<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer Big Projects brought in the renowned Sydney-based design studio YSG to craft the interiors for The Frederick, Big Projects' new Mermaid Beach project and YSG's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for Big Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Architecture, with landscape design by LDG.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Joel Robinson

Big Projects taps Sydney’s YSG for first multi-residential project at The Frederick Mermaid Beach

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

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


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

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


First look: NewQuest Property proposes new St Ives apartment development

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


Bilinga House apartments snapped up as Greyburn commences construction

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
<p>GUEST OBSERVER</p>
<p>The Australian Bureau of Statistics (ABS) released consumer price index (CPI) data for the September 2016 quarter last month. </p>
<p>According to the data, headline inflation increased by 0.7 percent over the quarter to be 1.3 percent higher over the year. </p>
<p>Meanwhile, underlying inflation was recorded at 0.3 percent over the quarter and 1.5 percent higher over the past 12 months. Both headline and underlying inflation have increased at a rate below the RBAs target range of 2 percent to 3 percent. </p>
<p>This would usually see the RBA cut interest rates to try and lift inflation however, the previous cuts in May and August, which had the same intent, have not successfully lifted inflation. </p>
<p>What those cuts did manage to do was re-energise growth in housing, particularly in Sydney and Melbourne. </p>
<p>For this reason there is some speculation as to whether the RBA will risk cutting interest rates again given concerns that a lower cash rate will fail to push the dollar lower and lift inflation but add further heat to an already strong housing market.</p>
<p>With the CPI data released, we can pair it with the CoreLogic home value index data to September 2016, in order to obtain an understanding of real growth in values. </p>
<p>Although headline value growth is lower than it was a year ago, so too is headline inflation which mean that real value growth, particularly in Sydney and Melbourne remains strong.</p>
<p><a href="/images/2016/10/31/CoreLogic%201.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/31/CoreLogic%201.jpg" alt=""></p>
<p>The above chart highlights the real and nominal changes in home values across each capital city over the 12 months to September 2016.  In both real and nominal terms values have fallen over the past year in both Perth and Darwin while they have increased across each of the remaining capital cities. </p>
<p>There’s also been evidence that along with Sydney and Melbourne, where growth has been strong for almost four years now, value growth has also picked up in other cities such as Adelaide, Hobart and Canberra.</p>
<p><a href="/images/2016/10/31/CoreLogic%202.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/31/CoreLogic%202.jpg" alt=""></p>
<p>If you look at the compound annual change in real home values over the past five, ten and 15 years, the 15 year time-frame in most capital city provides the strongest performance. </p>
<p>The clear exception is in Sydney where the last five years have resulted in the strongest annual returns.  In contrast, across all other capital cities except for Perth and Hobart the past five years have recorded the weakest annual growth across each of the three time-frame. </p>
<p>This result really highlights the strength of the Sydney market over the past five years and its relative weakness over the 10 years preceding.</p>
<p><a href="/images/2016/10/31/CoreLogic%203.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/31/CoreLogic%203.jpg" alt=""></p>
<p>Since the end of 2008 (ie post GFC), growth in home values has significantly skewed towards the Sydney and Melbourne housing markets. </p>
<p>As highlighted in the above chart, when adjusted for inflation values are lower that they were at the end of 2008 in Brisbane, Adelaide, Perth, Hobart and Darwin. </p>
<p>Sydney and Melbourne have also seen a substantially greater increase in values relative to Canberra which was the only other capital city to have seen an increase in real home values.</p>
<p><a href="/images/2016/10/31/CoreLogic%204.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/31/CoreLogic%204.jpg" alt=""></p>
<p>Sydney and Melbourne are the only two capital cities in which real home values are now back above their previous peaks. </p>
<p>After peaking all the way back in the March 2004 quarter, real home values in Sydney are now 35.3 percent higher in Sydney and in Melbourne they are 17.2 percent higher than their September 2010 peak. </p>
<p>All other capital cities are still recording real home values below their previous peaks.  The magnitude of these declines are recorded at: -10.2% in Brisbane, -5.3 percent in Adelaide, -20.2 percent in Perth, -15.6 percent in Hobart, -23.8 percent in Darwin and -1.0 percent in Canberra. </p>
<p>In some of these cities, values peaked many years ago, as far back as 2007 in Perth and Hobart and 2008 in Brisbane.</p>
<p>Although interest rates are low and in real terms homes have been becoming more affordable outside of Sydney and Melbourne it still hasn’t proved to be enough to lure substantial demand and subsequent growth across the other capital cities. </p>
<p>What this highlights is the importance of employment, what sets Sydney and Melbourne apart, outside of more expensive housing prices, is the fact that they both have strong economies which are creating jobs. </p>
<p>Housing affordability alone is no longer enough to attract an increasing level of housing demand, you need a strong economy and the jobs that go along with those strong economic conditions.</p>
<p>Perth and Darwin in particular are well into a fairly substantial value decline phase which is appears set to continue.  Since their respective market peaks in September 2007 and September 2010, real home values are now -20.2 percent and -23.8 percent lower respectively.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
</body></html>

ckusher-ujnxiKuFQs

Home values now more than 20 percent down in Perth and Darwin

<html><body>
<p>When I described Australia’s price data mess at a recent seminar, many in the audience were incredulous.</p>
<p>Some had believed that if a national newspaper told them Sydney prices had risen 10 percent, based on figures from a well-known research entity, then that was a fact to be relied upon.</p>
<p>If a research report portrayed a 10 percent decline in Darwin apartment prices, that was information you could take to the bank.</p>
<p>I showed that audience how different the reality was. With scary regularity, figures about prices from one source are commonly contradicted by data from others.</p>
<p>The problem is, no one in Australian media seems to have noticed. If journalists are aware, they’ve decided to ignore that reality because it makes life complicated.</p>
<p>So this week media dined out on the latest price figures from CoreLogic. Here’s a sampling of the headlines:-</p>
<p><em>Sydney house prices cement return to double-digit growth</em> (AFR)</p>
<p><em>Sydney, Melbourne, Canberra house prices galloping ahead</em> (New Daily)</p>
<p><em>Strong early spring for Melbourne home prices as values rise again</em> (Herald Sun) </p>
<p>There were many other similar ones. Those headlines and the articles that followed showed a blind acceptance of the figures from that one source as absolute fact.</p>
<p>But they’re nothing of the sort. They’re just one version of the truth, which can change dramatically depending on who you’re listening to. </p>
<p>Sydney house prices were stated by CoreLogic to have risen 10.9 percent in the past year. Stand by for another TV cameo from Alan Kohler, telling ABC watchers that Sydney’s still booming.</p>
<p>But the latest figures from Domain claim that annual house price growth in Sydney is just 2.1 percent. Meanwhile, SQM Research reports annual growth of 1.7 percent and Residex says 2.1 percent. </p>
<p>There are similar discrepancies with the figures for the Sydney apartment market. CoreLogic reports an annual rise of 9.1 percent, while SQM says 4.0 percent, Residex 4.2 percent and Domain just 0.9 percent.</p>
<p>The most recent Property Price Indexes from the ABS reported a rise of 3.6 percent for Sydney.</p>
<p>Those are big differences. One source claims Sydney is still booming while others portray an end to the boom. You’ll notice that CoreLogic is very much the odd one out.</p>
<p>But the differences are even more startling in other cities.</p>
<p>CoreLogic reports a 10.2 percent annual rise for Darwin’s apartment market, but Residex records a 10.9 percent decline. One portrays a boom and the other a disaster. They can’t both be right – and there’s a strong possibility they’re both wrong. Domain records a 4 percent rise and SQM a 2.7 percent fall.</p>
<p>SQM says Hobart’s apartment market is up a rather spectacular 21.7 percent, but Domain reports an 11.7 percent decline. One claims a nation-leading runaway boom and the other a catastrophic decline.</p>
<p>What are we to believe?</p>
<p>CoreLogic reports a rise of 6.3 percent for apartment prices as the average situation across the eight capitial cities. Economists interpret this as “Australian apartment prices are up 6.3 percent” while myopic ratings agencies like Standard &amp; Poor’s see it (taken in conjunction with the high levels of new supply) as evidence that a “sharp correction” in prices is looming.</p>
<p>But are “Australian apartment prices” really up 6.3 percent? SQM records an overall position of a 0.1 percent decline for that same market, while Domain reports a rise of just 1.2 percent and Residex says the market overall is up 3.9 percent.</p>
<p>Similarly, what are we meant to believe about Sydney’s median house price? The price of the mid-range Sydney house is $920,000, $1,068,000 or $1,165,000, depending on which researcher you believe. There’s a difference of $245,000 between the highest and the lowest.</p>
<p>The greatest problem is the way media reports each set of figures. Each is re-cycled to the public as fact. No one highlights the reality that they’re statistics from a single source and that other sources are delivering different results.</p>
<p>It’s a serious situation. Consumers base big investment decisions on these figures. They shouldn’t, but they do. </p>
<p>I’ve heard investors talking about their intention to dive into the Sydney market because they read somewhere that prices are still rising at a double-digit rate. They missed the previous week’s article which said prices were rising only 2 percent.</p>
<p>We’re at a point where consumers can believe almost nothing that they read on real estate prices.</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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terryryder-YECXbqmri2

Consumers can believe almost nothing they read on real estate prices

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<p>Another solid preliminary auction clearance rate of 79.5 percent for Sydney this weekend.</p>
<p>There were some big numbers posted in the eastern suburbs, and Bondi and Paddington in particular.</p>
<p>Around the traps the suburbs of Mosman and Strathfield accounted for most of the big ticket sales. </p>
<p>The median auction price was $1,221,500. </p>
<p>This was some way down from the record preliminary result of $1,337,000 seen a fortnight ago, but then this was expected given that there were more than 750 homes going under the hammer this weekend.</p>
<p><a href="/images/2016/11/21/SYD1.jpg" target="_blank">Click to enlarge</a></p>
<div id="post-body-6237524374760409440" class="post-body entry-content">
<div><img src="/images/2016/11/21/SYD1.jpg" alt=""></div>
<br><div>The median auction price is a crude and volatile measure at the best of times.</div>
<div> </div>
<div>However, smoothing the figures on a monthly basis reveals a more consistent picture, with prices tracking fairly consistently at about 10 to 12 per cent higher than a year ago. </div>
<div> </div>
<div><a href="/images/2016/11/21/SYD2.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/11/21/SYD2.jpg" alt=""></div>
<div> </div>
<div>Next weekend will provide a stuff test for the Sydney market as the spring auction Super Saturday arrives before silly season and the big wind down to Christmas.</div>
<div> </div>
<div>And that will soon be another year gone! Hectic.</div>
<div> </div>
</div>
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<div class="post-footer-line post-footer-line-1">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

Sydney auctions solid ahead of Super Saturday

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<p>Although values have been increasing for almost 4.5 years, homes continue to sell quite rapidly with a relatively low level of discounting occurring from vendors.</p>
<p>The vendor discount and time on market metrics are important measures of current market conditions. The vendor discounting metric looks at properties selling for less than their original list price and looks at the percentage difference from initial list price to ultimate sale price. </p>
<p>The time on market metric shows the average number of days between when a property is first listed and when it ultimately sells. It’s important to note that each of these measures is based on private treaty sales and therefore excludes auctions.</p>
<p>In September 2016, the average days on market across the combined capital cities was recorded at 39 days. At the same time a year earlier the average days on market was a slightly lower 36 days. </p>
<div>
<h3>Average days on market, combined capital cities</h3>
<p><a href="/images/2016/11/23/2016-11-17--pp-image1.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/23/2016-11-17--pp-image1.png" alt=""></p>
<p>The second chart highlights the average days on market figure across each of the capital cities for each of the past 8 years in September. Over recent years homes have been selling much quicker in Sydney and Melbourne than they have across the other capital cities. Homes in Hobart and Canberra have seen fairly large falls in days on market over the past year which aligns with accelerating value growth. In Perth and Darwin homes have seen a large rise in the average days on market as selling conditions have become tougher and values have declined.</p>
<h3>Average days on market, individual capital cities as at September </h3>
<p><a href="/images/2016/11/23/2016-11-17--image2.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/23/2016-11-17--image2.png" alt=""></p>
<p>In September 2016, the typical home which sold at a discount from its original listing price was discounted by -5.7 percent across the combined capital cities. In comparison, at the same time a year earlier the typical level of discounting was recorded at -6.0 percent. The lower level of discounting is reflective of more demand and fewer homes for sale but is also likely to reflect more realistic initial listing prices from vendors.</p>
<h3>Average vendor discount, combined capital cities</h3>
<p><a href="/images/2016/11/23/2016-11-17--pp-image3.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/23/2016-11-17--pp-image3.png" alt=""></p>
<p>The final chart shows the discounting levels for each capital city in September over each of the past 8 years. Once again Sydney and Melbourne, along with Canberra, have been seeing low levels of discounting by vendors over recent years. In Sydney and Melbourne in particular this is indicative of strong housing demand which has led to many homes selling in excess of their initial list price. Despite only moderate growth in values over recent years Canberra has consistently recorded low levels of discounting. In Perth and Darwin as the housing market has wakened over recent years discounting levels have increased significantly.</p>
<h3>Average vendor discount, individual capital cities as at September</h3>
<p><a href="/images/2016/11/23/2016-11-17--image4.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/23/2016-11-17--image4.png" alt=""></p>
<p>After combined capital city home values have been increasing for almost four and a half years (mainly in Sydney and Melbourne) the level of discounting and time on market remains extremely low. This is being driven by ongoing strong housing demand coupled with relatively low stock levels.  While these conditions persist it is difficult to see how home values in Sydney and Melbourne in particular, won’t continue to increase.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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Homes are selling much quicker in Sydney and Melbourne: Cameron Kusher

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<div id="post-body-2934597644349298689" class="post-body entry-content">
<div class="separator">Some years ago there were doomsday predictions of a property correction in Australia since dwelling prices had reached three times the value of our Gross Domestic Product (the exact relevance of the three times figure was never adequately explained).</div>
<div class="separator"> </div>
<div class="separator">Today, the ratio is just over 3.6 times, having ticked down slightly over the past six months of publicly available official figures.</div>
<div class="separator"> </div>
<div class="separator">Is there a link between the two measures? Kind of, but it's not very strong.</div>
<div class="separator"> </div>
<div class="separator">In fact, as a predictor of property prices the ratio has been useless in recent years. Actually, no, it's been worse than useless - it has been a contra-indicator!</div>
<div class="separator"> </div>
<div class="separator">One problem with GDP is that it's historic in nature, so at best it tells you what was happening in the economy months ago - thus as an indicator of future outcomes it's necessarily all that useful.</div>
<div class="separator"> </div>
<div class="separator">More pertinently this ratio doesn't make a lot of logical sense since it compares a <strong>stock</strong> value at a fixed point in time with a <strong>flow</strong>, being the value of goods and services produced over a specified period of time (in the example in the chart below, one year).   </div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/07/06/STOCK.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/06/STOCK.jpg" alt=""></div>
<br><div>Furthermore, some types of property in thinner markets fare much better in times of boom, and worse in times of bust. And some types of property in some inner suburban locations tend to outperform the averages over time, while properties is lower demand generally fail to keep pace with the averages.</div>
<div> </div>
<div class="separator"><strong><span style="text-decoration: underline;">Key national accounts aggregates</span></strong></div>
<div class="separator"> </div>
<div class="separator">In today's electronically connected world, hordes have wanted to be the person to 'call' the next Australian recession. But the economy has proved to be surprisingly robust, with the annualised rate of GDP growth for the past six months accelerating to 3.6 per cent. </div>
<div class="separator"> </div>
<div class="separator">The riposte has been that GDP is the "wrong" measure - we should ignore GDP and look at national income. </div>
<div class="separator"> </div>
<div class="separator">It is indeed true that real (i.e. adjusted for inflation) gross national income has stalled, but then again Australia's commodity prices could not and did not grow to the sky, so this isn't necessarily that surprising. </div>
<div class="separator"> </div>
<div class="separator">Another way to look at this is that national income has more than doubled over the past twenty years, even after accounting for inflation.</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/07/06/GDP.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/07/06/GDP.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">Moreover, if GDP is an unreliable measure of the performance of the economy, how can it be a good measure of dwelling prices? Can't have it both ways! </div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">National accounts</span></strong></div>
<div class="separator"> </div>
<div class="separator">The national accounts provide us with a range of figures relating to the property markets, but as implied by the name of the data release the figures are national and backward-looking in nature, and therefore don't really tell us much of interest about what sub-regional property markets are up to or will be up to.</div>
<div class="separator"> </div>
<div class="separator">As noted, the national accounts lag a bit, but broadly home owners owe about $1 trillion in mortgage debt, and investors about $550 billion. What is not so well shown by these figures is that mortgage buffers and offset accounts are also at record high levels. </div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/07/06/DEBT1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/06/DEBT1.jpg" alt=""></div>
<br><div>With dwelling price growth having outpaced the growth in household debt, gearing ratios have declined in recent years.</div>
<br><div class="separator"><a href="/images/2016/07/06/DEBT2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/06/DEBT2.jpg" alt=""></div>
<br><div class="separator">None of which tells of much of any predictive value. We can all think of housing markets in Australia that are overvalued; but equally we can all name others where prices are getting walloped or have already crashed. </div>
<div class="separator"> </div>
<div class="separator">If there is one ratio from the national accounts which is useful in predicting where to next for dwelling prices - and I'm not saying that there necessarily is - it's the ratio of housing interest payable to income. </div>
<div class="separator"> </div>
<div class="separator">The actual quoted percentage figure is skewed lower since so many households have no mortgage debt at all, but has declined from a peak of 16.4 per cent in June 2008 to 9.7 per cent by December 2015. </div>
<div class="separator"> </div>
<div class="separator">On this measure, mortgage repayments are more than 40 per cent cheaper than they were at their 2008 peak.</div>
<br><div class="separator"><a href="/images/2016/07/06/INTEREST%20PAYABLE.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/06/INTEREST%20PAYABLE.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">Rates heading lower?</span></strong></div>
<div class="separator"> </div>
<div class="separator">It would be fair to say that if mortgage rates head back to where they were at their most recent peak of about 8 to 9 per cent, then many of Australia's housing markets are heading into correction territory. </div>
<div class="separator"> </div>
<div class="separator">It's an interesting bet if you want to take it on. But money markets are begging to differ, with yields grinding out new lows in anticipation of possible Brexit turmoil. </div>
<div class="separator"> </div>
<div class="separator">Yesterday Australia's 10 year government bond yield fell to its lowest ever level at well below 2 per cent.</div>
<br><div class="separator"><a href="/images/2016/07/06/RBA.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/06/RBA.jpg" alt=""></div>
<br><div>Meanwhile, OIS rates are on a seek and destroy mission to crunch out new record lows, and they are winning that particular battle. We are now just one benign inflation print from seeing a new record low cash rate in August.</div>
<br><a href="/images/2016/07/06/OIS.jpg" target="_blank">Click to enlarge</a>
</div>
<div class="post-body entry-content">
<img src="/images/2016/07/06/OIS.jpg" alt=""><br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><br><div>GDP is a useful measure of the strength or otherwise of the economy. And over the long term stronger economic growth may be reflected in higher dwelling prices - but not necessarily so, since there are so many other contributory factors, such as tax settings or the supply of new dwellings, for example. </div>
<div> </div>
<div>It's true that property prices can fall during recessions. But then again they can fall when GDP is positive such as they did in 2011 and early 2012.<br><br>And what about China, where real GDP growth has slowed from above 13 per cent in 2007 to just 6.7 per cent (if you can call 6.7 per cent slow), yet house prices in Shenzhen have skyrocketed by more than 50 per cent within the past year?<br><br>Obviously there are many other factors at play than purely economic growth.  And if there is a correlation between GDP and dwelling stock valuations, it's a tenuous one. </div>
<div> </div>
</div>
<div class="post-footer"> 
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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The GDP myth and doomsday property predictions: Pete Wargent

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<p>Forecaster BIS Shrapnel this week used apartment oversupply as part of the justification for predicting (minor) price decline in some of our major cities over the next three years.</p>
<p>While I certainly share their concerns about over-building of high-rise apartments, I don’t agree that this means prices generally will fall in those cities.</p>
<p>Does a unit over-supply in inner-city Adelaide or Brisbane prevent house prices from growing in housing markets in the middle-ring and outer suburbs?</p>
<p>On the Gold Coast, past oversupply has resulted in key locations like Surfers Paradise having pricing levels lower than 10 years ago. But it hasn’t prevented inland housing suburbs from delivering price growth averaging 4-5 percent per year over the past decade.</p>
<p>So I expect price growth in housing markets in Brisbane, Adelaide, Canberra and Hobart – as well as the Gold Coast – regardless of the over-supply issue in the high-rise areas of those cities. I’m not expecting much from Sydney or Melbourne in the next few years, because those markets have passed their peaks and sales levels have fallen away dramatically, leading to price stagnation or minor decline.</p>
<p>The unit oversupply is a separate issue – and a serious one. It’s significant that lenders are including high-rise areas on blacklists, that developers are deferring planned projects and that vacancy rates are rising in key areas.</p>
<p>This week I updated vacancy rates for Brisbane inner-city suburbs for a seminar presentation. There has been a market blow-out in vacancies in all six suburbs I reference in that presentation. Most now have vacancies in the 5-6 percent range, according to SQM Research figures. </p>
<p>In the space of three months, the vacancy rate for the Brisbane CBD has increased from 4.4 percent to 5 percent, while Woolloongabba is up from 4.8 to 5.5 percent and New Farm has increased from 5.3 to 6.1 percent.</p>
<p>These statistics will worsen as projects now under construction are completed and their apartments join the rental pool – because very few of the sales are being made to owner-occupiers.</p>
<p>Apartment markets with current or looming surpluses of stock make up half of the 10 markets highlighted in my No Go Zones report (the only half being regional areas impacted by the resources sector).</p>
<p>This really is one of the core issues facing the property industry. While the developer lobby keeps running the party line about dwelling shortages – despite two years of record building approvals pumped up by apartment projects – the big issue is the opposite problem of surplus.</p>
<p>It’s inevitable that, in some markets, vacancies will rise, rents will fall and values will be impacted.</p>
<p>As BIS Shrapnel senior director Angie Zigomanis says: “Nearly all capital cities are building apartments at record rates on the back of the recent strength in investor demand. As these projects are progressively completed, it is likely that there will not be enough tenants in a number of cities to support rents and consequently values upon completion.”</p>
<p>I’m amazed at how many people are still buying apartments in Surfers Paradise, inner-city Melbourne and inner-city Brisbane, and by the number of new projects seeking approval in oversupplied markets like Perth, Brisbane and Melbourne.</p>
<p>Across the key high-rise suburbs of the Gold Coast, Melbourne and Brisbane, 8,242 people have bought apartments in the past 12 months, including 1,588 in Surfers Paradise and 1,501 in the Melbourne CBD. </p>
<p>Do these people not read? Don’t they have access to the Internet? The warnings from analysts, commentators, lenders and the Reserve Bank over the past 12-18 months add up to a deafening roar.</p>
<p>If you’re ignoring all that and still buying high-rise units off-the-plan in these markets - or if you’re oblivious to it because you haven’t done even the most basic research - you deserve to lose money.</p>
<p> </p>
<p>Te<em>rry Ryder is the founder of hotspotting.com.au</em></p>
<p><span><a href="mailto:hotspotting@gmail.com"><em>hotspotting@gmail.com</em></a></span></p>
<p><em>twitter.com/hotspotting</em></p>
<p><em> </em></p>
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Apartment over-building doesn't mean prices will fall: Terry Ryder

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<div id="post-body-7578333087738143264" class="post-body entry-content">
<div>A strong +1.6 percent increase in job advertisements in June saw year-on-year vacancies rise very strongly by +11 percent to a total of 169,600, according to the Department of Employment.</div>
</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content"><a href="/images/2016/07/21/Job%20Abs2.jpg" target="_blank">Click to enlarge</a></div>
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<img src="/images/2016/07/21/Job%20Abs2.jpg" alt=""><br><div><em><span style="text-decoration: underline;">Source: Department of Employment</span></em></div>
<br><div>Total vacancies are now at their highest level in four years, which bodes well for jobs growth picking up. </div>
<br><div class="separator"><a href="/images/2016/07/21/Internet%20Job%20Ads.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/21/Internet%20Job%20Ads.jpg" alt=""></div>
<div> </div>
<div>Since the peak of the mining boom June 2012, the share of total vacancies located in Western Australia has declined from 15.6 percent to 7.8 percent. </div>
<br><div>On the other hand there has been a huge surge in vacancies in New South Wales over the past three years, up by 37.4 percent in trend terms to a massive 91,400 (a record boom). </div>
<div> </div>
<div>Over the past year the percentage growth in vacancies has also been very strong in Victoria, Queensland, South Australia, Tasmania, and the ACT. </div>
<br><div class="separator"><a href="/images/2016/07/21/Job%20Ads4.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/07/21/Job%20Ads4.jpg" alt=""></div>
<div> </div>
<div>In trend terms all eight occupation groups are strengthening, and over the year job advertisements were up in 33 of the 37 recorded regions. </div>
<div> </div>
<div>The decreases were seen in northern Queensland, Perth, and western Tasmania.</div>
<div> </div>
<div><a href="/images/2016/07/21/Job%20ads5.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/07/21/Job%20ads5.jpg" alt=""></div>
<div> </div>
<br><div>The index has its weaknesses, particularly since it doesn't differentiate between full time and part time gigs.</div>
<br>Nevertheless, all in all, this looks pretty good for jobs growth in the second half of 2016.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<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>
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Job ads up to a four-year high: Pete Wargent

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<p>When it comes to developing, we have all heard about the Development Application (DA) and the Construction Certificate (CC), but how and what exactly is involved with each council approval? </p>
<p>It is important to understand this process before you start developing.    </p>
<p>The DA and CC are two very different approvals. If you find a DA approved site but the CC has not yet been issued, then you should understand that there is still a lot of work to do before you can start to build.</p>
<p><strong>Development Application (DA)</strong></p>
<p>The DA is a request for permission to carry out proposed development. It also categorises the developments as requiring consent, developments not requiring consent (Complying Development, CDC) and prohibited development.  </p>
<p>A development application is required for the following reasons:</p>
<ul>
<li>- Construction of new building or structure, including swimming pools, outbuildings, <br>   retaining wall, jetties, etc </li>
<li>- Add or alter an existing building or structure </li>
<li>- Demolish a building or structure </li>
<li>- Display an advertising sign </li>
<li>- Change the use of an existing building or land </li>
<li>- Carry out excavation, earthworks or adding fill </li>
<li>- Development on or near a heritage listed item </li>
<li>- Development within a heritage conservation area </li>
<li>- Subdivide land or strata subdivide a building</li>
</ul>
<p>A development application must consist of at least:</p>
<ul>
<li>- Completed application form and fees. </li>
<li>- Copies of Site Plans indicating location of the proposed development on the land. </li>
<li>- Copies of Plan/Drawings of the proposed development indicating elevations heights. </li>
<li>- Other supporting documents (if required) </li>
</ul>
<p><strong> Construction Certificate (CC)</strong></p>
<p>A Construction Certificate is required after the DA Consent is issued and before any building work is carried out.  You can apply for a Construction Certificate only if you have prepared detailed plans, specifications or engineering details.  And importantly, if all the council and other service fees and charges have been paid.  This is where some first time developers may get caught out when buying a DA approved site.  It’s very important to understand the Conditions of the DA Consent and how they will impact the development.</p>
<p>The Construction Certificate certifies that relevant matters are adhered to, this includes:</p>
<ul>
<li>- the construction plans and specification comply with the relevant standards (ie Building <br>   Code of Australia);</li>
<li>- the construction plans and specifications are consistent with the development consent; <br>   and </li>
<li>- all conditions of the development consent requiring compliance prior to the issue of a <br>   construction certificate are finalised.</li>
</ul>
<p>Note: The CC is not required for complying development, where building details are covered by a <br> Complying Development Certificate (CDC).</p>
<p>If you are unsure of the planning process, then use a qualified planning consultant or development project manager.  </p>
<p><span><em><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><a href="https://www.propertybloom.com.au">.</a></em></em></span></p>
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Understanding the planning process: Jo Chivers

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<p>The growing number of available apartments for-lease in Sydney; should send shivers down the spines of newbie investors that bought off-the-plan.</p>
<p>Not to mention, the investors that bought due to, fears of missing out (FOMO) and being pressured from so called financial-advisors (so called experts), the spruikers.</p>
<p>Unfortunately, this problem of oversupply and the lack of tenants won’t go away over the next few years, if not longer. Not even if you drank a few strong coffees and all to quell your fears.</p>
<p>Recent mainstream reports, are already talking about 200,000 new dwellings yet to be built and all coming to completion within the next 24 months.</p>
<p>Below is a preview of the growing local Sydney vacant-apartment market, in some of our suburbs. (Data sourced from leading property portal adds)</p>
<p><strong>Tips on how to get your apartment tenanted, in a market of growing apartment-rental oversupply.</strong></p>
<p>If you are one of the unfortunate investors, in any one of these apartment blocks or areas where there is a vast amount of vacancies; take these simple steps to have your property leased quicker than the others:</p>
<ul>
<li>Insist on obtaining access to your unit prior to settlement: to take internal photos for advertising and to show the property to prospective tenants.</li>
<li>If you bought through an agency or marketing-company, note that this same company sold to a lot of other investors: therefore, list your property with a local property management agent (PM), they will focus more on your property.</li>
<li>Find out from the selling agents/marketing company, how many apartments are available for lease in your block. This information will give you a clear idea of the rental price offering: therefore, don’t be scared to be the first to drop the asking price in the block, if required.</li>
<li>Make sure your agent is aggressive. When you have 11-15 property managers on a building site and all waiting for potential tenants at the open: you need an agent that can move fast and one that is not shy.</li>
</ul>
<p><strong>Signs of the times</strong></p>
<p><em>Our greater audience and readers, will no doubt have more tips on what to do. The four tips shared above, have worked well for our team, in the past and lately.</em> <em>Feel free to share.</em></p>
<p>The sooner your PM team has access to the unit, the better chance you have of renting your property and at a good price.</p>
<p><strong>Recent experience</strong></p>
<p>Our team has just leased a unit in a complex of 270 apartments. The team found out that there are approximately 256 available for rent; sold to investors that is. Our PM spoke to the landlord and he quickly put in place the tips shared above.</p>
<p>The leading selling agency and other PM agencies advertised at $620+/week on like units, for-lease. Our PM advertised the unit for $620 and on the day of the open: he scheduled for an early morning open, but he still had 10 other PM agents alongside offering their landlord's apartments.</p>
<p>When a tenant approached the group and walked around the building; our PM walked up to him, asked if he was after a rental. After discussions with the Landlord and further ongoing checks and balances from our team; they signed the tenant on a 12 month lease and for $600/week.</p>
<p>Two weeks on, and you will now see on the property portals and in the same building, adds for like apartments at $520-$580/week.</p>
<p>I dare say, there is probably another 150-220 apartments still available for lease in that complex.</p>
<p><em><span> </span></em></p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
<p><em> </em></p>
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The rise and rise of Sydney rental apartments: Edwin Almeida's warning to landlords

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<p>Considering and discussing, the purchase of an investment property opens up all sorts of arguments, discussions and from time to time, polarizes the parties involved.</p>
<p>This is not to mention also spoiling a friendly neighborhood BBQ or coffee catch-up with a friend.</p>
<p>One of the many and current topics of discussion is whether we should buy new and off-the-plan apartments in one of the main three capital cities of Australia; namely Brisbane, Melbourne or Sydney?</p>
<p>I have taught and have written about off-the-plan purchases. The following reason for buying can be used as a blanket approach when considering a new apartment purchase. Notwithstanding, this strategy may be considered across any city or development, as a matter of course.</p>
<p>The main beneficial reason why an investor would buy a new apartment, before completion, was simple to understand in previous years. Developers needed pre-sales to support their construction application for the banks.</p>
<p>Pre-sales which are now predominantly called off-the-plan sales, had one major attraction in the past, which now appears to be lost. As an off-the-plan purchaser, there was a benefit; we bought early and saved from 5 and up to 10 percent the value “at the time” off the purchase price. <em>This was measured against prices of similar completed apartments, on the day</em>.</p>
<p><strong>The current trend and market for off-the-plan purchases.</strong></p>
<p>The current trend however, has bucked the reasoning behind the support given to developers with pre-sales.</p>
<p>On the one hand, developers have become greedy and with the support of the financial sector, have increased the asking price.</p>
<p>In other words, we now pay tomorrow’s market value for the apartment and with no added discount as a benefit. The underlying question is “but why?” This is all because of the highly speculative new client base: the overseas investors that have come in and in large numbers. As well as the Self-Managed Super Fund (SMSF) vehicles, set up for local speculators and investors.</p>
<p>Both overseas and SMSF investors are fueling the new-apartment development bubble as has never been seen before. With this in mind, developers and marketing companies have been able to increase:</p>
<ul>
<li>The end property values to account for market forces that has seen a huge upswing in prices; and</li>
<li>To pay for the high commissions paid out to marketing agents and the financial sector. Commissions in the tune of 8-10 percent.</li>
</ul>
<p><strong>The repercussion of industry greed</strong></p>
<p>The outcome of the high prices charged for new-apartments and higher commissions than the industry norm is a no-brainer; the losers are the buyers, most of the time.</p>
<p>For years, I have been discussing the need for the Real Estate Industry and watchdogs to tighten controls against this push, but my calls have fallen on deaf ears and the outcome is:</p>
<p>1)     We now have an understated over-supply of apartments across Brisbane, Melbourne and Sydney;</p>
<p>2)     The rental market cannot and will not effectively absorb the new supply, which will have an increase in rental vacancies; and</p>
<p>3)     The inevitable, valuers will value down apartments to safeguard their client’s interest, the banks.</p>
<p>We may well see drops of 20-30 percent in values and in the near future. Likewise, rental yields will diminish to 60-70 percent off what they are today.</p>
<p><strong>Supply chart of apartments to be completed in the next 12-24 moths</strong></p>
<p><a href="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.56%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.56%20AM.png" alt=""></p>
<p><strong>Where to from here?    </strong></p>
<p>I have been asked by friends, clients and family; where to from here? I have shared the following with them for over 12 months and only now the mainstream are coming to the party.</p>
<p>1)     Hold and wait; wait for another 6-12 months before looking to buy, if you need to buy new.</p>
<p>2)     Most of the new apartments are under-engineered, badly built and come with a lot of issues.</p>
<p>3)     Have you noticed that most spruikers try and only sell you, new and off-the-plan apartments? and</p>
<p>4)     Communicate as much as possible with local real estate agents that don’t have invested interest in the new development. After all, they may be the ones that will manage the property for you.</p>
<p>The caption below is an article recently posted by a colleague of mine. It is a timely argument of what is to come. This is all due to the huge oversupply of high-rise development. When we match this information with the number of apartments currently under construction; it appears to be the makings of a nightmare for investors in high-rise developments. </p>
<p><a href="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.43%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/08/10/Screen%20Shot%202016-08-10%20at%208.31.43%20AM.png" alt=""> </p>
<p>The full article may be found on: https://mortgageeproperty.com/foreign-investor-settlement-risk-soaring.html</p>
<p><strong>Tips in managing your investment</strong></p>
<p>If you do find yourself in a position that you have bought an off-the-plan apartment and your property is in the final stages of settlement; I recommend the following tip, to minimize long term vacancy.</p>
<p><em>Don’t rely on the selling agent’s “marketing company” to lease your apartment, particularly if they were the leading agency in the sales phase. You only have to ask; how many other investor’s apartments are they also trying to lease out? </em></p>
<p>Now if you are looking to invest in new apartments, our old and proven theory remains steadfast. Invest in low set building blocks and preferably one’s that have no more than three levels.</p>
<p>More importantly, be sure to and look out for the next article on: buying in low set building blocks, versus high rise apartment blocks; winners and losers.  </p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
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