<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" data-turn-id-container="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" dir="auto">
<p data-end="437" data-start="182"><a href="https://www.apartments.com.au/developers/doma-group">DOMA Group</a> has unveiled plans for Newcastle Quay, a major waterfront precinct set to reshape Newcastle’s harbourfront and further cement the city’s evolution into one of Australia’s fastest-growing urban destinations.</p>

<p data-end="707" data-start="439">Positioned on a prominent site within the Honeysuckle Precinct, Newcastle Quay will span both sides of Honeysuckle Drive, connecting directly to the Foreshore Promenade and sitting within walking distance of Newcastle Interchange.</p>

<p data-end="1068" data-start="709">The mixed-use precinct is planned to include around 1,000 apartments, more than 28,000 sqm of commercial office space, 6,000 sqm of retail, and a 180-room hotel anchored by a 500-seat conference and exhibition centre, a move expected to significantly lift Newcastle’s ability to attract major business and tourism events.</p>
</section>

<p><img alt="DOMA Group unveil Newcastle’s future with transformative Newcastle Quay Precinct" data-entity-type="file" data-entity-uuid="0642ca09-67cc-4920-8a7e-d18df9729b4e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/%3D.png?VersionId=CnDmZxQnOV5LN0ePu7jaFBXC9tPGTrWm" /></p>

<p data-end="1381" data-start="1070">The proposal builds on DOMA’s growing Newcastle pipeline, where the developer has already delivered 866 apartments and more than 19,000 sqm of commercial and retail space since entering the market in 2013. A further $2 billion pipeline is also in the works across the city.</p>

<p data-end="1756" data-start="1383">The masterplan and executive architecture are led by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, with building concepts developed alongside Stewart Architecture, Architecture AND and Curious Practice, and landscape design by <a href="https://www.apartments.com.au/landscape-architect/turf-design">Turf Design Studio</a>. More than 11,000 sqm of open space is planned, including a new waterfront park known as Honeysuckle Green, upgrades to Tree of Knowledge Park, and new pedestrian and cycling links throughout the precinct.</p>

<p data-end="2022" data-start="1758">At the centre of the development will be the heritage-listed Wickham School of Arts, which DOMA plans to reposition as the civic and cultural heart of the precinct through restaurants, bars, events and public gathering spaces.</p>

<p data-end="2254" data-start="2024">The broader vision is to create a genuine day-to-night precinct, blending residential, hospitality, retail, commercial and cultural uses in a way Newcastle has yet to experience at this scale.</p>

<p data-end="2407" data-start="2256">DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.</p>

<p data-end="2644" data-start="2409">“Our vision is to create a precinct that not only delivers high-quality commercial, residential, and cultural spaces, but also defines Newcastle’s waterfront for generations to come,” Domazet said.</p>

<p data-end="2752" data-start="2646">DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.</p>

<p data-end="2868" data-start="2754">“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.</p>

<p data-end="3111" data-start="2870">“A world-class Conference and Exhibition Centre will open Newcastle and the Hunter Region to a national and international audience for the first time, delivering something this city has long deserved.”</p>

<p data-end="3360" data-is-last-node="" data-is-only-node="" data-start="3113">The project is expected to generate more than 4,000 full-time equivalent jobs and act as a major economic driver for the Hunter region through tourism, business events, hospitality and commercial investment.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Minister for Planning and Public Spaces Paul Scully said the final parcel of harbourfront land will be a "true mixed-use precinct destination that includes housing, hospitality and entertainment, commercial spaces, retail, economic and social outcomes."</p>


Joel Robinson

DOMA Group unveils 1,000-apartment Newcastle Quay precinct

<p data-end="262" data-start="143">ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.</p>

<p data-end="451" data-start="264">In late 2024, <a href="https://www.apartments.com.au/developers/stockland">Stockland</a> announced it would resume apartment development after a 13-year absence, launching with Stanton Place in Rosebery, a 144-apartment project now under construction.</p>

<p data-end="560" data-start="453">Last week, the developer unveiled plans alongside the NSW Government for a <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-nsw-gov-unveils-plans-for-3-300-home-waterloo-south-renewal">3,300-home precinct in Waterloo</a>.</p>

<p data-end="797" data-is-last-node="" data-is-only-node="" data-start="562">Now, Stockland has shifted its focus in St Leonards, lodging a State Significant Development Application (SSDA) to replace an approved 42-storey office tower with a 52-storey residential development comprising more than 500 apartments.</p>

<p><img alt="Stockland" data-entity-type="file" data-entity-uuid="8979095e-9072-432b-a7da-58b180cf994d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.36%E2%80%AFPM.png?VersionId=_jbRXYOafCSHjwsz.yQCNIymMyCj8zkF" /></p>

<p>An existing 14-storey commercial office building would make way for a 264.5-metre tower designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>. The project would deliver 538 apartments, including 30 affordable housing units, alongside retail and commercial uses at the podium and ground plane.</p>

<p>It will rise from&nbsp;<a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">601 Pacific Highway</a>, a prominent 2,844 sqm triangular site adjoining Mitchell Plaza and fronting Pacific Highway.</p>

<p>The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.</p>

<p><img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="67f40f35-0458-47ab-80c0-a4e98a31838a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%201.png?VersionId=rxXe3njr.auuGDuiR0k42uI8Zr4K.gZA" /></p>

<p>The apartment mix includes 217 one-bedroom apartments, 191 two-bedroom apartments, 122 three-bedroom apartments, and eight four-bedroom residences. Six basement levels would accommodate 300 car spaces, bicycle parking, loading areas, and building services.</p>

<p>Bates Smart said the project has been shaped around a series of urban design principles intended to improve the pedestrian experience and respond to the evolving character of St Leonards.</p>

<p>“With a boundary length of almost 75m along Pacific Highway and 70m along Atchison Street to the north, complying simply with the LEP envelope and required setbacks would result in a very wide tower form on the skyline,” the architects noted in the Design Report.</p>

<p>“We propose breaking the tower form into two defined volumes rather than a singular form.”</p>

<p>The podium has similarly been articulated into separate forms to reduce perceived bulk and create a finer-grain response to Mitchell Plaza and Atchison Street. Retail tenancies would activate the lower levels, while commercial space is proposed across the podium floors.</p>

<p><img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="90149990-0551-40d2-bd48-14b69a015d12" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%202.png?VersionId=MJC2KIIWFvU9FPGr3IVq09gkRN_gX3m8" /></p>

<p>The design also places a significant emphasis on communal amenity and environmental performance. Residents would have access to landscaped terraces, wellness areas, flexible workspaces, and rooftop communal facilities, while the all-electric building is targeting an average 7-star NatHERS rating. Bates Smart said the project incorporates passive design measures including natural ventilation, integrated shading, and lightweight façade systems.</p>

<p>Planning documents note the site is around 350 metres from St Leonards Station and 400 metres from the metro entrance, placing it within one of Sydney’s most connected emerging residential precincts.</p>

<p>The project arrives amid a wave of large-scale redevelopment proposals reshaping the St Leonards and Crows Nest skyline. Several nearby sites have recently been approved, lodged, or declared under the Housing Delivery Authority pathway as the precinct absorbs significant residential density uplift tied to transit-oriented development policies.</p>

<p><img alt="Stockland" data-entity-type="file" data-entity-uuid="7805bd7c-dfd7-4b35-8e15-ec4a8bf8e61b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.26%E2%80%AFPM.png?VersionId=iY12K2m2bQ6EeDnshqfZC9rbLx_oEugP" /></p>

<p>Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.</p>

<p>“In recent years, the character of St Leonards has started to evolve, driven by new development trends along the Pacific Highway corridor,” the report said.</p>

<p>“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”</p>

<p>Sekisui House Australia is currently selling Waterstone down near Newlands Park, in a pocket being branded "St Leonards South." Hyecorp recently completed Audrey in the same pocket.</p>


First look: Stockland plans 52-storey, 538-apartment St Leonards tower

<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>


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>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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<div>The latest AMP.NATSEM Household Debt report showed that the average household debt in Australia has increased to a new high of $245,000, continuing a prolonged run-up which has seen the average debt per household increase by a factor four since 1988, up from $60,000.</div>
<div> </div>
<div>While the bulk of the rise in mortgage debt has been driven by 30 to 50 year olds, the over 65s cohort also accounts for a fair proportion of the increase in household debt, with more Australians than ever before taking liabilities into retirement.</div>
<div> </div>
<div>Despite this, the latest Australian National Accounts implied that interest serviceability has continued to become easier.</div>
<div> </div>
<div>There are a thousand possible ways to measure this, nine of which is satisfactory: the blue points on the chart below denote interest paid on dwellings as a percentage of total employee compensation minus income tax, while the red points show total interest paid inclusive of consumer debt (excluding unincorporated enterprises) as a percentage of gross household income.</div>
<div> </div>
<div><a href="/images/2015/12/14/Interest.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/14/Interest.jpg" alt=""></div>
<div> </div>
<div>
<div>You could spend forever debating what should or should not be included in household income (imputed interest on dwellings, benefits receivable etc.) or backed out of gross household income (e.g. other taxes, transfers, insurance premiums etc.) but the results tend to be broadly similar. </div>
<div> </div>
<div>Of course the results generally appear to be "too low" due to the significant number of debt free households. The important thing to note is the trend, which shows that while the mining boom was in full swing the aggregate mortgage interest repayment burden was tending towards excruciating levels by September 2008 (when the official cash rate was still as high as 7 per cent). but since that time serviceability has become relatively speaking very easy.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Buffers at record highs</span></strong></div>
<div> </div>
<div>The Reserve Bank of Australia (RBA) has noted in its Financial Stability Review that indicators of household financial stress are presently low, with households pushing ahead on repayments to the extent that aggregate mortgage buffers - as measured by balances in offset and redraw facilities - remain at around 16 per cent of outstanding loan balances, or the equivalent of well over two years of scheduled repayments at current interest rates. </div>
<div> </div>
<div><a href="/images/2015/12/14/Buffers.gif" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/14/Buffers.gif" alt=""></div>
<div> </div>
<div>
<div>Loan arrears and mortage delinquencies data are also tracking at historically low levels, with favourable delinquency developments having cascaded lower since the 2008 book year. </div>
<div> </div>
<div>A crude comparison the aggregate interest paid to the total stock of outstanding housing credit implies that the average mortgage rate is well under 5 per cent, suggesting in turn that Australians have taken advantage of the very generous fixed rates available through 2015.</div>
<br><div class="separator"> </div>
<strong><span style="text-decoration: underline;">The outlook</span></strong><br><br><div>The first chart above shows the sensitivity of household finances, and especially mortgage repayments, to the unpredictable changes in interest rates. Mortgage repayments are on average clearly very affordable now, but may not be so if interest rates rise sharply.</div>
<div> </div>
<div>The AMP.NATSEM report found that the highest typical debt repayment burdens are to be found in the outer suburbs of our capital cities.</div>
<div> </div>
<div>If interest rates were to rise by 2.5 percentage points - essentially the equivalent of ten interest rate hikes - then the most indebted households could see mortgage repayments rise from 42 per cent of household income to a stress-inducing 58 per cent, while perhaps unsurprisingly the most indebted low income households would be the hardest hit of all.</div>
<div> </div>
<div>An increase in interest rates of 2.5 percentage points would also see repayments for the typical first homebuyer rising from 21 per cent to 30 per cent of household income, or a shade over an extra $8,000 per year.</div>
<div> </div>
<div>There are few indications that the official cash rate is set to move materially higher any time soon, although shifts in capital requirements and funding costs may be another matter. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Fragile markets</span></strong></div>
<div> </div>
<div>Unemployment rates have generally been trending down since January 2015, although unemployment rates in Western Australia and the Australian Capital Territory are in an uptrend, and the housing market in Darwin looks exceptionally fragile.</div>
<div> </div>
<div><a href="/images/2015/12/14/UERATE.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/14/UERATE.jpg" alt=""></div>
<div> </div>
<div>
<div>Although household financial stress is currently low, it seems likely that there will be some vulnerable housing markets in 2016, which may include;</div>
<div> </div>
<div>-resources regions and markets, with the terms of trade crunch likely to result in multiple mass lay-offs to add to the winding down of capital investment;</div>
<div> </div>
<div>-suburbs and sub-regions which are experiencing extensive over-building of apartments. particularly inner city high-rise stock, and those areas with already elevated and rising vacancy rates; </div>
<div> </div>
<div>-off-the-plan developments which will be adversely impacted by APRA's tougher deposit measures; and</div>
<div> </div>
<div>-outer suburban fringe locations in Sydney which saw a massive spike in investor activity and rapid price growth in 2015.</div>
<div> </div>
<div>I'd include a generic entry here for "mining towns", but many have been so utterly smashed already, leading to investor defaults and bankruptcies, since not only were prices unsustainable, so too were rents, and even tenancies. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Auctions</span></strong></div>
<div> </div>
<div>Sydney's preliminary auction clearance rate rebounded a bit to 55.2 per cent this week, with outer suburban markets looking particularly dormant, The strongest auction market was a resurgent inner west, with a strong preliminary auction clearance rate of 74.6 per cent (<em>CoreLogic-RP Data</em>).</div>
<div> </div>
<div>This month's Labour Force data showed that New South Wales economy has generated a seasonally adjusted +176,000 jobs over the past year, for an outrageous employment growth rate of +4.9 per cent (trend +160,000 jobs, or +4.4 per cent). The Detailed Labour Force figures, which provide more colour by city, region and industry will be released on Thursday. So stay tuned for that and more this week. </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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Record household debt of $245,000: Pete Wargent

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<p><span>There were 2,948 auctions held across the combined capital cities this week, with a preliminary auction clearance rate of 59.3%. </span></p>
<p><span>Last week, a clearance rate of 57.3% was recorded across 3,252 capital city auctions, the lowest clearance rate since February 2013. At the same time last year, both auction volumes and the auction clearance rate were stronger, with a clearance rate of 65.5% across 3,511 residential auctions.</span></p>
<p><a href="/images/2015/12/14/20151214-Capital-city.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/14/20151214-Capital-city.jpg" alt="" width="754" height="568"></span></p>
<p> </p>
<p><span>Across </span><strong>Melbourne</strong><span>, 1,561 homes were taken to auction this week, compared to 1,622 last week, while the clearance rate strengthened slightly to 65.7%, up from 63.3% over the previous week. Looking back at last year, a clearance rate of 68.6 per cent was recorded across 1,585 auctions. Of the 9 individual Melbourne sub-regions, this week the strongest performer, in terms of clearance rate was the Inner South region. So far, CoreLogic RP Data has collected 193 results for the region and the preliminary result shows 72.5 per cent of these auctions were successful.</span></p>
<p><a href="/images/2015/12/14/20151214-Melbourne.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/14/20151214-Melbourne.jpg" alt="" width="849" height="569"></span></p>
<p> </p>
<p>I<span>n </span><strong>Sydney</strong><span>, 869 auctions were held this week, down from 1,070 over the previous week. The preliminary clearance rate of 55.2 per cent is an improvement, compared to last week, when the final auction clearance rate for the city was 52.9 per cent, the lowest clearance rate Sydney has seen since December 2012. Despite the slight strengthening over the week, Sydney’s current clearance rate remains significantly lower than one year ago, when a clearance rate of 69.8 per cent was recorded across 1,357 auctions. Looking at the sub-regions of Sydney, the Inner West region recorded the strongest clearance rate of 74.6 per cent across 55 auctions, while the Inner South West region had the highest volume of auctions (126).</span></p>
<p><a href="/images/2015/12/14/20151214-Sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/14/20151214-Sydney.jpg" alt="" width="849" height="573"></p>
<p><strong>Brisbane</strong><span> was host to 180 auctions this week and so far 126 results have been reported, with a preliminary success rate of 46 per cent. Last week, auction volumes across the city were higher with 203 auctions held and a clearance rate of 42.2 per cent. Unlike Brisbane, the number of homes taken to auction this week increased across the </span><strong>Gold Coast</strong><span> with 87 properties scheduled for auction this week, compared to 66 last week. Of the 52 results reported so far, 36.5 per cent were successful.</span></p>
<p><a href="/images/2015/12/14/20151214-Brisbane.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/14/20151214-Brisbane.jpg" alt="" width="818" height="546"></span></p>
<p> </p>
<p><strong>Adelaide</strong><span> recorded a clearance rate of 51.6 per cent across 151 auctions this week, down from a stronger 60 per cent across 138 auctions last week. At the same time last year, 171 homes were taken to auction, with 55.7 per cent recording a successful result.</span></p>
<p><a href="/images/2015/12/14/20151214-Adelaide.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/12/14/20151214-Adelaide.jpg" alt="" width="799" height="542"></span></p>
<p> </p>
<p>In <strong>Perth</strong>, 58 auctions took place this week, with 25 results reported so far. Perth’s preliminary clearance rate of 40 per cent across these reported results is higher than both last week’s result (36 per cent) and the clearance rate from one year ago (22.5 per cent).</p>
<p><strong>Canberra’s</strong> preliminary auction clearance rate of 48.6 per cent this week is lower than last week, when the final auction clearance rate was 57.5 per cent, and also lower than the 56.9 per cent recorded last year.</p>
<p>There were 17 <strong>Tasmanian</strong> auctions held this week. So far 10 results have been reported with 2 sales.</p>
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Preliminary clearance rate strengthens: CoreLogic RP Data's Shana Miller

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<p><span>The past 12 months mark one of the state’s strongest residential property markets we have seen in recent years. </span></p>
<p><span>More homes went to auction than ever before with multiple records falling, including the highest number of auctions held in a single day, weekend and year. High transaction volumes, low interest rates and buyer and vendor confidence all contributed to strong capital growth. As the year draws to a close, it is timely to review the market in 2015 and the outlook for Victoria in 2016.</span></p>
<p><span><strong>TRANSACTIONS &amp; AUCTION VOLUMES</strong></span><span style="line-height: 1.3em;"> </span></p>
<p><span>Transaction volumes in Victoria have been at their highest in five years with around 116,000 sales in the year to November 30. This is a 5% increase on last year when there were 110,400 transactions. </span></p>
<p><span>In the year to November 30, around 40,000 auctions have been held with almost 30,000 homes selling under the hammer. Just over 37,000 of those auctions were held in Melbourne, compared to 2,500 in regional Victoria where private sales are more popular.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The key to the 2015 market has been auction levels, which have hit an all-time high in recent months. In the last weekend in November, multiple national auction records fell including most auctions in a single day with 1,648 auctions held  - 22 more than the previous record which was set in October last year. November 2015 was also a record month for auctions with 5,669 auctions held – 259 more auctions than the previous record month (November 2014). </span><span style="line-height: 1.3em;"> </span></p>
<p><span><strong>MEDIAN PRICE GROWTH</strong></span></p>
<p><span>Significant house price growth has been recorded in metropolitan Melbourne throughout 2015 with the median surpassing the $700,000 barrier for the first time ever in the September quarter. Growth has been widespread across the city, with price increases recorded in all three regions – inner, middle and outer. </span></p>
<p><span>Growth has been consistent during the year. In the first quarter of 2015, the median house price topped $671,000, up from $664,500 in December 2014. Suburbs in the city’s south east experienced the highest growth in the first three months of the year with Mount Waverley, Bentleigh and Beaumaris all up more than 16% on 2014 figures. </span></p>
<p><span>Solid price growth continued in the June quarter with metropolitan Melbourne’s median house price almost reaching $700,000, at $698,000. Melbourne’s eastern suburbs recorded the highest median house price growth in the quarter with Templestowe, Glen Waverley and Balwyn North all rising by at least 17%. </span></p>
<p><span>The September quarter saw the city’s median house price rise 4.5% to a record high $729,500. Bayside suburbs Brighton, Dromana and Seaford topped the highest growth suburbs in the third quarter of the year, up more than 17 per cent on June quarter figures. </span></p>
<p><span>House prices have also increased in regional Victoria over the year with the median house price hitting $347,000 in the three months to September 30. This was up from $341,000 in the first quarter of 2015. </span></p>
<p><span><strong>MILLION DOLLAR SUBURBS</strong></span></p>
<p><span>Buyer demand in traditional million dollar suburbs has pushed up the median house price in neighbouring areas. As a result of the ripple effect, more of these suburbs have joined the million-dollar club this year. There were 61 suburbs valued at $1 million or more in the March quarter, and this has since increased to 87 in the September quarter. Toorak remains Melbourne’s most expensive suburb with a median house price of almost $4 million. This is followed by Canterbury and Balwyn with median house prices of $2,430,500 and $2,281,000 respectively.</span></p>
<p><span><strong>LOOKING AHEAD</strong></span></p>
<p><span>While clearance rates moderated slightly in November, they have still been strong given the record auction levels – and continuing high auction numbers to late 2015 indicates a high level of vendor confidence.</span></p>
<p><span>The mix of population increases, a robust economy and relatively low interest rates is likely to also encourage buyer interest moving forward.  </span></p>
<p><span>Across Melbourne, the market is likely to remain steady, with solid growth in a range of areas across the city. This growth is likely to be strongest in Melbourne’s inner and middle suburbs, which have seen strong buyer interest in recent months. </span></p>
<p><span>While this growth may not be as strong as what has been experienced this year – with up to five per cent increases per quarter – a city-wide population upturn and low interest rates both signal consistent buyer demand in the first quarter, and into the second quarter, of the new year. </span></p>
<p><em>‎Enzo Raimondo is chief executive officer of <a href="https://www.reiv.com.au" target="_blank">The Real Estate Institute of Victoria</a>.</em></p>
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Melbourne auction activity at all time high: REIV's Enzo Raimondo

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<p><span style="line-height: 1.3em;">Housing investment in Australia has generally been a successful, largely one-way bet over many years. </span></p>
<p><span style="line-height: 1.3em;">Although this has been the case, home values have fallen in the past, are currently falling in some capital cities and will almost certainly fall again in the future.</span></p>
<p><span style="line-height: 1.3em;">As can be evidenced in the accompanying charts, in most instances across combined capital cities, the Index has been rising, in fact from December 1995 to November 2015. Combined capital city home values have increased by a cumulative 330.5% and values fell in 2008 and again between 2011 and 2012. </span></p>
<p><span style="line-height: 1.3em;">During 2008, combined capital city home values fell by -6.1% between March and December. Home values fell by -6.5% between March 2011 and May 2012. </span></p>
<p><span style="line-height: 1.3em;">While the Index shows a certain set of trends, it’s important to remember that it is largely influenced by Sydney and Melbourne. In fact, combined capital city home values have increased by 8.7% over the 12 months to November 2015 however, only Sydney and Melbourne have recorded value growth stronger than that level. Values have also been declining over the past year in both Perth and Darwin.</span></p>
<p><a href="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.31.04%20AM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"><img src="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.31.04%20AM.png" alt=""></span></p>
<p><span style="line-height: 1.3em;">Over the period from December 1995 to November 1995, all capital cities have seen values increase while each city has seen periods where values fall. Across the cities, the cumulative value increases have been recorded at: </span></p>
<p>• 330.1% in Sydney </p>
<p>• 421.4% in Melbourne </p>
<p>• 259.4% in Brisbane </p>
<p>• 261.2% in Adelaide </p>
<p>• 293.0% in Perth </p>
<p>• 208.0% in Hobart (from Sep-97) </p>
<p>• 180.1% in Darwin (from Apr-99) </p>
<p>• 258.7% in Canberra.</p>
<p>Of all the cities, Melbourne has led by recording the strongest rate of growth over the period followed by Sydney. Growth in Perth has been stronger than in Brisbane, Adelaide and Canberra where cumulative growth has been remarkably similar. While home values have risen significantly in each city, value falls have occurred.</p>
<p>There have been periods where values have fallen in a particular city but not others. As an example, from mid-2004 Sydney values started falling while in other cities, the rate of growth just slowed. Sydney home values fell by - 8.2% between March 2004 and December 2005. They then took until March 2009 to eclipse and remain above March 2004 levels.</p>
<p>Over the past few months we have seen early signs of value falls in the Sydney and Melbourne housing markets. Based on our data, we can see that falls have previously occurred, and will no doubt happen again, however, the question is how large; of course no one knows.</p>
<p>Given that investor activity has been at a record high, building approvals have also hit record highs and record high levels of household leverage there is a possibility that falls could be larger than what we have seen in the past. Note: Adjacent, the table looks at the two most recent periods of decline across the combined capital cities: the financial crisis in 2008 and as the RBA started to lift interest rates in 2011. The data shows the financial crisis saw a short, sharp fall in values and a fairly rapid recovery. The second period saw, in most instances, a much larger decline and a much longer period for recovery. </p>
<p><a href="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.26.15%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.26.15%20AM.png" alt="" width="871" height="520"></p>
<p> </p>
<p><a href="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.30.04%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/11/Screen%20Shot%202015-12-11%20at%2010.30.04%20AM.png" alt=""> </p>
<p><span style="line-height: 1.3em;"><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> </span></p>
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Home values will certainly fall again: Cameron Kusher

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<p>Whilst property markets closely watch what can directly influence market sentiment in 2016 we should be watching very closely what will indirectly affect the market and just how big these influences may be.</p>
<p>I can nominate six (6) such influences that I believe will have significant repercussions on how we should be approaching the markets.</p>
<h5>1. Illegal Property Acquisitions</h5>
<p>I find this topic quite fascinating given I have always been of the belief that this practice is (or was) huge and I have not changed my opinion. In May, 2015 the then treasurer Joe Hockey set aside 60 investigators from the Australian Taxation Office (ATO) stating that from their initial investigations “they are just at the tip of the iceberg.”</p>
<p>Fast forward seven months where this week the ATO announced that it was now investigating an estimated 31 million records from 1985 to 2015. This order applies to all states and territories for not only sales transactions but also all rental agreements, landlords, weekly rents, length of lease and rental bonds. The biggest investigation into Australian real estate since 1993 when the ATO moved records to computer technologies and every real estate agency in Australia was forced into providing every transaction record.</p>
<p>So from this point forward I’m going to call this the “Please Explain Inquiry” given the ATO obviously believes that they have uncovered interesting irregularities.</p>
<p>It should also be noted that the Department for Rip Van Winkle otherwise known as the Foreign Investment Review Board (FIRB) have just appointed former ASIO director, general David Irvine, to the board. Two very big announcements in the space of a week – watch for some big announcements in 2016.</p>
<h5>2. Underquoting Reforms in NSW</h5>
<p>Not before time from 1 January 2016 real estate agents must quote the likely selling price at the figure(s) that appear on the Agency Agreement. The fines and penalties for failure to do so are severe. The NSW Government Office of Fair Trading will be out in force next year policing their prized new legislation that is a major win for consumers and ethical agents. This will also cause major problems for the habitual agents who love nothing more than buying listings through valuing properties at ridiculous prices. . Expect to see plenty of naming and shaming in 2016.</p>
<h5>3. Off – The – Plan Purchases</h5>
<p>It would be an understatement to suggest that investors are not skittish and squirming about their recent property acquisitions. What remains to be seen is how many pull the plug and walk – away from their purchases believing that Sydney’s apartment investment markets are facing a massive correction in 2016.</p>
<p>Again the NSW government has been busy rushing through more property legislation stopping developers cancelling existing contracts – sunset clauses, because the apartment prices have increased significantly. That loophole has been now shut for good.</p>
<h5>4. Council Mergers</h5>
<p>An announcement regarding the mergers is just days away although I am reliably advised that Mosman will not be forced into a merge and will stand alone. Having said that it will lose all powers regarding new apartment development approvals and this now will be handled by the state government.</p>
<h5>5. 2016 Federal Election</h5>
<p>They say that the Melbourne Cup stops the nation – well a federal election can stop the real estate markets. We can expect to hear plenty in 2016 about what’s now off the table and what’s now on the table. Two words will play a massive part and I’m not talking about negative gearing. No tax reform will be the keywords in 2016 although at this stage its anyone’s guess to what extent and just what lengths the Turnbull government will go. Whatever the case this will be a major distraction in 2016 where I’d love a dollar every time I hear the words Goods &amp; Services tax – GST.</p>
<p>This now leads me to the very big X Factor for 2016.</p>
<h5>6. X Factor</h5>
<p>The premier must have been reading my blogs with a new report from the NRMA confirming that planning is in the early stages to see a rail line from Sydney’s northern beaches through Mosman to Cremorne and Neutral Bay to the Sydney CBD.</p>
<p>The other key recommendation is for a tunnel under the Spit Bridge connecting with Seaforth and the Warringah Freeway linking up with the new harbour tunnel which eventually will connect to the WestConnex.</p>
<p>The report stated – “For decades, the northern beaches and the lower north shore has been the Bermuda triangle of transport infrastructure, where plans have come and gone to disappear without a trace.” It then went on to say “The chronic neglect has left our roads badly congested and buses at or over capacity. We believe the government must now take this opportunity to put the region back on the agenda as part of its overall drive to improve infrastructure across Sydney.”</p>
<p>The report revealed that Spit Road and Military Road were two of the worst in Sydney with higher traffic than Parramatta Road. On an average weekday, 70,000 vehicles use the Spit Bridge, 80,000 use Military Road and approximately 64,000 use Parramatta Road at Camperdown.</p>
<p>So you can expect to see high rise along Military Road and even more high density around the new suburb train stations.</p>
<p>Thank you for joining us in 2015 and we will be back with Virtual Realty News in 2016 – our 16th year. From all of us at Richardson &amp; Wrench Mosman/Neutral Bay we wish you a very Merry Christmas and a safe and happy New Year.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 84</p>
<p>• Number of houses on the market last week – 55</p>
<p>• Number of houses on the market this week – 53</p>
<p>• Number of apartments on the market this time last year – 59</p>
<p>• Number of apartments on the market last week – 51</p>
<p>• Number of apartments on the market this week – 42</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 11</p>
<p>• Number of houses on the market last week – 11</p>
<p>• Number of houses on the market this week – 6</p>
<p>• Number of apartments on the market this time last year – 20</p>
<p>• Number of apartments on the market last week – 17</p>
<p>• Number of apartments on the market this week – 15</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 10</p>
<p>• Number of houses on the market last week – 8</p>
<p>•Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year– 34</p>
<p>• Number of apartments on the market last week – 30</p>
<p>*Number of apartments on the market this week – 26</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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Plenty of x-factor on the 2016 property menu: Robert Simeon

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<p>Christmas always puts a deadline on things. For Property Bloom this year it's completing four development projects before the big man with the white beard arrives.</p>
<p>Of course our builder and all their tradies are under the pump at this time of year and our job as project managers really comes into play.</p>
<p>Our goal is not only to have the dwellings completed with Occupation Certificates (OCs) issued, but also <strong>tenanted</strong> before Christmas. And I've found a way to achieve this.</p>
<p>It's called supporting your site manager.</p>
<p>Rather than micro manage our site managers which just drives people crazy, we try to help them by giving them a hand. They feel supported and at the end of the day, we are all on the same team striving for the same result: Happy clients.</p>
<p>Here's an example. I'm doing two Practical Completion (PC) inspections this week and I have a tool I'm going to take along that should help. It's a bottle of Spray and Wipe.</p>
<p>Because we are pushing the process, we'll often get asked to move the PC date so they can be completely ready. But I don't want to give our builder another few days. Because right now, we literally don't have them.</p>
<p>We want tenants settled in before Christmas, we need the properties to look their best because on the same day we do our PC inspection, our appointed property manager will be taking photos and uploading the properties onto the Internet. This way we can advertise for tenants during the PC and Handover period.</p>
<p>The Handover period is the time after PC when the builder has seven days to complete any outstanding items we've picked up and before the bank pays the builder's final drawdown. Once the builder receives their payment, they release the keys to the owner and the dwellings come off construction key. That is literally the Handover date and of course a tenant can't move in before Handover.</p>
<p>Once asked to pay the final invoice, the bank typically take about a week, sometimes longer to send their valuer to check construction has been completed then transfer the money to the builder.  Before they release the final payment, they will have conditions such as receiving a copy of the OCs, and a copy of a building insurance policy in the name of the owners. </p>
<p>This week or two is valuable and we use it to show potential tenants and hold open homes. We can do this because we have a great relationship with out builder and they will allow access BEFORE Handover. That's pretty unusual for a builder. But it means tenants are lined up as keys are handed over, which results in zero vacancy time for our clients.</p>
<p>So back to the PC inspection. My theory is that we set a date for PC and we do all we can to get the project to that stage. By having a deadline, more action is taken. I've found that there ends up being only minor items to attend to if any at all, because the site manager has done all he could to meet the deadline.</p>
<p>Short of bringing a pair of white gloves, I am fussy at these inspections. But some things just need a bit of elbow grease. So the bottle of Spray and Wipe comes out and we can clean the spots as we go through the property. It's so much easier than adding it to a list and having to wait for cleaners to come back. Of course I do draw the line at mopping floors, but small marks can easily be removed along with the fine layer of dust that always seems to settle on the kitchen benches a day after the construction clean is done.</p>
<p>I'm looking forward to Christmas this year but there's still a bit of work to be finished before the champagne is poured and prawns are peeled. </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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Countdown to construction completion: Jo Chivers

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<p>For the fifth consecutive week, CoreLogic RP Data is expecting over 3,000 auctions to be held across the combined capital cities, with 3,028 scheduled this week, down from 3,252 last week and the year’s record number of auctions the previous week (3,729).</p>
<p>There will be less capital city auctions this week, relative to last year, when there were 3,511 over the corresponding week.</p>
<p>Despite auction volumes falling on a broad capital city level, the same cannot be said for Adelaide, the only capital city where auction volumes are set to rise, with 151 Adelaide auctions scheduled this week, compared to 138 last week.</p>
<p>Melbourne auction volumes, down from 1,622 last week to 1,601 this week, have remained relatively steady, while across Sydney, auction activity will be significantly lower this week (902), compared to last week (1,070).</p>
<p><span style="text-decoration: underline;"><strong>Capital </strong></span><span style="text-decoration: underline;"><strong>City Auctions this week:</strong></span></p>
<ul>
<li>
<strong>Sydney</strong><strong>: </strong><strong>902</strong>
</li>
<li>
<strong>Melbourne: </strong><strong>1,601</strong>
</li>
<li>
<strong>Brisbane: </strong><strong>179</strong>
</li>
<li>
<strong>Adelaide: </strong><strong>151</strong>
</li>
<li>
<strong>Perth: </strong><strong>61</strong>
</li>
<li>
<strong>Canberra: </strong><strong>116</strong>
</li>
</ul>
<p>Summary of last week’s results:</p>
<p><a href="/images/2015/12/9/20151210-clearance-rate-table.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/9/20151210-clearance-rate-table.jpg" alt="" width="773" height="440"></p>
<p><a href="/images/2015/12/9/20151210-clearance-rate-graph.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/9/20151210-clearance-rate-graph.jpg" alt="" width="789" height="335"></p>
<p>Last week, the combined capital city final auction clearance rate was recorded at 57.3%, the lowest reading since February 2013. Much of the overall weakness was driven by Sydney, where only 52.9% of the reported auctions were sold last week, dropping from 56.2% the previous week.</p>
<p>Melbourne’s final auction clearance rate was 63.3%, over 10 percentage points higher than Sydney’s, but still lower than the cities result over the week prior (65.9%).</p>
<p>Adelaide was the only other capital city where the final auction clearance rate didn’t fall below 60%. There were 130 Adelaide auctions reported from a total of 138 that were held.</p>
<p><a href="/images/2015/12/9/20151210-sub-regions.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/12/9/20151210-sub-regions.jpg" alt=""></p>
<p> </p>
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Adelaide the standout mover in capital city auction volume: CoreLogic RP Data's Shana Miller

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<div>At the headline level it was another spirited month for housing finance nationally, with the seasonally adjusted $32.6 billion in October being the sixth greatest month on record following a lending blitz through 2015.</div>
<div> </div>
<div>Although owner-occupier commitments increased again in the month, investor finance continued to slump, dropping by 6.1%.</div>
<div> </div>
<div><a href="/images/2015/12/9/HF1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF1.jpg" alt=""></div>
<div> </div>
<div>
<div>The devil of this data series forever lies within the detail, with a number of sources indicating that there has been a level of jiggery-pokery with regards to the classification of loans between owner-occupiers and investors (since there is now a clear price incentive to opt for homebuyer loans).</div>
<div> </div>
<div>The second chart below shows that owner-occupier commitments and refinancing have both increased solidly, while APRA's macroprudential measures have ensured that investor finance is now falling away quickly.</div>
<div> </div>
<div>The net result was that total housing finance in trend terms remained flat in the month at $33.2 billion.</div>
<div> </div>
<div><a href="/images/2015/12/9/HF2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF2.jpg" alt=""></div>
<div> </div>
<div>
<div>Whether or not housing markets can push forward in 2016 will depend upon the extent to which the growth in owner-occupier loans can offset declining investor lending. </div>
<div> </div>
<div>Certainly we can see that the number of owner-occupier loans is trending up, but equally there is a chance that tightening mortgage rates could slow this sector of the market going forward.</div>
<div> </div>
<div><a href="/images/2015/12/9/HF3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/12/9/HF3.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>Skipping down to the state level we can see that the trend number of owner-occupier commitments is in decline in Western Australia, Tasmania, the Northern Territory, and Queensland, which is home to a significant number of declining regional markets in line with the resources investment collapse.</div>
<div> </div>
<div>The trend in the number of owner-occupier commitments in the Australian Capital Territory has been stone dead flat for months.</div>
<div> </div>
<div>The increase in the number of mortgages written has been driven purely by the two most populous states, New South Wales and Victoria. </div>
<div> </div>
<div><a href="/images/2015/12/9/HF4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF4.jpg" alt=""></div>
<div> </div>
<div>
<div>Generally speaking the higher value loans are written in the capital cities, and as such the dollar value of owner-occupier commitments tends to be a better indicator of what is playing out in the capitals.<br><br>In terms of the trend <strong>value</strong> of owner-occupier commitments, both Western Australia and the Northern Territory are again in decline. </div>
<div> </div>
<div>The Brisbane market is faring relatively well at the present time, helping to nudge the aggregate value of owner-occupier commitments in Queensland steadily up, while Victoria and New South Wales in particular are rising fast.</div>
<div> </div>
<div>In fact, trend monthly owner-occupier commitments in New South Wales have ripped up the chart to sit some 43 per cent higher over the year at more than $8 billion (awooga!).</div>
<div> </div>
<div><a href="/images/2015/12/9/HF5.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF5.jpg" alt=""></div>
<div> </div>
<div><span>As noted, when it comes to housing finance the devil is always in the detail: more than $3 billion of the New South Wales monthly figure related to refinancing, and over the past year there has also been a slight uptick in finance for renovations.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/9/HF6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/12/9/HF6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>Overall, there are many more different trends to cover than can be analysed in one blog post - it was a solid result nationally, and it all rather depends upon which market you are interested in.</div>
<div> </div>
<div>One thing that we can say with certainty is that the investor boom is a cooked goose for this cycle, with investor finance now down by 9.2 per cent year-on-year. In 2016, the homebuyer sector of the market will swim back into focus.</div>
<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>
</div>
</div>
</div>
</div>
</div>
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Investor boom is a cooked goose: Pete Wargent

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<p>New growth stars will emerge in 2016. You’re most likely to find them in Brisbane, Melbourne, regional New South Wales and regional Queensland, although others such as Adelaide and Hobart may put their hands up.</p>
<p>Here are five areas I think are worth watching as we get into the New Year. These are all places that should produce price growth in 2016, on the back of serious momentum with rising sales activity in their markets.</p>
<p>1 Oxenford and the northern growth corridor, QLD:<span style="line-height: 1.3em;"> </span></p>
<p>The Gold Coast is now the clear national leader among the Local Government Areas of Australia. It has the most growth suburbs, by a wide margin.<span style="line-height: 1.3em;"> </span></p>
<p>These rising suburbs are found right across Gold Coast city, but the growth corridor stretching north from the Gold Coast towards Brisbane is the standout area, with growth suburbs either side of the Pacific Motorway.</p>
<p>Oxenford stands out, with sales rates lifting from 80-90 per quarter last year to 130-135 in the past two quarters. Other growth suburbs in this precinct include Coomera, Upper Coomera, Pimpama and Ormeau.<strong style="line-height: 1.3em;"> </strong></p>
<p>2 Lalor and Whittlesea, VIC:</p>
<p>The focus of Melbourne’s up-cycle has switched increasingly from the middle market to the outer suburbs, where affordability and good infrastructure are key drivers.</p>
<p>The Whittlesea LGA in the northern suburbs is leading the way, headed by the suburb of Lalor (median house price $400,000), where sales rates have increased from around 70 per quarter last year to above 100 more recently.<span style="line-height: 1.3em;"> </span></p>
<p>Other growth suburbs in this precinct include Epping, Mill Park, Doreen, Mernda and Thomastown.<strong style="line-height: 1.3em;"> </strong></p>
<p>3 Beenleigh and Logan City, QLD:</p>
<p>Logan City, which borders the Gold Coast to the south and Brisbane City to the north, has led the revival of Greater Brisbane markets in 2015.<span style="line-height: 1.3em;"> </span></p>
<p>It has more growth suburbs than any other precinct in the Brisbane metropolitan area, headed by Beenleigh, the administration centre for the LGA, where house sales have increased steadily over the past 12 months or so.</p>
<p>Another standout suburb in Logan City is affordable Eagleby, where sales in the past four quarters have increased from 59 to 65 to 95 to 102.</p>
<p>4 Forster-Tuncurry, NSW:</p>
<p>The Great Lakes LGA in the Mid North Coast region of New South Wales is a standout performer is this latest survey for <em>The Price Predictor Index</em>.</p>
<p>Residential sales in Forster, about 300km north of Sydney, have risen from 106 to 114 to 139 to 152 to 155 in consecutive quarters, while neighbour Tuncurry has recorded a similar pattern.</p>
<p class="Body">5 Point Cook and Wyndham City, VIC:</p>
<p class="Body">Another example of the emergence of the affordable outer ring suburbs of the Melbourne metropolitan area is Wyndham City in the south-west heading towards Geelong.</p>
<p class="Body">A number of suburbs have strong growth trajectories, headed by the developing suburb of Point Cook, where quarterly sales in the past 18 months have been 289, 313, 350, 396, 395 and 420.</p>
<p class="Body">Wyndham Vale is another standout market in this precinct, with quarterly sales levels lifting from 85-90 about 18 months ago to around 140 in the September 2015 Quarter.</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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5 key suburbs across Australia to watch in 2016: Terry Ryder

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<p><span>Technical services provider Jacobs has finalised the biggest leasing transaction in North Sydney this year after committing to occupy 6,872 square metre of space in 177 Pacific Highway.</span></p>
<p><span>The $413-million building is being developed by CIMIC Group through Leighton Properties on behalf of Suntec Real Estate Investment Trust (Suntec REIT).</span></p>
<p><span>The 40,000 square metre project is the largest commercial development in the North Shore.</span></p>
<p><span>Under the lease agreement, Jacobs will relocate its headquarters to 177 Pacific Highway from its nearby premises in St Leonards.</span></p>
<p>Nearly 600 Jacobs’ staff will be involved in the move to <a href="https://177pacific.com.au" target="_blank">177 Pacific Highway</a>.</p>
<p><span>The building will incorporate state-of-the-art design elements, large floor plates, harbour views, full end-of-trip facilities and green credentials.</span></p>
<p><span> “Jacobs’ commitment demonstrates increased activity from tenants wanting to relocate to North Sydney, with this being one of the largest commitments in the area in many years," said Peter Flint, CBRE head of office services for NSW. </span></p>
<p><span>The Jacobs agreement follows a series of recent deals in the project’s food precinct, with Naked Duck Restaurant and Café, and Sushi Jones to occupy the retail space in the Garden Plaza, which is designed as the centrepiece of the 177 Pacific Highway development.</span></p>
<p><span>The ground floor will feature the indoor, all-weather Garden Plaza protected by a 15-metre high glass façade and provide a place for tenants, surrounding workers and other members of the surrounding community to relax and enjoy a variety of culinary experiences.</span></p>
<p><span>The 30-level office tower designed by Bates Smart will be complete in 2016.</span></p>
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