<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Joel Robinson

Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p data-end="150" data-start="66">A rare new apartment development has been proposed on the fringe of St Ives Village.</p>

<p data-end="370" data-start="152">Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.</p>

<p data-end="370" data-start="152">The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.</p>

<p data-end="370" data-start="152"><img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" /></p>

<p data-end="745" data-start="537">“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.</p>

<p data-end="912" data-start="747">“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”</p>

<p data-end="1185" data-start="914">Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.</p>

<p data-end="1270" data-start="1187">The proposal would replace two single-storey brick buildings currently on the site.</p>

<p data-end="1270" data-start="1187"><img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" /></p>

<p data-end="1467" data-start="1272">St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.</p>

<p data-end="1635" data-start="1469">More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.</p>

<p data-end="1635" data-start="1469">NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: NewQuest Property proposes new St Ives apartment development

<p><a href="https://www.apartments.com.au/developers/centa-property-group">Centa Property Group</a> has achieved two major milestones at its <a href="https://www.apartments.com.au/new-apartments/bilinga-house-107-golden-four-drive-bilinga-qld-4225">Bilinga House</a> apartment development in the sought-after southern Gold Coast.</p>

<p>They've almost sold 50 per cent of the Golden Four Drive building, while at the same time announcing the commencement of construction through reputable builder Greyburn Construction.</p>

<p>The boutique 10-storey building, with 47 two- and three-bedroom apartments, now has a mid-to-late 2028 completion date.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5333]</p>

<p>The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed project is positioned just 200 metres from Bilinga Beach and brings a relatively rare apartment offering to a market that has seen limited new supply in recent years.</p>

<p>Residences have been designed to maximise natural light and ventilation, with open-plan interiors, generous glazing, and material palettes that reflect the surrounding coastal landscape.</p>

<p>Interiors incorporate engineered timber flooring, stone benchtops, and custom joinery, with layouts designed to adapt to both permanent living and lock-and-leave use.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Rothelowman Senior Project Leader Matthew Tencate said the design approach centres on liveability and community.</p>

<p>“Providing curated on-site amenities and communal spaces for residents that facilitate a sense of community, liveability, and wellness,” Tencate said.</p>

<p>Residents will have access to a suite of private amenities including a pool, gym, sauna, and communal alfresco areas, alongside practical features such as surfboard storage and bicycle facilities.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Centa Property Group Director Jason Yuen said the project has been designed to appeal to a range of buyers seeking flexibility in how they use their property.</p>

<p>“Bilinga House is designed for those who want the best of both worlds – a modern beachside escape with the flexibility to generate income when you're not there,” Yuen said.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5338]</p>

<p>Bilinga remains one of the quieter pockets of the Gold Coast, sitting between the more established hubs of Coolangatta and Palm Beach. Its appeal has strengthened in recent years, supported by proximity to the Gold Coast Airport and the Oceanway coastal path.</p>

<p>[smartcode_project_cta:default project_id=150037]</p>


Bilinga House apartments snapped up as Greyburn commences construction

<p>Breaking into the Sydney property market has long felt out of reach for many first home buyers, particularly as median house prices sit above $1.6 million and unit prices push beyond $900,000.</p>

<p>But entry points still exist in pockets of Greater Western Sydney, where pricing, government incentives, and product mix are aligning to make ownership more attainable.</p>

<p>Understanding where those opportunities sit, and how the numbers actually stack up, is becoming increasingly important for buyers weighing up their next move.</p>

<h2>Work out what you can actually afford</h2>

<p>Sydney is expensive, but it isn’t uniformly expensive. The Greater Parramatta region continues to offer comparatively accessible entry points, particularly for buyers open to alternative configurations like studios.</p>

<p>There's an assumption that a first home needs to be a certain size, that anything smaller than a one-bedder is a concession rather than a choice. That assumption doesn't hold up against what well-designed studios in the right location actually offer: immediate liveability, strong urban amenity, and a price point that makes the deposit target realistic rather than theoretical.</p>

<p>At <a href="https://www.apartments.com.au/buildings/mason-main-merrylands-249-259-merrylands-road-merrylands-nsw-2160">Mason &amp; Main</a>, <a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a>'s multi-award winning precinct in Merrylands, studio apartments are unlike the typical studio configuration.</p>

<p>Starting from $498,000, the bedroom is fully enclosed, separated from the living area by a cavity sliding door, creating a genuinely private sleeping space that functions more like a one-bedroom apartment than a traditional open-plan studio.</p>

<p>[smartcode_project:default project_id=31751 project_image_fid=359814]</p>

<p>At 42 sqm internally, with an open-plan kitchen, built-in robes, modern bathroom, and separate laundry, the apartments are designed for everyday liveability rather than short-term use.</p>

<p>With a five per cent deposit under the Federal Government's First Home Guarantee, that equates to a deposit of around $24,200, achievable for many first home buyers without the added cost of Lenders Mortgage Insurance.</p>

<h2>Understand the real cost of renting versus buying</h2>

<p>For buyers weighing up the shift from renting to owning, the numbers are closer than many expect.</p>

<p>Here’s how the numbers stack up for a studio at Mason &amp; Main (based on a $498,000 purchase):</p>

<ul>
	<li><strong>Purchase price:</strong> $498,000</li>
	<li><strong>Five per cent deposit (First Home Guarantee):</strong> ~$24,900</li>
	<li><strong>Loan amount:</strong> ~$473,100</li>
	<li><strong>Estimated mortgage repayment (6.29% variable, 30-year term):</strong> ~$675–$695/week*</li>
	<li><strong>Estimated rental return:</strong> $590–$620/week*</li>
	<li><strong>Rental yield:</strong> 6.16% - 6.47%</li>
</ul>

<p>At this level, the gap between renting and owning is relatively narrow, particularly when factoring in long-term equity, with rental returns also making the apartments a viable option for investors.</p>

<p>The rental range reflects current asking rents for remaining studio stock in the development and, based on prevailing asking prices, equates to an indicative gross rental yield of up to 6.47 per cent.</p>

<p>For buyers seeking more internal space, Mason &amp; Main also offers a range of one-bedroom apartments from $629,000, alongside larger one-bedroom plus multipurpose room configurations priced from $680,000 - all priced under $800,000 and eligible for first home buyer incentives.</p>

<ul>
	<li><strong>Purchase price:</strong> $629,000</li>
	<li><strong>20 per cent deposit:</strong> ~$125,800 (5% deposit on exchange: $31,450)</li>
	<li><strong>Loan amount 80%:</strong> ~$503,200</li>
	<li><strong>Estimated mortgage repayment:</strong> ~$720–$740/week*</li>
	<li><strong>Estimated rental return:</strong> $650–$680/week*</li>
	<li><strong>Rental yield:</strong>&nbsp;5.37% - 5.62%</li>
</ul>

<p>One-bedroom apartments continue to present a balanced option for both owner-occupiers and investors, supported by steady rental demand across Western Sydney.<span style="font-size:small"><span style="color:#222222"><span style="font-family:Arial, Helvetica, sans-serif"><span style="font-style:normal"><span style="font-variant-ligatures:normal"><span style="font-weight:400"><span style="white-space:normal"><span style="background-color:#ffffff"><span style="text-decoration-thickness:initial"><span style="text-decoration-style:initial"><span style="text-decoration-color:initial">&nbsp;</span></span></span></span></span></span></span></span></span></span></span></p>

<p>[smartcode_project:default project_id=31751 project_image_fid=359812]</p>

<h2>Make sure you're across the government incentives</h2>

<p>Government incentives continue to play a key role in reducing the upfront cost barrier.</p>

<p>At Mason &amp; Main, studio, one, and two-bedroom apartments are priced under $800,000, allowing eligible buyers to access a full stamp duty exemption under the NSW First Home Buyers Assistance Scheme.</p>

<p>On a $498,000 purchase, that represents a saving of roughly $17,900 that would otherwise need to be paid at settlement.</p>

<p>Combined with the First Home Guarantee, which enables purchases with as little as a five per cent deposit, the total capital required to secure a home is significantly reduced compared to traditional lending pathways.</p>

<h2>No waiting, no uncertainty</h2>

<p>For first home buyers who want to move sooner rather than later, Mason &amp; Main removes one of the more common pain points from the purchase process entirely. The development is already complete and move-in ready, meaning buyers can walk through the apartments, inspect the finishes, and have full certainty about what they're purchasing before signing anything.</p>

<p>Coronation brought in renowned architecture firm <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> to design the development.&nbsp;</p>

<p>"The project's design drew inspiration from the area's rich heritage, in particular the nearby brickworks and aqueduct, infusing a contemporary perspective to seamlessly integrate historical influences into the design," Woods Bagot Principal Dom Alvaro says.</p>

<p>[smartcode_project:default project_id=31751 project_image_fid=736]</p>

<h2>Factor in location and lifestyle</h2>

<p>Beyond the apartment itself, the surrounding infrastructure matters, particularly for a first purchase. Merrylands Station sits 350 metres from the development, putting the Parramatta CBD a five-minute drive away and the Sydney CBD roughly 25 minutes via the Western Line. Directly across the road is Stockland <a href="https://www.apartments.com.au/developments/merrylands-nsw-2160">Merrylands</a>, one of Greater Western Sydney's major retail centres.</p>

<p>At street level, Mason &amp; Main's own retail and dining precinct has more than 30 tenants trading, including Iftar, Macelleria, Hayat, San Churro, Yuzu, and Fat Jaks. Residents also have access to a resort-style pool, a Technogym-equipped gym, private dining rooms, and a rooftop terrace with panoramic views across Parramatta, the Sydney CBD, and the Blue Mountains, all exclusive to the building.</p>

<p>Due to the mix of configurations, including studios which are rarely offered in today's new apartment market, first home buyers and investors have driven Mason &amp; Main to over 90 per cent sold.</p>

<p>Coronation Property Managing Director Joe Nahas says the development is driving a revitalisation of Merrylands, setting a high standard for future developments in the area.</p>

<p>Mason &amp; Main is move-in ready and is the latest in a series of award-winning mixed-use developments by Coronation Property.</p>

<p><em>Disclaimer: Mortgage repayment figures are estimates only, based on a 6.29 per cent variable rate over a 30-year term (Canstar, April 2026). Pricing and rental estimates are indicative and based on current listings and project information. Gross yield figures are indicative and derived from asking prices and estimated rental ranges. Stamp duty savings are indicative only. Buyers should seek independent financial and legal advice before proceeding.</em></p>

<p>[smartcode_project_cta:default project_id=31751]</p>


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

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


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

<p>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

<html><body>
<p><span style="line-height: 1.3em;">It's pretty much a given that if you are developing property, then you will encounter problems.</span></p>
<p>Over time, I've learnt how to deal with these fun little things that crop up. They used to stress me out and ruin my day, I found myself naturally wanting to jump into action to solve the problem as quickly as possible.</p>
<p>But I've learnt over time to sit with it.</p>
<p>Mulling the problem over from different angles allows other options to come up. This process doesn't need too much time, but sometime it needs a different perspective.</p>
<p>One problem-solving technique you should master as a property developer  is changing perspectives to redefine the problem.</p>
<p>Here's an example.</p>
<p>We received our builder's quote on a multi unit development project and it came in a bit higher than we estimated.</p>
<p>Our client had requested some specific detail in the exterior design that had an impact on the cost that posed risk of over capitalising.</p>
<p>Rather than do the obvious which would be to pare back the design and remove the expensive items, I sat with the issue for a day. We were looking at it from two clear perspectives; cost and design. But were there other perspectives to consider? Yes.</p>
<p>Another perspective I looked at was yield or return. Was the design items going to impact on the end use? Who was the end user?</p>
<p>In this case, it was a tenant because our client was building to hold and lease. One of our goals was to optimise the rental return. Would the upgrade bring in more rent? To be honest, no. The upgrade may make the dwelling a little more appealing but the bottom line was it wouldn't increase the yield.</p>
<p>Another important perspective for Property Bloom was to make our client happy. Whilst our job is to ensure the most efficient outcome, we also want our clients to feel they've participated in the process, if that is important to them - it may not be to some clients but it is to others.</p>
<p> Our solution was to look at other areas of the development that we could save costs on. We were able to simplify the roof design without any considerable difference in appearance and no difference in function. So the cost savings in the roof trusses and materials allowed us to spend on the upgrades our client really wanted.</p>
<p>Our solution to the problem didn't compromise the project but in fact, enhanced it.</p>
<p>A little perspective can go a long way. </p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
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Solving a property development problem using perspective: Jo Chivers

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<p class="Body">The overwhelming weight of expert commentary has rubbished Macquarie Bank’s forecast of major price decline in the next 12 months.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Some media has presented Macquarie’s simplistic analysis, based on Australian as a single property market with a very specific price prediction, as the gospel according to irrefutable economists. But most coverage has been a counter-attack from credible commentators presenting more considered and realistic views of next year’s markets.</p>
<p>Aussie Home Loans chief John Symond said "there's buckley's chance of a price correction." As Property Observer reported on 22 October, Symond told a Sydney investment conference that Sydney's market was nearing its peak, <a href="/news/sydneys-booming-residential-property-market-was-nearing-peak-john-symond">with “steam coming out of the market and sanity coming in”</a>, and predicted a more flat market – but no across-the-board decreases.</p>
<p>And he observed, quite correctly, that there would be differences from one area to the next. "Hot areas will still see a 7-9% gain, in other areas you might see 3-4% and in some other areas a 5% drop," he said. "You have to do your homework."<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Yes, indeed. That is a far more reasoned assessment of the near future than Macquarie’s prediction of a blanket 7.5% decline, apparently everywhere.</p>
<p class="Body">Louis Christopher of SQM Research has predicted house price growth in 2016 but at a slower pace than recent years. As an experienced analyst, he knows better than to make a generalised forecast that covers the whole nation as a single market. He has different forecasts for each city and includes three different forecast scenarios in each case, dependent on key events including economic growth, interest rates and the value of the Australian dollar.</p>
<p>In the latest edition of <em>Housing Boom and Bust Report</em> from SQM Research, he predicted Sydney prices will rise between 4% and 9% next year. Melbourne is forecast to overtake Sydney and be the best-performing capital city in 2016 with a rise of between 8% and 13%.<span style="line-height: 1.3em;"> </span></p>
<p>Christopher said the market overall is unlikely to see price decline for a number of reasons, including the Australian dollar, which is tipped to stay at current low levels or fall further, providing a buffer to the economy and the housing market.<span style="line-height: 1.3em;"> </span></p>
<p>Raine &amp; Horne executive chairman Angus Raine believes the Macquarie prediction is difficult to substantiate given the current performance of major property markets. He said the level of demand for property and the depth to the market do not indicate a major correction.</p>
<p>Veronica Morgan, the principal of <em>Good Deeds Property Buyers</em> based in Sydney’s inner west, quite rightly criticised the bank for broadcasting the prediction without considering markets on a micro scale.</p>
<p>“It really annoys me when bank PR people get hold of some economic data and suddenly an impending drop in the property market is front-page news,” she said. “Why can I say that this latest prediction will not come true? Because there is really no such thing as an Australian property market. Look at any national property data and you will see that no two capital cities perform in the same way.<span style="line-height: 1.3em;"> </span></p>
<p>“And then there are regional markets that all have their own cycles to consider. So how can anybody make a claim that the entire country is over-priced or ready for a fall? Even within Sydney there are dozens, probably hundreds, of micro markets."</p>
<p>Business commentator Peter Switzer said the bank forecast "bordered on being stupid", while Andrew Wilson, the senior economist at Domain's Australian Property Monitors, said it was “unbelievably unlikely”.</p>
<p>Wilson noted that, in the past decade, there had not been any national annual drops of more than 5%. “Even in periods where we had prices falling, such as during 2008 when it was the global financial crisis, the national house price fell by just under 4%,” Wilson said.<span style="line-height: 1.3em;"> </span></p>
<p>Stockland chief Mark Steinert expects house prices to continue to rise next year. His forecast is 3% to 5%.</p>
<p>"There has been quite a lot of talk going on for quite a long time now about the imminent downturn in housing, but no one has mentioned that it hasn't actually eventuated," Steinert told a Property Council lunch in Melbourne.<span style="line-height: 1.3em;"> </span></p>
<p>"The reality is the economy in Australia is growing at a moderate level of around 2.5%. We have a low Australian dollar, continued population growth (albeit at a slower rate) and metro housing markets that are generally under-supplied. These are not the pre-conditions for some sort of general correction in housing."</p>
<p>There have numerous other commentators on the issue and the general theme is that there will be price growth in 2016 - but, in the case of Sydney especially, the rate of growth will be less.</p>
<p class="Body">An alternative view has come from accident-prone Shane Oliver, AMP Capital’s chief economist, who is predicting price decline but not until 2017.</p>
<p class="Body">Oliver has probably the worst track record of any economist in predicting real estate events. I could fill several pages with examples, but basically he believes housing is “over-valued” and has been predicting a significant correction for most of the past 10 years.</p>
<p class="Body"><span style="line-height: 1.3em;">He clearly is one of those, not unlike another failed forecaster Steve Keen, who believes that if you keep making the same prediction year after year, you’ll eventually get it right.</span></p>
<p class="Body">So Shameless Shane was out there in the media again recently expounding his bubble theories, with claims of over-valuation of housing and predictions that property prices would fall “between 5% and 10%” - which might happen “around 2017”.</p>
<p class="Body"> </p>
<p class="Body"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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Experts rubbish Macquarie Bank's price decline forecast: Terry Ryder

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<p><span>On CoreLogic-RP Data's Index, prices in Melbourne and Sydney have accelerated over the past quarter to an astonishing pace, though this index probably lags.</span><br><br><span>Prices are reported as up for the year, quarter...and even the day...for all capital cities in the index.</span></p>
<p><a href="/images/2015/08/12/RPD%20Sea%20of%20GReen.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/12/RPD%20Sea%20of%20GReen.jpg" alt=""></span></p>
<p> </p>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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A new high for Australian home values: Pete Wargent

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<p>I <span style="line-height: 1.3em;">was left eating humble pie this week following comments I made in an interview that appeared in the </span><em style="line-height: 1.3em;">Australian Financial Review</em><span style="line-height: 1.3em;"> pertaining to the federal government’s announcement that another six homes had been identified as being acquired illegally and a further 462 sales under investigation. </span></p>
<p><span style="line-height: 1.3em;">My response was “It’s nothing more than a PR stunt and a distraction. It’s been done for feel-good cuddles” – how wrong was I.</span></p>
<p>Later that day, I received an email from the Australian Taxation Office (ATO) boss heading up this investigation which (politely) outlined the detail of their inquiry which clearly identified the magnitude of this investigation which earnestly commenced in May this year. Owners of property bought illegally must voluntarily contact the ATO prior to 1 November 2015 to receive an amnesty of not being prosecuted.</p>
<p>Now once and for all, we will find out exactly what’s been happening as I have been saying for quite some time that this is rife within the real estate industry. It will be fascinating to see what recommendations are made and then implemented. I have been a strong proponent of tax file numbers being provided to the ATO on the exchange of contracts for every residential sale. It will also be interesting to see if the 100% selling ratio for all new developments is brought back to 50% as it was in 2008? Opening up our property markets to international exposure has certainly led to rapid price growth from Asian property investors.</p>
<p>Australia had a record number of 1.7 million international tourists visit last year which included a 21% surge from China.</p>
<p>This inquiry is timely given the number of recent global warnings of money laundering in real estate where Sydney and Melbourne have been suggested as hot spots. Residential property in Australia is the single largest and most valuable asset class worth an estimated $5.7 trillion. Sydney now ranks third in the world for luxury residential annual price growth according to Knight Frank’s Prime Global Cities Index. Sydney’s 12.5% growth now sits just behind Miami on 13.9% and Vancouver on 15% annual price growth. The report also identified that “a year ago eight cities recorded double – digit annual price growth. This quarter only four cities fell within this bracket.”</p>
<p>China’s shock devaluation significantly raises the risk that the Reserve Bank of Australia (RBA) will be forced to cut the cash rate further which is a worst case scenario for the RBA. More particularly when this week Deputy Governor Philip Lowe said “Given the position of household balance sheets, it is unlikely to be in our long – term interest for a consumption boom to be financed by a pick –up in household borrowing.”</p>
<p>“Ever-rising house prices, relative to our incomes, do increase risks in the economy and are unlikely to make us better off as a nation. Rising housing prices are best matched by rising incomes.”</p>
<p>Then of course we will have to wait to see how many divestment orders are issued by the ATO where hopefully the owners won’t be allowed to “flip” which was the case when Villa del Mare was issued with the first divestment order a few months back.</p>
<p>Another interesting aspect will be closely watching the Sydney and Melbourne clearance rates now that it is very clear the role that the ATO is playing with their pursuit of illegal purchases given that I am not the only one who thought this was all political shirt-fronting.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 63</p>
<p>• Number of houses on the market last week – 48</p>
<p>• Number of houses on the market this week – 47</p>
<p>• Number of apartments on the market this time last year – 55</p>
<p>• Number of apartments on the market last week – 41</p>
<p>• Number of apartments on the market this week – 40</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 7</p>
<p>• Number of houses on the market last week – 3</p>
<p>• Number of houses on the market this week – 2</p>
<p>• Number of apartments on the market this time last year – 14</p>
<p>• Number of apartments on the market last week – 30</p>
<p>• Number of apartments on the market this week – 18</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 4</p>
<p>• Number of houses on the market last week – 2</p>
<p>•Number of houses on the market this week – 2</p>
<p>• Number of apartments on the market this time last year– 36</p>
<p>• Number of apartments on the market last week – 26</p>
<p>• Number of apartments on the market this week – 25</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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Federal government property taskforce not for feel-good cuddles: Robert Simeon

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<div>There's a theory that hosing down investor demand should have no impact on rents.</div>
<div> </div>
<div>That's because <em>in theory</em> for every property that isn't bought by an investor, an owner-occupier buys instead, and thus  the balance of supply and demand for rental properties remains unchanged. <br><br>In the real world capital city property markets don't work like that. In reality, many are renters either by choice or by circumstance, such as new graduates, transient employees, international or interstate visitors, and other folk who prefer taking a rental close to the city to ownership in the outer suburbs. Many others simply don't have an available deposit saved, so buying is not an option for them. </div>
<div> </div>
<div>As such rental growth is to a large extent determined by the growth in demand for rentals - underpinned over time by population growth - and by the relative activity of investors. For example, rents in Australian capital cities (and especially Sydney) boomed in 1986 and again in 2008 both of which were periods when investor buying had crashed in half.</div>
<div> </div>
<div><a href="/images/2016/04/11/A2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/04/11/A2.jpg" alt=""></div>
<div> </div>
<div>For this reason it will be interesting to see what impact APRA's crackdown has on apartment rents in Sydney.</div>
<div> </div>
<div>I've rented out several properties in Sydney in recent months, all of them for more than last year. However, the properties in question are in high demand areas such as on the Sydney harbourside, and as such are not likely to be very representative of what is happening in construction pockets like, say, Parramatta or Green Square. </div>
<div> </div>
<div>Domain reported last week that as at March 2016 Sydney apartment rents were up by +4.0 per cent of 2016 from one year ago to a record median high of $520/week, with apartment rents now nearly as high as median house rents of $530/week in the harbour city. CoreLogic-RP Data has Sydney apartment rents +3.4 per cent higher than one year ago, and SQM Research records an increase of +5.7 per cent.</div>
<div> </div>
<div>To date this may in part simply be due to newer stock coming online, which typically is advertised for rent at higher prices than the older stock it often replaces. And we shouldn't be expecting runaway growth in rents any time soon, since investor activity is still at a historically high level, even after APRA's dampening of the buy-to-let sector.</div>
<div> </div>
<div>While it's still early days, this trend is certainly one to watch. Markets are quite complex beasts when you drill into the detail, with endless subtle balances and counter-balances, and in an expensive capital city such as Sydney with a growing population rental growth is likely to continue to have an inverse relationship to investor activity. </div>
<div> </div>
<div>Another trend that is worth watching I looked at here, and that is that inner Sydney vacancy rates have tightened while vacancy rates in secondary and outers areas of Sydney are rising.</div>
<div> </div>
<div>A question for today, then: could it be that foreign buyers of apartments are leaving their inner city units vacant?</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">FIRB data curve ball</span></strong></div>
<div> </div>
<div>In the 1980s Japanese buyers famously  bought heavily into Gold Coast property, but then promptly withdrew funds as the economic outlook soured. As I mused in some detail here, the FIRB data shows that through this cycle there has been an unprecedented surge in Chinese investment in Australian real estate, on a scale never before seen.</div>
<div> </div>
<div><a href="/images/2016/04/11/FIRB4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/04/11/FIRB4.jpg" alt=""></div>
<div> </div>
<div>If you've been following some of my pieces over the years, you'll know that I aim to identify new trends well before you read about them in the wider media, which of course sometimes means being wrong. </div>
<div> </div>
<div>On the topic of localised apartment oversupply, such as in Sydney's inner south, for example, I was yapping on about this emerging risk way back in 2013, long before it ever became a standard media topic <em>du jour</em>.</div>
<div> </div>
<div>In that spirit, here's a possible anti-counter-contrarian view for you: maybe the high-rise building approvals boom won't prove to be such a big a deal after all? There are plenty of risk areas around, for sure, including some already alluded to above, but here are some lines of reasoning to consider:</div>
<div> </div>
<div>-<a href="https://petewargent.blogspot.com.au/2016/04/immigration-alley-oop" target="_blank">i</a>mmigration is rising again - and therefore so is population growth - while the construction boom will soon pass its peak</div>
<div> </div>
<div>-in the most populous capital cities at least, annual population growth never really slowed down anyway: it's still tracking at monumentally strong levels in Greater Sydney (+83,300 in FY2015) and Melbourne (+91,600)</div>
<div> </div>
<div>-the numbers of international students forecast to immigrate into the largest cities is vast - I mean, really vast </div>
<div> </div>
<div><a href="/images/2016/04/11/A5.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/04/11/A5.jpg" alt=""></div>
<div> </div>
<div>-although the take-up of permanent residency by international students to date has not yet been as strong as had been suggested by earlier forecasts, the cumulative intake over the next five years is expected to be truly enormous.</div>
<div> </div>
<div><a href="/images/2016/04/11/A6.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/04/11/A6.jpg" alt=""></div>
<div> </div>
<div>-the most timely available indicators of education arrivals suggest an unprecedented boom is well underway, with another new record high hit in the month of February.</div>
<div> </div>
<div><a href="/images/2016/04/11/A2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/04/11/A2.jpg" alt=""></div>
<div> </div>
<div>-with about 58 per cent of new construction approvals accounted for by foreign  buyers, especially driven by buyers from the Chinese mainland, many may choose not to rent their apartments out, and as such, might not add to the new supply of rental stock at all.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Absorption?</span></strong></div>
<div> </div>
<div>Mostly these are familiar points. Certainly both Sydney (35,231) and Melbourne (32,614) have approved a historically high number of attached dwellings over the past year.</div>
<div> </div>
<div><a href="/images/2016/04/11/BA3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/04/11/BA3.jpg" alt=""></div>
<div> </div>
<div>However, some of these apartments are destined to forever remain in the "approved but not yet commenced" column, approvals are now trending down again, and in the grand scheme of things although there are certainly many cranes on the horizon, these are not outlandish numbers for cities of such a large and expanding population (Greater Sydney will blaze past 5 million in the next few months).</div>
<div> </div>
<div>Moreover, the latest FIRB data show that the Chinese appetite for the purchase of new dwellings through this cycle is statistically unique. What if those Chinese buyers opt to rent out the apartments only on a short-stay basis? Or save them for their soon-to-be international student offspring? Or, most likely, simply never bother to ever bring them to market at all?</div>
<div> </div>
<div>Suddenly Australia's apparent inner city apartment glut, represented by the green line below, could prove to be yet another doomsday scenario that never eventuates.</div>
<div> </div>
<div><a href="/images/2016/04/11/BA1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/04/11/BA1.jpg" alt=""></div>
<div> </div>
<div>This is mostly conjecture, and it's not necessarily a base case, or even probable. And there are plenty of risks for the new and high-rise apartment markets in particular, as we have known now for some years.</div>
<div> </div>
<div>Settlement risks are now considerably higher than they were, with increased deposit requirements. And what if there are legislative changes in China which force sales and repatriation of funds? This may not seem rational or realistic, but then again nobody forecast the scale of the Chinese investment boom in the first place, so who really knows what comes next?</div>
<div> </div>
<div>In my opinion, most mainland Chinese investors deliberately invest in Australian and other overseas property markets with no intention of repatriating funds. In many cases, the financial return may not be the only objective, or even the primary objective.</div>
<div> </div>
<div>Keep a close eye on asking rents and vacancy rates. If the inner city markets do begin to tighten contrary to expectations, then this may be an indicator that mainland Chinese buyers are electing not to bring their shiny new apartments to the rental market, at the same time as domestic investor activity is being throttled. </div>
<div> </div>
<div>An interesting week of news ahead, commencing this morning with the Housing Finance data for February.</div>
<div> </div>
<div>January had been a weaker month for housing loan approvals, but then January is never a big month for activity, so the February figures will give us a much clearer picture of likely activity levels of 2016.</div>
<div> </div>
<div>The market consensus forecast is for a moderate rebound in the number of approvals in the month, which broadly fits with what I've been seeing and hearing, that being a steady increase in home loan activity in aggregate. </div>
<div> </div>
<div>On Thursday, the ABS will release the latest March Labour Force figures, which will be the most important data of the week. </div>
<div> </div>
<div>Last month the reported seasonally adjusted unemployment rate declined to 5.8 percent, but there is a fair chance that this volatile monthly reading could revert higher, with analysts expecting a bit of a rebound in both employment and the participation rate (following last month's surprise drop from 65.14 percent to 64.9 percent).</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Sydney unit rents rise to record high? Pete Wargent

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<div><span style="line-height: 1.3em;">It looks as though 2016 is shaping up to be a year within which the residential construction boom, which has mostly served the demands of foreign investors, begins to tail off.</span></div>
<div> </div>
<div>We should never read too much into the results of one month, of course, but reflecting trends that have already been reported by Housing Industry Association (HIA) finance for the purchase of new dwellings fell by more than 15 percent in February.</div>
<p><a href="/images/2016/04/13/A5.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/04/13/A5.jpg" alt=""></div>
<div class="separator"> </div>
<div>Although it is not yet much reflected in the rolling annual data below, finance for the construction of new dwellings also ticked back by -1.9 per cent in February.</div>
<div> </div>
<div>It may or may not be too early to call the peak on finance for dwelling construction after a very solid run through this cycle, but market releases suggest that building approvals are now on a downslope, and construction will probably follow suit in time too.</div>
<p><a href="/images/2016/04/13/A11.jpg" target="_blank">Click to enlarge</a><br><img src="/images/2016/04/13/A11.jpg" alt=""></p>
<div><strong><span style="text-decoration: underline;">Market shifting away from investors</span></strong></div>
<div> </div>
<div>Figures showed investor lending steadying at around a seasonally adjusted $11.9 billion, which is still a historically high figure, but some way down from the August 2015 peak.</div>
<div> </div>
<div>A quick glance at the chart for loans outstanding shows how banks and lenders have shifted their focus in favour of home loans, a direct response to APRA's regulatory intervention.</div>
<p><a href="/images/2016/04/13/A6.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/13/A6.jpg" alt=""></p>
<p> </p>
<div>We know that there remain blurred lines between investor and home loans, but the February data shows that overall the balance has tilted back in favour of owner-occupier finance ($21 billion) over investment housing finance ($11.9 billion).</div>
<div> </div>
<div>Overall, 2016 looks likely to be a steadier year for property markets, as investors are limited in their borrowing capacity.<br><br>It's worth remembering that owner-occupiers represent a greater share of the market, and as such have the potential to push prices up in the areas in which they are buying (think middle-ring suburbs, catchments for good schools, good transport links, appealing shopping and lifestyle locations).<br><br>Investors should now begin to account for about one third of the market, which is much more in line with historical averages.</div>
<div> </div>
<div>With returns from fixed interest accounts so low and mortgage repayments much lower than they were, many in the home ownership sector will look to improve the value of their own homes, or look to acquire renovation projects.</div>
<div> </div>
<div>Indeed major renovations activity is now at long last trending up in all three of the most populous states, with Sydney leading the way by a margin. Renovation activity is presently less popular in Melbourne, with considerably more modern housing available following a strong decade of construction and dwelling supply.</div>
<p><a href="/images/2016/04/13/A10.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/13/A10.jpg" alt=""></p>
<p> </p>
<div><strong><span style="text-decoration: underline;">First homebuyers subdued</span></strong></div>
<div> </div>
<div>While 2016 looks set to be the year of the homebuyer, much of the activity is being driven by refinancing and existing home-owning folk looking to trade up or down, rather than by new market entrants.</div>
<div> </div>
<div>Even if the ABS data is not quite complete or accurate, it seems fair to surmise that the share of dwellings financed by first homebuyers is tracking some way below the long run averages.</div>
<div class="separator"><a href="/images/2016/04/13/A9.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/04/13/A9.jpg" alt=""></div>
<p><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br></p>
<div>2016 therefore seems likely to be a year wherein markets are increasingly moved by homebuyers ahead of investors.</div>
<div> </div>
<div>It is worth reiterating here that in part due to high transaction costs, whether bought as a home or a pure investment, property works best as a long term play.</div>
<div> </div>
<div>The internet and financial media is largely - though, of course, not absolutely - a fusion of noise, short-termism, misinformation and guesswork when it comes to property market commentary. You only need to look back to 2012 for some classic examples of that.<br><br>In my opinion there is very little value in comparing returns with the share market over a one or two year timeframe. Each asset class has its merits and place in a portfolio, but generally speaking property needs at least a ten year time horizon in order to justify the transaction costs. <br><br>The data yesterday confirmed that home loan activity levels - although not necessarily aggregate mortgage values - are rising solidly in Queensland, and this is readily visible in some of the family-friendly middle ring suburbs of Brisbane. Investor hubs are considerably patchier, and many of the resources regions are an absolute disaster zone. <br><br>A final point of interest for today is that markets had increasingly been lining up bets for an interest rate cut as soon as May, though I personally didn't like the odds of that happening. <br><br>I don't spend hours deliberating over monetary policy wording, but clearly the Reserve Bank (RBA) noted in its most recent decision release that "continued low inflation would allow scope for easier policy, should that be appropriate...".<br><br>There are probably three things that would need to be in place for an interest rate cut, being a cooling of property investor lending (tentative tick), confirmation that hiring is weakening, and evidently confirmation of continued low inflation. <br><br>The Labour Force figures for March are due out on Thursday, and the market consensus sees a fairly moderate result as likely, with some clear risks to the unemployment rate reading, while the March inflation data is due out towards the end of the month.<br><br>There's a bit of water to flow under the bridge between now and then, but a nice bump in key commodity prices overnight and an incredibly strong result from NAB's Business Survey really don't point towards a rate cut at this stage. <br><br>A cracking NAB survey showed a surge in business conditions at their highest level in fully eight years since 2008, and while the employment gauge jumped to a five year high. Business conditions are now showing a reading of +12, absolutely miles above the long run average of +5, and capacity utilisation has improved strongly (I do note here, though, that the outlook for mining remains dire). <br><br>The RBA has arguably been a reluctant cutter through this cycle, so I reckon that rules out a May cut. In fact, interest rates could be on hold for as far as the eye can see. <br><br>As ever, happy to be proven wrong on that, though.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Residential construction boom tapering off: Pete Wargent

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<p>The standout feature of Domain’s Top 10 prestige beach suburbs list is the remarkably poor performance on capital growth.</p>
<p><span style="line-height: 1.3em;">The best of them wouldn’t make the Top 10 list for capital growth rates in Melbourne, Perth, Darwin, Sydney or Brisbane – nor the Top 25 list of best performers in regional Australia. </span></p>
<p>One of the so-called Top 10, Noosa, has recorded zero growth over 10 years. This helps to confirm our ranking of Noosa as Australia’s biggest real estate lemon.</p>
<p><span style="line-height: 1.3em;">The Domain list of Top 10 prestige beach suburbs continues a grand tradition of Australian media publishing real estate lists that are pointless, inaccurate or farcical.</span></p>
<p><span style="line-height: 1.3em;">It says something about the mediocre performance of these apparently prestigious beachside locations that one of the Top 10 has recorded no growth at all over the past decade. </span></p>
<p><span style="line-height: 1.3em;">It’s the antithesis of investment, which is meant to be about achieving growth. The only thing of value to owners in many of these ritzy locations is the ego trip. Beyond that, they’re crying all the way to the bank.</span></p>
<p><span style="line-height: 1.3em;">These locations, which include Brighton in Melbourne, Bronte in Sydney and Cottesloe in Perth, have all the qualities that many people imagine would make them out-performers on capital growth: great beaches, quality restaurants, wonderful amenities and top quality homes. </span></p>
<p><span style="line-height: 1.3em;">Many investors would rue their inability to afford to buy there and grow their wealth. But they need not concern themselves: there’s better capital growth in the middle market areas and the downmarket suburbs, which dominate the Top 10 growth lists in most of our major cities.</span></p>
<p>Remember that old real estate adage about property doubling in value every 10 years, which means a growth rate averaging better than 7% per year? It’s generally untrue. The best performers achieve it, but most properties do not. And certainly none of the Top 10 prestige beach suburbs have done so.</p>
<p><span style="line-height: 1.3em;">The No.1 ranked prestige beach suburb for capital growth, which apparently is Brighton in Melbourne, has managed growth averaging just 6.7% per year.</span></p>
<p>No.2 Portsea, also in Melbourne, recorded growth averaging only 5.55% per year. This is not a stellar performance, although the people who put together the list apparently thought it was.</p>
<p><span style="line-height: 1.3em;">Byron Bay, which according to Domain Group senior economist Andrew Wilson is “an exceptional market”, has averaged a mediocre 5.4% per year - a growth rate at which it would take over 13 years for values to double.</span></p>
<p>The bottom half the Top 10 list is made up of suburbs with growth rates that don’t even match inflation. </p>
<p>Main Beach on the Gold Coast has a growth rate of a little over 1% per year. Palm Beach in Sydney, where the median price is $2.7 million, has managed less than 1% per year.</p>
<p>To put these growth rates into perspective, the best suburbs in Darwin, Perth and Melbourne all have growth rates above 10% per year. The best in Sydney are above 9% per year.</p>
<p><span style="line-height: 1.3em;">And, outside the capital cities, the Top 25 regional centres all have growth rates of 10% per year or better, with the top four achieving 15%-plus. </span></p>
<p>If you’d bought the typical Palm Beach property 10 years ago, you would have paid around $2.46 million and managed capital gains of around $220,000 a decade later. In real terms, you lost money.</p>
<p>If you’d spent that $2.46 million in the best-performing suburbs in Perth, Darwin, Sydney and Melbourne (you could have bought multiple properties in multiple cities for that sum), your capital gain would have been $4.2 million.</p>
<p>Which would you rather have: the prestige - or $4.2 million?</p>
<p> </p>
<p><span style="line-height: 1.3em;"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em> </span></p>
<p> </p>
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Poor capital growth performance for beach retreats: Terry Ryder

<html><body>
<div>Sydney median house prices were up by 1% in October to be up by 21% over the year to $1,058,500.</div>
<div> </div>
<div>Sydney median unit prices were also up by 1% in the month to be up by 15% over the eyar to $684,500.</div>
<div> </div>
<div>There has also been moderate growth over the past year for Brisbane houses (4%) and units (3%).</div>
<div> </div>
<div>Interestingly Melbourne has now picked upp the pace, with house prices in the Victorian capital recording growth of 7% in the last quarter alone to be 11% higher over the year. </div>
<div> </div>
<div>On the other hand, some moderate declines were recorded in other cities and regions. </div>
<div> </div>
<div><a href="/images/2015/12/1/Table_1_October_Statistics_Summary.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/12/1/Table_1_October_Statistics_Summary.jpg" alt="" width="781" height="579"></div>
<div> </div>
<div><span>In other news, there was a very strong result recorded for the Reserve Bank's Financial Aggregates.</span></div>
<div><span> </span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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Residex market update: Pete Wargent

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<p><span>The days of double-digit rental yields in Australia are gone. And it’s hard to see those times returning any day soon.</span></p>
<p><span>Up until about three years ago, Australians who were comfortable with risk, or perhaps oblivious to it, were buying in mining towns and resources-related regional centres, and commonly achieving initial gross rental returns of 10%, sometimes more.</span></p>
<p><span>But the same places are now likely to offer little better than 5%. Even though prices have fallen a lot in devastated mining centres, rents have fallen even more. Median rental yields, according to Domain, are now 4.8% in Newman, 5.8% in Port Hedland, 4.3% in Emerald and 3.1% in Moranbah.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>So where do you turn, now, for a better-than-average rental yield?</span></p>
<p><span>The best on offer that I can find are in Cairns in North Queensland. The median rental yields for apartments are generally 7% and above, more because prices tend to be low rather than because rents are high.</span></p>
<p><span>According to Domain figures, the median return for Cairns North, where over 200 apartments have sold in the past 12 months at a median price of $237,000, is 7.5%.</span></p>
<p><span>In downmarket Manoora, where 90 units have sold at a median price of $167,000, the median rental yield is 7.9%. And in Woree (median price $148,000), the median rental yield is 8.0%. That means a small unit selling for $150,000 and renting for $230 a week.</span></p>
<p><span>Houses around Cairns generally provide rental yields in the 5.5% to 6.0% range.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>It’s worth considering because Cairns presents a solid market at the moment - boosted by an improving economy, strong tourism and major spending on infrastructure. Some suburbs have recorded double-digit growth in median prices in the past 12 months.</span></p>
<p><span>The bottom line is that those Cairns yields are as you good as you will realistically find across Australia. There is nowhere I know about that offers double-digit yields anymore. And I mean genuine rental returns, not computer-generated statistical glitches.</span></p>
<p><span>If you read enough newspapers, magazines and online news services, you’re going to see lots of lists claiming that returns well above 10%, sometimes above 20%, are available.</span></p>
<p><span>Don’t believe these stories. They are statistical aberrations and credible median organisations wouldn’t publish them.</span></p>
<p><span>One of these lists published recently claimed there’s a place in Queensland where you can get rental yields of - wait for it - 58%. That’s so obviously absurd that it's amazing anyone published it, but print it they did.</span></p>
<p><span>Just pause for a moment and consider what’s being suggested here. A rental yield of 58%, apart from being an obvious error, means a property selling for $300,000 would fetch rent of $174,000 a year or $3,346 per week.</span></p>
<p><span>When I first saw it in an online real estate magazine, I thought it might be a typographical error.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>But no, I clicked on the town credited with this remarkable real estate achievement and there, sure enough, was a presentation of figures which showed how they arrived at this.</span></p>
<p><span>The town credited with a 58% median rental yield was Beaudesert, south of Brisbane and west of the Gold Coast.</span></p>
<p><span>Apparently, you can buy units in Beaudesert for $22,500. Yes, apartments for less than the price of a Jeep. And given that the median weekly rent for these remarkably cheap dwellings is $253 per week, rental yields are indeed 58.47% - according to the computer, at least, proving once again the validity of the old adage about “garbage in, garbage out”.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Obviously someone has made a mistake. You can’t buy units for $22,500 in Beaudesert - or anywhere else in Australia. And, equally obviously, typical yields in the town are not 58.47%.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>But wouldn’t you think someone would take steps to correct these startling errors? Because they’re common. Mistakes of this kind are appearing weekly, if not daily, in real estate media.</span></p>
<p><span>In October I wrote about claims from the same source that you could commonly achieve 30% yields in Mission Beach – and other instances where it has been claimed that prices in tiny towns have risen 40-50% in 12 months.</span></p>
<p><span>The latest presentation of the top five locations in each state with the highest yields was a litany of these types of mistakes. It’s claimed there’s a location in NSW where typical yields are 28%, a tiny town in South Australia where you can commonly achieve 16% and a coastal hamlet in Tasmania where 15% returns are common.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>Many of the locations listed as having outstanding rental yields are basket-case markets with vacancies above 20%.</span></p>
<p><span>Others are coastal towns where high rents are achieved in peak holiday times and the computer assumes those peak rents are achieved 52 weeks of the year (when, in reality, the properties are vacant for much of the year), hence the ridiculously high yield figure.</span></p>
<p><span>If you choose to believe these figures, you’ll welcome to head off to Beaudesert, Mission Beach or wherever and see if you can find a property where the rental yield is even as high as 6%.</span></p>
<p><span><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></span></p>
<p> </p>
<p><span>For your free </span><em>Property Observer</em><span> eBook from RAMS, <em>12 tips for first-time buyers</em>, </span><span>covering</span><span> </span><span>everything</span><span> you need to know when it comes to purchasing property, click here.</span></p>
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Days of double-digit rental yields in Australia are gone: Terry Ryder

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<p><span>GUEST OBSERVER</span></p>
<p><span>The Australian Bureau of Statistics (ABS) released building approvals data for October 2015 earlier today. </span></p>
<p><span>Focusing just on dwelling approvals, although they were slightly lower than the recent record high levels, the overall number of dwellings approved for construction remain extremely high from a historical standpoint.</span></p>
<p><a href="/images/2015/12/2/Chart-1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/2/Chart-1.jpg" alt=""></span></p>
<p><span>There were 19,652 dwelling approvals in October which was 3.9% higher over the month and 12.3% higher year-on-year.  If we look at approvals over the past 12 months there has been a record high 233,180 approvals which is 17.3% higher year on year.</span></p>
<p><a href="/images/2015/12/2/Chart-2.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/2/Chart-2.jpg" alt=""></span></p>
<p><span style="line-height: 1.3em;">In October 2015, there were 9,435 houses and 10,218 units approved for construction nationally.  House approvals are -2.1% lower over the month and -2.3% lower year-on-year.  The more ‘lumpy’ unit approvals have increased by 10.1% over the month and are 30.2% higher year-on-year.  The data highlights the rising prevalence of unit approvals and this is particularly reflected if we look at the annual approvals.  For the first time ever there have been more units approved (117,072) over the past year than houses (116,111).</span></p>
<p><a href="/images/2015/12/2/Chart-3.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/2/Chart-3.jpg" alt=""></span></p>
<p><span>With the rising prevalence of unit construction there has also been a record high proportion of high-rise approvals over the past year.  Looking at unit approvals over the past year, 25.5% of approvals were for townhouses, 9.1% were for low-rise (less than four storeys) and 65.4% were for high-rise (four storeys or more).  </span></p>
<p><span>To put the rise in high-rise into context, a year ago 56.5% of unit approvals were high-rise, five years ago the figure was 38.1% and a decade ago high-rise accounted for 36.9% of unit approvals.  Clearly densification and demand for inner city living is driving the rising demand for high-rise units.  </span></p>
<p><span>It’s also important to note that over recent years, Chinese and Indians have overtaken New Zealanders and those from the United Kingdom as our largest sources of migrants.  While New Zealanders and those from the United Kingdom often prefer houses like most Australians, Chinese and Indians are much more accustomed to living in smaller homes and in much higher density environments.  This is another driver of the growing prevalence of high-rise approvals.</span></p>
<p><a href="/images/2015/12/2/Chart-4.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/2/Chart-4.jpg" alt=""></p>
<p><span>Turning to approvals in the capital cities, there were 17,236 capital city dwelling approvals in October which was 15.9% higher over the month and 16.9% higher year-on-year. There were 6,691 houses and 10,545 units approved for construction over the month.  House approvals fell by -1.8% over the month to be -6.6% lower year-on-year while unit approvals increased 30.8% over the month and were 39.2% higher year-on-year.</span></p>
<p><a href="/images/2015/12/2/Chart-5.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span> <img src="/images/2015/12/2/Chart-5.jpg" alt=""></span></p>
<p><span>Across the individual capital cities, house approvals generally fell over the month however, they have for the most part been trending higher of late but are lower relative to a year ago.  Over the month there were 1,373 approvals in Sydney, 2,244 in Melbourne, 945 in Brisbane, 1,410 in Perth, 540 in Adelaide, 77 in Hobart, 43 in Darwin and 59 in Canberra.  Year-on-year the changes in approvals have been recorded at -3.8% in Sydney, +2.4% in Melbourne, -6.8% in Brisbane, -23.9% in Perth, +24.4% in Adelaide, +6.9% in Hobart, -30.6% in Darwin and -45.9% in Canberra.</span></p>
<p><a href="/images/2015/12/2/Chart-6.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/2/Chart-6.jpg" alt=""></span></p>
<p>While housing approvals may be showing early signs of slowing across the capital cities, the same can’t be said for unit approvals which in most cities remain at or close to record highs.  Across the capital cities there were 3,630 approvals in Sydney, 3,640 in Melbourne, 1,671 in Brisbane, 677 in Perth, 561 in Adelaide, 6 in Hobart, 215 in Darwin and 145 in Canberra.  The year-on-year changes in approvals have been recorded at +73.7% in Sydney, +32.6% in Melbourne, +37.4% in Brisbane, -10.8% in Perth, +18.4% in Adelaide, -80.6% in Hobart, +83.8% in Darwin and +0.7% in Canberra.</p>
<p>Based on the data it seems that the demand from developers to seek approvals for units, particularly high rise approvals, is continuing to climb.  Countering this is the slowing in detached housing demand.  As mentioned earlier, the biggest sources of migration to Australia are more comfortable with high-rise development and this coupled with the fact it is relatively more affordable than detached houses seems to be driving the demand. </p>
<p>The challenge from here with value growth now slowing is how many of these approvals will be delivered to the market.  We already have concerns surrounding potential settlement risk for projects already under construction given that banks have recently changed lending requirements to investor.  Keep in mind that unit stock is much more likely to be purchased by investors than detached houses.</p>
<p>Although there has been a slight easing of approvals over recent months they remain at near record highs.  Of course population growth is winding down, particularly overseas migration, which should result in an ongoing improvement in housing supply relative to housing demand.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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