="827" data-original-width="1359"></span></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>SQM reported that asking prices increased further in March, driven by increases in Sydney, Melbourne, and Perth, suggesting that vendors have not yet adjusted their price expectations, despite the effective shutdown of the economy.</div>
<p><span><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></span></p>
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New listings and sales are falling but asking prices rose in March: Pete Wargent

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<p>EXPERT OBSERVER</p>
<p>The CoreLogic Home Value Index results for October out today confirm a 1.2% rise in national dwelling values over the month, delivering the fourth straight month of rising values.  </p>
<p>The October result was the largest month-on-month gain in the national index since May 2015.</p>
<p>The recent gains come after a broad-based decline in housing values, with the national index declining 8.4% between October 2017 and June 2019.  </p>
<p>The positive October result takes national dwelling values 2.9% off their June 2019 floor, however values remain 5.7% below their peak, highlighting that despite the recent gains, home values are at a similar level to where they were three years ago.  </p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2019-11/index_results_as_at_20191031.png" width="600" height="283"></p>
<p>The strongest growth conditions continue to be centered in Melbourne and Sydney, however dwelling values trended higher across most of the capital cities as lower mortgage rates and improved credit availability spurred on buyer demand.  </p>
<p>Dwelling values were up across every capital city apart from Perth over the month, and based on the rolling three-month change, the only capitals where values fell were Perth (-1.7%) and Darwin (-1.2%).  </p>
<p>The stronger rebound in Melbourne and Sydney can be attributed to a blend of factors; tighter labour market conditions and stronger population growth relative to the other capitals, coupled with the stimulatory effect of the lowest mortgage rates since the 1950’s, and improved access to credit.  </p>
<p>Stamp duty exemptions for first home buyers purchasing under specific price points have added additional stimulus to housing demand.  </p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2019-11/change_since_peak_20191031.png" width="600" height="473"></p>
<p>The recovery trend in Melbourne overtook Sydney in October, with dwelling values surging 2.3% higher over the month; the largest month-on-month gain since November 2009.  </p>
<p>Melbourne housing values have recovered 6.0% since moving through a trough in May 2019, while Sydney values are up 5.3% since the recent May low.<br><br>The smaller capitals have delivered a mixed performance, although the general theme is one of improving conditions.  </p>
<p>The rolling three-month change in Brisbane housing values (+1.1%) was the highest since December 2015, Adelaide (+0.1%) posted the strongest rolling quarter since December 2018, while Hobart (+1.0%) and Canberra (+2.4%) recorded the largest three month rise in values since March 2019 and May 2017. <br><br>The downwards trend in Perth and Darwin home values has continued, however both markets are showing an improvement in the trend rate of decline.  </p>
<p>The rolling three-month trend in Perth housing values recorded the smallest decline in fourteen months (-1.7%) and Darwin dwelling values posted a rare monthly rise in October.  </p>
<p>Both cities have seen dwelling values consistently trending lower since mid-2014, with Darwin down a cumulative 31% and Perth values 22% lower.  </p>
<p>Perth is now recording the lowest median house value of any capital city ($451,800) and Darwin house values are a close second with a median of $468,300.  </p>
<p>Unsurprisingly, the Northern Territory and Western Australia are also showing the highest proportion of first home buyer activity, with first time buyers not weighed down by negative equity and with the ability to take advantage of very affordable housing in these regions. </p>
<p><em><strong>TIM LAWLESS</strong> is the CoreLogic Head of Research</em></p>
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tlawless-5VLUrbAk9s

Property values see fourth month of consecutive growth: Tim Lawless

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">I’m expecting uplift in apartment markets in the major cities as we transition into the New Year. It’s clear from the evidence that’s emerging week by week that the post-boom correction that afflicted Melbourne and Sydney has run its course and recovery is real.</span></p>
<p class="p1"><span class="s1">But, contrary to the general tone of mainstream media, there was no blanket collapse in price levels across the two biggest cities during that recent downturn. Some market sectors were strongly resistant.</span></p>
<p class="p1"><span class="s1">Generalised reporting, with a single figure to describe outcomes in an entire very large city, disguises the myriad scenarios playing out across a metropolitan area. At Hotspotting, we conduct a suburb-by-suburb analysis of sales activity and price trends every quarter and that shows how many variances there are. Even neighbouring suburbs can have contrasting fortunes. It’s fundamentally about local conditions.</span></p>
<p class="p1"><span class="s1">A trend I saw during that correction phase was numerous suburbs in both Melbourne and Sydney where median house prices were down (a lot, in many cases) but median unit prices were still up.</span></p>
<p class="p1"><span class="s1">As investors fell away, younger home buyers became increasingly active and there’s a preference among young adults for the apartment lifestyle, and not only because units are cheaper. Young adults are making choices that are different to those of their parents and grandparents, who generally opted for the suburban house on land.</span></p>
<p class="p1"><span class="s1">Apartments offer a low-maintenance low-energy lifestyle, often in a better-connected location at a cheaper price. So demand for apartments held up pretty well in the big-city downturn and prices stayed solid in many locations (not all).</span></p>
<p class="p1"><span class="s1">And now we have the brave new world of recovering or rising markets in our capital cities. We’re entering 2020 with real estate consumer confidence rising and buyers becoming increasingly active, helped by easier finance and tax cuts, and nudged along by a more positive tone in media coverage.</span></p>
<p class="p1"><span class="s1">First-home buyers are busy and, according to the ABS date, more prominent (measured by their share of owner-occupier loans) than at any time in the past 7-8 years.</span></p>
<p class="p1"><span class="s1">The Federal Government’s assistance package will add impetus – and urgency, because it’s limited to the first 10,000 who take action.</span></p>
<p class="p1"><span class="s1">So demand in big-city apartment markets is likely to strengthen.</span></p>
<p class="p1"><span class="s1">Here are some case studies.</span></p>
<p class="p1"><span class="s1">The Moreland LGA in Melbourne attracts a lot of demand from both renters and buyers, thanks in part to the proximity of the big medical/education precinct around Parkville/Carlton. Most postcodes have vacancies well below 2%.</span></p>
<p class="p1"><span class="s1">In the popular suburb of Brunswick, you pay close to $1 million for the typical house but the median price for units is a little above $500,000. In Coburg, the median prices are around $900,000 for houses and $500,000 for units. So you can get into the typical apartment for half the price of houses, generally speaking.</span></p>
<p class="p1"><span class="s1">In the past 12 months, the median house prices in both suburbs have dropped significantly, but median unit prices have increased – by 4% in Coburg and 6% in Brunswick.</span></p>
<p class="p1"><span class="s1">In the Northern Beaches area of Sydney, Dee Why attracts consistent demand for apartments, with over 500 unit sales in the past 12 months. The median prices are $1,530,000 for houses and $740,000 for apartments – and price levels have stayed solid for apartments while houses are down 9% in annual terms.</span></p>
<p class="p1"><span class="s1">In the Northern Beaches suburb of Newport, the median price comparison is $1,700,000 for houses and $860,000 for apartments, with house prices down 8% in annual terms, while apartment prices are up 4%.</span></p>
<p class="p1"><span class="s1">Another factor boosting apartment markets is the fall off in construction levels, which means supply levels have moderated at a time when demand generally is rising. Vacancy rates are low and falling in most of our capital cities, although there are exceptions and buyers need to be informed about local situations.</span></p>
<p class="p1"><span class="s1">In Kangaroo Point in inner-city Brisbane, you pay around $460,000 for the typical apartment and vacancies, which were consistently above 5% in recent years, are now down around 3%.</span></p>
<p class="p1"><span class="s1">A year ago, the vacancy rate for South Brisbane was around 8%. Now it’s around 4% and trending in the right direction. The median apartment price is around $500,000, up slightly in the past 12 months.</span></p>
<p class="p1"><span class="s1">I’m not advocating that people dash out and buy apartments – and we could have large debates about the pros and cons of investing in apartments, But I do think we’re going to see rising demand in unit markets in the major cities in 2020, especially by owner-occupier buyers, with first-timers prominent.</span> </p>
<p class="p4"><span class="s3">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p4"><span class="s4"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p5"><span class="s3"><em>twitter.com/hotspotting</em></span></p>
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Uplift in major city apartment markets coming: Hotspotting's Terry Ryder

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">There’s been a striking absence of balance in newspaper coverage of real estate in recent times. That mythical beast that some analysts call “the Australian property market” has been having either a rampant boom or a catastrophic collapse, with little middle ground.</span></p>
<p class="p1"><span class="s1">Residential property appears to exist in a no-win situation. When prices were falling in some of our major markets earlier in the year, it was described as a national crisis. It was the biggest downturn on record and consumers were refusing to spend because their property values were “plummeting”.</span></p>
<p class="p1"><span class="s1">And now that prices are rising again, that’s a catastrophe as well - because affordability is evaporating and no one will be able to buy.<span class="Apple-converted-space">  </span>APRA will be forced to act to squash rampant price escalation.</span></p>
<p class="p1"><span class="s1">We have far too many economists, journalists and other poorly-credentialled commentators stressing over the resurgence in the so-called national property market. Consumers would benefit if everyone took a cold shower and had a wee lie down.</span></p>
<p class="p1"><span class="s1">Part of the problem is the obsession with the two biggest cities and the tendency towards generalisation. Far too often, outcomes in Melbourne and Sydney are converted into a national scenario which plainly does not exist. Another part of the issue is sensationalism.</span></p>
<p class="p1"><span class="s1">Here’s the <em>Financial Review </em>on 3 December: “Economists warn that Australia’s banking regulators will be pressured into introducing a new round of macroprudential tightening measures if the strong and swift surge in house prices continues into the new year.”</span></p>
<p class="p1"><span class="s1">The <em>Sydney Morning Herald</em> on 2 December wrote: “Clearly, such increases in prices cannot be sustained. Sydney is growing at an annualised rate of almost 40% and Melbourne at almost 30% which – if continued – would see the median price hit $1.3 million and $1 million respectively by this time next year.”</span></p>
<p class="p1"><span class="s1">A 5 December article on <em>domain.com.au</em> quoted economists from NAB, St George and AMP Capital fretting over the “sharp upturn” in prices and the return to “boom-time behaviour”. The lack of quality analysis was reflected in AMP’s Shane Oliver comment that prices may go ballistic because “it has that feel about it”, while NAB’s Alan Oster was quoted as saying: “We’re not sure if it will keep going. But we didn’t expect it to be this quick.”</span></p>
<p class="p2"><span class="s1">Another SMH headline shouted: “RBA and Government walk tightrope on soaring house prices”.</span></p>
<p class="p2"><span class="s1">All this and a lot more was based on one month’s price data from a single research source. Mainstream media has gone overboard in the coverage of this breath-taking event – and most have compounded their over-reaction by attributing everything to the recent interest rate reductions.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><span class="s1">An economics writer at <em>The Australian</em> wrote on 2 December that “the Reserve Bank’s controversial interest rate cuts have electrified the national housing market”. On the same day, an article in the Fairfax network had this headline: “Sydney and Melbourne house values surge on lower interest rates”.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><span class="s1">And a “business columnist” wrote in The Age: “Residential property prices are on a headline-grabbing tear as monthly growth rates hit a 21-year record ... The floodgates have started to open as cheap money has unleased pent-up demand and spurred buyers to bid up prices”.</span></p>
<p class="p2"><span class="s1">This is kindergarten analysis. What about the host of other major factors which have influenced our many and varied real estate markets – like the Federal Election result, the APRA changes, the tax cuts, the assistance package for first-home buyers, the rise in consumer sentiment, the general shortage of supply - and, in some markets, big population growth and major infrastructure spending.</span></p>
<p class="p2"><span class="s1">One research source claims big rises in Melbourne and Sydney in November (but less prolific rises for the bulk of the nation) and journalists have run amok.</span></p>
<p class="p2"><span class="s1">I would pose this question: When did journalists stop questioning things? And when was it okay for writers to not have expertise on the subject about which they are writing?</span></p>
<p class="p2"><span class="s1">A well-informed commentator would know this: if you source the latest price data on any of our capital cities from four different big-name entities, you get four different results. And often the figures from one source contradict those from another.</span></p>
<p class="p2"><span class="s1">There are several major cities where, in annual terms, prices have risen according to some sources, but have fallen according to others.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><span class="s1">Misinformation abounds in real estate coverage and the losers are real estate consumers. It’s time for everyone to lift their game in 2020. But I won’t be holding my breath.</span></p>
<p class="p4"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p4"><span class="s2"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p5"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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Too much generalisation in Australian real estate: Hotspotting's Terry Ryder

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<p class="post-title entry-title">EXPERT OBSERVATION</p>
<div>A big jump in listings in Melbourne and Canberra this month, with Melbourne's available stock now comfortably exceeding 39,000, according to SQM Research's latest data and media release.</div>
<div> </div>
<div>There were small declines in October for Brisbane, Adelaide, and notably Darwin and Perth.</div>
<div>
<br>But the two major capital cities are well up from last year.</div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-28-ipGfRnqI/W-DpkBGNtnI/AAAAAAAAssA/T0C2fxMYRVY1XCtva9nrk-Ijs1nJBnIeACLcBGAs/s1600/SQM1.jpg"><img src="https://1.bp.blogspot.com/-28-ipGfRnqI/W-DpkBGNtnI/AAAAAAAAssA/T0C2fxMYRVY1XCtva9nrk-Ijs1nJBnIeACLcBGAs/s640/SQM1.jpg" width="640" height="370" data-original-height="798" data-original-width="1375"></a></div>
<div>
<br>It took a bit longer to get there, but Melbourne has now well and truly joined Sydney with its slowing market, with stock levels leaping 5.9 per cent higher in the month of October alone.</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-w3AiiL_6oLo/W-Dpkbv6LhI/AAAAAAAAssE/VWGYlMduTKUq5m_Tfp7jcGYyZQUr1vfVwCLcBGAs/s1600/SQM2.jpg"><img src="https://4.bp.blogspot.com/-w3AiiL_6oLo/W-Dpkbv6LhI/AAAAAAAAssE/VWGYlMduTKUq5m_Tfp7jcGYyZQUr1vfVwCLcBGAs/s640/SQM2.jpg" width="640" height="376" data-original-height="799" data-original-width="1360"></a></div>
<p class="post-body entry-content">From a year earlier, Melbourne listings are up by 24.3 per cent, suggesting very slow sales activity in the Victorian capital.</p>
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Melbourne stock surge: Pete Wargent

<html><body>
<p>EXPERT OBSERVER</p>
<p>As dwelling values and transactions decline and stock for sale mounts properties are taking longer to sell across most regions of the country.</p>
<p>Over the three months to October 2018, properties nationally had a median time on market of 53 days.</p>
<p>As the first chart shows there has been a clear increase in days on market of late, up from 42 days a year ago and a recent low of 38 days in December 2017.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%201.JPG" alt=""><img src="https://www.urban.com.au/images/2018/11/29/DOM%202.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>Across the combined capital cities, the median days on market sat at 46 days over the three months to October 2018 compared to 61 days across the combined regional markets.</p>
<p>Across each of these broad regions the days on market figure was higher than during the previous year when it was recorded at 35 days and 55 days respectively.</p>
<p>The capital city days on market figure is now the highest it’s been since March 2016 and across the combined capital cities it is the highest since October 2016.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%203.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>Although the median days on market in Sydney and regional NSW has edged slightly lower over recent months, across both regions, days on market is higher than a year ago.</p>
<p>In Sydney, the median days on market was 31 days a year ago and has increased to 50 days currently which is much higher than the recent low of 24 days in April 2017.</p>
<p>Across regional NSW, days on market currently sits at 64 days compared to 52 days a year ago and a recent low of 48 days in May 2017.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%204.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>In Melbourne, the median time on market is currently recorded at 38 days and in regional Vic it is recorded at 41 days.</p>
<p>In Melbourne, the days on market is trending higher, it is much higher than the 23 days a year ago and the highest it has been since March 2016.</p>
<p>In regional Vic the days on market figure has been trending lower and is down from 49 days a year ago, highlighting the strengthening of housing market conditions in regional Vic as the Melbourne housing market slows.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%205.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>Throughout Queensland, properties are taking longer to sell than they were a year ago.</p>
<p>In Brisbane, the median days on market is currently recorded at 53 days which is the longest it has taken since February 2013 and has increased from 37 days a year ago.</p>
<p>In regional Qld it is typically taking 69 days to sell a home, up from 55 days a year ago with the 69 days the longest it has taken to sell since February 2016.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%206.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>As at October 2018, the median time on market for Adelaide was recorded at 42 days and in regional SA it was recorded at 93 days.</p>
<p>As the chart shows, the days on market figure for Adelaide is trending lower and is down from 55 days a year ago.</p>
<p>In regional SA, days on market has begun to trend higher over recent months however, it is lower than the 102 days it was typically taking a year ago.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%207.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>Perth properties were typically taking 63 days to sell over the three months to October 2018.</p>
<p>The days on market figure for the city is trending higher and is up from 56 days over the same period in 2017.</p>
<p>In regional WA, the days on market figure has been trending higher over recent months however, it is unchanged from a year ago with the median currently recorded at 82 days.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%208.JPG" alt=""></p>
<p><em>Source: CoreLogic </em></p>
<p>Properties that transact in Hobart are continuing to sell quickly however, there has been a fairly steep rise in days on market over recent months.</p>
<p>Properties in Hobart took 25 days to sell over the past three months, up from just 10 days a year ago and a recent low of 9 days during a number of months over the past year.</p>
<p>Properties are taking much longer to sell in regional Tas at 45 days however, the days on market figure has fallen from 53 days a year ago.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%209.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>With the ongoing weak housing market conditions properties take a long time to sell across NT.</p>
<p>The small volume of sales also creates volatility in the days on market figure.</p>
<p>In Darwin, it currently takes 90 days to sell a property compared to 100 days a year ago.</p>
<p>In regional NT, it was taking 66 days a year ago which was a shorter days on market than the 74 days currently.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%2010.JPG" alt=""></p>
<p><em>Source: CoreLogic </em></p>
<p>Over the three months to October 2018, the median days on market for a Canberra property was 43 days.</p>
<p>The days on market for the city was higher than the 37 days it took at the same time last year.</p>
<p><img src="https://www.urban.com.au/images/2018/11/29/DOM%201.JPG" alt=""></p>
<p><em>Source: CoreLogic</em></p>
<p>Across the nation, the data shows that the trend is towards properties typically taking longer to sell.</p>
<p>This is reflective of the weaker housing market conditions whereby dwelling values are falling with growth slowing in most regions, transaction volumes are lower and the overall stock available for sale continues to climb which provides buyers with more choice and less urgency.</p>
<p>With credit conditions much tighter than they have been over recent years accessing finance is tougher which is a major contributor to weaker overall conditions.</p>
<p>As a result of these trends, it is expected that the median days on market figure will continue to trend higher over the coming months as vendors of ’stale’ inventory eventually adjust their price expectations lower or withdraw their property from the market.</p>
<p><em><strong>CAMERON KUSHER </strong>is a property research analyst for CoreLogic.</em></p>
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