<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.</p>

<p>Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.</p>

<p>“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.</p>

<p>The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.</p>

<p>Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.</p>

<p>Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.</p>

<p>“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”</p>

<p>Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.</p>


Joel Robinson

400 new homes planned for Adelaide's former West End Brewery site

<p>Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.</p>

<p>The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.</p>

<p>Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" /></p>

<p>“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.</p>

<p>The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”</p>

<p>The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" /></p>

<p>The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.</p>

<p>According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.</p>

<p>“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" /></p>

<p>All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.</p>

<p>The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.</p>


Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

<p>Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.</p>

<p>The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.</p>

<p>Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" /></p>

<p>Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.</p>

<p>The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.</p>

<p>The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" /></p>

<p>Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.</p>

<p>Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.</p>


First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

<p>The Gold Coast Planning Committee has supported the preliminary approval for the Benowa Gardens Urban Village project following an extensive community consultation and assessment process.</p>

<p>The proposal will now proceed to a full council vote on June 2.</p>

<p>The application sought approval for a masterplanned urban village on the existing Benowa Gardens Shopping Centre site, combining new housing, retail, dining, health and lifestyle amenities within a walkable, integrated precinct.&nbsp;</p>

<p>The proposed redevelopment includes around 413 apartments integrated above a revitalised mixed-use centre featuring a full-line supermarket of 4,000 sqm, 6,000 sqm of specialty retail and dining space across around 30 retailers, a 7,000 sqm health and wellness precinct, and roughly 9,630 sqm of office and medical suites.&nbsp;</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="fb36ae47-80bc-45f0-9914-31b0c7b6007d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C4%201121%20FI.jpg?VersionId=6mRKk2uU4r67TmTt39DKGUlvFRbTVqWa" /></p>

<p>The broader masterplan also includes very significant traffic and transport improvements, wide pedestrian walkways, upgraded pedestrian and cycle connections, and enhanced public areas designed to create a more connected and walkable community environment.&nbsp;</p>

<p>Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.</p>

<p>“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.</p>

<p>“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="32fd1fc3-d0e6-485f-ac57-9916c9bcb818" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/PR26576%20Ashmore%20Road%20C5%201121%20FI_2.jpg?VersionId=fz8qQKDBLQ7MyFRc856Zccfbh9nFwLOe" /></p>

<p>“We understand projects of this scale bring questions and concerns, which is why we have worked hard to listen carefully, provide information transparently and continue refining elements of the proposal where possible.</p>

<p>“Our vision has always been to create a well-designed, community-focused urban village that responds to the changing needs of the Gold Coast, while delivering improved amenity, housing diversity, healthcare access and local lifestyle benefits.</p>

<p>“This proposal is about creating a genuine live-work-play environment where residents can access everyday services, schools, healthcare, dining, shopping and green space within walking distance, while also supporting local jobs and economic activity.”</p>

<p><img alt="$1b Benowa Gardens Urban Village moves to Full Council following Planning Committee support" data-entity-type="file" data-entity-uuid="50dfbd04-590e-4fc6-983b-766880947867" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Dining%20Day%20Time%20-%20High%20Resolution.jpg?VersionId=BP7ZoKJ0DdL_8iRkkC8VVx99moICV6kg" /></p>

<p>Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;</p>

<p>Melissa Griffin, Director at Urbis, said the recommendation recognised the strategic importance of delivering more housing and services within established urban areas already supported by infrastructure.</p>

<p>“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.</p>

<p>“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.</p>

<p>“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”</p>


$1 billion Benowa Gardens Urban Village heads to council vote following Planning Committee support

<p>Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.</p>

<p>John Camilleri’s Celestino Developments has been given the green light by the Gold Coast City Council to develop its major beachfront precinct across its huge 4,000 sqm oceanfront site at <a href="https://www.apartments.com.au/new-apartments/63-79-garfield-terrace-surfers-paradise-qld-4217">63–79 Garfield Terrace</a>, just five months after its <a href="https://www.apartments.com.au/news/qld/first-look-exclusive-billionaire-winx-breeder-s-bold-two-tower-surfers-paradise-play-with-45th-storey-skybridge">submission in late 2025</a>.</p>

<p>The approved scheme will deliver two towers rising 55 and 48 storeys, connected by a skybridge positioned on level 45 that will house a range of resident-only wellness and entertainment spaces.</p>

<p>In its notice of approval, the Gold Coast City Council said the&nbsp;proposed overall built form has been designed to complement the scale, intensity and protect the adjacent amenity and surrounding streets through the use of varied setbacks, site cover and architectural elements.</p>

<p><img alt="First look exclusive: Billionaire Winx breeder’s bold two-tower Surfers Paradise play with 45th-storey skybridge" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-30%20at%209.53.48%E2%80%AFAM.png?VersionId=ADyPJ_TFbJvSU9wZFOiCBnlPtgF7VWqW" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/dbi">DBI</a>, the development will comprise 275 apartments across the two towers, including a mix of two-, three-, and four-bedroom residences, as well as several penthouses. The apartments will sit above a landscaped podium featuring more than 90 metres of beachfront pool frontage, private resident lawns, lounges, and wellness spaces.</p>

<p>DBI said the design draws heavily from the movement and form of the coastal environment, with curving balcony lines and sculpted façades intended to soften the scale of the towers while maximising ocean outlooks and passive shading outcomes.</p>

<p>“The project occupies a rare, uninterrupted oceanfront site and has been shaped by a design philosophy that merges architectural elegance with environmental responsiveness and a carefully curated lifestyle experience,” DBI said in planning documents submitted to the Gold Coast City Council.</p>

<p>The most distinctive element of the approved project is the skybridge linking the two towers at level 45. The elevated communal space is planned to include executive lounges, formal dining areas, wellness facilities, and panoramic ocean-facing outlooks.</p>

<p>“The skybridge enhances the identity of the development, promotes social interaction, and delivers a lifestyle experience not found elsewhere on the Gold Coast,” DBI said.</p>

<p>At podium level, residents will have access to a suite of resort-style amenities, including resident lounges, private dining rooms, a yoga lawn, gymnasium, plunge pools, and treatment spaces. The beachfront pool has been designed with separate lap, lounge, and children’s areas extending across the width of the site.</p>

<p>The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.</p>


First look: Winx billionaire’s beachfront Surfers Paradise apartment development greenlit

<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><span>The retired politician activist Peter Garrett has listed his Southern Highlands retreat.</span></p>
<p><span>The historic Queen Anne Federation Rowe Cottage has undergone extensive renovation since bought (pictured circa 1995) for $531,000 in May 1995 through Peter Shaw First National.</span></p>
<p><span><img class="attachment-big wp-post-image" src="https://www.drewlindsay.com.au/wp-content/uploads/2015/05/DSC4651-640x360.jpg" alt='‘Rowe’, Mittagong &lt;strong&gt;&lt;span style="color: #ff0000;"&gt;NEW&lt;/span&gt;&lt;/strong&gt;' title='‘Rowe’, Mittagong &lt;strong&gt;&lt;span style="color: #ff0000;"&gt;NEW&lt;/span&gt;&lt;/strong&gt;'></span></p>
<p><span>Previously Kangaroo Valley weekenders, the Garretts have been often based at the 5.8 hectare Mittagong since they sold their Balgowlah home for $585,000 in 1995.</span></p>
<p><span>But Peter and wife, Doris are now making a move back to their newly acquired $2.7 million Paddington terrace.</span></p>
<p><span>He retired from parliament at the 2013 federal election, selling his electorate abode earlier this month on Gordon Street, Randwick at $1,321,000.</span></p>
<p><a href="https://www.drewlindsay.com.au/?property=rowe-bong-bong-road-mittagong-new" target="_blank">Rowe Cottage</a> has been listed with $3.3 million plus hopes through Drew Lindsay Real Estate agent John Renouf.<span style="line-height: 1.3em;">They might buy a smaller retreat after the sale.</span><span style="line-height: 1.3em;">Rowe Cottage was among the </span><span style="line-height: 1.3em;">Mittagong Cottage Homes</span><span style="line-height: 1.3em;">, established from 1885 by the State Children's Relief Board.</span></p>
<p><span>They were houses that each held 20 children, ranging in age from infancy to adolescence.</span></p>
<p><span>The cottages had different functions, as hospitals, disability and truancy institutions, convalescent homes, transit points between foster placements and the reformatory Mittagong Farm School and Training School.</span></p>
<p><span>More than 30,000 state children passed through the cottages. </span></p>
<p><span>The Mittagong Cottage Homes had an important role in the New South Wales Government's child welfare system.</span></p>
<p><span>Mittagong, it was argued, had a healthy climate which enabled children to gain health and strength and education, surrounded by good farming land, which provided the food necessary to run the homes.</span></p>
<p><span>Their programmes included orcharding, dairying, general farming, tailoring, bootmaking, carpentry, poultry and pig farming.</span></p>
</body></html>

jchancellor-FAypfDUnLy

Peter Garrett lists Mittagong, Southern Highlands cottage

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<div>The ABS released its <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8755.0" target="_blank">Construction Work Done</a> figures for Q1 2015 which saw total construction work done decline by 2.4% to $48.4 billion.</div>
<div> </div>
<div>It's a bit of an awkward data release with a few moving parts, but let's see if I can simplify a few of the key messages here in three short parts.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Part 1 - Total construction slips</span></strong></div>
<div>
<br>As you can see from my chart below, private sector building work is responding rather nicely to low interest rates.</div>
<div> </div>
<div>Unfortunately, on the other hand, spend in the public sector is contributing very little to the cause.<br><br>Quarterly public sector expenditure fell to below $2.2 billion, which is far below the more stimulatory levels seen through the financial crisis which peaked at more than $5 billion.<br><br>The economy could evidently use some infrastructure investment, though I'm not at all sure we'll get it.</div>
<div> </div>
<div>Meanwhile engineering construction, largely comprised of resources capital expenditure, continues to capitulate, now more than 20% lower over the past year to $24.8 billion in Q1, from a peak of $33.2 billion in 2012.</div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargent1.jpg" alt=""></div>
<p> </p>
<div>The net result is that total construction work done declined further in the first quarter by 2.4% to $48.4 billion.</div>
<div> </div>
<div>This is still a very high level of activity in historical terms, but now some 8.8% lower than one year ago.</div>
<div> </div>
<p><img src="/images/2015/05/28/wargent2.jpg" alt=""><br><br></p>
<div>The one shining light for construction - which you will have seen with your own eyes if you live in one of the major capital cities - is residential construction, which continues to pulse along.</div>
<div> </div>
<div>House building work done is picking up sharply, while the value of building work done relating to units and apartments (denoted by the red line below) continues to surge to new record highs through this cycle.</div>
<div> </div>
<div>Higher density developments - which tend to be located in cities and come with associated expensive land remediation costs - are contributing a surprisingly high proportion of residential building work done in chain volume measures terms.</div>
<p> </p>
<div class="separator"><img src="/images/2015/05/28/wargent3.jpg" alt=""></div>
<div class="separator"><span style="line-height: 1.3em;"> </span></div>
<div>Major renovations work, denoted by the green line, continues to flatline, and is basically on life support outside Sydney.</div>
<p><strong><span style="text-decoration: underline;">Part 2 - State versus state building</span></strong></p>
<p><span style="line-height: 1.3em;">The value of building work done is being driven by activity in Melbourne, Sydney and Brisbane, in that order, which should continue to support construction employment in those cities, combined with the associated </span><span style="line-height: 1.3em;">multiplier</span><span style="line-height: 1.3em;"> effect.</span></p>
<div>The building boom is largely bypassing the southern states, and this has been reflected in benign (Hobart) or negative (Adelaide) employment growth in the respective capitals of these states. </div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargent4.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>Looking at the major component parts, Melbourne continues to be the undisputed king of house building, while Queensland and Western Australia saw a decent lift in activity in the first quarter of this year.</div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargeent5.jpg" alt=""></div>
<p><br><span>But the real fun and games are taking place in the apartment construction sector.</span></p>
<p><span style="line-height: 1.3em;">Sydney and Brisbane may be approaching full capacity in this industry, which a dearth of bricklayers and project managers on the eastern seaboard being reported by the Reserve Bank's liaison, despite the legions of construction workers becoming available for transfer as they are released from resources contracts (more on this below). </span><span style="line-height: 1.3em;"> </span></p>
<div>Activity in New South Wales pulled back a little in Q1, but Melbourne apartment construction continues to rip to record high levels, with nearly $6.5 billion of work done over the past year in Victoria, and $1.8 billion in the first quarter of 2015 alone.<br><br>Heady times.</div>
<div> </div>
<div class="separator"><img src="/images/2015/05/28/wargent6.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>Clearly this is the macro level data only, but the figures clearly imply a looming oversupply of units and apartments in some locations.<br><br>Prospective investors clearly need to understand the property markets at a suburb and micro level in this respect.<br><strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Part 3 - The mining cliff</span></strong>
</div>
<div><strong><span style="text-decoration: underline;"> </span></strong></div>
<div>If you were hoping for good news for resources regions from this release, I'm afraid that there is none to report.</div>
<div> </div>
<div>Engineering construction work done held up reasonably well in Victoria, but everywhere else of note saw sharp declines, and particularly so the main mining states.</div>
<div> </div>
<div>The one exception in recent quarters had been the Northern Territory, with heavy spend related to the $34 billion Ichthys project pushing up engineering construction work done to record highs for the Top End over the preceding two quarters.</div>
<div>
<br>However, even the Northern Territory saw engineering construction work done decline from $2.1 billion to $1.7 billion in the first quarter, with some delays to the planned 2017 start-up date having been reported related to Inpex.</div>
<div class="separator"> <span style="line-height: 1.3em;"> </span>
</div>
<div class="separator"><img src="/images/2015/05/28/wargent7.jpg" alt=""></div>
<div> </div>
<div>The chart above tells its own story, and there is little else but woe ahead for a number of mining town economies. </div>
<div> </div>
<div>The ongoing capitulation of house prices in the Pilbara and Moranbah have been well enough documented, but there are many more echo-corrections in the post across regions which have been propped up through the once-in-a-century mining construction boom. </div>
<div>
<br>My chart packs have shown here previously that the pipeline for mining capital expenditure is desperately weak, and there will be further data to report on expected capital expenditure declines later this morning.<br><br>Capex related to Ichthys still has a way to run, granted, while Adani is hoping to proceed with its $10 billion thermal coal project (despite the minor inconvenience issue that at today's prices the project can barely be viable).<br><br>But these monster projects aside, weakening commodity prices will ensure that mining investment is heading all the way back down where whence it came, which is why we call it a commodity <em>cycle</em>.</div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div>This negative result will breathe very life into the GDP result for the first quarter, while a further decline in Australia's terms of trade will also act as a drag.</div>
<div> </div>
<div>Economic growth may not be stone dead flat in Q1, but it seems unlikely to be a great deal better than that, which could drag the annual result down to well below 2% over the first half of this calendar year.</div>
<div> </div>
<div>With inflation forecasts having been revised down and further macro-prudential tools now being deployed by lenders, futures markets see every chance that the next move in interest rates will be down again to below 2%.</div>
<div> </div>
<div>Perhaps the twist in the tail here is that macro-prudential tools on lending to property investors mean lower interest rates for longer?</div>
<div> </div>
<div>
<em><span>PETE WARGENT</span> 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><p><em>His book '<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>' is out now.</em></p>
</div>
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Major renovations work continues to flatline: Pete Wargent

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<p><span style="line-height: 1.3em;">If you are confused by the acronym VPA, you’re not alone. The truth is, most of the REI and Real Estate Agents (REAs) don’t know how to properly account for this in their books. Most REAs are oblivious that they are flirting with deceitful conduct and are in breach of the REI Regulations by not disclosing and accounting, vendor paid advertising costs properly. </span></p>
<p><span style="line-height: 1.3em;">For many the term or acronym VPA is not well known. Expanded, it makes a little more sense: Vendor Paid Advertising. But only a little more, particularly when the REA is asking for: a commission and for a marketing fee. </span></p>
<p><span style="line-height: 1.3em;">For most agents, VPA is a lifeline to their existence. However, the majority of agents don’t realise the gravity of their failure to account for the advertising budget paid by the vendor. As much as it is a lifeline, it can also be the detriment to their agency. </span><span style="line-height: 1.3em;"> </span></p>
<p>You could well say that VPA is an industry in itself. Many agency’s guidelines and training manuals spend a lot of their focus on, “how to get the most VPA from clients”. There are industry icons and business leaders that charge large amounts of money to train wannabe agents on how to bask in the glorious platforms of the VPA-agent kingpins. </p>
<p>For me, the position I take is simply this. “What are agencies or REA’s offering that is so different to warrant for the vendor to pay on-top-off the commission?” Many are muted by this one simple question, and why? All because the answer is basically, not much. </p>
<p>Not discrediting VPA altogether, I believe it HAD a purpose and served a function perhaps as early as 5-7 years ago. At a time when most buyers were only just beginning to venture into the internet to look for property. From then onward, the internet has become the lifeline of REAs marketing and source of clientele to buy property and at a highly reduced cost to obtain interest in their client’s properties.</p>
<p> <strong style="line-height: 1.3em;">Why VPA was necessary - to an extent. </strong></p>
<ul>
<li>Before the strong internet drive, most agencies relied on print media to draw the crowd. However, is print media still necessary in this climate?  and </li>
<li>Stand-out features, offered by the main property search-engines. </li>
</ul>
<p>Are these features necessary to warrant for vendors to pay fees almost as much as commissions? </p>
<p>I believe the answer to both is unanimously, no. In light of my discussions with colleagues, it is a general consensus that VPA is mainly used to really “promote the agent”. The exception to the rule I believe to be more in “commercial and industrial real estate”. </p>
<p><span><strong>The anti VPA advocates, our beliefs are threefold. </strong></span></p>
<ul>
<li>First and foremost, if an agency receives funds from a vendor and is entrusted by the vendor for these to be used to advertise their property; it is deemed vendors funds and should be accounted for in the agency’s “trust account” not their general account. A practice not taught at the super giant VPA-seminar campaigns. </li>
<li>Second, and this goes back to my initial question; what is the agency offering for these extra funds (advertising costs) being charged to the client? </li>
<li>Third, is our own office belief that any funds provided by the vendor as an upfront marketing budget, the funds can be better spent on the presentation of the property. </li>
</ul>
<p><span><strong>A VPA agent’s reasoning for charging advertising fees:</strong></span></p>
<p>I asked a few colleagues that have attended the VPA training seminars and they are adamant that it is necessary to charge clients a marketing budget on-top-off their commission. Most of my colleagues referring to costs of running a business to justify their reasoning. Their arguments mainly center on the following notions: </p>
<ul>
<li>Signboards and print media is costly. <span style="line-height: 1.3em;">Hello! When was the last time you searched for property in a local newspaper and drove around neighborhoods till all hours of the night looking for signboards? </span>
</li>
</ul>
<ul>
<li>Advertising on the internet is costly. <span style="line-height: 1.3em;">Yes it is, but every business has a cost to market itself and its products. </span><span style="line-height: 1.3em;">Aren’t you receiving a commission to provide a service?</span>
</li>
</ul>
<ul>
<li>We can’t break/split costs across all our properties and it’s difficult to manage. <span style="line-height: 1.3em;">The regulations makes provisions to account for every expenditure to the client and in detail. Along with this is the requirement of disclosure of third party benefits received by the agency. Kickbacks, commissions and other fees paid for: printing and even online advertising, be it paid in shares or cash. </span>
</li>
</ul>
<p><span><strong>Showing the figures of costs to vendors:</strong></span></p>
<p>I have been criticized in the past for questioning the collective voice of the REI that we are not being paid enough and therefore VPA is critical to run a business. Placing the legislative requirements on how to account for VPA to one side, but not dismissing these, lets look at the numbers for a second. The numbers of current cost to do business. </p>
<p>Median property values approximately 3 years ago and average VPA charges.</p>
<table cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="middle">
<p>Type Property</p>
</td>
<td valign="middle">
<p>Median Sydney</p>
</td>
<td valign="middle">
<p>Commission 2%</p>
</td>
<td valign="middle">
<p>VPA Average</p>
</td>
<td valign="middle">
<p>Cost To Vendor</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>HOMES </p>
</td>
<td valign="middle">
<p>$633,000</p>
</td>
<td valign="middle">
<p>$12,660</p>
</td>
<td valign="middle">
<p>$3,000</p>
</td>
<td valign="middle">
<p>$15,660</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>UNITS</p>
</td>
<td valign="middle">
<p>$460,000</p>
</td>
<td valign="middle">
<p>$9,200</p>
</td>
<td valign="middle">
<p>$1,500</p>
</td>
<td valign="middle">
<p>$10,700</p>
</td>
</tr>
</tbody></table>
<p> </p>
<p>Current values 2015. Median home property values and average industry VPA charges.</p>
<table cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="middle">
<p>Type Property</p>
</td>
<td valign="middle">
<p>Median Sydney</p>
</td>
<td valign="middle">
<p>Commission 1.7%</p>
</td>
<td valign="middle">
<p>VPA Average</p>
</td>
<td valign="middle">
<p>Cost To Vendor</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>HOMES </p>
</td>
<td valign="middle">
<p>$850,000</p>
</td>
<td valign="middle">
<p>$14,450</p>
</td>
<td valign="middle">
<p>$5,000</p>
</td>
<td valign="middle">
<p>$19,450</p>
</td>
</tr>
<tr>
<td valign="middle">
<p>UNITS</p>
</td>
<td valign="middle">
<p>$630,000</p>
</td>
<td valign="middle">
<p>$10,710</p>
</td>
<td valign="middle">
<p>$3,000</p>
</td>
<td valign="middle">
<p>$13,710<span style="line-height: 1.3em; color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px;"> </span></p>
</td>
</tr>
</tbody></table>
<p><span><strong>My tips for people considering engaging an agent to sell a property.</strong></span></p>
<p>When confronted with a ledger of costs before you even engage the REA to sell your home, simply ask the following questions:</p>
<ul>
<li>Where will the money go to? General account or the Sales Trust account?</li>
<li>What are the individual costs for each proposed marketing idea/service that you recommend to be adopted?</li>
<li>How much commission does the office receive from third party service providers? And will these come off my bottom line?</li>
</ul>
<p>Most reputable agencies that do work with VPA, will issue clear statements and provide value added services. Some of the services I consider value-added are:</p>
<ul>
<li>Staging services</li>
<li>Professional photographers</li>
<li>Professional videos</li>
<li>Cosmetic make-overs of property in preparation for the marketing</li>
</ul>
<p>The most commonly used rebuttal used by the VPA-agent is: if you want better exposure than your neighboring competitive listing, then we need to make your listing stand out. If the agent/agency is more focused on a signboard and local print advertising to stand out just remember this; signboards mainly advertise the agent not your property. </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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ealmedia-arK4DBYLjS

VPA is not a dirty word: Edwin Almeida

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<p>Milbrovale, nestled at the base of the Brokenback Range, 7 kms beyond Broke, has been listed by the well known Newcastle couple Richard and Mary Owens.</p>
<p>The four hectare Hunter Valley estate has been listed for sale with Alan Jurd of Jurds Real Estate. </p>
<p>The home got its inspiration from a Frank Lloyd Wright Prairie House.</p>
<p><a href="https://www.realestate.com.au/property-lifestyle-nsw-broke-7741771" target="_blank">It was designed by Tanner &amp; Associates</a>, winning MBA Australian House of the Year when constructed.</p>
<p>The bespoke home featuring timber, stone, glass, metal and rendered finish, comes with home cinema and of course wine cellar.</p>
<p>There is a separate guest wing to accommodate up to twenty family and friends. </p>
<p>Milbrovale's grounds come with resort style billabong swimming pool, tennis and basketball courts.</p>
<p>Milbrovale's marketing campaign runs until offers close June 26 with repricing to more than $2.6 million.</p>
<p>Alan Jurd estimates the replacement value of the residence at above $6 million.</p>
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Milbrovale at Broke with $2.6 million plus hopes

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<p class="Normal"><span style="line-height: 1.3em;">It’s sadly typical of real estate investment that the most popular places for buyers are also the worst places to buy.</span></p>
<p class="Body"><span style="line-height: 1.3em;">Investors are piling en masse into a series of off the plan unit markets that will be the ruination of many people’s wealth dreams. The top five locations in terms of sales volumes are all places that property buyers must avoid.</span></p>
<p class="Body"><span style="line-height: 1.3em;">It’s a commentary on two issues, which are among the core problems for property investors. One is that most investors fail to conduct genuine research before making decisions that involve hundreds of thousands of dollars. The second is that far too many of them think that reading media reports constitutes research.</span></p>
<p class="Body"><span style="line-height: 1.3em;">When I spoke at two Performance Property Advisory seminars in Melbourne earlier this week, I told audiences that most of what they read or hear about real estate in mainstream media is misinformation. Most of what they read or hear is press release material (i.e. someone’s propaganda) regurgitated as credible information. There is no journalistic oversight on the material that is published, in most cases.</span></p>
<p class="Body"><span style="line-height: 1.3em;">Among the most dangerous material is “research” which presents lists of, for example, the 10 best places to buy for high rental yields, or the 10 top buyers’ markets in the land, or the locations with the biggest growth in median prices in the past quarter.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body"><span class="Body__Char">These lists are presented by incompetent journalists with the inference that these are the places investors should be buying. It amounts almost to criminal negligence. Those lists of the places with the highest yields or the ones described as the best buyers’ markets in the land comprise places where markets are in serious decline. Many of these markets are basket cases.</span></p>
<p class="Body"><span class="Body__Char">Earlier this week we saw a list of the most popular locations for buyers in Australia. These are the suburbs with the highest numbers of sales. The treatment given to this press release material from a publicity-hungry research business inferred that these were all great places to buy. If everyone’s piling into these places, then so should you. The inference is that the herd mentality is a viable method of making investment decisions.</span></p>
<p class="Body"><span class="Body__Char">Eight of the top 10 locations on the list were all locations that investors must avoid, if they are to escape a financial disaster. Those eight locations were apartments markets with heavy marketing of off-the-plan high-rise units in locations that already have, or will soon have, serious oversupplies.</span></p>
<p class="Body"><span class="Body__Char">The No.1 location in the list was the Melbourne CBD. Most of the 1,500 buyers who have purchased apartments there in the past 12 months will live to regret their decisions. Also on the Top 10 list were neighbouring unit market suburbs, Southbank and South Yarra. This is oversupply central for Australian real estate – a place where unit towers are being built not for local consumption but to be flogged at inflated prices to offshore investors. It won’t end well. </span></p>
<p class="Body"><span style="line-height: 1.3em;">Four of the top 10 places were occupied by unit markets on the Gold Coast, with Surfers Paradise No.2 on the national list. You have to wonder how many people have to lose money in this fools’ paradise before investors get the message to steer clear.</span></p>
<p class="Body"><span style="line-height: 1.3em;">The Gold Coast has just spent five years absorbing the previous surplus of high-rise units, with property values falling in virtually every suburb in Gold Coast City. The median price for Surfers Paradise is still lower today than it was five years ago, but in the past 12 months another 1,255 buyers dived headlong into this investors’ graveyard, even as developers are working hard on creating the next massive over-supply.</span></p>
<p class="Body"><span style="line-height: 1.3em;">The Brisbane CBD, which is working hard to outdo its Melbourne’s counterpart as oversupply central, is No.3 on the list.</span><span style="line-height: 1.3em;"> </span></p>
<p class="Body"><span class="Body__Char">The latest research shows that only 10% of sales in the Brisbane inner-city unit market are to owner-occupiers. Investors are buying 90% of the stock and the great majority of them are distant investors – people from interstate and overseas. Many will wish they had left their money in the bank.</span></p>
<p class="Body"><span class="Body__Char">Vacancies in Brisbane’s inner-city suburbs range from 4% or 6.5% - and that’s before all the new supply now under construction hits the rental market. BIS Shrapnel research shows that a record number of new apartments will be completed this year, but more will be finished next year and even more the year after. These numbers are a red flag for sensible buyers.</span></p>
<p class="Body"><span class="Body__Char">Brisbane, like Melbourne and the Gold Coast, is building far too many apartments because they’re not being created for local consumption – they’re being conceived for sale to unsuspecting foreign buyers.</span></p>
<p class="Body"><span class="Body__Char">The developers will be happy because they will sell all their apartments and make lots of money, but the broader market and the people who own properties there will suffer, as high vacancies cause rents to fall, with values to follow.</span></p>
<p class="Body"><span class="Body__Char">If you’re an investor driven by the herd mentality or the FOMO (Fear Of Missing Out) syndrome, then you will dive into these markets. And when you lose money, you will thoroughly deserve it.</span></p>
<p class="Body"><span class="Body__Char">Be afraid, be very afraid.</span></p>
<p class="Body"><span class="Body__Char"><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></span></p>
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terryryder-YECXbqmri2

Better in the bank than on Brisbane inner-city apartments: Terry Ryder

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<div>The REINSW has noted a rise in vacancy rates in the NSW coastal regional city of Newcastle, up from 3.4 per cent to 4.6 per cent.</div>
<div>
<br>The Hunter also saw a rise from 3.1 per cent to 3.9 per cent, the April 2015 Real Estate Institute of New South Wales data revealed.</div>
<div> </div>
<div>It has been suggested the spike reflects unemployment rates of 8.4 per cent at Newcastle or even higher around the Hunter region at 11.8%, according to the ABS.</div>
<div> </div>
<div>
<h2>Unemployment Rates by Labour Force Region, April 2015 (15+) (%)</h2>
<div>
<table class="DataTable" border="1" rules="all" cellspacing="0"><tbody>
<tr>
<th scope="col">Labour Force Region</th>
<th scope="col">Unemployment Rate</th>
</tr>
<tr>
<td>Sydney - Northern Beaches</td>
<td>2.9</td>
</tr>
<tr>
<td>Sydney - North Sydney and Hornsby</td>
<td>3.6</td>
</tr>
<tr>
<td>Sydney - Sutherland</td>
<td>3.6</td>
</tr>
<tr>
<td>Sydney - Eastern Suburbs</td>
<td>3.7</td>
</tr>
<tr>
<td>Sydney - Baulkham Hills and Hawkesbury</td>
<td>4.2</td>
</tr>
<tr>
<td>Capital Region</td>
<td>4.5</td>
</tr>
<tr>
<td>Sydney - Inner West</td>
<td>4.6</td>
</tr>
<tr>
<td>Sydney - Outer West and Blue Mountains</td>
<td>5.3</td>
</tr>
<tr>
<td>Sydney - City and Inner South</td>
<td>5.5</td>
</tr>
<tr>
<td>Sydney - Parramatta</td>
<td>5.6</td>
</tr>
<tr>
<td>Far West and Orana</td>
<td>5.7</td>
</tr>
<tr>
<td>Central Coast</td>
<td>5.8</td>
</tr>
<tr>
<td>Riverina</td>
<td>5.8</td>
</tr>
<tr>
<td>Sydney - Outer South West</td>
<td>6.2</td>
</tr>
<tr>
<td>Sydney - Blacktown</td>
<td>6.4</td>
</tr>
<tr>
<td>Sydney - Ryde</td>
<td>6.5</td>
</tr>
<tr>
<td>Sydney - South West</td>
<td>7.0</td>
</tr>
<tr>
<td>Sydney - Inner South West</td>
<td>7.3</td>
</tr>
<tr>
<td>Coffs Harbour - Grafton</td>
<td>7.5</td>
</tr>
<tr>
<td>Mid North Coast</td>
<td>7.8</td>
</tr>
<tr>
<td>Central West</td>
<td>8.1</td>
</tr>
<tr>
<td>Illawarra</td>
<td>8.1</td>
</tr>
<tr>
<td>New England and North West</td>
<td>8.2</td>
</tr>
<tr>
<td>Murray</td>
<td>8.4</td>
</tr>
<tr>
<td>Newcastle and Lake Macquarie</td>
<td>8.4</td>
</tr>
<tr>
<td>Southern Highlands and Shoalhaven</td>
<td>8.7</td>
</tr>
<tr>
<td>Richmond - Tweed</td>
<td>8.8</td>
</tr>
<tr>
<td>Hunter Valley exc Newcastle</td>
<td>11.8</td>
</tr>
</tbody></table>
</div>
</div>
<div> </div>
<div>It is a lot tighter south of Sydney <span style="line-height: 1.3em;">Wollongong saw vacancies rise 0.8 per cent in the month to 1.8 percent.</span>
<div> </div>
<div>There was a 0.3 per cent increase in the Illawarra to 1.3 per cent.</div>
<div> </div>
<div>
<div>Sydney vacancy rates remained stable in April 2015, tightening in the inner and middle ring, but recording an <span style="line-height: 1.3em;">increase in vacancy rates in the outer.</span>
</div>
</div>
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Newcastle's worrying high rental vacancy rate: REINSW

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<p>Just 15 months after purchasing it for $13 million, Halcyon Group has sold the landmark Buena Vista Hotel in Mosman through Ray White Hotels.</p>
<p>It was sold to a new hotel operation – The Public House Management Group (PHMG) at an undisclosed higher price.</p>
<p>The Medich family-operated Halcyon purchased the Buena Vista early last year.</p>
<p>It had submitted plans for a make-over of the pub which Ray White director Andrew Jolliffe advised helped seal the sale.</p>
<p>“The Buena Vista is patently one of those hotels that enjoys almost folklore status within the hotel industry,” said Andrew Jolliffe on the pubtic website.</p>
<p>Prior owners have included the Kelly family's <span>Newhaven Park Stud who bought it from Austotel in 1992 for around $3.3 million.</span></p>
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Medich family sells Mosman's Buena Vista hotel

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<p>The Australian Prudential Regulation Authority (APRA) released their quarterly Authorised Deposit-taking Institution (ADI) Property Exposures data for March 2015 earlier this week.  The data always provides a valuable insight into current and historic mortgage lending by domestic ADIs and this quarter’s release was no different.  Given the heightened vigilance from APRA around investment lending and overall lending standards as well as recent changes to mortgage policies from many banks, the latest release from APRA may also signal a cyclical peak in investment lending as well as interest-only mortgage lending.</p>
<p><img class="aligncenter size-full wp-image-4819" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-14.jpg" alt="Chart 1" width="500" height="180"></p>
<p>Based on the value of all outstanding mortgages by households to Australian ADIs, there was $852.5 billion outstanding to owner occupiers (65.4% of all housing loans) at the end of March 2015 and $450.2 billion to investors (34.6%).  Over the 12 months to March 2015, the total value of outstanding mortgages to owner occupiers has increased by 7.2% compared to a 12.4% rise in outstanding credit to investors.  This represents a reduction in the annual rate of increase in owner occupier lending over the quarter and the greatest rise in investor lending since September 2010.  Much like other data received more regularly, the chart indicates that there remains significantly more momentum in the investor lending space than that for owner occupiers where growth is more moderate.  With changes to investment lending criteria now being adjusted we are likely to see a slowing of that rate of change over the coming quarters.</p>
<p><img class="aligncenter size-full wp-image-4820" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-23.jpg" alt="Chart 2" width="500" height="182"></p>
<p>At the end of March 2015, a record high 38.6% of loans outstanding had an offset facility, up from 35.4% a year earlier.  Also a record high was the 37.4% of all outstanding mortgages which were interest-only, up from 35.4% a year earlier.  Just 0.2% of all outstanding mortgages were reverse mortgages and 2.3% were low documentation which was down from 3.1% a year earlier and at a record low proportion.  Other non-standard loans accounted for just 0.1% of all outstanding mortgages.  It seems that more and more mortgagees are accessing offset accounts in order to reduce the interest payable on their mortgages and maximise repayments of the principal while interest rates are so low.  The data also indicates that a high proportion of lenders are accessing interest-only mortgages which seem somewhat counterintuitive at a time when interest rates are so low.  Following APRA’s letter to ADIs in late in 2014 they specifically called out interest only lending as a risk and we would expect that over the coming months these types of mortgages will become harder to obtain.</p>
<p><img class="aligncenter size-full wp-image-4821" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-33.jpg" alt="Chart 3" width="500" height="179"></p>
<p>The average balance on all outstanding mortgages at the end of March 2015 was $243,500.  The average balance has increased by 3.6% over the past year, its fastest annual rate of growth since the year to June 2012.  Loans with an offset facility ($290,600) and interest-only mortgages ($315,100) have much higher average outstanding loan balances.  The annual growth in average outstanding loan balances has been slightly more moderate for mortgages with an offset and interest-only mortgages at 3.3% and 3.4% respectively.   The annual rate of growth for mortgages with an offset is the fastest since September 2012 and the rate of growth for interest-only mortgages is at its fastest pace since September 2010.  Encouragingly, the data indicates that outstanding balances are reducing for low documentation and other non-standard loans as they become less common.  Over the past year the average balance has fallen by -2.9% for low-documentation loans and by -6.7% for other non-standard loans.  With mortgage rates low and fewer of these loan types being written it seems those that have these types of loans are continuing to pay down these mortgages at a fairly rapid pace.</p>
<p><img class="aligncenter size-full wp-image-4822" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-43.jpg" alt="Chart 4" width="500" height="181"></p>
<p>Turning the focus to new loans written over the March 2015 quarter, 63.0% of the total value of new lending was to owner occupiers and 37.0% was to investors. The proportion of new lending to investors has fallen from a record high of 37.9% in the June 2014 quarter.  Based on this data it suggests that growth in demand for both owner occupier and investment lending may have peaked.  The annual change in new owner occupier and investment lending was recorded at 9.3% and 15.4% respectively.  The annual change in owner-occupied mortgages is growing at its fastest pace since March 2014 while the annual change in investment lending has been trending lower over the past two quarters.</p>
<p><img class="aligncenter size-full wp-image-4823" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-51.jpg" alt="Chart 5" width="500" height="180"></p>
<p>Over the March 2015 quarter, 0.7% of new loans approved were low-documentation, 42.3% were interest-only, 0.1% was other non-standard loans, 42.2% were third party originated loans and 2.8% were loans approved outside of serviceability.  The 42.3% of new loans which were interest-only was down over the quarter with the proportion at its lowest level since March 2014.  The data also seems to reflect the slowing of growth in investment demand, remember that interest only loans tend to be (but not always) reflective of lending for investment purposes.  The ADIs seem to be increasing the usage of their broker channels with 42.2% of loans originated by third parties.  With 2.8% of new mortgages approved outside of serviceability over the March 2015 quarter, this was down from 2.9% over the previous quarter.</p>
<p>In terms of the annual change in new lending, the value of new low documentation loans approved rose 31.1% year-on-year, interest-only loans rose 19.7%, other non-standard loans fell -24.3%, third party originated loans increased by 14.9% and loans approved outside of serviceability increased 25.2%.  Although low documentation and loans outside of serviceability make up a small overall proportion of lending, the significant increase in lending for these loan types over the year is a potential cause for concern.</p>
<p><img class="aligncenter size-full wp-image-4824" src="https://blog.corelogic.com.au/wp-content/uploads/2015/05/Chart-61.jpg" alt="Chart 6" width="500" height="183"></p>
<p>Looking at the loan to value ratios (LVR) of loans written over the March 2015 quarter,  25.7% of new loans had an LVR of less than 60%, 41.4% of loans had an LVR of between 60% and 80%, 21.7% had an LVR of between 80% and 90% and 11.1% had an LVR of 90% or more.  The 11.1% of new loans with an LVR of more than 90% is the lowest proportion since December 2010.  The 25.2% of mortgages with an LVR lower than 60% was the highest proportion since June 2013.  This falling proportion of loans above 90% LVR suggests there are proportionally less high-risk mortgages being written.  It should be noted that around a third of all new mortgages written (32.8%) had an LVR of more than 80%.</p>
<p>Looking at the year-on-year change in mortgage lending by LVR bands, mortgages with an LVR above 90% were the only segment to record a fall down -7.8%.  Mortgages with an LVR below 60% were up 18.6% year-on-year, LVRs of 60% to 80% were up 12.4% and LVRs of 80% to 90% rose 13.9%.  The 18.6% rise in mortgages with an LVR of less than 60% was the largest since December 2013, the 12.4% rise in mortgages with an LVR of 60% to 80% was the lowest since March 2013, the 13.9% rise in mortgages with an LVR of 80% to 90% was the lowest since March 2013 and the -7.38% fall in mortgages with an LVR greater than 90% was the largest fall since March 2011.</p>
<p>Given that we have recently seen many banks starting to implement changes in their lending policies, mostly focussed on investors we would anticipate that investor and interest-only lending will likely moderate over the coming quarters.  The decline in higher LVR lending is an encouraging development given a focus on mortgage serviceability at this time of low mortgage rates.  The increase in lending outside of serviceability and low documentation loans over the past year is likely to be an area of scrutiny for APRA over the coming months.</p>
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APRA data shows new low doc loans potential cause for concern

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<p>Print communications business Blue Star Group will consolidate three Melbourne offices to a single warehouse after signing a long term lease in the Melbourne south-eastern suburb of Keysborough.<span style="line-height: 1.3em;"> </span></p>
<p>The property, 70-86 Atlantic Drive, is part of Australand's Key Industrial Estate and was let on a long term lease of what is believed to be around $90 per square metre.</p>
<p><span style="line-height: 1.3em;">Savills Associate Director, Daniel Kelly, said access for staff was an important consideration for Blue Star Group when signing the lease.</span></p>
<p>"The tenant was in the market for a property which ticked all the boxes for a national manufacturing and distribution firm with a focus on ease of transport solutions and with the flexibility to grow the operation," Mr Kelly said.</p>
<p><span style="line-height: 1.3em;">"They were also attracted to the modern high-bay warehouse, on-grade loading and docks and ease of access to the CBD, docks and interstate via Melbourne’s freeway network."</span></p>
<p><span style="line-height: 1.3em;">The office and warehouse comprises a 6789 square metres. The high bay warehouse is 6452 square metres with the office space  sized 337square metres.</span></p>
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Australand warehouse let to Blue Star Group

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<p><span>The latest commercial property borrowing data has been released by the Australian Prudential Regulation Authority (APRA) </span><span>for the March 2015 quarter.</span><br><br><em>Quarterly ADI Property Exposures </em><span>contains information on ADIs’ commercial property exposures.</span></p>
<p><span>ADIs’ commercial property exposures were $234.2 billion, an increase of $15.1 billion (6.9%) over the year. </span></p>
<p><span>Commercial property exposures within Australia were $193.3 billion, equivalent to 82.5% of all commercial property exposures.</span></p>
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<p>As shown in<a href="https://www.apra.gov.au/adi/Publications/Documents/1503-QAPES-March-2015.pdf" target="_blank"> Figure A</a> (below):</p>
<p> </p>
<p><img src="/images/2015/05/27/Screen%20Shot%202015-05-27%20at%201.17.10%20PM.png" alt=""></p>
<ul>
<li><span style="line-height: 1.3em;">major banks held $202.3 billion of commercial property exposures, an increase of $6.6 billion (3.4%) on 31 December 2014 and $12.3 billion (6.5%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">other domestic banks held $14.0 billion, a decrease of $0.4 billion (2.7%) on 31 December 2014 and an increase of $1.5 billion (11.7%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">foreign subsidiary banks held $4.1 billion, an increase of $0.2 billion (5%) on 31 December 2014 and a decrease of $0.9 billion (17.8%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">foreign branch banks held $13.4 billion, an increase of $0.3 billion (2%) on 31 December 2014 and $2.3 billion (20.7%) on 31 March 2014;</span></li>
<li><span style="line-height: 1.3em;">building societies held $211 million as at 31 March 2015, a decrease of $25 million (10.7%) on 31 March 2014; and</span></li>
<li><span style="line-height: 1.3em;">credit unions held $309 million as at 31 March 2015, a decrease of $38 million (10.8%) on 31 March 2014.</span></li>
</ul>
<span style="line-height: 1.3em;">The largest property exposures were office property ($70.3 billion) and retail property ($53.8 billion). These represented 30% and 23% of all exposures respectively.</span>
<p style="line-height: 1.3em;">Impaired commercial property exposures were $1.6 billion at 31 March 2015 and specific provisions and security held for commercial property were $1.6 billion. </p>
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