Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

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.

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.

“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.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“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.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

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.

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.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

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.

The developer is also exploring the potential for additional affordable housing outcomes.

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.

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.

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.

&nbsp;

&nbsp;

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.

“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.”

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.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

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.

Joel Robinson

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

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.

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.

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.

<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" />

“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.

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.”

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.

<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" />

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.

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.

“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.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

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.

<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" />

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.

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.

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

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.

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.

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.

<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" />

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.

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.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

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.

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.

<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" />

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.

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.

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

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.

The proposal will now proceed to a full council vote on June 2.

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;

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;

<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" />

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;

Centre owner Patrick Lu said the milestone reflected months of detailed planning, technical assessment and ongoing communication with local residents, businesses, schools and stakeholders.

“We appreciate the time, consideration and care Council officers and the Planning Committee have given this proposal throughout the assessment process,” Lu said.

“We also sincerely thank the local community for engaging with us, sharing feedback and participating in the consultation process over many months.

<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" />

“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.

“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.

“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.”

<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" />

Lu said the proposal had evolved significantly through consultation and technical review, particularly around traffic, pedestrian and student safety and neighbourhood connectivity.&nbsp;

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.

“This proposal represents the type of thoughtful, integrated growth that planning frameworks across South-East Queensland are encouraging,” Ms Griffin said.

“The project seeks to place housing, retail, healthcare and employment opportunities together in a highly accessible location close to schools, transport and existing services.

“Importantly, the process has involved significant technical assessment and community engagement to ensure local issues and feedback were properly considered throughout the planning pathway.”

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

Surfers Paradise is officially set for its first new residential development with a 45-storey skybridge connecting the two towers.

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>.

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.

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.

<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" />

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.

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.

“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.

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.

“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.

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.

The project will also introduce new food and beverage offerings along the Enderley Avenue and Oceanway frontages, contributing additional activation to the beachfront precinct.

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

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.

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;

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.

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.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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" />

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

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.

<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" />

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.<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" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

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;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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The No Land Tax Party candidate Peter Jones has missed out on his seat in the NSW Legislative Council.
The party was thought likely to win the 21st and last position up for grabs in the NS Upper House, but lost out to the Animal Justice Party.
The ABC election analyst Antony Green told 2GB's Ray Hadley that Green preferences swung the final result.
Animal Justice Party parliamentarian Mark Pearson said he was thrilled that the voice of animals would be heard in a house of parliament for the first time.
Mark Pearson is executive director of Animal Liberation in Australia.
Photo courtesy of J Bar/<a class="mw-mmv-license" href="https://creativecommons.org/licenses/by-sa/3.0/" target="_blank">CC BY-SA 3.0</a>.
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jchancellor-FAypfDUnLy

No Land Tax party misses out on NSW Upper House seat

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While his Treasurer is overseas, Prime Minister Tony Abbott has quashed speculation over the future of negative gearing by promising there will be no changes.
"Yes," was his answer when asked on Thursday whether he could rule out changes to negative gearing
There has been speculation that the government, through its taxation white paper process, might bow to pressure over claims negative gearing was benefiting the landlord class.
Abbott said he wanted to have a conversation about reducing taxes and curbing spending.
"Now, I don't absolutely rule out closing loopholes and ending anomalies and trying to make sure that existing tax rules are fairly and squarely applied, but the government I lead wants taxes to be lower, simpler, fairer," he said.
"We'll continue tax reform in the upcoming budget with a small business tax cut. I would say to the people who are running around looking to increase taxes on people, what we really need to do is to get our spending under control.
"Australia does not have a problem with taxes being too low; Australia has a problem with spending being too high because of the excesses of the former government."
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No negative gearing changes: PM Tony Abbott

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GUEST OBSERVATION
Those who have read my book or heard one of my presentations, are often struck by the juxtaposition on some of my investing suggestions. It usually goes something like this:
a) You’re a conservative investor but you recommend spending more money on property at times like this.
b) You say Sydney is the best and most robust market in Australia but when I heard you speak you are saying that Sydney is “terrible” investing right now.
c) You say you’re not a speculator, but you actually have the gall to recommend the Gold Coast market now? Are you mad?
Well. I can answer them all with yes, yes, yes and yes (the last one being for ‘yes’, I am mad!).
So let me try and explain.
Is Mr/s Average Wealthy?
I have made almost all of my wealth from investing by putting my money down when it seemed like absolutely the craziest thing to do. Think about this for a second.
The average price for a 2/1/1 unit is say Coogee/Bondi is now approaching $850,000 to $900,000. Clients of ours were buying these same units for as little as $530,000 as recently as 2012. Some of these same clients are now selling. Most are not. All of them are ecstatic with the performance of their investment(s). The prevailing rent at the time was approximately $630 to $650 per week. $530,000 for $650 per week is an excellent deal, especially in premium Sydney.
Now, saturation of the rental market has meant that these rents should arrive at between $580 per week and $590 per week within 18 months. Remember, this is an investor lead property recovery. More rental stock will mean higher vacancy rates going forward.
It is the average property investor that has driven the prices up to almost $900,000. Do you think they would be happy with their results when they wake up to realise their investment is now yielding sub 3%? I suspect not. More likely, I’d even say with certainty that the likely result is a small but immediate retreat in prices to reflect the newfound ‘wisdom’ of investors.
Keep in mind that I don’t see a larger correction (yet) while interest rates oscillate around these levels, so I’m not here to spook anyone. But investing is more about psychology than one would think.
Perception Bias
The problem of the ‘average’ investor in this scenario is that they have perception bias.  World class resource investor Rick Rule cites that “expectations of the future are usually set by their experiences in the immediate past”. The punter saw $600,000 become $700,000. They saw $700,000 become $800,000. They saw a slight arm wrestle with the market in winter/spring of 2014 which might have changed their mind. But alas, the bulls won that round with the noise of interest rates pursuing their downward trend. Then the last move from $800,000 to $900,000 has sealed the deal. The averages are piling in. Remember, ’average’ doesn’t become wealthy.
Now their expectations are set. $900,000 will now become $1 million. $1 million will become $1.1 million. Rinse, repeat.
No. It. Will. Not.
This is not just illogical, wishful thinking and void of wisdom, but it also ignores a common tenant of investing in assets. A Golden Rule I have always followed as a professional investor, that being: ‘an assets value cannot be outstripped by people’s ability to afford that asset’. With Sydney-siders bordering on 55% of their household income being spent on property, (this has (historically) always been our limits...since our economy went global in 1988. If I am to be wrong, please tell me which part of the family budget will be stripped. Is it food? Education? Is it healthcare? Try telling your child they’re not getting the next iPhone?
If you are betting on this happening... you are betting against history. And if I am wrong by a decimal point, it doesn’t make me wrong to warn off investing in Sydney (or Melbourne for that matter) now. If we decide to break a record and spend 56% of our household income on property, this discrepancy wouldn’t even cover the cost of ¼ of your stamp duty.
No, my friends. Mr and Mrs Average are about to lose their shirt. I just hope it isn’t you; dear reader.
Over Committed? Is there a way out?
But now for the good news. The above scenario, while inevitable...is not ‘imminent.’ I have been forced to take a more ‘hawkish’ view of the prevailing sentiment over the past 18 months, and of course the fundamentals. Interest rates will be lower for longer. One more rate move down seems likely, but it matters not. One rate decrease equals $40 per month more affordability. If you think this changes anything try the Woolworths test. Go in and spend $40 and see how long it takes you to do it. You’ll be at the register in four minutes flat...no need for the trolley with $40 worth of goods!
For those that are over committed, there is time to get out of this mess. For those that bought a lemon, time to rethink. For those that are going to sell anyway, in say the next 4 years - maybe now is a good time to consider it. Mr and Mr Average certainly aren’t thinking too hard. They are getting pretty drunk on their own kool aid... so while they are still inebriated, perhaps sell them yours before they sober up. They’re going to buy anyway, why not make sure it’s yours?
Is there any opportunity in the market left?
I was gratified last weekend to finally see some of the major financial newspapers acknowledge that opportunity is abound in South East Queensland, something our office has been screaming from the rooftops for almost 30 months!
“The next cycle could prove to be a super cycle driven by Chinese investment and rapidly growing tourism,”CEO of Fat Prophets Angus Geddes says. Not one to mince words, Mr Geddes also agreed with my sentiment. “I would not be touching them [Sydney, Melbourne, London, Auckland] at current elevated levels with a barge pole.” Along with Andrew Wilson, property economist from ‘Domain’ is similarly upbeat about the Gold Coast.
But of course 9 million people (Sydney and Melbourne) deserve a lot of attention, and for the past two years they have spoken. But ponder this.
For every $600,000 I’ve seen make $850,000 in Sydney, I’ll show a better deal with even more upside in Brisbane or the Gold Coast. Acknowledging that the next two years are expected to be bullish for these cities, this has not precluded great profits over the past two year either. A client of ours bought a unit 15 months ago in Kent St New Farm (Brisbane), for $343,500 (2/1/1) in a small block of six. Another apartment in the same small building (of comparable merit and amenity) just sold for $450,000, an almost 25% gain in equity for our client. Given the small entry costs, higher rental yield and continual expected growth going forward... I know what I’d prefer. To eke out the same gains in Sydney, an investment of double that size is necessary (notwithstanding that I think the average priced investment gains are over anyway!)
Similarly, a Gold Coast property boom, for all its volatility... is a truly remarkable thing to participate in for three years out of 10. Now is the season where larger developers move into the Coast and pick up the last big land holdings while they’re still cheap. In the past six weeks, six clients of ours have experienced gains in excess of 100% for their venture into the Gold Coast less than two years ago...when there was blood on the floor. To cite the most profitable deal - a client of ours paid $165,000 some 24 months ago sold for $500,000 to a developer into the well publicised Banyan Tree Resort consolidation of some $50 million. Our buyers agents located four clients in this block, and by all indicators at the time I’d like to think it was an obvious position we took in identifying this site as a likely future development site. But it does make you then wonder what could have induced the seller to sell two years ago; with a rental return of $250 per week and a low body corporate fees in such a site rife with potential.
Clearly, the factor here wasn't a fundamental one...but a psychological one.
Predictions
As the property market recovery turns now to the smaller cities, I expect to see larger profits on smaller outlays on the Gold Coast and Brisbane. Some time ahead should see the regionals follow suit, albeit with a much higher risk proposition.
While now being very bearish on Greater Sydney and Melbourne average priced properties, I expect the premium markets to thrive. It’s universally understood and historically shown that this is the way markets mature within each cycle. Markets recover in a financial sense from the “bottom up”. That is, everything that’s cheap... flies first. And in a geographical sense, the market moves from ‘in and out’. That is, from an ‘epicentre’ (high density urban) out into the out suburbs, and finally to the fringes. Also known as... ”the ripple effect.”
Stop thinking about where the money was made. Start wondering where the money will be made next.
I’ll expand on the ‘ripple effect’ in the next article and show the average investor how to truly beat the market to the next property profits. I’ll also briefly touch on the much revered “Chinese investor” and the oft-misinterpreted truth about why Chinese investment is healthy, but why it isn’t going to change your property price over the long term by any more than $1,000!
Gavin McPherson is the chief executive of <a href="https://www.oasisproperty.com.au/" target="_blank">Oasis Property Group</a>. 
His book, 'Value Investing in Property - What would Warren Buffet do if he was buying property in Australia?', takes aim at the get rich quick property experts and explains instead the sturdy path to wealth through value investing in property. 
As a buyer’s agent, Gavin and his offices have assisted over 2,000 plus property transactions valued at well over $2 billion.
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Average investors get average results: Gavin McPherson

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GUEST OBSERVATION
New Sydney flats will have to be bigger, <a href="https://www.afr.com/real-estate/residential/ruling-could-make-sydney-apartments-bigger-and-more-expensive-20150414-1mjpmk" target="_blank">the NSW Land and Environment Court ruled last week,</a> overturning long accepted common practice allowing minimum one-bedroom unit sizes at 50 square metres.
Dual-aspect flats must be a minimum 58 square metres and more common single-aspect flats 73.4 square metres.
Property observers have been watching the steady shrinking of highrise flats with some alarm. This isn’t about dizzy planners imposing costs on struggling home buyers, this is about permanent additions to our housing stock and how useful they are.
Highrise reinforced concrete buildings are <a href="https://www.theage.com.au/victoria/melbournes-new-wave-of-skyscrapers-could-survive-100-years-20150318-1m1dmx" target="_blank">very hard if not impossible to change</a>.
The one bedroom flats are mostly being sold to investors who have no intention of living in them. They are the developers’ customers, not the occupants.
In theory, two cramped flats could be amalgamated to make a single spacious one. Sadly the numbers go against this. Putting two $350,000 flats into one worth $600,000 makes no financial sense. The next buyer will simply reverse this and pocket the sacrifice. This is why minimum standards are so important.
Meanwhile, the average size of a <a href="https://www.oliverhume.com.au/news/melbourne-new-apartment-sizes-shrinking-again" target="_blank">new one bedroom flat in Melbourne</a> has fallen to 44 square metres and two bedders to 59 square metre. Smaller flats aren’t cheaper – the savings are simply capitalised into higher land prices on all future developments.
There were moves last year to establish minimum standards in Melbourne, with former Coalition Planning Minister, now Opposition Leader, <a href="https://www.theage.com.au/victoria/strict-new-rules-for-highrise-apartments-on-table-20140723-zw4qk">Matthew Guy making encouraging noises</a>, however implausably, but vanished with the election of the Andrews ALP government.
There is a democracy lesson in all this. If the bureaucracy can’t act and the parliament won’t, the judiciary must – which is why the NSW Land and Environment Court ruled on minimum flat sizes.
David Collyer is policy director of <a href="https://www.prosper.org.au/" target="_blank">Prosper Australia</a>.
David ran as a Senate candidate for the Australian Democrats in the 2013 federal election.
This article first appeared on Prosper's website.
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Sydney apartment size ruling a lesson in democracy: David Collyer

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A group of seven petrol stations were on offer at today's Burgess Rawson investment portfolio auction.
Crown Casino's River Room filled with investors keen to snap up a petrol station or one of the 13 other commercial properties on offer.
The first petrol station to go under the hammer with auctioneer David Scholes was a Woolworths Caltex in the Western Australian town of Katanning.
A rather optimistic first bid was put in at $400,000, which was quite firmly rejected by Scholes.
"You have to start somewhere," mumbled the embarrassed under bidder.
The more realistic starting bid was placed at $900,000, and a group of competing bidders from Melbourne, Sydney and Western Australia brought the price to $1.03 million, often at a pace of $5,000 per bid.
The Katanning petrol station at <a href="https://www.realcommercial.com.au/property-offices-wa-katanning-501493547" target="_blank">137-139 Clive Street</a> (pictured above), which brings in $56,818 per annum, was sold on a 5.52% yield. Woolworths have recently signed a 15 year lease.
The next petrol station up for auction was also leased by Woolworths Caltex. Located at<a href="https://www.commercialview.com.au/565-581-sydney-road-coburg-vic/commercial-for-sale-details-8514182" target="_blank"> 565-581 Sydney Road in Victoria's Coburg</a>, the site brings in $253,758 per year, with Scholes noting that more than 32,000 vehicles pass by the service station daily.
Woolworths signed a 15 year lease for the site in 2012. The 1,858 square metre property, Scholes noted, is nearly opposite the former Pentridge Prison, where an apartment development is being planned.
Bidding officially began at $3.8 million after a rejected $2.75 million starting bid, before stalling at $4.15 million. After some consultation, a vendor bid was placed at $4.5 million, which was matched by a bidder. The Coburg petrol station was secured at a 5.64% yield.
Next on the auction block was a Coles Express petrol station in Queensland's Ayr. Located about 85 kilometres south of Townsville, the Coles Express at <a href="https://www.burgessrawson.com.au/3P0992#.VS3sfIWM54s" target="_blank">140-132 Edwards Street</a> (Bruce Highway) on a corner site, the 2,015 square metre property came with development approval for a fast food outlet.
Coles Express pay $288,400 net per annum in rent, with fixed 3% annual rental increases.
Scholes suggested that bidders from Brisbane, Sydney and Melbourne begin at $4 million, and a small group of bidders slowly pushed the price upwards past $5 million. After a tight bidding volley between a Sydney and Melbourne bidder, the winning $5.1 million bid from a Sydney investor saw the Melbourne hopeful walk out of the room.
The Coles Express sold at a 5.65% yield.
The vendors of the next Queensland petrol station to be auctioned weren't quite so lucky.
The Shell SPAR Express in Bundaberg, at <a href="https://www.burgessrawson.com.au/4P0146#.VS3uPIWM54s" target="_blank">15 Scotland Street</a>, was passed in after subdued interest from the crowd.
The corner petrol station site, which includes a 378 square metre SPAR convenience supermarket, brings in $337,459 per annum in rent. The tenant has signed a 20 year lease to 2032, with a fixed rental increase of 4% per year.
While Scholes attempted to entice bidders to enter the race at $4.5 million, the first bid was placed at $4 million. After just a handful of bids, the bidding stalled around $4.5 million. It was passed in at $4,525,000.
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Mixed result for petrol station sales at portfolio auction

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A private Melbourne investor has purchased the Williams Landing Masters store for $36 million.
It was bought from listed property company Cedar Woods through CBRE agents Mark Wizel and Justin Dowers. 
The Masters home improvement store was sold with a 20-year net lease, 100% guaranteed by Woolworths and returning a net income of over $2 million.
Click to open in new window:
<a href="/images/2015/04/15/cbre-apirl1-5b-re.jpg" target="_blank"><img src="/images/2015/04/15/cbre-apirl1-5b-re.jpg" alt=""></a>
Reflecting a yield of 6%, the sale of the not yet two year old store represented the strongest yield ever achieved for a hardware store in Australia.
“We were really taken back at both the depth of offers and aggressive nature of bidders for this asset,” Wizel said. He noting other recent Masters store sales included Dandenong, Western Australia and Penrith all achieved yields of between 6.75% and 7%.
“The latest sale at 6% shows the significant increased confidence that buyers have in the Masters covenant and the longer term outlook from investors in relation to the Masters platform as a business,” Wizel commented.
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CBRE nail strongest yield yet for Masters Hardware offering

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A sports medicine centre on Bay Street in Brighton sold to an investor for $3.37 million today.
A packed room at Burgess Rawson's investment portfolio auction at Crown Casino watched a handful of bidders take <a href="https://www.burgessrawson.com.au/3P0991#.VS3i0YWM54s" target="_blank">441 Bay Street, Brighton</a>'s price from $2.8 million to $3.37 million.
"Don't think of the yields, think of the position," auctioneer David Scholes urged a handful of potential buyers as bidding slowed to $5,000 increments.
The 1,030 square metre site has been leased to Brighton Spinal Group for more than 16 years. Currently, it attracts $143,402 net income per annum, with annual fixed increases of 3%.
The building comprises a Victorian at the front with a two level contemporary extension at the rear. It includes 11 consulting rooms and a large gym.
Scholes noted the large site's potential for further development, subject to council approval. The medical centre, marketed by Jamie Perlinger and Ben Appell of Burgess Rawson, sold at a 4.26% yield.
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Brighton medical centre sells for $3.37 million on 4.3% yield

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Raine &amp; Horne Commercial WA secured $4 million worth of land sales at the Northlink Industrial Park last week.
It has now sold 83 lots over three stages at Northlink, marketed as the last significant industrial land opportunity located within the inner suburbs of Perth’s rapidly growing north western corridor.
The Raine &amp; Horne selling agent, Anthony Vulinovich said the industrial estate, situated in Wangara and Gnangara, was a premium industrial location with strong amenity for businesses and their employees.
<img src="/images/2015/04/15/Northlink%20001.jpg" alt="">
Due to the strong demand and the limited number of remaining lots in Stage 3, the developer, Linc Property, has brought forward the release of Stage 4. 
The flexible lot sizes range from 1,100 square metres to three hectares, with prices between $300 and $390 per square metre.
The release of the final stage will be split into two phases, with Stage 4A now selling on the open market.
Civil works are well underway with titles expected as early as April 2015, according to Vulinovich.
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WA's Northlink industrial estate secures 83rd lot sale

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UBS analysts suggest an internal candidate is likely to replace outgoing GPT chief executive Michael Cameron.
They have been pinpointed its chief investment officer Carmel Hourigan, chief financial officer Mark Fookes and head of funds management Nicholas Harris as likely candidates.
An internal succession plan underway for some time needs to be possibly activated given Michael Cameron's exit to Suncorp.
As rumours rise and get shot down, the DEXUS chief executive Darren Steinberg says his group had no interest in merging with GPT.
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Internal succession likely following Michael Cameron's GPT departure

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Sydney's Burgess Rawson portfolio auction secured $43 million worth of property sales yesterday with yields as low as 4.5%.
Of the 19 NSW properties, auctioneer David Scholes knocked down 11.
<a href="https://www.burgessrawson.com.au/2P0932#.VS3Zy3pMLu0" target="_blank">The Double Bay offering</a> sold to an offshore Chinese buyer for $13.1 million reflecting a yield of 4.8%. There are long standing anchor tenant, ANZ – with options to 2033 on one of the largest blocks of land on 7-9 Knox Street.
The 478 square metre property, still known as Kennedy House, given the retail outlet of the luxury jewellery retailers the Kennedy family.
It has a 778 square metre net lettable area with a value add FSR 2.5:1 potential.
Most of the tenants were on annual 4% rent increases with a current net income of $628,576 per annum plus GST.
Burgess Rawson agent Michael Gilbert marketed the property in conjunction with Allan Levy of Metro Commercial.
Gilbert told the Australian Financial Review a third of contract requests had come from Chinese buyers. 
The ANZ Banking Group initially leased a 372 square metre space from the then landlords Louis Kennedy and Andrew Curtis at $420,000 a year in rent in the late 1980s, in a deal that equated to about $1,130 a square metre.
Mark Foys was previously paying $132,000 a year for the building which had been bought by the Kennedy family in the late 1970s when the rent was $87,000.
Louis Kennedy, the man who brought glomesh handbags to Australia, died in 2008 aged 83.
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