<p>Longstanding Gold Coast and Canberra developer <a href="https://www.apartments.com.au/developers/morris-property-group">Morris Property Group</a> is continuing to roll on with its Glitter Strip apartment pipeline, seeking to return to Mermaid Beach with a new 68-apartment development.</p>

<p>Morris, founded by Barry Morris in 1978 and one of the Gold Coast’s most prolific apartment developers over the past two decades, has filed plans for a 12-storey mixed-use building at <a href="https://www.apartments.com.au/new-apartments/36-seabeach-avenue-mermaid-beach-qld-4218">34-36 Seabeach Avenue</a>, on the prized eastern side of the Gold Coast Highway.</p>

<p>The 1,227 sqm site occupies a prominent corner position at Seabeach Avenue and the Gold Coast Highway, opposite the Mermaid Plaza retail and office precinct and around 140 metres walking distance from the future Mermaid Beach South light rail station.</p>

<p><a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a> has designed the project, which will comprise 68 apartments across a mix of 48 two-bedroom and 20 three-bedroom residences.</p>

<p>The building will rise 12 storeys, reaching a maximum height of 36 metres, with the apartments accounting for a total of 156 bedrooms. The development application also seeks approval for short-term accommodation across the 68 apartments, while two office tenancies are proposed at ground level.</p>

<p>The plans show 108 car spaces across the development, with parking accommodated at ground level and within a three-level basement accessed from Seabeach Avenue.</p>

<p><img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="c2175c99-12fd-4a3c-9be1-89bbf258a90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.41%E2%80%AFPM_0.png?VersionId=iNLzWcE6gaAE76rafhEXfHve.4g4Se0p" /></p>

<p>Resident amenity will be concentrated on level two, where Fraser &amp; Partners has designed a recreation deck with a swimming pool, 90 sqm pool terrace, outdoor barbecue area and gym.</p>

<p>The broader communal offering will also incorporate landscaped spaces, with the planning documents noting the amenity has been designed to provide areas for recreation, social interaction and outdoor living.</p>

<p>The proposal would continue the transformation of the Gold Coast Highway corridor through Mermaid Beach ahead of the arrival of the light rail.</p>

<p>The site is zoned Neighbourhood Centre and sits within the Mermaid Beach/Broadbeach Light Rail Corridor neighbourhood plan. While the prescribed building height is 24 metres, the site is identified within an Urban Neighbourhood context providing for a 50 per cent height uplift to 36 metres.</p>

<p>Planning documents describe the stretch of the Gold Coast Highway between Broadbeach and Nobby Beach as increasingly characterised by medium and high-rise development, with the proposed Morris tower joining projects including Ventura, The Alfred, Oceans and Otto.</p>

<p><img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="911f193f-e381-4a55-be08-58be87fcf978" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.48%E2%80%AFPM.png?VersionId=oxVvLJaY.SOXEdXrIcogfyEXDfvCmmpM" /></p>

<p>The development would mark Morris Property Group's latest investment in Mermaid Beach, where it has already delivered two apartment projects.</p>

<p>Otto, at 1 Bondi Avenue on the western side of the Gold Coast Highway, comprises 70 apartments across nine storeys. The project was completed in 2019 and includes a residents' gym, recreation deck and swimming pool.</p>

<p>Morris also developed Oceans at 46 Ocean Street, a nine-storey, 70-apartment build-to-rent development completed in 2019. Oceans was the group's first build-to-rent project and incorporates commercial space at ground level.</p>

<p>The two existing Morris projects sit further north along the same Gold Coast Highway corridor as the proposed Seabeach Avenue development. Fraser &amp; Partners' planning analysis specifically identifies both Otto and Oceans among the established built-form precedents surrounding the site.</p>

<p><img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="14925119-7b71-4812-8149-340317512c7c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%203.00.15%E2%80%AFPM.png?VersionId=aEJqYuw_nTCjcin17BSD0piB1EFotTlj" /></p>

<p>Mermaid Beach represents only part of Morris' considerable Gold Coast footprint.</p>

<p>The family-owned developer has been particularly active in neighbouring Broadbeach, delivering projects including Sierra Grand, Eclipse, Synergy, Qube, Koko, Opus and Malo, while its current pipeline includes Maison and the two-tower Crest development.</p>

<p>Further south, Morris has also developed a string of projects in Burleigh Heads, including Element, Boardwalk and Sandbar, while Essentia expanded its footprint north into Surfers Paradise.</p>

<p>The Seabeach Avenue application has been lodged by PMM Broadbeach Pty Ltd and seeks a development permit for a Material Change of Use for multiple dwellings, short-term accommodation and office uses. Zone Planning Group prepared the planning application, with Fraser &amp; Partners commissioned as architect.</p>

<p>The project comes as the developer continues to expand its Gold Coast pipeline while retaining a significant presence in Canberra. Morris now has more than $2.5 billion of development in its national pipeline and has delivered more than 7,000 homes during its near five-decade history</p>


Joel Robinson

First look: Morris Property Group returns to Mermaid Beach with new Seabeach Avenue apartment development

<p><a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developers/fortis&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw3hvFB2uWTRfEyEcpTSnnK9" href="https://www.apartments.com.au/developers/fortis" target="_blank">Fortis</a>&nbsp;is continuing its stronghold on Sydn​ey’s eastern suburbs apartment market, launching&nbsp;in September&nbsp;its latest boutique&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developments/double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw0GI5S9-wNeiLUnM-d1uYkw" href="https://www.apartments.com.au/developments/double-bay-nsw-2028" target="_blank">Double Bay</a>&nbsp;development,&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw2YNouJQcFjiTTgVHbgDLA-" href="https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028" target="_blank">55 William</a>.</p>

<p>55 William presents&nbsp;just eight north-facing&nbsp;two-bedroom, three-bedroom and full-floor&nbsp;residences to the market, priced from $4.5 million.</p>

<p>The upcoming launch comes just weeks after Fortis secured approval for the $80 million development, its third eastern suburbs approval in two months. Construction is already underway, with completion targeted for 2028.</p>

<p>[smartcode_project:default project_id=152579 project_image_fid=376250]</p>

<p>55 William adds to a growing concentration of Fortis projects in and around Double Bay, a market the developer has become increasingly active in over recent years.</p>

<p>Fortis previously completed the nine-residence Marmont on New South Head Road, while it is currently developing a mixed-use residential and retail project at 12 Cross Street. Its wider Double Bay footprint also extends into commercial and retail development.</p>

<p>The developer's broader Sydney residential pipeline is particularly concentrated across the eastern suburbs, with projects spanning Doub​le Bay, Ro​se Bay, Wo​ollahra, Dar​ling Point, Poi​nt Piper and Eli​zabeth Bay.</p>

<p>[smartcode_project:default project_id=152579 project_image_fid=376253]</p>

<p>At 55 William, Fortis has again turned to MHN Design Union, the architecture practice behind several of its eastern suburbs projects, while London-based 1508 London has been appointed to handle the interiors and Wyer &amp; Co the landscaping.</p>

<p>The six-level building will comprise a combination of two and three-bedroom apartments, including a garden residence, full-floor apartments, a sub-penthouse and penthouse. Each residence will have secure basement parking and private outdoor space.</p>

<p>A rooftop terrace for all residents, along with select apartments, enjoys views across Double Bay Harbour and toward the Sydney skyline.</p>

<p>Ceiling heights will reach up to three metres&nbsp;in select residences, while the kitchens will feature natural stone and integrated Gaggenau appliances.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>The boutique nature of the project reflects the type of stock Fortis has increasingly targeted across Sydney's eastern suburbs, where larger apartments and smaller buildings are being pitched primarily toward local owner-occupiers and downsizers.</p>

<p>Fortis Group General Manager Ed Eve said the developer continues to see demand from buyers wanting to remain in the eastern suburbs but move into newer, lower-maintenance housing.</p>

<p>“We're seeing continued demand from local owner-occupiers and downsizers looking for high-quality homes that allow them to remain in the eastern suburbs, close to the lifestyle and community they know,” Eve said.</p>

<p>55 William is also one of the early projects to respond directly to the NSW Government's Low and Mid-Rise Housing reforms. Fortis had previously secured approval for just two townhouses on the 599 sqm site before revising the scheme to eight apartments following the planning changes.</p>

<p style="text-align:start">Situated one street back from Double Bay's water's edge, the project enjoys an enviable harbourside setting within walking distance of Double Bay Village and the ferry wharf.</p>

<p>[smartcode_project:default project_id=152579 project_image_fid=376252]</p>

<p>Fortis has increasingly made the eastern suburbs a major focus of its Sydney pipeline. Beyond Double Bay, it recently completed the 14-residence Piper in Point Piper and has projects underway or planned across Rose Bay, Woollahra and Darling Point.</p>

<p>The developer recently secured approval for Verano in Rose Bay, a six-level development comprising 21 two, three and four-bedroom apartments, also designed by MHNDU.</p>

<p>55 William&nbsp;is soon to be release to the market with VIP appointments commencing early September,&nbsp;with residences priced from $4.5 million.</p>

<p>[smartcode_project_cta:default project_id=152579]</p>


Fortis continues eastern suburbs push with 55 William launch

<p>UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.</p>

<p>Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.</p>

<p>The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.</p>

<p>It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.</p>

<p>Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.</p>

<p>A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.</p>

<p>The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.</p>

<p>It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.</p>

<p>Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.</p>

<p>“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.</p>

<p>“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”</p>

<p>Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.</p>

<p>“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”</p>

<p>The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.</p>

<p>Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.</p>

<p>The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.</p>


Arada plots $2 billion Broadbeach towers in major Queensland move

<p>Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.</p>

<p>Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.</p>

<p>Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.</p>

<p>“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.</p>

<p>“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”</p>

<p>It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377495]</p>

<p>For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.</p>

<p>Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.</p>

<p>Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377494]</p>

<p>“These buyers still want their home to feel generous,” Porter says.</p>

<p>“They may want less maintenance, but they are not looking for less life.”</p>

<p>The challenge for the broader housing market is providing enough of the right stock to encourage that move.</p>

<p>While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.</p>

<p>Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.</p>

<p>“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.</p>

<p>“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”</p>

<p>It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.</p>

<h2>Lillian targets the next stage of apartment buyer</h2>

<p>It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.</p>

<p>Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.</p>

<p>The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377688]</p>

<p>McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.</p>

<p>For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.</p>

<p>“People should be able to change the type of home they live in without having to change their entire life,” he says.</p>

<p>“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”</p>

<p>[smartcode_project:default project_id=135149 project_image_fid=377687]</p>

<p>Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.</p>

<p>Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.</p>

<p>Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.</p>

<p>[smartcode_project_cta:default project_id=135149]</p>


From downsizing to right-sizing: What Sydney buyers want from their next home

<p>Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.</p>

<p><a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.</p>

<p>[smartcode_project:default project_id=134873 project_image_fid=376196]</p>

<p>Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.</p>

<p>Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.</p>

<p>At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.</p>

<p>[smartcode_project:default project_id=134873 project_image_fid=376194]</p>

<p>The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.</p>

<p>Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.</p>

<p>Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.</p>

<p>[smartcode_project:default project_id=134873 project_image_fid=376181]</p>

<p>Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.</p>

<p>Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.</p>

<p>Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.</p>

<p>[smartcode_project_cta:default project_id=134873]</p>


The Maybelle brings 27-storey parkside tower to market near North Strathfield

<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>The superannuation fund, First State Super, has agreed terms on a new lease at Forest Hill in Melbourne’s eastern suburbs in a deal brokered by Savills Australia.</span></p>
<p>Located within the Brentford Square shopping centre at <a href="https://www.realcommercial.com.au/property-retail-vic-forest+hill-501470823" target="_blank">502 Canterbury Road</a>, First State will take over the 277 square metre tenancy vacated by NAB which had held the lease for more than 20 years.</p>
<p><span>Savills’ Victorian retail director, Michael Di Carlo negotiated the deal with Jeremy Marmur and Jock Thomson.</span></p>
<p><span>First State is believed to have agreed on a rental equating to more than $150,000 per annum on a five year term.</span></p>
<p><span>Mr Di Carlo said First State had been in the market for a property which provided exceptional exposure to both main street frontage and to a well-established retail precinct.</span></p>
<p><span>The lessor is a Melbourne based investor.</span></p>
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j.ballantyne1990-6AQqhLzZaK

First State Super takes over NAB Forest Hill space

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<p><span>Savills Australia is marketing a substantial cold storage facility with potential redevelopment and land banking upside at Mulgrave in Melbourne’s south-east. The property will be sold by expressions of interest closing October 29.</span></p>
<p><span>It is expected to fetch more than $8 million.</span></p>
<p>Located at <a href="https://www.realcommercial.com.au/property-industrial+warehouse-vic-mulgrave-501705993" target="_blank">769-781 Springvale Road</a>, the property comprises a 5500 square metre building, including freezer, chiller and cool rooms, on a 15,900 square metre site zoned Special Use Zone 6.</p>
<p><span>The property is situated close to the M1 Freeway and within a sought after industrial precinct including BMW’s Headquarters, Peters Ice Cream, Catch of the Day, and Monash University.</span></p>
<p><span>Savills’ directors Kosta Filinis and Lynton Williams said its represented a seldom offered opportunity to take advantage of a scarce refrigeration logistics facility with redevelopment upside enhanced by quick access to Melbourne’s premier freeway network.</span></p>
<p><span>Mr Williams said the market for industrial properties at the moment is very strong due to a number of factors including low interest rates, the lure of relatively good industrial yields and the volatility of share market investments.</span></p>
<p><span>"What has also been a driver in the sub-$10 million sector is the rise of the self-managed super funds which have increasingly been drawn to industrial investments,’’ Mr Williams said.</span></p>
<p><span>The property will be offered with vacant possession by vendor, national distributor of dry, dairy, frozen, smallgoods and accessory products, Superior Food Services.</span></p>
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Mulgrave refrigerated logistics facility to fetch $8 million plus‏

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<p><span>A KFC restaurant outlet on Ocean Parade at The Entrance recently sold for $3,925,000 through Burgess Rawson agents Darren Beehag and Dean Venturato.</span></p>
<p><span>The store has operated in the same location for over 45 years. </span></p>
<p><span>The modern building has a drive thru and on-site parking.</span></p>
<p>Marketed with a 10 year lease from August 2008, the property sits on strategic <a href="https://www.burgessrawson.com.au/2P1021#.Vgtb4t4bSkg" target="_blank">1,069 sqm land with 60 m corner frontage</a>.</p>
<p><span>The area has seen a growth in population, boosted by new high-rise residential developments.</span></p>
<p><span>It was sold with a $197,080 pa net income, marketed as having an unrivalled location, with limited nearby competition.</span></p>
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The Entrance KFC outlet sells for $3.9 million through Burgess Rawson

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<p><span>A commercial property leased to ANZ in Rockdale has sold for $3.4 million at a recent auction.</span></p>
<p><span>The Princes Highway property is adjacent to Westpac and CBA branches.</span></p>
<p>ANZ are long standing occupants of the building offered <a href="https://www.burgessrawson.com.au/buying/NSW/St-George/Rockdale/Retail/2P1019" target="_blank">481 Princes Highway</a> with lease to May 2018 with extension options to 2025.</p>
<p><span>Marketed with a $152,590 pa net income, there will be annual rental increases with tenant paying outgoings.</span></p>
<p><span>The property occupies a wide Princes Highway frontage with rear lane access and on-site parking for up to five cars.</span></p>
<p><span>Surrounded by high density residential development with Rockdale train station and bus interchange located directly behind.</span></p>
<p><span>Simon Staddon of Burgess Rawson sold the listing.</span></p>
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Sydney metro bank investment sold for $3.4 million

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<p>I have noticed that over the last few years there’s been a bit of trend towards marketing that I feel is starting to look somewhat predictable, even tired and humdrum, in both style and content.</p>
<p>This is not to suggest the content is wrong, but I wonder if the strength of the market has caused some marketing to be more template driven, with not enough effort focused on the core demographic in the various and I suggest very diverse markets. You see similar trends in other industries where for example both major supermarket brands tend to drive the same message across what must be very different markets. Then recently among the supermarkets we have seen one new player take a very different approach, and they are picking away at the market share of the two majors.</p>
<p>To help demonstrate my thinking I have had a look at some of the key demographics across the City of Sydney, the South-East and parts of the inner west, all very popular areas for medium and high-density living, but with some very individual demographics. Then when the differences are highlighted I think it’s good to ask if our marketing is on target, because there’s possibly more room to be particular.</p>
<p><strong>Some Key Differences</strong></p>
<p>One starting point, and one where there’s a very clear measure relates to income levels, and as might be expected in a market like the City of Sydney, there’s a big range of incomes. The areas of the city with the highest incomes are firstly centred on King Street where the median household income is around $106,000 followed by the core CBD with $102,000, and both these figures are well in excess of the metro median for Sydney.</p>
<p>While at the other end of the scale we have Chinatown and the CBD South at $61,500 and Redfern at $63,500, which are both well below the metro median, and I have to admit I was surprised by the figures for Chinatown. Then when looking more closely another fact in this area is the very big number of students, at almost double the average of other LGA areas. This has an impact on the buyer profile and would lead to a stronger investor market. This would normally be a key factor in marketing to this target.</p>
<p><strong>Growth Potential</strong></p>
<p>Incomes are a revealing pointer and another interesting measure is the potential for average population growth, because this would be a key factor in looking at values directly aligned to the potential for new supply. In this area we also find some contrasting results, this is a direct reflection of the maturity of particular sub-markets across the City.</p>
<p>The area with the lowest growth forecast at just 0.40% is the Macleay Street precinct and Woolloomooloo – this is not a surprise given how very limited sites are here and also how mature the market is with some pockets of high density living dating back to the 1930’s and so this is a very tightly held, high demand and low supply market.</p>
<p>Green Square and City South are by direct contrast areas expecting a lot of new supply and growth is forecast at 5.10%, which looks conservative, but that figure sets the tone of the area, and would influence all marketing and product development and would also impact price expectations and the potential for price growth.</p>
<p>Which brings me to one final area where it’s very useful to look at the population demographics and the big impact that has on how a project might be received, and I think it worth making the remark that markets are always evolving, but I’ll come back to this point.</p>
<p>Firstly I wanted to look at population density and what a leading indicator those figures are, in particular in areas where sites are being re-developed or in areas that were former industrial and manufacturing sites, like Sydney’s inner-east and south-east. Here we can see that there are groups of areas where density is high and well above 100 persons/hectare and this includes Elizabeth Bay, Rushcutters Bay, Redfern, Pyrmont, Haymarket, Darlinghurst and Newtown just sneaking in but set for more growth.</p>
<p>At the other end of the scale Alexandria and Rosebery sit well below the above figures at just 20.01 and 39.02 persons/hectare which aligns to the growth expected in both areas over the next few years, so lots of opportunity for new supply. There are a few other areas like The Rocks and Centennial Park with low figures, but these are not typical markets, while an area like Paddington is also low, but given it’s unique history and conservation needs future supply looks very limited.</p>
<p><strong>Diversity</strong></p>
<p>To help illustrate this topic I wanted to use a sample of demographics to help explore the diversity of our many markets and show how they signpost the evolving nature of each and very different targets. And while markets change we need to keep abreast of how we promote each area and now with the use of digital content this can be very uncomplicated and highly efficient. However the way figures always vary I think that making a big effort to engage our buyers is a first-rate idea.</p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
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Understanding Sydney’s inner-city neighbourhoods: Peter Chittenden

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<p>A Melbourne developer has paid $18.18 million for a 1,722sqm property on Whitehorse Road, Box Hill with the intention of building an apartment block.</p>
<p>The site, <a href="https://www.realcommercial.com.au/property-land+development-vic-box+hill-501678429" target="_blank">820 Whitehorse Road</a> was sold at a land value price of $10,558sqm, above the previous price benchmark of around $8200sqm set a few weeks ago.</p>
<p>Savills Australia director, Nick Peden, who brokered the deal with Jesse Radisich and Clinton Baxter, said they received more than 150 enquiries and received 17 individual Expressions of Interest from a range of local and off-shore developers.</p>
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Apartments slated for $18m Box Hill site

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<div>The UK Land Registry released its latest House Price Index for the month of August 2015, which showed prices rising in the East (+8.4% year-on-year), South East (+7.6%), and yet again, in London (+6.6%).</div>
<div> </div>
<div>The largest gain for the month was seen in the capital city of London (+1.7%), while Cambridgeshire recorded yet another robust +7.8% year-on-year gain.</div>
<div> </div>
<div>On the other hand prices declined in the month in a number of the regions located away from The Smoke, including in t'North West, Yorkshire &amp; t'Humber, and in the East Midlands. </div>
<div>
<br>Prices have also remained relatively flat over the past year in Wales and the North East like.<br><br><strong><span style="text-decoration: underline;">Not shorting shortages</span></strong>
</div>
<div> </div>
<div>There have been some alarming statistics reported over recent years projecting dramatic housing shortages around London and the South East, and rarely is progess made on how the supply shortages will be tackled.</div>
<div>If there is one thing there <em>has</em> been a glut of over the past 20 years years it has been hapless experts trying in vain to pick turning points in the London housing market.</div>
<div> </div>
<div>Meanwhile average house London prices have increased from<span> <span>£</span>91,000 to nearly <span>£</span>500,000 (A$1,090,000), comfortably greater than a fivefold increase (today's average price is 5.4 times higher than in 1995, to be precise).</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/30/HPI.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/09/30/HPI.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>Different strokes for different folks, of course, but the single best investment decision I've made over the years has simply been to never sell a property, regardless of what the 'experts' in the media say.<br><br>Buy prime location capital city properties, never sell them. Sure you'll get cyclical downturns - see 2008, for example, which was quite a significant pull-back - but the long term trend is clear enough, provided you do buy in the right locations.<br><br>
</div>
<div><strong><span style="text-decoration: underline;">Down under</span></strong></div>
<div> </div>
<div>It is worth noting that cash rate futures markets in Australia are pricing in at least one more interest rate cut in this cycle, while implied yields already suggest that two further cuts by 2017 is a distinct possibility.</div>
<div> </div>
<div><a href="/images/2015/09/30/ASX.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/30/ASX.jpg" alt=""></div>
<div> </div>
<div>
<div>Even in the more bullish case scenarios, it appears likely that there are couple of years worth of slack in the labour market to be mopped up.<br><br>You can clearly see in the first chart of this blog post above the impact of the UK's macroprudential measures in 2014.<br><br>The City regulator the Financial Conduct Authority (FCA) "ran interference" with a series of measures known as the Mortgage Market Review last year, which temporarily disrupted growth in the London housing market.</div>
<div> </div>
<div>Macroprudential measures can undoubtedly slow the market for a while - HSBC will be the next bank to put the cold freeze on new investor loans in Australia - but ultimately nothing gets to work on cooling a housing market quite like higher interest rates.</div>
<div> </div>
<div>Unfortunately in Britain the emerging threat of an interest rate hike in 2016 (after a long hiatus since March 2009) now seems to be resulting in a surge of activity as buyers dive in before the Bank of England taps on the brakes.</div>
<div> </div>
<div>The Bank of England's mortgage approvals figures released this morning revealed the highest number of approvals in 19 months and the largest monthly jump in borrowing since 2008, with a net increase of <span>£</span>3.4 billion smashing analyst expectations - so the market appears set to accelerate once again, fuelled by record low mortgage rates.</div>
<div> </div>
<div>All of these are factors worth taking into account as the line of market observers trying to pick the next turning point in Sydney's housing market lengthens by the day. </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>
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Macroprudential fail as London prices rise again: Pete Wargent

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<p>Shallow research leads to misinformed real estate consumers and bad investment decisions. It’s important for investors to look beyond the veneer research published in mainstream media and dig a little deeper.</p>
<p>I’m alarmed at the number of consumers I encounter who think absorbing headlines and sound bytes constitutes research.</p>
<p>Their knowledge is paddling-pool shallow and they don’t know it. Their view of real estate markets is the one economists get from the 45<sup>th</sup> floor of a Martin Place office building. Australian property values rose 9.8% in the past year. Residential vacancies are 2.3%. First-home buyers can’t afford homes because the Sydney median is a million dollars.<span style="line-height: 1.3em;"> </span></p>
<p>Mainstream media gives you little more than generalised numbers. A single figure describes the entire market is a large capital city. It’s meaningless at best and dangerously misleading at worst.<span style="line-height: 1.3em;"> </span></p>
<p>The generalised number for Brisbane vacancies is around 2.5%. No worries. And a newspaper article recently quoted a “research report” claiming the city will run out of apartments to sell in five months. Other articles have said developers are making lots of off-the-plan sales. </p>
<p>Great, let’s buy an inner-city unit in Brisbane.</p>
<p>Looking a little deeper, all the inner-city suburbs of Brisbane have vacancies in the 4-5% range. And that’s before the new developments now under construction or being marketed off-the-plan are completed and dumped in the rental pool.</p>
<p>If you get a copy of the afore-mentioned “research report”, you find that the people marketing the apartments are the same people who wrote the report – and some very creative accounting has been used to come up with the very self-serving conclusions.</p>
<p>Hunt around a little more and you will find independent research showing that 90% of Brisbane inner-city units are being sold to investors, and most of them are distant investors. The new high-rise apartments are not being built to service local demand. </p>
<p>There’s also independent research indicating that the claims made by developers and marketers about pre-sales are largely false – or, at best, exaggerated.</p>
<p>The bottom line for buyers: it matters not whether every planned apartment in Brisbane gets sold. What matters is whether there’s rental demand for them. A market with empty apartments loses value dramatically. That’s why Surfers Paradise apartments are worth less than 10 years ago.</p>
<p>The veneer research numbers say buy a Brisbane unit. The deeper research says run away as fast as you can.</p>
<p>You can be forgiven for thinking not much is happening in Adelaide’s market. The latest generalised number says house prices have risen only 2.7% in the year to 30 June. Put that together with the vague impression you have about South Australia lacking population growth and economic vitality and you might conclude Adelaide’s not worthy of your attention.</p>
<p>The reality is quite different. There’s considerable momentum in the Adelaide residential market – it’s just that the single figure used to describe this market doesn’t reflect the rising sales activity.</p>
<p>Nor does it describe the many suburbs which have recorded double-digit rises in their median house prices in the past 12 months.</p>
<p>There are suburbs right across the metropolitan area, and across all price spectrums, which have recorded growth ranging from 10% to 18%.</p>
<p>Many of the locations with the strongest growth are middle-market areas, suburbs with median prices in in $500,000s, $600,000s and $700,000s – among them Glenelg East (up 17%), West Lakes (up 14%) and Cumberland Park (up 15%).<span style="line-height: 1.3em;"> </span></p>
<p>Among the best has been Cheltenham, where the median price has increased 21.5% to $540,000. It’s part of the municipality of Charles Sturt in the middle-market western suburbs of Adelaide.</p>
<p>The Charles Sturt LGA is the leading precinct of Adelaide in terms of the number of suburbs with rising sales activity – indeed, it’s currently one of the best in Australia.</p>
<p>But if you simply glanced at the generalised price growth figure for Adelaide overall, and dismissed its prospects, you would never know there’s an outstanding growth market hidden beneath the figures.</p>
<p> </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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Shallow research leads to misinformed real estate consumers: Terry Ryder

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<p>If some people think a declining clearance rate is a solid key performance indicator for our real estate markets they are badly mistaken as research identifies that the markets remain 60 per cent private treaty and 40% public auction.</p>
<p>Clearance rates are in my opinion more a mood indicator as to consumer confidence levels and not much more, although some commentators would have you believing they are the be all and end all.</p>
<p>If we are to better understand the intricate machinations of what is happening in our demographic markets I would like to see the property portals thinking in greater detail. For example, when a property appears on the market there should be two colour codes one for owner occupier sales and the other for investor sales. These are two entirely different market demographics although they today are bundled together despite being two totally different markets.</p>
<p>As I mentioned last week there will be a number of markets to watch in 2016 plus of course tax reform which is now looking much more likely with the changing of prime minister and new ministers running new portfolios. That too means new dialogue where it was quite interesting to listen to Treasurer Scott Morrison who said “the deficit reflects a spending problem, not a revenue problem”. The previous Treasurer Joe Hockey kept telling us Australia has a revenue problem not a spending problem.</p>
<p>You can rule out any changes to negative gearing by Messrs. Turnbull and Morrison whom will be watching what happens with the investor market, especially should the off – the – plan market have a run of defaults which is highly likely. Already the banks are starting to aggressively pull back lending for new construction projects in Sydney and Melbourne as they see some difficult times ahead with sales completions for overseas investors.</p>
<p>This week the Baird Government announced that 35,000 new homes would be made available in Western Sydney which would be expected to sell very quickly to owner occupiers so these developments won’t have any trouble attaining finance from the banks as this is an entirely different market demographic. Sydney urgently needs to address the owner occupier markets and housing affordability although for those watching these markets it’s getting more difficult to understand.</p>
<p>The Australian Bureau of Statistics (ABS) announced this week that Sydney house prices have jumped by 21.5 per cent over the past year. The Sydney House Price Index (HPI) rose 9.8 per cent over the June quarter which just so happens to be the largest single increase since the ABS commenced the series back in 2002. Just imagine the clarity if the ABS could differentiate these increases between owner occupiers and investors when we know that the investors were the ones really driving these gains.</p>
<p>This is further explained by why the banks are cutting back lending on the new residential markets as many believe a large percentage of the foreign buyers who jumped all over the new releases in Sydney and Melbourne are having a change of heart. Such observations then allow intelligent commentaries where investment bank Morgan Stanley declared this week that the housing boom had peaked. What we are seeing at the moment is much tighter lending rules, a very strong likelihood that Sydney now has an oversupply of new apartments and migration rates are slowing.</p>
<p>When this happens we can expect to see the apartment sales slowing considerably and prices starting to significantly ease which is long overdue. The difference that must be noted is this time around prices may ease naturally as against crashing where today we need to remember we are looking at an entirely different market specific.</p>
<p>If the overseas investors withdraw from the new developments then the prices only in those individual developments would be affected. Although we then find ourselves back at mood indicators where consumer confidence would decline significantly which then flows onto property prices.</p>
<p>Having said that the overseas investors have been clearly the most dominant with the off – the – plan sales so there are still a very large number of local investors waiting to absorb whatever re – sales come onto the market. What we don’t know is how sympathetic they will be to the developers pricing where the previous sale price won’t be that relevant. The developers have already pocketed the 10 per cent deposit although depending on the number of defaults the new pricing could be down by 20 per cent plus given the hype is not there anymore.</p>
<p>There are two topics that will be intriguing in 2016 – coincidentally they both start with the letter “p”;  property and of course politics.</p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 60</p>
<p>• Number of houses on the market last week – 52</p>
<p>• Number of houses on the market this week – 51</p>
<p>• Number of apartments on the market this time last year – 41</p>
<p>• Number of apartments on the market last week – 51</p>
<p>• Number of apartments on the market this week – 52</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year –9</p>
<p>• Number of houses on the market last week – 7</p>
<p>• Number of houses on the market this week – 5</p>
<p>• Number of apartments on the market this time last year – 18</p>
<p>• Number of apartments on the market last week – 22</p>
<p>• Number of apartments on the market this week – 21</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 6</p>
<p>• Number of houses on the market last week – 3</p>
<p>•Number of houses on the market this week – 7</p>
<p>• Number of apartments on the market this time last year– 35</p>
<p>• Number of apartments on the market last week – 29</p>
<p>• Number of apartments on the market this week – 28</p>
<p> </p>
<p><em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
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Property markets brace for hysteria and usual faux pas: Robert Simeon

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<div>The ABS released its Residential Property Price Indexes to June 2015 last week. </div>
<div> </div>
<div>As you can see in the first chart below, over the dozen years since September 2003 on average established capital city houses (+89%) have outperformed attached dwellings (+73%).</div>
<div> </div>
<div><a href="/images/2015/09/28/RPI1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/28/RPI1.jpg" alt=""></div>
<div> </div>
<div>
<div class="separator">Since the full ABS indices only track back to Q3 2003, Sydney will naturally appear to be a moderate performer on this index, since the harbour city's preceding boom peaked on this data series almost immediately thereafter in Q4 2003.</div>
<div class="separator"> </div>
<div class="separator">The strongest performing cities through the mining boom were Darwin - by a huge margin - and Perth. </div>
<div class="separator"> </div>
<div class="separator">A number of cities in resources regions also performed strongly through the mining construction boom, although that particular dream has turned on a dime into an illiquid nightmare for many owners of property in mining towns.</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2015/09/28/RPI2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2015/09/28/RPI2.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<div>
<strong><span style="text-decoration: underline;">Houses</span></strong><br><br>Looking in the second chart below at established houses only since Q3 2002, Sydney has been playing some serious catch-up over the past three years.</div>
<div> </div>
<div>Melbourne has also had a solid run, while there have been some steady gains of late for Brisbane, Adelaide and Hobart.<br><br>The most interesting point of note is how the long run data since 2002 seems to imply a convergence of the results for all eight of the respective capital cities.</div>
<div> </div>
<div><a href="/images/2015/09/28/RPI3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/28/RPI3.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Attached dwellings</span></strong><br><br><span>Meanwhile the attached dwellings only index below reveals a similar pattern, although on average it records a slightly less dramatic incline through the present cycle to date, but less impressive growth in a number of cheaper cities where demand for apartment dwelling is less robust.</span><br><br><span>Note that the ABS data for attached dwellings only runs back to Q3 2003 which partly accounts for the lower growth over the full history of the data.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/28/Attached%20dwellings.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/09/28/Attached%20dwellings.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>Of course while these figures are useful indicators they are based upon averages and can mask any number of sub-trends.<br><br><strong><span style="text-decoration: underline;">Suburbs</span></strong>
</div>
<div> </div>
<div>The same holds true for long run analysis of median prices at the suburb level, where miniscule sample sizes can skew results materially.<br><br>There has also been the small matter of a once-in-a-century mining boom combined with a one-off structural shift to lower interest rates to take account of.<br><br>As as a result those "top 100 best performing suburbs" lists almost invariably include a number of remote suburbs that few people have heard of where median house prices are around $150,000.<br><br>Since $150,000 is more or less the cost of building a house today, it follows that the real appreciation in land values has actually been weak, and the strong "growth" results are just as likely to be quirk of sampling.<br><br>The <a href="https://petewargent.blogspot.co.uk/2014/10/long-run-uk-house-prices" target="_blank">house I grew up in</a> is a great example, having apparently achieved incredible compounding capital "growth" of an amazing 9 per cent per annum for fully 35 years!<br><br>Thing is, you take off the cost of the extension, the replacement of the dodgy carport with a garage, and various upgrades to the interior, and the capital growth in real terms has been zero percent.<br><br>Cheaper properties can sometimes come with other associated problems - such as tenancy or vacancy risk - while any unfortunately substantial repair cost (e.g. for the roof) can wipe away years of returns at a stroke due to the lower base cost of the asset.<br><br>Moreover suburb median prices are by and large a waste of time - the only statistics that really tell you anything worthwhile when it comes to real estate are like-for-like sales. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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</div>
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