<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>


Joel Robinson

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>Melbourne developer <a href="https://www.apartments.com.au/developers/pdg-corporation">PDG</a> has unveiled its vision for the former Water Tank Site in Ivanhoe, which would see it transformed into a thriving residential neighbourhood, complete with a 2000 sqm public park.&nbsp;</p>

<p>Delivered in partnership with <a href="https://www.apartments.com.au/developers/development-victoria">Development Victoria</a>, the proposal would transform the prominent corner of Bell Street and Upper Heidelberg Road into a connected community comprising two residential buildings, generous public open space and shared amenities.&nbsp;</p>

<p>The vision includes 287 one, two and three-bedroom apartments, with a minimum of 10 per cent allocated to affordable housing, alongside a 2,000-square-metre publicly accessible park featuring a children's playground, activity lawn, indigenous planting, timber climbing logs, seating areas and a rock gathering circle.&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a>, the proposal draws on the site's industrial heritage, using a robust architectural language that references the former water tank through expressive structural elements and durable, self-finished materials.&nbsp;</p>

<p>Extensive landscaping has been woven throughout the development, creating a living landscape that strengthens connections to nature while responding sensitively to the surrounding neighbourhood. Two residential buildings ranging from three to 12 storeys are linked by a landscaped forecourt, creating a welcoming arrival experience and improving pedestrian connections through the site.&nbsp;</p>

<p>Residents would also enjoy more than 1,000 square metres of communal open space, including barbecue and dining facilities, vegetable gardens, landscaped seating pavilions and a dedicated coworking space.&nbsp;</p>

<p>PDG Founder and Managing Director Vince Giuliano said the vision reflected an opportunity to transform one of Ivanhoe's most recognisable sites into a place that balanced housing, community and landscape.&nbsp;</p>

<p>"This is an opportunity to reimagine an important site and create a neighbourhood that delivers lasting benefits for Ivanhoe," Giuliano said.&nbsp;</p>

<p>"We're creating much more than new homes. The vision brings together affordable housing, quality architecture, meaningful public open space and shared places that encourage people to connect, while respecting the site's history and its place within the local community."&nbsp;</p>

<p>Development Victoria’s Executive General Manager Precincts, Niall Cunningham, said the application is an important step for the government-owned site.&nbsp;</p>

<p>“This is about delivering more homes in a well-connected location, along with public open space that the Ivanhoe community will benefit from for years to come,” Cunningham said.&nbsp;</p>

<p>PDG was selected as development partner in late 2025 following a competitive tender process.&nbsp;</p>

<p>A planning submission for the project is currently being progressed through the Victorian Government's Development Facilitation Program, with positive early engagement from both Banyule Council and the Department of Transport and Planning.</p>


PDG unveils plans to transform landmark Ivanhoe Water Tank Site

<p>Shane Wilkinson's <a href="https://www.apartments.com.au/developers/pace-development-group">Pace Development Group</a> has lodged plans for a major residential precinct on the former Presentation College site in Windsor, with an eight-building masterplan ultimately rising to 10 storeys.</p>

<p>The proposal at <a href="https://www.apartments.com.au/new-apartments/167-dandenong-road-windsor-vic-3181">167–187 Dandenong Road</a> spans a substantial 19,027 sqm site and is being progressed across six stages, with the first residential stages comprising 170 homes across four buildings designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>.</p>

<p>Stage Two will deliver the bulk of the initial housing, with Building A comprising 81 apartments and Building B 49 apartments, both rising to six storeys.</p>

<p>Stage Three will deliver a further 40 homes. The heritage Nagel Building, identified as Building C, will be converted to 12 dwellings, while a new five-storey Building D will comprise 28 apartments at the Hornby Street and Dandenong Road corner.</p>

<p>The 170 homes across Stages Two and Three will include a mix of one, two and three-bedroom apartments, including townhouse-style dwellings.<img alt="First look: Pace plans landscaped housing precinct on former Windsor school site" data-entity-type="file" data-entity-uuid="83c56e3e-dfb9-4e12-b172-c3f18513ec32" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_9.png?VersionId=xRcRpSZsxX.UX_NDDGcRZktw7HVrzx7u" /></p>

<p>&nbsp;</p>

<p>The longer-term masterplan points to considerably greater density across the site.</p>

<p>Indicative plans show Building E accommodating around 80 dwellings across up to 10 storeys, while Building F is earmarked for around 120 dwellings and also up to 10 storeys. Building G is planned to range between four and 10 storeys, however its apartment yield is yet to be determined. That means the masterplan currently identifies at least 370 dwellings across Buildings A to F before any apartments within Building G are counted.</p>

<p>Across the 1.9-hectare site, that represents an indicative density of at least 194 dwellings per hectare, with the final figure to increase once the yield of Building G is established.</p>

<p>Pace is pursuing the project through the Victorian Government's Development Facilitation Program, with Urbis lodging a combined Section 96A planning scheme amendment and planning application on behalf of the developer, which secured the site earlier this year.</p>

<p>The application seeks detailed approval for Stages One, Two and Three, alongside approval of the broader masterplan framework that will guide the later residential stages. Stage One will see an existing heritage building adaptively reused for a wellness and fitness-related facility, while the broader precinct will retain several significant heritage buildings and established trees as part of the redevelopment.</p>

<p>A minimum 10 per cent affordable housing contribution is proposed across both the initial residential stages and the later masterplan stages, delivered through a discounted rental model.</p>

<p>The project comes immediately after a major change to the site's planning controls.</p>

<p>The site was rezoned to the Housing Choice and Transport Zone through Planning Scheme Amendment GC285, gazetted on July 22, 2026, and now sits within the inner catchment of the Windsor Station precinct under the State Government's Train and Tram Zone Activity Centres Program.</p>

<p>While the new controls identify large sites within the inner catchment for buildings of up to six storeys, Pace's masterplan pushes height to 10 storeys in parts of the site, with the taller buildings concentrated toward the centre and along the Sandringham railway corridor.</p>

<p>Lower-scale built form is proposed toward the site's more sensitive residential and heritage edges, with Buildings A and B generally stepping from three storeys at their interfaces to six storeys at upper levels.</p>

<p>Cera Stribley's masterplan breaks the development into a collection of separate buildings rather than a continuous built form, with landscaped spaces, new pedestrian links and a new publicly accessible road forming part of the precinct.</p>

<p>The planning report says the development will create new pedestrian connections to Elm Place and along the railway corridor, as well as a new publicly accessible road linking Elm Place with Dandenong Road. The proposed buildings will occupy around 54 per cent of the site, leaving a substantial portion available for landscaping, communal areas and permeable surfaces.</p>

<p>Urbis said the scale of the project reflected the site's strategic location close to Windsor Station, tram services and the Chapel Street Activity Centre, with the former school campus identified as a significant opportunity to increase housing supply on an underutilised inner-Melbourne site.</p>

<p>&nbsp;</p>


First look: Pace plans landscaped housing precinct on former Windsor school site

<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>House and apartment rents are growing for landlords at the slowest pace since at least 1995 - and actually fell in July - according to CoreLogic RP Data.</p>
<p>Tim Lawless, CoreLogic's head of research, described rental appreciation was sluggish, on average less than 1 per cent a year, due to the boom currently underway in dwelling construction along with record participation in housing by investors, both domestic and foreign purchasers.</p>
<p><span lang="EN-US">Rental rates fell by 0.3% in July 2015 across the combined capital cities. </span></p>
<p><span lang="EN-US">The current annual rate of rental appreciation has reached a new record low of 0.9% and is continuing to trend lower. </span></p>
<p><span lang="EN-US">Sydney and Hobart recorded the greatest increases in weekly rents.</span></p>
<p><span lang="EN-US"><span>Dwelling rental rates across the combined capital cities are sitting at $486 per week after they fell by 0.3% over the month of July. </span></span></p>
<p><span lang="EN-US"><span>However, weekly rents are up by 0.3% over the first seven months of the year and have increased by just 0.9% over the past 12 months.</span></span></p>
<p>At a combined capital city level, gross rental yields were recorded at 3.4% for houses in July 2015 and at 4.3% for units while house rents are currently at a record low level.</p>
<p>One year ago, gross rental yields were recorded at 3.8% for houses and 4.6% for units across the combined capitals.</p>
<p>“With capital growth likely to continue outpacing rental growth, we expect that rental returns could push even lower over the coming months. From an investment perspective it means that capital growth is going to be much more important for a return on investment,” Tim Lawless said.</p>
<p>CoreLogic RP Data started its rental statistical collection in 1995.</p>
<p><span lang="EN-US"><span> </span></span></p>
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jchancellor-FAypfDUnLy

National rental growth sluggish: CoreLogic RP Data

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<div id="post-body-2519359441485115611" class="post-body entry-content">
<div>Given the weak state of other sectors of the economy, the Retail Trade figures for the month and the June quarter took on an added significance.</div>
<div> </div>
<div>In this context, especially given soft wages and slowing population growth, the June data was happily very good.</div>
<div> </div>
<div>In seasonally adjusted terms retail turnover was up by 0.7 per cent for the month leading to a strong annual result to June 2015 as charted below.</div>
<div> </div>
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<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>At the state level the impact of Sydney's housing boom and to a lesser extent that of Melbourne is evident with retail turnover rising very strongly in New South Wales and Victoria.</div>
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<div><a href="https://4.bp.blogspot.com/-shpWGnWcZqo/VcHqoDxbUTI/AAAAAAAAXXw/BQGk6eE1D-Q/s1600/rt2.jpg" target="_blank">Click to enlarge</a></div>
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<br><div>Perhaps more surprisingly, in turnover terms retail appears to have fired up a little elsewhere too, particularly in South Australia. </div>
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<strong><span style="text-decoration: underline;">Industry groups</span></strong><br><div class="separator"> </div>
<div class="separator">It has been a relatively poor time for department stores retailing, perhaps reflective of increasing demand in the online shopping space.</div>
<div class="separator"> </div>
<div class="separator">The big winner over the past year has been household goods with retail turnover pumped up by the housing prices and construction boom.</div>
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<br><div>
<span><span>Cafés</span>, restaurants </span>and takeaway expenditure has also continued to rise relentlessly over the past year, a trend which has been ongoing over the past decade, another shift which feeds off increased apartment dwelling.</div>
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<br><strong><span style="text-decoration: underline;">National accounts for Q2</span></strong><br><br><div>With June being the last month of the second quarter we also got the turnover figures reported in volume terms, which threw out an excellent result.</div>
<br><div>Retail volumes doubled market expectations to be up by 0.8 per cent for the quarter and 3.6 per cent for the year. </div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-1ZDz1D5_n4Q/VcHqoYIc3SI/AAAAAAAAXX0/4srRCHtdALo/s1600/rt4.jpg" target="_blank">Click to enlarge</a></div>
<br><a href="https://1.bp.blogspot.com/-1ZDz1D5_n4Q/VcHqoYIc3SI/AAAAAAAAXX0/4srRCHtdALo/s1600/rt4.jpg"><img src="https://1.bp.blogspot.com/-1ZDz1D5_n4Q/VcHqoYIc3SI/AAAAAAAAXX0/4srRCHtdALo/s640/rt4.jpg" width="640" height="286"></a><br><br><div>I used to do a chart here on quarterly volumes at the state level, but to be frank it's a Sunday morning and believe it or not I actually have better things to do!</div>
<div> </div>
<div>Suffice to say that New South Wales (+4.6 per cent) and Victoria (+4.4 per cent) have been the retail trade linchpins over the year to June 2015.</div>
<br>This is a very notable result given that net exports (which have contributed significantly to GDP over the past year) will evidently not been doing so in the second quarter.<br><br>I looked at how Australia racked up a record trade deficit for the second quarter in a little more detail here.<br><br><strong><span style="text-decoration: underline;">The wrap</span></strong><br><div> </div>
<div>Overall this was a really good result for retail trade in the second quarter.</div>
<div> </div>
<div>And although the retail trade data is not necessarily representative of all household consumption this suggests that GDP for the second quarter will be held up by the strong capital city economies.</div>
<div> </div>
<div>Lately various surveys have hinted at gradually improving business conditions and confidence - and jobs growth has been strong over the past year at +233,600, particularly so in Sydney.</div>
<div> </div>
<div>On the other hand capital expenditure surveys have pointed towards very weak business investment.</div>
<div>
<br>In that context, it is important that household consumption continues to produce sound results.</div>
<div> </div>
<div>The other contributor to a surprisingly upbeat GDP print in the first quarter (ex-inventories) was that of new housing, with the dwelling construction boom expected to continue over the next couple of years.</div>
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<div><a href="https://3.bp.blogspot.com/-y0n0iSGst2w/VW7aRC8nfwI/AAAAAAAAV1A/jrn7C21AbNY/s640/gdp6.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="https://3.bp.blogspot.com/-y0n0iSGst2w/VW7aRC8nfwI/AAAAAAAAV1A/jrn7C21AbNY/s640/gdp6.jpg" width="640" height="275"></div>
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<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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Housing construction helps retail remain robust: Pete Wargent

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<div>I've been quite reserved on here, but what a great Ashes series win for Alastair Cook's England team in the cricket, surprising everyone, including Alastair himself!</div>
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<div>Haven't done a "Cranewatch" post for a while. so here goes.</div>
<div> </div>
<div>The basic premise is that I take my camera out to areas of Australia which are undergoing a major transformation.</div>
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<div>Previously I've looked at Darling Harbour Live, Barangaroo (several times...including a site tour), Mascot, Green Square, Rosebery and Zetland in Sydney.</div>
<div> </div>
<div>I've also look at the Central Business District, West End and South Brisbane in...um, Brisbane.</div>
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<div>Today, a quick look around what's happening Newstead.</div>
<div> </div>
<div>As I looked at Fortitude Valley and Newstead are two other suburbs in Brisbane which are set to be transformed into apartment-dwelling hubs within close proximity to the city.</div>
<div> </div>
<div>And over the short term, of course, this will lead to an oversupply of units, a spike in vacancy rates, and softening rents.</div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-WfFR3QaK4_U/VYsLRzQaGJI/AAAAAAAAWY4/PXWxo14m46I/s640/Inner%2Bnorth.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="https://1.bp.blogspot.com/-WfFR3QaK4_U/VYsLRzQaGJI/AAAAAAAAWY4/PXWxo14m46I/s640/Inner%2Bnorth.jpg" width="640" height="500"></div>
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<div><strong><span style="text-decoration: underline;">In pictures</span></strong></div>
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<div>Facts, figures and statistics are one thing.</div>
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<div>But what does it all look like and feel like in practice?</div>
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<div>Surprisingly neat is the answer.</div>
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<div>I took the camera down yesterday for a look around the Newstead gasworks locality, which has been converted into a retail precinct with a pleasant picnic area.</div>
<div> </div>
<p><a href="https://3.bp.blogspot.com/-Uxzj5BpL_Zc/VcXDXZBV4UI/AAAAAAAAXfU/fU_0U0mfRF4/s1600/DSCN3261.JPG"><img src="https://3.bp.blogspot.com/-Uxzj5BpL_Zc/VcXDXZBV4UI/AAAAAAAAXfU/fU_0U0mfRF4/s640/DSCN3261.JPG" width="640" height="480"></a><br><br><span>The new dwellings will look like a mirror image of what is now in place in Sydney's Mascot.</span><br><br></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-Hqbr26pkIl8/VcXDUpw8MUI/AAAAAAAAXeo/VS1lJcI96EU/s1600/DSCN3255.JPG"><img src="https://4.bp.blogspot.com/-Hqbr26pkIl8/VcXDUpw8MUI/AAAAAAAAXeo/VS1lJcI96EU/s640/DSCN3255.JPG" width="640" height="480"></a></div>
<p><br><span>i.e. high density living.</span><br><br><a href="https://2.bp.blogspot.com/-oE1pg7QO2W8/VcXDV7gAFZI/AAAAAAAAXe4/_1J4B4zFZUQ/s1600/DSCN3257.JPG"><img src="https://2.bp.blogspot.com/-oE1pg7QO2W8/VcXDV7gAFZI/AAAAAAAAXe4/_1J4B4zFZUQ/s640/DSCN3257.JPG" width="640" height="480"></a></p>
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<div>The new developments have yet to fill up, but the generally "feeling" of the area is actually pretty good - the coffee shops and food bars are busy, even in the evenings. </div>
<div> </div>
<p><a href="https://2.bp.blogspot.com/-79J1UNKftPc/VcXDWL4ImZI/AAAAAAAAXfA/35xvAQMcfWg/s1600/DSCN3259.JPG"><img src="https://2.bp.blogspot.com/-79J1UNKftPc/VcXDWL4ImZI/AAAAAAAAXfA/35xvAQMcfWg/s640/DSCN3259.JPG" width="640" height="480"></a><br><br><a href="https://www.waterfront.mirvac.com/" target="_blank">Waterfront</a><span> by Mirvac is now under construction (below).</span></p>
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<p><br><span>Cranes are pretty much everywhere in Newstead and the Valley.</span><br><br></p>
<div class="separator"><a href="https://1.bp.blogspot.com/-a3GHmduOQAE/VcXDWM7o7uI/AAAAAAAAXe8/xlYt43c7Wg8/s1600/DSCN3258.JPG"><img src="https://1.bp.blogspot.com/-a3GHmduOQAE/VcXDWM7o7uI/AAAAAAAAXe8/xlYt43c7Wg8/s640/DSCN3258.JPG" width="640" height="480"></a></div>
<p><br><span>Max Brenner and the rest are set to benefit from the new infill.</span><br><br></p>
<div class="separator"><a href="https://3.bp.blogspot.com/-VzRJtr_7xe8/VcXDXZWb5DI/AAAAAAAAXfQ/C9RGKI76VFw/s1600/DSCN3260.JPG"><img src="https://3.bp.blogspot.com/-VzRJtr_7xe8/VcXDXZWb5DI/AAAAAAAAXfQ/C9RGKI76VFw/s640/DSCN3260.JPG" width="640" height="480"></a></div>
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<div class="separator">The new apartments are expensive and will likely be largely sold offshore to Chinese investors.</div>
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<div class="separator">Much better value elsewhere for domestic buyers. </div>
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<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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Brisbane's Newstead, neat but pricey: Pete Wargent

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<div>The latest <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/3401.0/" target="_blank">Overseas Arrivals and Departures</a> data for the month of June 2015 confirmed that population growth in Australia will be once again be slower in this calendar year.<br><br>As I argued a year ago, by the third quarter of 2014 it had become evident that the assumption reported widely in the media that the population of Australia would boom by around 2.4 million persons over the next six years was too high - much too high, in fact!<br><br><div class="separator"><a href="https://1.bp.blogspot.com/-ZK9-CCXjNWs/VcWS2tAESjI/AAAAAAAAXd0/LM0ux2QIp00/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-ZK9-CCXjNWs/VcWS2tAESjI/AAAAAAAAXd0/LM0ux2QIp00/s400/A1.jpg" width="400" height="65"></a></div>
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<div>In the event population growth slowed considerably to be up by an estimated +330,200 in 2014, and population growth will be slower again in 2015.<br><br>Over the longer term we might indeed expect to see much stronger levels of population growth return for the reasons I have already explored, but for the foreseeable future lower population growth will be the new norm.<br><br>Let's take a look at the implications of the latest figures in three parts.<br><br>
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<p><strong><span style="text-decoration: underline;">Part (i) - Slowing immigration nationally</span></strong><br><br></p>
<div>The number of long term arrivals into Australia has slowed further over the past year, and consequently net long term migration has pulled back to +292,000 on a rolling annual basis, sliding from a recent peak of more than +400,000.</div>
<div> </div>
<div>This suggests that population growth in 2015 will likely slow further perhaps to around +300,000 persons from +330,200 in 2014.</div>
<p><a href="https://2.bp.blogspot.com/-l47JN3T3sRc/VcWZDBPOGOI/AAAAAAAAXeM/e9Bki5YjSO8/s1600/A3.jpg" target="_blank">Click to enlarge</a></p>
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<div class="separator">One of several key potential drivers of this trend has been the sharp reduction in the number of permanent settlers from New Zealand.</div>
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<div class="separator">Meanwhile the number of permanent settler Brits has slowed to a mere trickle - just 470 settlers in June hailed from the United Kingdom, the lowest monthly figure across the full 25 years of available data.</div>
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<div class="separator">Kiwi citizens can move freely between Australia and "home" and as such are theoretically far more sensitive to shifts in labour market conditions.</div>
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<div class="separator">And while spare capacity in the labour market has being rising over the past three years in Australia, it had been tightening for some time in New Zealand.</div>
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<div class="separator">With mining construction activity now slowing sharply in Australia - and Christchurch in New Zealand seeing a high volume of reconstruction activity - it is perhaps unsurprising that fewer New Zealanders are making the trans-Tasman trip on a permanent footing (although a record 1.27 million still came to Australian shores on a short-term basis over the past year).</div>
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<div class="separator">On the other hand the number of settlers from countries such as China and India continues to slowly but surely break new heights.</div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-3t9V6rJXEx4/VcVDUvK0AdI/AAAAAAAAXco/XFqtxZxRjsE/s1600/Arr6.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator">Indeed, the overwhelming majority of settlers in Australia now hail from Asia, with the middle east the only other region or continent presently in a confirmed uptrend.</div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-h6P7CisOE5w/VcVDUyRlWmI/AAAAAAAAXck/EIlxWS9olsY/s1600/Arr7.jpg"><img src="https://3.bp.blogspot.com/-h6P7CisOE5w/VcVDUyRlWmI/AAAAAAAAXck/EIlxWS9olsY/s640/Arr7.jpg" width="640" height="282"></a></div>
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<p><strong><span style="text-decoration: underline;">Part (ii) - Record visitors to Australia</span></strong></p>
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<div>There is a flip side to the softer pace of growth in Australia's economy, and that is that falling interest rates and a correspondingly weakening currency have encouraged the tourism sector to attract a record number of short term arrivals Down Under. </div>
<div> </div>
<div>This year the rolling annual number of short term arrivals blasted past 7 million for the first time to a record 7.12 million in the 2015 financial year (denoted by the blue line below).</div>
<p><a href="https://4.bp.blogspot.com/-ZSVe0fqeMkA/VcVDTzyHU8I/AAAAAAAAXcM/3J4ENKKyCxk/s1600/Arr2.jpg" target="_blank">Click to enlarge </a></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-ZSVe0fqeMkA/VcVDTzyHU8I/AAAAAAAAXcM/3J4ENKKyCxk/s1600/Arr2.jpg"><img src="https://4.bp.blogspot.com/-ZSVe0fqeMkA/VcVDTzyHU8I/AAAAAAAAXcM/3J4ENKKyCxk/s640/Arr2.jpg" width="640" height="280"></a></div>
<p><span style="line-height: 1.3em;">While the corresponding drag on overseas travel by Australians has only been fairly gradual to date (denoted by the red line above), the weaker dollar also means that over time comparatively fewer Aussies will be inclined to make overseas trips, which in turn will act as a further boost for the domestic economy. </span></p>
<div>I holidayed on the Sunshine Coast myself in the past week, and it is quite evident that more Aussies are inclined to hang out in locations such as Noosa over the winter than has been the case in recent years.<br><br>After all, travelling overseas is not <em>quite</em> as much fun as when the dollar was at sky high levels just a few years ago!</div>
<div> </div>
<div>Accordingly the ratio of short term departures to short term arrivals has steadily been trending down for the past two years.</div>
<p><a href="https://4.bp.blogspot.com/-7dS7i5xs8Fc/VcVDTx-uYTI/AAAAAAAAXcQ/kB4tYIqk8kg/s1600/Arr3.jpg" target="_blank">Click to enlarge</a> </p>
<div class="separator"><a href="https://4.bp.blogspot.com/-7dS7i5xs8Fc/VcVDTx-uYTI/AAAAAAAAXcQ/kB4tYIqk8kg/s1600/Arr3.jpg"><img src="https://4.bp.blogspot.com/-7dS7i5xs8Fc/VcVDTx-uYTI/AAAAAAAAXcQ/kB4tYIqk8kg/s640/Arr3.jpg" width="640" height="280"></a></div>
<p><span style="line-height: 1.3em;">One trend which is definitely </span><strong style="line-height: 1.3em;"><span style="text-decoration: underline;">not</span></strong><span style="line-height: 1.3em;"> slowing down is the number of Chinese visitors to Australia with more than 1.25 million visitors from China, Taiwan and Hong Kong over the past 12 months, with the latest figures showing no signs of this emerging mega-trend easing off.</span></p>
<div>A record 563,800 Americans have also enjoyed the dramatic shift in the exchange rate over the past year.</div>
<p><a href="https://4.bp.blogspot.com/-HcD37dvFQYY/VcVDUnbykGI/AAAAAAAAXcg/2RkrnpmPbWg/s1600/Arr4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-HcD37dvFQYY/VcVDUnbykGI/AAAAAAAAXcg/2RkrnpmPbWg/s1600/Arr4.jpg"><img src="https://4.bp.blogspot.com/-HcD37dvFQYY/VcVDUnbykGI/AAAAAAAAXcg/2RkrnpmPbWg/s640/Arr4.jpg" width="640" height="276"></a></div>
<p><span style="line-height: 1.3em;">Furthermore there has been an explosion in the number of foreign students in Australia - also largely hailing from Asia - another trend which has in part been driven by exchange rate movements. </span></p>
<div><a href="https://3.bp.blogspot.com/-4h5vgAvj_7I/VcVDVj9-pdI/AAAAAAAAXc0/JuJ1O1YC4k0/s1600/arr5.jpg" target="_blank">Click to enlarge</a></div>
<div><span style="line-height: 1.3em;"> </span></div>
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<p><span style="line-height: 1.3em;">This is an emerging demographic trend which will impact Sydney and Melbourne most keenly.</span><span style="line-height: 1.3em;"> </span></p>
<div class="separator">The full impact of the depreciation of Australia's currency has yet to flow through to this data and we will certainly now see further short visitor records broken in the year ahead.</div>
<p><strong><span style="text-decoration: underline;">Part (iii) - 3 implications of lower population growth</span></strong></p>
<p><span style="line-height: 1.3em;">So what are the impacts of slower population growth in Australia, which could continue for the foreseeable future? </span></p>
<div>There will be many impacts, of course, but here are just three of the most prominent observations.</div>
<div> </div>
<div>Firstly, and most obviously, slower population growth will equate to lower demand for goods and services, which in turn over time should result in <strong><span style="text-decoration: underline;">lower economic and employment growth.</span></strong><br><br>Over the next few years there will be a lower than expected requirement for investment in building offices, warehouses, housing, machinery, plant and equipment. </div>
<p><span style="line-height: 1.3em;">Secondly, with employment growth having tracked at an estimated 2.1% or 243,600 new jobs over the past year - which is considerably faster than the estimated rate of population growth of just 1.4 per cent - the Reserve Bank now </span><a href="https://www.rba.gov.au/publications/smp/2015/aug/html/index" target="_blank" style="line-height: 1.3em;">believes</a><span style="line-height: 1.3em;"> that the </span><strong style="line-height: 1.3em;"><span style="text-decoration: underline;">unemployment rate has likely peaked</span></strong><span style="line-height: 1.3em;"> for this cycle. </span></p>
<div>Previously it had been forecast that the unemployment rate would continue rising to around 6.5 per cent, but now the unemployment rate is seen as more likely to be falling again from 2017. The darker blue shaded areas represent the Reserve's 70 per cent confidence interval.</div>
<div> </div>
<div><a href="https://1.bp.blogspot.com/-5Lzmr6uP8M0/VcV_OAii7xI/AAAAAAAAXdc/zeFRKGyrS9o/s1600/UE.jpg" target="_blank">Click to enlarge</a></div>
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<div>However, there are many regions in Australia where unemployment is still elevated or rising, particularly in resources-influenced regions and in South Australia where the trend rate of unemployment has hit 7.9 per cent and rising.</div>
<div> </div>
<div>Thirdly, with the mining investment supernova now set to implode in spectacular style, the strong rates of immigration which benefited the resources areas of regional Western Australia and regional Queensland have now ebbed away.</div>
<div> </div>
<div><a href="https://2.bp.blogspot.com/-UAU8Pw52o-w/VZsC3PaTSPI/AAAAAAAAWtQ/Ip5KWRT_itE/s640/eng2.jpg" target="_blank">Click to enlarge</a></div>
<div>
<br><img src="https://2.bp.blogspot.com/-UAU8Pw52o-w/VZsC3PaTSPI/AAAAAAAAWtQ/Ip5KWRT_itE/s640/eng2.jpg" width="640" height="274"><br><br>Accordingly <strong><span style="text-decoration: underline;">population growth has become more capital city focused</span></strong>.<br><br>The most recently available data showed that Greater Melbourne and Greater Sydney alone accounted for all but half of Australia's total population growth, while Greater Brisbane and Greater Perth accounted combined for close to nearly a quarter of the total.<br><br>Regional population growth on the other hand has in aggregate been been slow and slowing.<br><br>As for whether the mining boom will have a second wind? Highly unlikely: that's not the way that commodity cycles typically tend to work.<br><br>The Reserve Bank's Commodity Index was once again smoked by another 5 per cent on a monthly average basis in SDR terms in July to be a punishing 20.2 per cent lower over the past year.<br><br>Ouch.<br><br>In Aussie dollar terms the decline has been a somewhat less dramatic 8.5 per cent year-on-year, but nevertheless Australia's terms of trade (TOT) remain well above their long run average (and TOT booms have historically tended to over-shoot on the downside too).</div>
<p><a href="https://1.bp.blogspot.com/-Ilkpx3lP19k/VcV_OG-p3zI/AAAAAAAAXdk/KEkm_g7X5W8/s1600/Commods1.jpg" target="_blank">Click to enlarge</a></p>
<p><a href="https://1.bp.blogspot.com/-Ilkpx3lP19k/VcV_OG-p3zI/AAAAAAAAXdk/KEkm_g7X5W8/s1600/Commods1.jpg"><img src="https://1.bp.blogspot.com/-Ilkpx3lP19k/VcV_OG-p3zI/AAAAAAAAXdk/KEkm_g7X5W8/s640/Commods1.jpg" width="640" height="278"></a><br><br></p>
<div>Note that it's not just iron ore and coal prices which have been hammered as demand from China and elsewhere has slowed in the face of a glut of supply.<br><br>Oil, aluminium, copper and gold have all hit half decade lows in recent times, while the price of silver has tracked little better.</div>
<div>
<br>Slightly bizarrely - given that coal prices are well below the project's notional break even point - the Adani Carmichael Mine is one possible exception to the accelerating decline in mining investment.<br><br>Some folk with the power to exert material influence evidently has the government's ear relating to this essentially unviable mega-project.<br><br>Generally speaking, however, mining production is ramping up, there is heavy downward pressure on commodity prices, and ever fewer material projects have been passing viability.</div>
<div>
<br>Going forward population growth in Australia will follow the employment growth, which has been heavily focused on Sydney and Melbourne, and to a somewhat lesser extent Brisbane and the Gold Coast.</div>
<div>
<br>Indeed, over the past year more than 80 per cent of employment growth has been found in New South Wales and Victoria, and overwhelmingly in Sydney and Melbourne. </div>
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<div>With the Western Australian economy slowing and net interstate migration going into reverse gear, population growth will is likely to be heavily focused on the three largest capital cities - a trend which will only be exacerbated by the nascent explosion in foreign students.<br><br>The Reserve Bank added its own outlook for the housing market in the latest SOMP:<br><br><em>"Supply constraints, particularly in Sydney, may limit the extent to which new dwelling investment can satisfy growing demand, which raises the possibility that housing prices will grow more quickly than forecast. </em><br><em><br></em><em>Also, housing prices outside Sydney and Melbourne are little changed over the past year or so and may not yet have responded fully to the very low levels of interest rates."</em>
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<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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Slower population growth implications for property investors: Pete Wargent

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<p><span>CoreLogic RP Data’s preliminary auction clearance rate was recorded at 77.0 per cent this week, across a total of 1,790 reported auctions. Auction volumes rose over the week, up from 1,903 the previous week to 2,378 this week, the largest number of capital city auctions held since 10 weeks ago. </span></p>
<p><span>A</span><span style="line-height: 1.3em;">long with the increase in the number of homes taken to auction, the preliminary clearance rate this week (77.0 per cent) was also higher than the previous week (74.6 per cent) and conditions across the auction market remain stronger than they were one year ago, when 68.0 per cent of the 1,555 homes taken to auction sold.</span></p>
<p><a href="/images/2015/08/10/20150810-capital-city.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/10/20150810-capital-city.jpg" alt="" width="680" height="508"></span></p>
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<p><span>As Australia’s largest auction market, </span><strong>Melbourne’s</strong><span> auction market remained strong this week, with a preliminary clearance rate of 78.6 per cent, compared to the previous week, when the clearance rate for the city was 78.2 per cent. The number of homes taken to auction in Melbourne this week was 1,057, up from 787 last week. One year ago, Melbourne’s auction clearance rate was 69.6 per cent across 774 auctions. Across the individual sub-regions of Melbourne, there were three regions where the clearance rate was over 80 per cent this week; Inner Melbourne (80.5 per cent), Inner East Melbourne (81.1 per cent) and Outer East Melbourne (85.6 per cent).</span></p>
<p><a href="/images/2015/08/10/20150810-Melbourne.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/10/20150810-Melbourne.jpg" alt="" width="700" height="475"></span></p>
<p> </p>
<p><span>After its record strong performance at the start of the year, </span><strong>Sydney’s</strong><span> auction market is starting to show some signs of slowing down. In saying this, Sydney’s preliminary results this week showing that 77.8 per cent of the 711 reported results sold. In comparison, last week 76.0 per cent of Sydney auctions were successful, while last year the clearance rate was 74.7 per cent. The number of auctions across the city is much higher this week (1,008) than last week (825) and substantially higher than at the same time last year when just 530 homes went to auction. This week, the two strongest performing Sydney sub-regions were Northern Beaches and Inner West, where more than 93 per cent of the reported results for each region were successful.</span></p>
<p><a href="/images/2015/08/10/20150810-Sydney.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/10/20150810-Sydney.jpg" alt="" width="778" height="535"></span></p>
<p> </p>
<p><strong>Brisbane’s</strong><span> preliminary clearance rate this week was 61.8 per cent, up from 57.9 per cent last week and significantly stronger than the 33.3 per cent from one year ago. There were 141 auctions across the city this week, similar to the number held last week (144) and higher than the 123 held one year ago. Further south of Brisbane, the </span><strong>Gold</strong><span> </span><strong>Coast</strong><span> saw 14 auction results reported this week, with 35.7 per cent selling.</span></p>
<p><a href="/images/2015/08/10/20150810-Brisbane.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/10/20150810-Brisbane.jpg" alt="" width="721" height="486"></span></p>
<p> </p>
<p><span>This week, </span><strong>Adelaide’s</strong><span> preliminary clearance rate was 81.4 per cent, a strong result for the city with 43 results from the 76 auction reported so far. In comparison, last week’s clearance rate for the city was 67.7 per cent and 69.1 per cent at the same time last year. The number of auctions across the city remained steady this week, with 76 held this week, compared to 75 last week and 61 at the same time last year.</span></p>
<p><a href="/images/2015/08/10/20150810-Adelaide.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/10/20150810-Adelaide.jpg" alt="" width="792" height="538"></span></p>
<p> </p>
<p>The preliminary auction clearance rate for <strong>Perth</strong> was 44.4 per cent this week, with 18 results reported so far. There were 28 Perth auctions held this week, compared to 23 last week, when the final clearance rate was 40.0 per cent and 25 last year, when 57.9 per cent of the auctions were successful.</p>
<p>There were 59 <strong>Canberra</strong> auctions this week and the preliminary clearance rate of 81.1 per cent is higher than last week (72.2 per cent) and one year ago (55.2 per cent).</p>
<p>So far, 7 <strong>Tasmanian</strong> auction results have been reported to CoreLogic RP Data and of these 6 were sold.</p>
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Adelaide, Canberra, Tasmania preliminary clearance rates above 80%: Shana Miller

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<div>Market expectations were once again on the money and Housing Finance rebounded in June rising by 2.8% to a seasonally adjusted $32.07 billion.</div>
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<div>The trend estimate rose slightly to a new record high of $32.15 billion.</div>
<p><a href="https://4.bp.blogspot.com/-n153qZAKohA/VcQqOgZcXlI/AAAAAAAAXaY/Fw6I1kqQbtM/s1600/HF1.jpg" target="_blank">Click to enlarge </a></p>
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<p> </p>
<div>The number of owner-occupier loans written in the month rebounded by 4.4% to 52,672.</div>
<div> </div>
<div>Mortgage volumes still some way lower than we have seen in previous cycles, at least partly because through this cycle so many are electing to buy investment properties instead. </div>
<p><a href="https://1.bp.blogspot.com/-s2WWZh5Cq4Y/VcQqPSrQJYI/AAAAAAAAXa4/cx15Xrv-qG0/s1600/HF5.jpg" target="_blank">Click to enlarge</a></p>
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<div>While the seasonally adjusted data makes it appear that total housing finance may be peaking, the unadjusted or original data casts some doubt on this - June saw by far the biggest month of lending on record at an unprecedented $34.7 billion.</div>
<p><a href="https://1.bp.blogspot.com/-zlnKqJL1vNY/VcQqOo1b1II/AAAAAAAAXac/LDUia57DMlw/s1600/HF2.jpg" target="_blank"> Click to enlarge</a></p>
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<div> </div>
<div>Owner-occupier lending rose to a record $212 billion in the 2015 financial year, while investment lending has scorched the earth to rise to a stonking $154 billion.</div>
<p><a href="https://4.bp.blogspot.com/-ZvloUYocZr8/VcQrEC_YxPI/AAAAAAAAXa8/k_b_bEfP1xU/s1600/HF6.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><a href="https://4.bp.blogspot.com/-ZvloUYocZr8/VcQrEC_YxPI/AAAAAAAAXa8/k_b_bEfP1xU/s1600/HF6.jpg"><img src="https://4.bp.blogspot.com/-ZvloUYocZr8/VcQrEC_YxPI/AAAAAAAAXa8/k_b_bEfP1xU/s640/HF6.jpg" width="640" height="278"></a></div>
<p><span style="line-height: 1.3em;">However, we can now expect some downward pressure on investment lending as APRA pulls a few macroprudential levers to slow the pace of lending.</span></p>
<div>Unfortunately for those forecasting a Sydney market slowdown, it appears that homebuyers are now picking up the baton.</div>
<div> </div>
<div>New South Wales saw a massive $6.6 billion of owner-occupier mortgage commitments written in June, which was an 8.1% increase from May and by some margin the biggest month on record. </div>
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<div><a href="https://3.bp.blogspot.com/-OQTo0TLGaRY/VcQqPY8x15I/AAAAAAAAXao/yiH6zEqV588/s1600/HF4.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><a href="https://3.bp.blogspot.com/-OQTo0TLGaRY/VcQqPY8x15I/AAAAAAAAXao/yiH6zEqV588/s1600/HF4.jpg"><img src="https://3.bp.blogspot.com/-OQTo0TLGaRY/VcQqPY8x15I/AAAAAAAAXao/yiH6zEqV588/s640/HF4.jpg" width="640" height="280"></a></div>
<p> </p>
<div>Owner-occupier loans also increased in Queensland and Victoria in the month, but declined moderately in South Australia and Western Australia.</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>
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Sydney home buyers picking up the investor financing baton: Pete Wargent

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<p><span>The Opposition has again slammed Treasurer Joe Hockey's latest crackdown on foreigners owning Australian land, describing it as a diversion from tackling housing affordability.</span></p>
<p><span>Mr Hockey announced the forced sale of six homes around the country. </span></p>
<p><span>Three of the properties were in the Sydney suburbs of Eastwood, Fairfield and Mosman, two were in Kewdale in Perth and the other at Eight Mile Plains on the outskirts of Brisbane.</span></p>
<p><span>There were five owners from four different countries who had come forward since the crackdown began in ernest with a $39 million diverestiture order against a Piper Point buyer in March.</span></p>
<p><span>The six self reported cases ranged in price from $152,000 to $1.86 million.</span></p>
<p><span>There are 50 investigators looking into 462 cases in which foreigners were suspected of having bought or retained existing property without correct approvals. </span></p>
<p><span>The Australian Taxation Office, the Foreign Investment Review Board, Department of Immigration and AUSTRAC have uncovered more than 2000 pieces of information relating to suspected breaches since monitoring of residential property acquisitions was shifted to the ATO in May from the FIRB. </span></p>
<p><span>The Treasurer outlined his new, harsher penalties that will be enforced from December, against foreign investors who illegally buy established Australian properties or don't sell when the laws required.</span></p>
<p><span>"The period of amnesty we announced in May means that no criminal conviction is recorded for those who self-report by November 30, and they have to re-sell their property in 12 months, instead of three," Mr Hockey said.</span></p>
<p><span>"Australia welcomes foreign investment and Australia needs foreign investment but, at all times, foreign investors must comply with our laws," Joe Hockey said on Saturday.</span></p>
<p><span>"Some of the five investors have purchased property with Foreign Investment Review Board approval, but their circumstances have changed and they have failed to comply with the divestment requirements.</span></p>
<p><span>"Some have simply broken the rules by purchasing a property without approval and done so against the law.</span></p>
<p><span>"Time is running out for foreign investors to voluntarily come forward if they have illegally purchased existing residential real estate," Mr Hockey warned. </span></p>
<p><span>"They have until November 30, 2015 to come to us before we come to them."</span></p>
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Foreigners admit overstaying their Australian land ownership  

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<p>The Preston house on the first season of Channel Seven’s renovation program House Rules has been listed for August 29 auction.</p>
<p>It is the home of the contestant brothers, Nick and Chris Stavropoulos.</p>
<p>John Petsinis from Hocking Stuart has the three bedroom, two bathroom weatherboard house.</p>
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<div id="link-photo"><img src="https://images.realestateview.com.au/pics/376/19-Jackman-Street-Preston-VIC-3072-Real-Estate-photo-1-large-9273376.jpg" alt="19 Jackman Street Preston VIC 3072 Real Estate Photo 1" title="19 Jackman Street Preston VIC 3072 House - Photo 1"></div>
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<div id="soldbanner">The property at 19 Jackman Street, Preston, last traded at $555,000 in mid-2012.</div>
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<p>One of its new features is the stacked-stone fireplace.</p>
<p>Jackman Street's most recent sale was $895,000 in July this year for another three bedroom 1930s cottage that last sold at $446,000 in 2008.</p>
<p>Nick and Chris, the Channel 7 Melbourne House Rules brothers handed over the keys to fellow renovation contestants of their Californian bungalow in Preston in 2013.</p>
<p>It came with a mortgage of $524,000 which would have beeen wiped off by Channel 7 if they had won the renovation competition series hosted by Johanna Griggs.</p>
<p><img class="img-responsive" src="/images/stories/flexicontent/l_houserulesmay30breakout.jpg" alt="Preston House Rules renovation with $524,000 mortgage after $555,000 brotherly purchase"></p>
<p>The 1930s bungalow went to July 2012 Ray White auction without success, subsequently listed at $580,000.</p>
<p>The brothers paid $555,000 in August 2012 for the 1930s bungalow on its 475 square metre block.</p>
<p>"A lot of our money went into our deposit," <a href="/news/preston-house-rules-renovation-with-524-000-mortgage-after-555-000-brotherly-purchase">the Stavropoulos brothers told the House Rules viewers</a>. </p>
<p>There was a subsequent $49,000 development application with Darebin Council.</p>
<p>The brothers, who also appeared on Channel 9’s Reno Rumble, have made a few minor alterations since the show, including extending the outdoor area.</p>
<p>No price guidance is being given.</p>
<p>The median price of houses in Preston has jumped 8.8 per cent over the past 12 months to $700,000, <a href="/news">according to CoreLogic RP Data</a>, having been at around $575,000 when the house was bought in mid-2012.</p>
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Preston House Rules house hits the Melbourne auction market

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<p><span>A hotel just a stone's throw from the Sydney CBD and Randwick Racecourse has sold to a developer for $17.1 million.</span></p>
<p><span>The five-storey Addison Hotel, 147-151 Anzac Parade, Kensington, was sold to a Chinese developer with plans to develop the property, according to Peter Kotzias from Ray White Commercial South Sydney.</span></p>
<p><span>Mr Kotzias said the building includes 42 x 26 sqm serviced apartments as well as a 44 sqm manager’s apartment and 351 sqm of commercial space.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>“The purchaser will be operating the existing hotel/accommodation as it is for the time being and enjoying the current cash flow,” Mr Kotzias said.</span></p>
<p><span>"The building is situated on a land area of 1,453 sqm and comprises 44 strata lots and basement parking for approximately 35 cars.</span></p>
<p><span>"</span><span>It’s also in close proximity to Centennial Park and a short distance to Sydney’s famous eastern suburbs beaches as well as shopping centres and other amenities."</span></p>
<p><span style="line-height: 1.3em;">There are future plans to redevelop the property.</span></p>
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Sydney's Addison Hotel sells for $17.1 million

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<p><span>A 7,530 sqm Mooroolbark site has sold to a Chinese investor for $9.050 million with a weighted average lease expiry of around 5.31 years.</span></p>
<p><span>14 Manchester Road, Mooroolbark, features a retail/commercial building of 2,759 sqm currently yielding a net income of around $712,778 p.a.</span></p>
<p><span style="line-height: 1.3em;">DTZ agent, Patrick O’Callaghan said there was significant competition for the property, with two offshore parties bidding against each other until the very end.</span></p>
<p><span>The building is fully leased, and includes tenants Good Life Health Clubs, G8 Education, licensees for Biggin Scott, Telstra and Pump Café. </span></p>
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