<p data-end="186" data-start="128">ANZ believes the Reserve Bank is in no rush to move again.</p>

<p data-end="441" data-start="188">Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.</p>

<p data-end="508" data-start="443">That positioning, in ANZ’s view, makes a June rate hike unlikely.</p>

<p data-end="680" data-start="510">The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.</p>

<p data-end="1015" data-start="682">The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.</p>

<p data-end="1098" data-start="1017">As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.</p>

<p data-end="1345" data-start="1100">Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.</p>

<p data-end="1436" data-start="1347">Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.</p>

<p data-end="1678" data-start="1438">The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.</p>

<p data-end="1755" data-start="1680">Ultimately, most members leaned toward the inflation side of that equation.</p>

<p data-end="2082" data-start="1757">Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.</p>

<p data-end="2101" data-start="2084">That’s important.</p>

<p data-end="2239" data-start="2103">While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.</p>

<p data-end="2597" data-start="2241">ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.</p>

<p data-end="2733" data-start="2599">That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.</p>

<p data-end="2807" data-start="2735">However, where ANZ diverges from the RBA is on the outlook for activity.</p>

<p data-end="3152" data-start="2809">The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.</p>

<p data-end="3176" data-start="3154">ANZ is less convinced.</p>

<p data-end="3464" data-start="3178">The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.</p>

<p data-end="3528" data-start="3466">That divergence matters because it shifts the balance of risk.</p>

<p data-end="3740" data-start="3530">If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.</p>

<p data-end="3855" data-start="3742">It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.</p>

<p data-end="3945" data-start="3857">The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.</p>

<p data-end="4135" data-start="3947">On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.</p>

<p data-end="4176" data-start="4137">For now, the Board is choosing to wait.</p>

<p data-end="4286" data-start="4178">But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.</p>

<p data-end="4423" data-start="4288">In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.</p>

<p data-end="4494" data-start="4425">For borrowers, it reinforces the reality that relief is not imminent.</p>

<p data-end="4686" data-start="4496">And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.</p>

<p data-end="4774" data-is-last-node="" data-is-only-node="" data-start="4688">According to ANZ, it is a balance that is becoming increasingly difficult to maintain.</p>


Joel Robinson

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<p><a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.</p>

<p>The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.</p>

<p><a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360477]</p>

<p>The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.</p>

<p>Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.</p>

<p>VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.</p>

<p>“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360505]</p>

<p>The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.</p>

<p>The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.</p>

<p>Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360473]</p>

<p>BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.</p>

<p>The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.</p>

<p><a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.</p>

<p>The first stage of Cumulus Grand Villas is targeting completion in 2026.</p>

<p>[smartcode_project_cta:default project_id=135663]</p>


VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

<p data-end="89" data-start="0">Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.</p>

<p data-end="659" data-start="141">The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.</p>

<p data-end="1018" data-start="661">For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.</p>

<p data-end="1087" data-start="1020">Waverley Council’s response has been to move early, and decisively.</p>

<p data-end="1547" data-start="1089">Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.</p>

<p data-end="1547" data-start="1089"><img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" /></p>

<p data-end="2067" data-start="1591">At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.</p>

<p data-end="2123" data-start="2069">That repositioning is built around four key ambitions.</p>

<p data-end="2424" data-start="2125">The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.</p>

<p data-end="2897" data-start="2426">The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.</p>

<p data-end="2951" data-start="2899">Oxford Street Mall sits at the centre of that shift.</p>

<p data-end="3478" data-start="2953">Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.</p>

<p data-end="3478" data-start="2953">&nbsp;</p>

<p data-end="3562" data-start="3480">The second ambition is to transform Bondi Junction into a world-class interchange.</p>

<p data-end="3890" data-start="3564">Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.</p>

<p data-end="4240" data-start="3892">The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.</p>

<p data-end="4296" data-start="4242">The third ambition focuses on greening and open space.</p>

<p data-end="4709" data-start="4298">One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.</p>

<p data-end="5076" data-start="4711">The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.</p>

<p data-end="5183" data-start="5078">The fourth ambition is perhaps the most important from a development perspective: growth that gives back.</p>

<p data-end="5501" data-start="5185">Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.</p>

<p data-end="5842" data-start="5590">New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.</p>

<p data-end="6327" data-start="5890">The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.</p>

<p data-end="6732" data-start="6381">Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.</p>

<p data-end="6980" data-start="6734">It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.</p>

<p data-end="7137" data-start="6982">Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.</p>

<p data-end="7519" data-start="7139">Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.</p>

<p data-end="7843" data-start="7556">The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.</p>

<p data-end="8108" data-start="7845">This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.</p>

<p data-end="8528" data-start="8161">Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.</p>

<p data-end="8654" data-start="8530">That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.</p>

<p data-end="8710" data-start="8656">&nbsp;</p>

<p data-end="8710" data-start="8656">&nbsp;</p>

<p data-end="9626" data-start="9587">&nbsp;</p>

<p data-end="10207" data-start="9884">If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.</p>


“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

<p>Toorak's dress circle St Georges Road, home to some of the city's priciest homes, is set for a rare new apartment development.</p>

<p>Blood Diamond Group, an entity tied to Tina Brandi, wife of David Brandi who has been a prolific bidder on The Block over the years, has filed plans for an ultra-exclusive development across an amalgamated 3,662 sqm site at <a href="https://www.apartments.com.au/new-apartments/104-106-st-georges-road-toorak-vic-3142">104 and 106 St Georges Road</a>.</p>

<p>The proposal would replace two existing homes on the riverfront site with a five-level apartment building cascading down the steeply sloping land toward the Yarra River. Designed by Charles Wright Architects, the development has been carefully shaped around the site’s topography and river environs, with the upper levels stepping back to reduce visual bulk from both St Georges Road and the Yarra corridor.</p>

<p>Planning documents describe the proposal as “a site layout and building typology that is consistent with the emerging character of the area and which provides exceptional amenity for future residents without compromising that of neighbouring properties.”&nbsp;</p>

<p><img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ea19a17e-7528-4fa8-b727-05f2f7c025e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20a_0.png?VersionId=rZ2IjdoUL_UrRl1sZ4wZHnQXbYUaEmUQ" /></p>

<p>The scheme comprises 12 apartments, including 10 three-bedroom residences, one one-bedroom apartment, and a substantial split-level five-bedroom penthouse. A 624 sqm communal rooftop terrace will crown the building, while three undercroft levels embedded into the hillside will accommodate apartments and basement parking.</p>

<p>The design leverages the site’s dramatic northern outlook across the Yarra River, with living areas and balconies oriented toward the water. A central atrium running the full height of the building is intended to draw natural light deep into the residences and improve internal amenity.</p>

<p>Landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo Design &amp; Landscape</a> will play a major role in softening the built form, particularly along the river edge where significant setbacks have been introduced. The proposal includes a minimum 30-metre setback from the Yarra River boundary, preserving a substantial landscaped buffer between the development and the waterway.</p>

<p>While a mature English Oak near the front of the site is proposed for removal, the plans retain a large English Elm closer to the riverfront, alongside other established vegetation in the lower section of the property.</p>

<p><img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ed3bf19b-5bc7-482f-bde7-41f709a13c3a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20b.png?VersionId=SG_kBGu4rOaSPY8FtVcmPJfSCrstuOfg" /></p>

<p>Architecturally, the building adopts strong horizontal forms with expansive glazing and curved balcony edges facing the river. Planning documents note the upper levels “adopt a receding form” to ensure the building responds appropriately to the Yarra River environs overlay controls.&nbsp;</p>

<p>The surrounding streetscape is characterised by large contemporary homes embedded into the hillside, many presenting as modest one or two-storey forms to the street before expanding toward the river frontage below. The planning report notes this established pattern heavily influenced the massing strategy for Toorak Pavilion.&nbsp;</p>

<p>Until the recent sale of the landmark Clendon Road mansion Coonac for around $130 million, St Georges Road held the state's most expensive home, the $80,000,088 derelict "Ghost House" mansion that was bought by crypto king Ed Craven.&nbsp;</p>

<p>Blair House, also on St Georges Road, sold for $74.5 million in 2022.</p>


First look: Toorak Pavilions slated for dress circle St Georges Road

<p data-end="205" data-start="54">Six months after a development site on Kangaroo Point’s Shafston Avenue sold for $6.55 million, plans have been lodged for a 23-storey apartment tower.</p>

<p data-end="443" data-start="207">A company named JMT Mega Capital, understood to be interstate investors when the 1,222 sqm double block traded late last year through Patona Property, is proposing an 84-apartment development in place of the existing low-rise buildings.</p>

<p data-end="694" data-start="445">The slender tower at <a href="https://www.apartments.com.au/new-apartments/212-220-shafston-avenue-east-brisbane-qld-4169">212–220 Shafston Avenue</a>, overlooking the Brisbane River, has been designed by <a href="https://www.apartments.com.au/architects/aplus-design-group">Aplus Design Group</a>. It will comprise a mix of one-, two- and three-bedroom apartments above six basement levels, topped by rooftop resident amenities.</p>

<p><img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="7e17ba9e-553e-42ef-92b6-22081671521a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_3.png?VersionId=hlVUf99vrOjUs.vhQs0qV0DhOncUy9T8" /></p>

<p>The development has been designed as a vertically articulated tower with recessed balconies, curved façades and planted edges intended to soften its scale within the evolving Shafston Avenue skyline. In the submitted Urban Design Report, Aplus Design Group said the tower had been “shaped with a slender vertical expression, articulated façades, recessed balcony zones, integrated planting and a clearly defined podium relationship, helping to reduce perceived bulk and create a more elegant contribution to the Shafston Avenue streetscape and broader Kangaroo Point skyline.”</p>

<p>The scheme comprises 84 apartments, including 25 one-bedroom units, 34 two-bedroom apartments and 25 three-bedroom residences. A total of 104 car spaces are proposed across six basement levels, including resident, visitor and accessible parking.</p>

<p>Residents will have access to rooftop communal open space and shared amenities, while the development also incorporates deep planting zones and subtropical landscaping throughout the podium and tower levels. The project includes 35 per cent communal space coverage across the site and a 17.5 per cent deep soil zone allocation to support urban greening outcomes.</p>

<p>The application exceeds the mapped building height under the Kangaroo Point Peninsula Neighbourhood Plan and is being assessed under Brisbane City Council’s impact assessment pathway. The design team argues the additional height is supported by the site’s strategic inner-city location, existing high-density zoning, and proximity to transport and employment hubs.</p>

<p>“The design has been developed to make better use of a well-serviced urban site within an established high-density residential setting, while improving the street presentation and overall quality of the public realm interface,” the report states.</p>

<p><img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="1ab44b1e-ff45-4bf3-8da8-8aa0cd79db33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_10.png?VersionId=tSxeGekZOqj1e9g3PEn_yFoC3taKDp3U" /></p>

<p>The proposal adds to a growing pipeline of apartment developments reshaping Kangaroo Point ahead of the 2032 Brisbane Olympic Games, with demand continuing to strengthen for new housing supply in well-connected inner-city precincts.</p>

<p>Mosaic has nearly sold out its under-construction <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford by Mosaic</a>&nbsp;and <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a>,&nbsp;while Pikos recently completed <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye Residences</a> nearby. Pikos is also delivering <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">Gaia</a>, over 230 three- and four-bedroom apartments on Lambert Street.</p>


First look: 23-storey Kangaroo Point apartment tower planned for Shafston Avenue riverfront precinct

<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><span>A telecommunications facility in the Gold Coast and leased to Vodafone is up for auction by Burgess Rawson on February 23 in Sydney.</span></p>
<p><span>The <a href="https://www.burgessrawson.com.au/buying/QLD/Gold-Coast/Arundel/Office/4P0195#.Vshsl8eO7ow" target="_blank"><span>15 Telford Place, Arundel</span></a> property, just 7 km from the Southport CBD, is one of three Vodafone high-tech facilities in Queensland. </span></p>
<p><span>The company has been occupying the property for 15 years and is on a renewed and secure 10-year net lease to June 2025 with the option to extend to 2035.</span></p>
<p><span>The site area measures 2,738 sqm with lettable area of 2,038 sqm.</span></p>
<p><span>The property makes a net income of $430,000 pa plus GST (increasing to $445,050 pa plus GST in June 2016). The annual increases are 3.5% until 2020 and 3.25% until 2024 and the tenant pays all outgoings, including Land Tax.</span></p>
<p><span>Gold Coast will host the 2018 Commonwealth Games and more than $13.5 billion in infrastructure projects are planned or underway.</span></p>
<p><span>The selling agents are Michael Collins and Dean Venturato.</span></p>
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Telecommunications facility in Gold Coast leased to Vodafone up for auction

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<p>News Corp Australia has partnered with property website realcommercial.com.au for a new premium multi-platform advertising solution for commercial property clients. </p>
<p>Combining the audience of <a href="https://realcommercial.com.au/" target="_blank">realcommercial.com.au</a> with the reach of News Corp Australia mastheads including <em>The Australian</em>, <em>Herald Sun</em>, <em>The Courier-Mail</em> and digital edition of <em>The Wall Street Journal</em>, commercial property advertisers can now expect to reach up to 9 million people both in Australia and internationally.</p>
<p>“This is the first time News Corp Australia has partnered with realcommercial.com.au and the first time we have bundled one of our international mastheads into the mix,” said The Australian general manager-sales Rachel Savio. </p>
<p>“2016 is set to be an active year for commercial property investment in Australia with increasingly more interest from overseas investors. According to real estate firm CBRE a total of $28.4 billion of commercial property encompassing office, industrial and retail, was sold last year in Australia.”</p>
<p>Commenting on the partnership, realcommercial.com.au’s executive general manager Joseph Lyons said, “This partnership brings together the power of realcommercial.com.au, News Corp Australia’s mastheads, and <em>The Wall Street Journal Asia </em>to help our clients reach potential buyers and tenants in Australia and internationally.</p>
<p>“We are seeing increasing interest in commercial property from interstate and overseas buyers and this multi-platform bundle will offer customers more reach than they have ever before had access to in one package. The opportunity speaks for itself with an audience of up to nine million people.”</p>
<p> </p>
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News Corp Australia partners realcommercial.com.au for commercial real estate listings

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<p>When I keep thinking about the possible ramifications with Bill Shorten’s tax reform announcements I shake my head with utter disbelief – this is just plain dumb policy. Since the mining boom collapsed property has been a major shining light for the Australian economy.</p>
<p>By announcing that from July 1, 2017 negative gearing will only apply to new properties, the argument that 93 per cent of negative gearing goes to existing properties is a flawed one. Many suburbs see very few new developments each year so it’s those existing properties that add equilibrium to keeping rents competitive.</p>
<p>It should also be noted that it was not mentioned that with the new properties that there would be no adjustments to the previous Labor policy in 2008 that permits 100 per cent of off – the – plan purchases to foreign owners. What we are seeing today is new developments being offered off shore and many properties never hit the local market with many of these properties being land banked. It should also be legislated that all off – the – plan foreign purchases must be rented out with all properties that are currently land banked to be issued with a divestment order unless they are rented out.</p>
<p>What I believe will happen with negative gearing is that we will see a cap put on the number of properties that are allowed to be claimed as well as a limit to annual tax deductions that can be claimed. In the meantime one could expect property investors to be front and centre in the markets prior to the upcoming Budget announcements.</p>
<p>It is becoming pretty obvious that it will be some time before the Australian budget gets itself back in the black – more particularly now that an increase to the GST has been formally pooh – poohed.</p>
<p>Instead of looking at increasing taxes maybe the federal Government would be better suited to looking at what it can do with its massive property portfolio to pay down more debt. The Australian Government is the largest property landlord in Australia with property holdings across the country.</p>
<p>HMAS Penguin for example which occupies some prime Middle Harbour front land is just one of thousands of examples of land that could be put to much better economic use. Now before you start yelling and screaming all I am saying is that the federal Government should be taking a closer look at its property portfolio with a view to possibly cashing – in. The NSW Government has been active over the past few years selling off Housing Commission properties that has eventuated in quadrupling budget expectations on the likely market values.</p>
<p>Australia’s population hit 24,000,000 this week so it makes plenty of sense to start a conversation on how our cities are going to cope with this rapid expansion. Public golf courses will come under huge pressure to remain with their respective land values going through the roof. Although before we see those being developed the federal Government has thousands and thousands of hectares of vacant land sitting idle.</p>
<p>No doubt some will say it’s time to put Australia’s land resources to better and more practical use and many will say it should remain as it is. One would have to admit that it would be an interesting debate. The Australian population clock now adds one extra person to our population every one minute and 31 seconds. On top of that we also have record net overseas migration. Our population growth is now higher than that of Indonesia.</p>
<p>The reality is that we need to start developing more land, so that conversation should start with Australia’s biggest landlord.</p>
<p>No time like the present to start this long overdue conversation.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 79</p>
<p>• Number of houses on the market last week – 53</p>
<p>• Number of houses on the market this week – 59</p>
<p>• Number of apartments on the market this time last year – 52</p>
<p>• Number of apartments on the market last week – 46<br>• Number of apartments on the market this week – 44</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 8</p>
<p>• Number of houses on the market last week – 17</p>
<p>• Number of houses on the market this week – 18</p>
<p>• Number of apartments on the market this time last year – 19</p>
<p>• Number of apartments on the market last week – 17</p>
<p>• Number of apartments on the market this week – 22</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 5</p>
<p>• Number of houses on the market last week – 9</p>
<p>•Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year– 38</p>
<p>• Number of apartments on the market last week – 27</p>
<p>*Number of apartments on the market this week – 28</p>
<p> </p>
<p><span> </span><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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Property is the gift that keeps on giving: Robert Simeon

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<div>The ABS released its all-important Labour Force data for Janaury 2016. It is perhaps the most important of the data releases, so let's take a canter through it in the three short parts.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 1 - Employment growth</span></strong></div>
<div> </div>
<div>In seasonally adjusted terms, total employment declined by -7,900 in January to 11,894,500. In trend terms, total employment increased by +19,800.</div>
<div> </div>
<div>Although this was a decline for the headline result which missed market expecations, given the strength of what has gone before, in context it wasn't too bad a result. </div>
<div> </div>
<div><a href="/images/2016/02/19/A1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/A1.jpg" alt=""></div>
<div> </div>
<div><span>In trend terms total employment increased by +302,500 over the past year or +2.6 per cent, which is a high rate of employment growth in historical terms. </span></div>
<div><span> </span></div>
<div><span>Click to enlarge</span></div>
<div><span><img src="/images/2016/02/19/A7.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>However, the composition of employment does not look quite so pretty, with full time employment decreasing by -40,600 in January, and part time employment increasing by +32,700. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/A2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/A2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>While full time jobs growth has been solid over the past year in rising by +2.0 per cent, the rate of part time jobs growth has been exceptionally high at +3.9 per cent. This probably represents a structural shift towards more casual jobs.</div>
<div> </div>
<div>Total hours worked increased by a modest +2.0 per cent over the past year, perhaps a rather more realistic indicator of the strength of employment growth. </div>
<strong><span style="text-decoration: underline;"><br>Part 2 - NSW &amp; QLD create the jobs</span></strong><br><div> </div>
<div>After some previously massive months of jobs growth, employment in New South Wales (and Victoria) pulled back in January, while Queensland went on to record further gains. </div>
<div> </div>
<div>Over the past six months the economy has created +143,400 jobs, with New South Wales (43 per cent) and Queensland (38 per cent) accounting for more than four-fifths of them.</div>
<div> </div>
<div><a href="/images/2016/02/19/A3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/A3.jpg" alt=""></div>
<div> </div>
<div><span>Over the past year employment growth rates have ranged from an enormous +4.7 per cent in New South Wales and +3.3 per cent in Queensland, to a distinctly uninspiring -0.9 per cent in Tasmania. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/A4.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/A4.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Part 3 - Unemployment rates converge</span></strong><br><br><div>The headline result showed a seasonally adjusted increase in the unemployment rate to 6.0 per cent, which will excite the pessimists. However, the result was probably more middle of the road than anything.</div>
<div> </div>
<div>The participation rate has crept up to 65.2 per cent, the highest level in nearly four years, and while the number of unemployed persons recorded is volatile, it was down by 2.6 per cent over the year.</div>
<div> </div>
<div>The trend unemployment rate ticked down a notch to 5.8 per cent, for a 27 month low. </div>
<div> </div>
<div><a href="/images/2016/02/19/A5.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/19/A5.jpg" alt=""></div>
<div> </div>
<div><span>At the state level the monthly figures were absolutely wild once again, lurching all over the place. The trend figures point towards convergence rather than divergence between the states, with New South Wales looking to be in the best nick on this measure. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/02/19/A6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/02/19/A6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">The 95 per cent confidence interval figures provided by the ABS (which ranged from -66,500 to +55,700 for the month) serve as a reminder that as estimates the monthly data shouldn't be taken too literally.</div>
<div> </div>
<div>The big picture suggests that although annual headline employment growth is high by historical standards, the quality of employment growth is underwhelming, with part time work and under-employment aplenty in evidence. </div>
<div> </div>
<div>As a result ongoing low wages growth is likely to be the order of the day due to the inherent level of slack in the workforce.</div>
<div> </div>
<div>The employment figures weren't too bad on the whole, but notably Goldman Sachs is now forecasting interest rate cuts of 25 basis points in both May and July, so hold on to your hats.</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>
</div>
</div>
</div>
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NSW & QLD are creating the jobs: Pete Wargent

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<p><span style="line-height: 1.3em;">A fairly simple development strategy for a first time developer wanting to boost their property portfolio is a dual occupancy project; buying land where you can build two dwellings and subdividing. </span></p>
<p><span style="line-height: 1.3em;"> The dwelling/villas may be attached or freestanding, either way you are basically halving the land cost for each and that is where the value lies.</span></p>
<p>Where Property Bloom develops, there is usually opportunity to create well over $150,000 in equity through a dual occ development, this is created within about twelve months and doesn't take into consideration the capital growth that also may occur during the development period.</p>
<p>The equity position of a project is determined when you take costs of the project away from the end value. However, be aware that you can't access the entire amount of equity created if you are refinancing on completion as the banks will most likely lend you around 80% of the value, leaving some equity in the project.</p>
<p>Timing your development can also boost the equity creation. If you are developing in an area experiencing good capital growth whilst your project is underway then you have timed your development well. Even if the market is flat, you can still manufacture some equity. Equity created is through the development and subdivision process because you are adding value to the land not with one dwelling but with two. By subdividing, you are halving the land cost for each dwelling.<span style="line-height: 1.3em;"> </span></p>
<p>Here’s an example of a dual occupancy project we recently completed:</p>
<p>Land cost: $270,000</p>
<p>Stamp duty: $2,940</p>
<p>($5,000 NSW New Home Grant* applied so the government contributes $5,000 this off sets the stamp duty cost)</p>
<p>Legal fees: $1,500</p>
<p>Build cost, including plans, council fees &amp; charges, subdivision costs, for duplex; three bedroom, two bathroom villas:  $450,000</p>
<p>Total cost:  $724,440</p>
<p>Actual end valuations:  $920,000 or $460,000 per villa</p>
<p>Equity created:  $195,560<span style="line-height: 1.3em;"> </span></p>
<p>Gross Yield 6.7% based on renting each villa at $480 per week. </p>
<p><span style="line-height: 1.3em;">If you are borrowing at around 4% then the project may be cash flow positive for you. This is when the rent and depreciation benefits combined cover the costs of interest, insurance, council, water rates and management fees.</span></p>
<p>There are strong depreciation benefits too, expected depreciation $20,000 Year 1 (using the diminishing method)</p>
<p>* <a href="https://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_nhg1.pdf" target="_blank">click here</a> for more.</p>
<p><span style="line-height: 1.3em;">Want to know how to do it? </span></p>
<p>Of course I'd recommend using an experienced project manager to guide you through but you can have a go yourself - it will depend on the resources or skills you have available; time, experience, knowledge, contacts with a bit of patience thrown in. </p>
<p>The steps involved in a dual occupancy development strategy are:</p>
<ol>
<li>Finance preapproval. It’s important before you start looking at development sites or any property, that you have a preapproval from a lender in place.</li>
<li>Understand the council requirements for dual occupancies in this area. Study the council’s Local Environment Plan (LEP) and Development Control Plan (DCP).  This will let you know the size of land you’ll need for your dual occ and what is permissible.</li>
<li>Conduct due diligence on the area you want to develop in; understand the zoning for dual occupancies. Having correct zoning doesn't always mean you can carry out a dual occ. There may be covenants on the land preventing building more than one dwelling.</li>
<li>Search for land that meets a number of criteria; size – look at the frontage and know what the minimum width is for your dual occ. Look at the depth and size to ensure the land is large enough to meet the DCP including the minimum outdoor private space requirements. Check the aspect, north facing living areas are desirable and will make meeting the BASIX requirements much easier. Make sure there are services to the site; electricity, sewer, gas. Then ensure the land is relatively flat with a slight slope to the street unless there is a drainage easement at the back. </li>
<li>Check the Planning Certificate to see if the land is in a bushfire or flood zone.  You can still develop in these areas but it will add to your build costs. </li>
<li>Have your builder look at the site. This is very important as the builder will look at the land from a different perspective.</li>
<li>Run a feasibility to ensure the project will be viable. Find recent comparable sales references to base your end value estimates on. Talk to agents about the current rental market and what rent could be expected and calculate the projected yield on completion. Most importantly, you need to have a good understanding of the build costs. The build costs will evolve over the design and planning process. Your builder can give you an estimate once a concept plan is available, but as the full Development Application (DA) plans and documentation is available, the builder will then need to run a full tender. Cross check this against your original estimate. If it’s in line, lodge the DA if it’s not, go back to the design and look at areas where you can reduce costs. Once the plans are approved, the builder may update their tender if council asked for any changes. If not, then a final tender will be generated once the engineer’s plans for the Construction Certificate (CC) are available.</li>
<li>When securing the land, request a long settlement period with permission to lodge a DA from the vendor. You can get all the design work and perhaps even have the DA and CC approved before you settle on the land, this will reduce your holding costs.</li>
<li>Once you have the DA &amp; CC approvals, you can then go back to your lender to obtain your unconditional construction loan. As soon as this is in place, construction can commence.</li>
<li>The build phase for a dual occ should be around three to four month, depending on weather. You need to be on site each week to check the builder’s progress and put out any ‘fires’ that may arise as you are under construction. I've heard some stories of build times taking up to twelve months, so make sure you conduct due diligence on your builder before appointing them.</li>
<li>Once the building works are completed, an Occupation Certificate will be issued. You can now have your villas tenanted. Don’t forget to order a depreciation schedule to maximise your tax rebates.</li>
<li>You can now apply for the subdivision certificate and once council issues this, you can register the subdivision (after your lender has signed off on it).  There is no need to register immediately if you are planning to hold and not planning to refinance as you may find costs such as rates may be a little less if the villas are kept on one title.</li>
</ol>
<p>I’ve summarised the process briefly, but it’s actually not that straight forward. You really do need the time to work on this development strategy closely as mistakes can be costly. If you're a first time developer, use an experienced property development project manager. Our clients enjoy the peace of mind that we've found the right location and development site for them and that their project is being managed efficiently, they also benefit from our long term relationship with our builder. All the fine details are reported to them in a written weekly report, so they are learning from the process but still have time for their own career and family. It's an easy option.</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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Boost your portfolio using this development strategy: Jo Chivers

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<p>Bill Shorten believes there’s an affordability crisis in Australia. He believes he knows how to fix it. But I’m sure he doesn’t believe the tax policy he announced is the solution. What he announced is the smokescreen.</p>
<p>The tragedy for Shorten, the dead man walking of Australian politics, and the Labor Party, is that he is telling Australian households that he is going to force down the value of their homes. And that, in reality, the most likely outcome is that the cost of new housing will rise.</p>
<p>Short-term Shorten and his advisors don’t appear to realise that the high cost of new housing is the key to the affordability situation in Australia. And his policy will probably make it worse.</p>
<p>Firstly, the issue of an affordability crisis. Shorten apparently believes we have one. I believe we don’t.</p>
<p>The Housing Affordability Index shows that national affordability today is considerably better than it was five years ago. Sydney, following three years of big price growth, is the only jurisdiction that doesn’t have a demonstrably better affordability situation that it did in 2010. Everywhere else in Australia does. Even Sydney is marginally better off than in 2010.<span style="line-height: 1.3em;"> </span></p>
<p>There were improvements in 2015 in many parts of the nation, reinforcing yet again that most of Australia did not have a property boom any time recently.</p>
<p>Jurisdictions which have a better affordability position now than 12 months ago include Perth (11% better than a year ago), Darwin (13.5% better), Hobart (7% better), regional WA (13% better), regional NSW, regional South Australia, regional Tasmania (6% better) and regional NT (10% better).</p>
<p>Affordability is essentially unchanged in Brisbane, regional Queensland and regional Victoria, compared to a year ago.</p>
<p>Sydney’s position is 4.5% less favourable, Melbourne 7.6% less, Canberra’s 9% less and Adelaide 2.6% less. But in each of those locations, affordability remains better than five years ago, even in Sydney (just).<span style="line-height: 1.3em;"> </span></p>
<p>What we have from Federal Labor is what we got from APRA: over-the-top policy impacting the whole nation to attempt to solve a Sydney problem.</p>
<p>There’s going to be a major backlash against Labor once people realise the essence of Shorten’s proposal on affordability. He’s going into the upcoming federal election telling the electorate that the value of their homes is going to fall.</p>
<p class="Body">The essence of the tax policy announced on 12 February is that his proposed changes to negative gearing will somehow make housing more affordable. He’s not proposing to force down interest rates nor to lift average incomes, therefore the only way homes can become more affordable is for home values to fall. This would be seriously unpalatable for voters in the 70% of households that own their homes. It’s the ultimate election loser.</p>
<p class="Body">But home-owners need not worry. Shorten’s announced policies won’t cause home values to fall. They won’t make a single home cheaper in Australia because they don’t address the real causes of poor affordability. They have targeted the wrong culprits.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">And I’m quite sure Shorten knows that. Like most politicians, he’s not interested in addressing the real issues. He simply wants to give the appearance that he is. And he has achieved that by taking cheap shots at an easy target.</p>
<p class="Body">There are many problems with the announced policy. The first is that it’s based on a false premise - that the 15% or so of property buyers who are negatively-geared investors have a greater influence on property prices than the other 85%. (That 85%, incidentally, includes the biggest and most influential chunk of the buying market – home-buyers other than first-home-buyers – the people who have the numbers, the financial capacity and the motivation to pay high prices for homes).</p>
<p class="Body">Shorten says typical houses cost about three times average annual income 30 years ago and now it’s six times. He’s claiming that the small number of buyers who are negatively-geared investors are responsible for that change. He doesn’t provide any evidence to support this outlandish and quite illogical claim. He doesn’t provide it because it doesn’t exist.</p>
<p class="Body">He further claims that eliminating the tax claims of 15% of buyers will make housing more affordable. He doesn’t explain how that would happen.</p>
<p class="Body">But he is claiming his policy will make prices lower. If he’s right, that would be alarming for most voters. It would be also alarming for the nation, because the family home is the core asset for most Australians and the basis of their ability to provide for their retirement.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">This latter point is crucial. It’s the most important issue in the whole debate about negative gearing but is never mentioned.</p>
<p class="Body">Successive governments have told Australians they have to provide for their own retirement, because the Government can’t afford to fund the increasing numbers of retirement age people through pensions. We know that superannuation doesn’t cut it, so Australians need to invest to be self-funded in retirement. Governments need to encourage that.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Negative gearing is one way to encourage people to invest - keeping in mind that it applies to all forms of investment, not just real estate.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Eliminating it will stop many from buying real estate. Long-term it will cost the Federal Budget more than it saves - especially as the claimed savings are not great. Shorten’s figures suggest it will save the Budget just $570 million in the first four years, although I doubt he has considered the overall impact through loss of revenue to state and federal budgets – given that people buying investment property pay stamp duty, land tax and capital gains tax.</p>
<p class="Body">Shorten thinks that keeping negative gearing on new homes will cause investors to switch to the new product. But many won’t - because new homes are too expensive. On average, they cost $100,000 more than the equivalent existing home. That’s why 90% of investors (and most first-home buyers) buy existing properties rather than new. The negative gearing tax deductions don’t come close to making up for the price differential.</p>
<p class="Body">But if he’s right – and investors do switch to buying new homes – it will make new dwellings more expensive. If he’s right that prices are forced up by negatively-geared investors competing with home buyers, then switching all investors to new housing will create massive competition for a finite product and force up prices. Keep in mind that state government grants for first-home buyers are available only to buyers of new homes – and current Federal policy forces foreign investors to buy new properties, not existing.</p>
<p class="Body">So, if Shorten succeeds, we will have first-home buyers competing with Australian investors and foreign investors for new properties. Everyone will be trying to buy a finite supply of new homes, given that Australia is in the midst of a period of record creation of new dwellings and doesn’t need more. Shorten’s policy won’t make housing cheaper, it will make it more expensive.</p>
<p class="Body">And that brings us to the real issue in the affordability debate - the one that politicians including Short-term Shorten don’t want to talk about: the reality that government taxes and charges are responsible for the high cost of new housing. Multiple research studies have confirmed that more than 40% of the cost of new house-and-land packages are taxes and other government charges. Eliminate those and suddenly new homes are affordable to most buyers. A $400,000 product can be sold for $240,000.</p>
<p class="Body">So the real problem is not tax benefits flowing from government to the real estate industry - it’s the money flowing in the opposite direction, the taxes that are ripped out of the real estate industry.</p>
<p class="Body">Politicians never discuss this factor. They’re addicted to the massive amount of revenue they rip out of the real estate industry - over $70 billion in a typical year. They would rather blame unpopular minorities - a standard political tactic - than address the real issue.</p>
<p class="Body">The Federal Government, after two very long and expensive parliamentary inquiries which achieved little, has decided to make foreign investors the scapegoats. But forcing a small number of foreigners to sell back their mansions won’t make housing cheaper for first-home buyers.</p>
<p>Now the Federal Opposition has decided to make negatively geared Australian investors the scapegoats. It’s dishonest, deceitful and, frankly, disgusting.</p>
<p><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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Bill Shorten's Opposition makes negatively-geared investors the scapegoats: Terry Ryder

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<p><span>Sydney’s Parramatta finished third on the list of most searched suburbs in 2015 compiled by <span>rent.com.au</span>, with median rents within the last 30 days at $460 per week, a rise of 2.2 percent over the last quarter.</span></p>
<p><span>The price range was relatively tight though, with $200 for a one-bedroom dwelling at the low end and $600 for a 5+ bedroom dwelling at the top end, the data from <a href="https://rent.com.au/" target="_blank"><span>rent.com.au</span></a> showed.</span></p>
<p><span>However, Parramatta’s median rental growth fared better than surrounding suburbs — Rydalmere, Oatlands, Granville, Holroyd, Mays Hill, Westmead, Harris Park, North Parramatta and Merrylands, which was flat at $430 per week for the comparable 30-day period as well as over 90 days, the data showed.</span></p>
<p><span>Parramatta also fared better than surrounding suburbs for average days on market, which was 32 compared to 37 for bordering suburbs. The number was also down by eight days from the last quarter.</span></p>
<p><span>There were a total of 120 rental properties advertised in Parramatta within the last 30 days, up 13 from the previous 30 days.</span></p>
<p><span>Though the median rent for the last 30 days rose 2.2 percent, the graph for the six months till January is absent of clear peaks or troughs, both for apartments and houses.</span></p>
<p><span>There are a total of 4,372 rental properties in Parramatta, making up 61.6% of all properties in Parramatta (ABS, Census Data, 2011).</span></p>
<p><span>Nearly 80 percent of all dwellings in the suburbs are apartments, with the rest houses, the data showed.</span></p>
<p><span><em>Property Observer</em> found these two recent examples, one a unit and the other a townhouse, on rent.com.au</span></p>
<p><span><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%2010.51.04%20AM.png" alt="" width="834" height="569"></span></p>
<p>1. A two-bedroom unit with a garage at <span>1/16-20 Lansdowne Street</span> (above) is available for $460 per week.</p>
<p><span> 2. A two-bedroom full brick townhouse on <span>9/485 Church Street</span> (below) has been advertised for $420 per week.</span></p>
<p><span><img src="/images/2016/02/18/Screen%20Shot%202016-02-18%20at%2010.51.22%20AM.png" alt="" width="683" height="463"></span></p>
<p>The ASX-listed Rent.com.au Ltd achieved a record 615,405 unique visitors to its website in January, followed by more than 610,000 unique visitors in February.</p>
<p>Landlords are able to list their property for free in a limited time offer on <a href="https://www.rent.com.au/" target="_blank"><span>rent.com.au</span></a>. </p>
<p><span> </span></p>
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Rental range relatively tight in Parramatta: rent.com.au insight

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Why is non-mining business investment so weak and what is the outlook? CBA's Gareth Aird

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<p>Office transactions in Sydney's Parramatta district came in at around $243 million in the 12 months to December 2015 according to the February office market briefing from Savills, down 63 percent from the previous year.</p>
<p>Savilss noted transactions in 2014 to December totalled $665 million, noting current figures are down on the five year average of $310 million.</p>
<p><span>The briefing said investment demand for A Grade stock in Parramatta remains strong, though limited opportunities currently exist for investors. </span></p>
<p><span>"The increase in investment activity over the past four years has been largely due to the transaction of many of Parramatta’s prime buildings, as vendors seek to take advantage of sharpening yields and improved investment demand from local and foreign investors," it said.</span></p>
<p><span>"However, the 'Private Investor' purchaser category was the most active in the investment market for the 12 months to December 2015, purchasing 36 percent of the stock sold (or $86 million worth of office transactions). Similarly the 'Private Investor' category had the most transactions."</span></p>
<p><span> </span></p>
<p><a href="/images/2016/02/17/Screen%20Shot%202016-02-17%20at%201.10.25%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/17/Screen%20Shot%202016-02-17%20at%201.10.25%20PM.png" alt=""></span></p>
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Parramatta office buys down 63 percent in 2015: Savills

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<p>A shop top terrace has sold in Sydney's inner city suburb of Enmore for $<span style="line-height: 1.3em;">1,300,000 through Luke Smith and Geraldine McShane of Raine &amp; Horne Commercial Marrickville.</span></p>
<p><span style="line-height: 1.3em;">The property, <a href="https://www.realcommercial.com.au/property-retail-nsw-enmore-501773978" target="_blank">119 Enmore Road</a>, has a g</span><span style="line-height: 1.3em;">round floor shop leased to real estate agency with s</span><span style="line-height: 1.3em;">eparate residences behind the shop and upstairs for a t</span><span style="line-height: 1.3em;">otal site of around 185.5m </span></p>
<p><span style="line-height: 1.3em;">Offered as vacant possession, it had previously been available for rent at $74,000pa.</span></p>
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