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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Hi Margaret, 
What would be your thoughts on ways to mitigate the risks involved in hotspots? 
One such example would be Gladstone which has good strong fundamentals but is now experiencing oversupply.
The reason I am asking is that while a location is flagged as having good capital growth and yield,  I believe it is also important that I protect myself against overzealous developers who contribute to oversupply.  I am sure the above happens to many locations too.
Assuming that I've bought in a hotspot before a majority of the building stocks are dumped into the market, I might still be experiencing long periods of negative growth in a solid location when that happens.  I would be losing money if I sell out, but holding it would be extremely "painful".    
Thanks,
Adelyn
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Hi Adelyn,
The first thing we have to sort out here is ‘what is a hotspot’. 
Here, you say that Gladstone is an example of a hotspot. In reality, Gladstone is an example of an area that some property experts, and many property spruikers, have said is a hotspot. But is it?
In my opinion, no, but then again, this is just my opinion, and it will (often) be different than others.  I personally define a hotspot as an area which possesses an abundance of growth drivers, the capacity to experience ‘generational’ growth (where growth occurs steadily throughout an entire generation), a limited land supply, and very few people buying there as it has yet to be discovered and pillaged by the experts.
Growth drivers include things such as diverse employment opportunities, significant infrastructure development, low land supply and a population growing faster than the national average.
If we compared Gladstone to that description, it comes up wanting, and for that reason I feel that Gladstone does not qualify to be called a hotspot.  Instead, Gladstone is a speculative investment which requires precise market timing, both in and out. 
There are significant drawbacks attached to areas such as Gladstone – the single industry employment (mining), the itinerant and unstable population, the existence of too many developers selling properties at prices which bear no relationship to intrinsic value, to name a few. 
<a href="/expert-insights/the-tenant-in-my-mining-town-investment-has-done-a-runner-ask-margaret">Investors with money to lose who are willing to gamble </a>can make money in such a market but they must accurately read the micro economy to establish when to buy and when to sell. 
Ordinary investors attempting to create a sound portfolio which has an identifiable time frame (as in they know when they are likely to want to exit) should not be considering investing in such volatile markets where the fortunes are linked to an industry which is completely governed by the world economic situation.
The other thing to remember is that the word ‘hotspot’ these days seems to apply to the areas being written about by the ‘experts’. 
I can assure you that if it is being written about, you are far too late to be buying there. Thousands of people are reading the same report as you, and many of these will attempt to jump into such a market, at the same time.  This creates an upward pressure on prices and seems to justify that the area is actually a hotspot after all!
It’s a little like insider trading for shares – let the word out, everyone buys in and makes it look like the share is good after all, when in fact it is the market pushing up the price, not the underlying value.
The best way for you to be sure that what you buy is actually a sound investment, with the capacity to perform year on year, is to learn how to choose the right area yourself. 
In this world of instant gratification and busy lives every one wants someone else to do it for them - tell them where to buy, find a property for them, or worse, sell a property to them.  This is the best way to set yourself up for a poor or inappropriate buy which performs less well than  you would have liked and leaves you vulnerable to market falls. 
Learn what really makes an area perform for the long-term, and you’ll be able to scour the country and choose areas which are pre-hotspot, long before you read about them in the magazines.
Regards, 
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

What are the risks involved in buying in a 'hotspot'? Ask Margaret

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Australia is becoming less globally competitive but that doesn’t mean the local property market will slow, according to a leading economist.
Australia ranked at 22nd in the Global Competitiveness Index 2014–2015 released last week by the World Economic Forum. That was down one place compared with the previous year and seven places lower than in 2009-10 when Australia ranked 15th, according to Australian Industry Group, the local research partner for the report.
AI Group chief economist Judith Toth said competitiveness, productivity and efficiency were measures that indicated a country’s ability to increase its income.
The latest figures from the Australian Bureau of Statistics, released last week, show that in the June quarter, seasonally adjusted real net national disposable income fell by 0.2%. Meanwhile, gross domestic product, the measure of the country’s output, rose by 0.5%.
Toth said the drop in net national income was bad for Australians. “That means the ability to buy goods and services we want is declining,” she said.
“The problem is that the income that we got has declined and in global terms we are earning less as a country. For individuals that means, depending on what your career looks like, there could be reducing employment opportunities in Australia.”
Australia’s unemployment rate rose in July and Reserve Bank of Australia governor <a href="/expert-insights/finance/further-inflating-housing-market-unwise-rbas-glenn-stevens">Glenn Stevens said in a speech in Adelaide</a> last week that the labour market still had spare capacity and it would be a while before unemployment rates declined consistently.
Toth said one of the problems Australia has had in recent years is a case of ‘Dutch disease’, where industries that previously earned a lot of export income such as tourism, education and agriculture have suffered declines because our dollar is too high. “Those declines reduce employment opportunities outside mining for everyone else and reduces income,” she said.
Economic forecaster BIS Shrapnel recently predicted Australia’s economy will struggle over the next four years as the mining boom tapers off but the Australian dollar stays high.
It predicted in its Long Term Forecast 2014-2029 report that local consumption and investment would experience its weakest period since the early-1990s recession, averaging only 2% a year to 2017-18.
Despite the challenges the economy faces, the local property market has been booming. The Australian Bureau of Statistics reported in its Residential Property Price Indexes: Eight Capital Cities for June 2014 that prices in the capital cities rose by 10.1% in the year to June, with increases in each of the cities considered.
Toth said Australia’s falling global competitiveness was not likely to stifle the local property market.
“The local housing market is affected by global trends but not global competitiveness,” she said. “Competitiveness is about our ability to produce goods and services not our assets. What’s going on in the property market is tied with perceptions of risk in global financial markets where foreign investors see Australia as a safe place to invest.”
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Economist says local market will not slow despite global competition

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Where would the top real estate industry experts buy? It’s a question regularly asked by property investors.
John McGrath, one of Australia's leading commentators and real estate identities, has shared the areas he believes investors should take a look at, and his reasoning.
Here are his top 10 Sydney picks. Keep an eye on Property Observer for his other states and territory picks over the coming week, from the McGrath Report 2014.
<a href="/news"><img src="/images/2014/07/04/yellow-one.jpg" alt="" style="float: left;">  </a><a href="/news">Millers Point</a>, <a href="/news">The Rocks</a>
 This historical northern fringe of the CBD is about to explode. With the top end of the town as one neighbour, Barangarroo as another &amp; Sydney Harbour at your door it is the best located suburb in the country.
 
<a href="/news"><img src="/images/2014/07/04/yellow-two.jpg" alt="" style="float: left;">  Camperdown, </a><a href="/news">Erskineville</a>, <a href="/news">Newtown</a>
Close to the CBD &amp; benefitting from Sydney University embedded within. King Street retail strip along with Erskineville Village are great spots to wander &amp; find great coffee on the weekend. The Victorian terraces make this area somewhat unique and add to its charm.
 
<a href="/news"><img src="/images/2014/07/04/yellow-three.jpg" alt="" style="float: left;">  Botany, </a><a href="/news">Mascot</a>
Once a working class industrial factory suburb, this area has transformed itself completely &amp; is fast becoming a fashionable address. Right next door to the airport it will come into its own for commuters.
 
<a href="/news"><img src="/images/2014/07/04/yellow-four.jpg" alt="" style="float: left;">  Balmain</a>, <a href="/news">Birchgrove</a>
This area is not cheap. Nor should it be. Minutes by car or ferry to the CBD. Lace terraces alongside contemporary town homes, small warehouses &amp; nearby apartments – all wrapped around a hub of activity &amp; restaurants in the village.
 
<a href="/news"><img src="/images/2014/07/04/yellow-five.jpg" alt="" style="float: left;">  Earlwood</a>, <a href="/news">Bardwell Park</a> 
For many years this hidden gem has escaped the radar of many buyers. Only 12km from the CBD &amp; with an historically large Greek community, it is now being discovered by a new group of buyers who may have previously bought in areas like Haberfield &amp; Five Dock.
Turn over page for results six to ten
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RESULTS SIX TO TEN
<a href="/news"><img src="/images/2014/07/04/yellow-six.jpg" alt="" style="float: left;">  Concord</a>
Walk down the thriving coffee strip on Majors Bay Road. Look around &amp; you’ll feel that this is an area on the move. Whilst prices are no longer the obvious value they were a few years ago, they’re still well short of where they will be in the next ten!
 
<a href="/news"><img src="/images/2014/07/04/yellow-seven.jpg" alt="" style="float: left;">  Little Bay</a>, <a href="/news">Matraville</a>, <a href="/news">Chifley </a>
The smart young families who want an Eastern Suburbs beachside location without the price tag have discovered this area. Full of leisure &amp; sporting pursuits, it’s now home to a growing army of young professionals with families seeking better value &amp; more land than the inner City alternatives.
 
<a href="/news"><img src="/images/2014/07/04/yellow-eight.jpg" alt="" style="float: left;">  Forestville</a>
Surrounded by bushland Forestville is hidden between the northern surf beaches &amp; the leafy North Shore. This cosy neighborhood is rapidly becoming the preferred address for many buyers from the East &amp; Inner West who are craving more land &amp; value for money.
 
<a href="/news"><img src="/images/2014/07/04/yellow-nine.jpg" alt="" style="float: left;">  Rouse Hill</a>, <a href="/news">Castle Hill</a>
An hour wandering through Rouse Hill Town Centre retail village tells you this area is thriving. As new transport links arrive this area will have everything it needs. Strong growth over 5 years.
 
<a href="/news"><img src="/images/2014/07/04/yellow-ten.jpg" alt="" style="float: left;">  Dolls Point </a>
This picturesque pocket on the edge of Botany Bay is home to a small tight knit group of 1500 residents. Buy to occupy or as an investment &amp; you’ll be rewarded by the increasingly popular enclave.
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jduke-EHk3XBmHkn

John McGrath’s 10 Sydney suburb picks

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The chef Matt Moran has announced he will open a three-storey restaurant in the harbour-front Barangaroo precinct.
Lend Lease unveiled plans for the restaurant, which will be Moran's seventh Sydney restaurant.
Moran will work with his business partner Peter Sullivan from MorSul and Bruce Solomon and Anna Solomon from Solotel.
“I am not going to do anything I have done before at Barangaroo,” Moran said.
The restaurant, due to open in March 2016 at the southern end near King Street Wharf, will be in a striking building designed by architects Collins and Turner. 
The charcoal building will resemble several stacked shallow bowls, one of about 50 food and beverage outlets at Barangaroo South. 
The restaurant will have a casual lower floor, a more premium restaurant on the middle floor along with a rooftop garden bar.
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“When we were first approached by Lend Lease about joining the precinct, it was the location of the site which was key in our decision making," Matt Moran said.
"We intend to deliver a truly Australian experience at this world-class waterfront venue. Whether you are looking for a casual bar and restaurant, a more premium restaurant or a rooftop garden bar, we will have it all with our offering at Barangaroo and use only the best locally sourced produce to create a showpiece of Sydney dining,” said Matt. 
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jchancellor-FAypfDUnLy

Matt Moran bowls up Barangaroo South eat street restaurant 

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The Laundy/Short partnership have purchased both the Mona Vale Hotel on Sydney's northern beaches and Northies at Cronulla for a combined price of around $57 million.
The two landmark Sydney establishments, Northies and the Mona Vale Hotel, were offered by the Fernwood Hotel Group Pty Ltd.
Ray White Hotels' Andrew Jolliffe handled the sale to Arthur and Stu Laundy in partnership with Fraser Short, soon after after the marketing began in conjunction with Mike Wheatley, of Knight Frank.
The partnership operates the Watson's Bay Hotel.
Peter Beaumont’s Fernwood Hotel Group retains The Exchange at Balmain and the Greengate at Killara.
 
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Laundy-Short partnership secure iconic Mona Vale-Northies pubs

The areas in Victoria with rental 'housing stress': TUV

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Statistics don’t lie – but they can certainly mislead if the right questions don’t get asked.
Or, from another perspective, figures don’t lie – except when liars figure – which applies to the counting of first home buyers in the market, with the exploitation of dodgy data by people with dodgy motives.
Real estate people and organisations with vested interests have succeeded in creating the illusion that first home buyers are no longer active because they can’t afford to buy. This is despite the results of the two major affordability indexes, which say the opposite.
Headlines continue to shout that the Great Australian Dream is extinct, and we have a parliamentary inquiry into the affordability issue.
There is a strong argument that today’s generation of young adults are not interested in the heavy financial commitment of a mortgage. They witnessed their Baby Boomer parents slaving over a hot mortgage while struggling with a young family, and have decided to pursue other priorities.
The evidence from surveys is that Gen Y is a restless lot, who would prefer to rent while pursuing a good lifestyle. Commitments like families and mortgages can wait.
This, apparently, is reflected in the statistics. Australian Bureau of Statistics (ABS) data suggests that the market share of first-home buyers has been dropping since 2011.
For example, the number of first home buyer commitments as a percentage of total owner-occupied housing finance in late 2011/early 2012 was around 20%. This has slowly declined to 12-13% – according the ABS figures.
But here’s the thing. During 2012-2013 most states and territories implemented building stimulation strategies. Instead of offering the grants for all types of properties, the grants were available only to first-timers who built a new home or purchased off-the-plan.
Given that most first time buyers opt for established homes rather than new ones, this had a huge impact on the numbers of buyers accessing grants. The average price differential across Australia between new and old is $70,000 and it’s well over $100,000 in our largest cities, so $10,000 grants fail to act as an “incentive” to buy new.
This means most first-home buyers no longer apply for grants because they prefer to buy an established home, which is cheaper and often better located.
This is evident in statistics from the NSW and Victorian Offices of State Revenue (which distribute the grants). In the 2012 financial year, NSW distributed 37,464 grants and Victoria 19,051; in the 2013 financial year NSW distributed 17,297 grants and Victoria 21,898; but in the 2014 financial year, the numbers dropped to NSW 7,717 and Victoria 6,115. For NSW, that’s a fall of 79% in two years and for Victoria a decline of 72% in one year.
Western Australia went against the trend by increasing from 13,959 in 2011 to 22,135 in 2013. But Western Australia still offers a grant ($3,000) for first timers buying established homes.
The fact that Western Australia, the only state which offers a grant for both new and established homes, has rising figures for first-home buyers, highlights a discrepancy between states. Why does WA have a higher percentage of first-home buyers than all other states and territories?
Many across the real estate industry believe first-home buyers remain active and have begun to query the accuracy of the statistics.
So, are the right questions being asked? Where do the statistics on first-home-buyer numbers come from? Who collects the data?
The Australian Prudential Regulation Authority (APRA) collects the data from the banks and passes it on to the ABS.
Banks generally only capture what is relevant to their own business, i.e. anything necessary to a loan application. If the loan applicant doesn’t qualify for the first-home buyers grant, the information is not gathered – so many first-home buyers are not recorded as such by the banks.
According to the APRA reporting format, which has not been updated since 2008, commitments should be classified to the category "First Home Buyers" only if none of the borrowing parties to the commitment has previously drawn down on housing finance for owner occupation. Nowhere does it say whether the house is new or established, nor whether the buyer has received any form of grant.
With the changes to grant policies across the nation, many first-home buyers who are buying an established property will not qualify for a grant and, therefore, relevant information is not being passed onto the ABS and the data is becoming skewed.
The ABS is obviously aware of this now. In its June 2014 report on Housing Finance, it advises that an investigation is under way to evaluate the robustness of estimates of loans to first-home buyers.
I expect it to discover that there are more first-time buyers out there than the official data shows.
That parliamentary inquiry into affordability will again be shown to be a waste of time and taxpayers' money.
Terry Ryder is the founder of <a href="https://hotspotting.com.au" target="_blank">hotspotting.com.au</a>. You can contact him through <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email </a>or <a href="https://twitter.com/hotspotting" target="_blank">twitter</a>.
 
 
 
 
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terryryder-YECXbqmri2

We should question the data on first home buyers

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Managed funds that invest in Australian listed property trusts have performed strongly over the past five years, but investment researcher Lonsec warns they face risks due to the limited number of stocks in the sector.
Recent corporate transactions such as the acquisition of Commonwealth Property Office Fund by DEXUS Property Group and Canada Pension Plan Investment Board, and Frasers Amethyst’s takeover of Australand Property Group have exacerbated the problem for investors, Lonsec senior investment analyst Peter Green said.
“It’s not a new problem. It’s been around since after the GFC when Centro and others dropped out but if anything, it has got worse because we’ve had a lot of corporate transactions,” Green told Property Observer.
The 10 largest property stocks account for about 90% of the market capitalisation of the S&amp;P/ASX200 property index. That means funds take a large amount of stock risk when investing in the sector, said Green, who was the principal author of Lonsec’s 2014 A-REIT Sector Review.
The recent split of Westfield into Scentre Group and Westfield Corporation has improved the situation. Westfield used to account for 26% of the index, but Scentre makes up around 18-19% of the index, Green said.
Passively managed property funds that track the index, as well as actively managed funds that invested only in larger listed property trusts were most constrained by a lack of choice, Green said.
“For those managers that can go outside the top 15 and go to the smaller cap spectrum or utilities companies or even international [listed property], they do potentially have an advantage in this market,” Green said.
Despite the risks, fund managers that actively invested in listed property companies and Australian real estate investment trusts performed strongly in the year to June 30, 2014, Lonsec’s sector review found. The managers that the researcher examined achieved returns of 12.7% over the year to June and 15.4% annually over five years. The funds reviewed also distributed more than 5% a year in income to investors.
Green said while investors should be aware of the risks the managed funds were taking, it did not appear that there were structural issues with the property companies that the funds invested in.
“At this stage a lot have done balance sheet repair, board regeneration and exited offshore markets,” he said. 
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AREITs face greater risks with limited stock on the market: Lonsec

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The spring “selling season” is upon us and no doubt many investors and home buyers are thinking about real estate more now than through the rest of the year.
This provides a great opportunity for investors to up their game and get ahead over the next three months.
Here are five things you can quickly learn this season:
<ol>
<li>
Know how to calculate a rental yield You may have a go-to online calculator for this, however it’s not only crucial to know how it is calculated, but also to boost your understanding of how you can improve your rental yield later. Here’s <a href="/expert-insights/your-weekly-how-to-calculating-rental-yield">our simple ‘how to’ for calculating a rental yield</a>. If you want to go even further, then <a href="/expert-insights/investing/how-to-boost-your-rental-yield">here are some ways to boost that rental yield</a>. 
</li>
<li>
Prepare yourself for an interest rate hike You may already be factoring one in, but if you haven’t then it’s time to learn how to manage if the Reserve Bank, and/or the lenders, start increasing their interest rates. It may be time to consider fixing, or putting some money aside, and even though rates are low with predictions from <a href="/expert-insights/finance/experts-predict-no-interest-rate-change-tomorrow-finder">a number of experts suggesting that hikes will come in 2015</a> – it’s time to consider it. Here are a number of <a href="/expert-insights/finance/how-to-prepare-for-an-interest-rate-increase">Property Observer’s tips on how to prepare for a rate increase</a>. 
</li>
<li>
Start looking around for experts to build your investing team It’s all well and good to start off learning about real estate on your own, but at some point you’re going to need to get some expert help – be it a broker, property manager, buyer’s agent or real estate agent. Property Observer regularly compiles guides to teach you how to select the best professional in each area, what to ask and what to look out for. You can see them here or type the name of the expert into the search function. If there's an expert we haven't covered that you're keen to know more about, email <a href="mailto:jduke@propertyobserver.com.au" target="_blank" style="line-height: 1.3em;">jduke@propertyobserver.com.au</a> with your suggestions. 
</li>
<li>
Figure out your investment strategy Every investor is different and there’s no one size fits all philosophy that can be put into place. You will have your own unique goals, aims and comfort level, particularly around risk. This means that you need to come up with your own investment plan – either on your own or with an expert. If you’re confused as to what the different strategies are, we recommend starting with <a href="/expert-insights/investing/eight-strategies-for-residential-property-investment">Cameron McEvoy’s eight strategies for residential property investment for a basic understanding</a>. 
</li>
<li>
Understand the best way to research a suburb Finding the next “hotspot” to buy an investment in can be a tricky process. It involves a lot of data, understanding of market drivers and time. Here are <a href="/expert-insights/how-we-research-when-property-buying-realestateview-com-au">the five ways people usually start with their research</a>, according to a realestateVIEW survey. We recommend getting started on learning how to choose a suburb by reading <a href="/news/why-you-need-to-do-your-demographic-research-before-writing-that-buyers-cheque">this piece about why understanding demographics is so crucial</a>, as well as this explainer about <a href="/news/what-you-can-learn-by-walking-through-a-suburb-investor-research">what you can learn when walking the streets of an area</a>. You can also read our suburb spotlights here to see if your local area has been covered.
</li>
</ol>
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Five things every investor should learn this spring selling season

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The median price for a unit in Melbourne was $460,000 for the August quarter, according to RP Data.
Unit prices were up 5.2% for the quarter, with 6.2% growth over the 12 months to August.
Property Observer looks at recent unit sales in Melbourne's inner and middle suburbs to see what you can buy for $460,000 and how the regions compare.
Inner ring: 0-10 kilometres from Melbourne's CBD
<a href="https://www.realestate.com.au/property-apartment-vic-north+melbourne-117647391" target="_blank">201/9-13 O'Connell Street, North Melbourne</a>
<img src="/images/2014/09/08/1.jpg" alt=""> This two bedroom, one bathroom apartment in North Melbourne sold for $465,500 in August.
Located minutes from the Queen Victoria Market, the city fringe apartment has a balcony and open plan living space, with a galley kitchen. There are floorboards throughout the living space and the bedrooms are carpeted. The largest bedroom has an area of 8.96 square metres, and the apartment has a total internal floor size of about 48 square metres. The apartment's price sits below what is typical for North Melbourne: according to RP Data, North Melbourne's median unit price for July was $528,752.
<ul>
<li>Price: $465,500</li>
<li>Bedrooms: Two</li>
<li>Car spaces: One</li>
<li>Drive to CBD: Walking distance</li>
</ul>
<a href="https://www.realestate.com.au/property-apartment-vic-docklands-116289735" target="_blank">603/673 LaTrobe Street, Docklands</a> <img src="/images/2014/09/08/2.jpg" alt=""> A two bedroom apartment in Docklands sold for $465,000. The apartment has 52 square metres of internal space, with a 6.7 square metre balcony. Both bedrooms include built in robes, with carpeted bedrooms and floorboards in the living areas. The master bedroom has a floor size of 9.6 square metres, but the irregularly shaped second bedroom is slightly larger, with 10.2 square metres of floor space. The complex includes an outdoor pool and a gym. This apartment is more than $100,000 cheaper than the Dockland's July median of $575,000.
<ul>
<li>Price: $465,000</li>
<li>Bedrooms: Two</li>
<li>Car Spaces: One</li>
<li>Drive to CBD: Walking distance</li>
</ul>
 Article continues on the next page. Please click below.
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Middle ring: 10-20 kilometres from the CBD <a href="https://www.realestate.com.au/property-apartment-vic-heidelberg-117456639%20" target="_blank"></a>
<a href="https://www.realestate.com.au/property-apartment-vic-heidelberg-117456639" target="_blank">5/77 Yarra Street, Heidelberg</a> <img src="/images/2014/09/08/3.jpg" alt=""> This two bedroom apartment is located in Heidelberg, 11 kilometres from the Melbourne CBD. It sold for $462,500 early last month. Each of its bedrooms include built in robes, and the apartment includes a full sized kitchen and meals area, a living and dining area and a bathroom including bath. Its largest bedroom is 12 square metre. The apartment's balcony faces north, with views to the ranges. The apartment is more expensive than the suburb's median of $410,750.
<ul>
<li>Price: $462,500</li>
<li>Bedrooms: Two</li>
<li>Car spaces: One</li>
<li>Drive to CBD: 20 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-apartment-vic-donvale-117526691" target="_blank">Donvale</a>
<img src="/images/2014/09/08/4.jpg" alt=""> Located in the eastern suburb of Donvale, 19 kilometres from the Melbourne CBD, this apartment sold for $459,000 in August. The two bedroom, one bathroom unit has a modern kitchen, a central bathroom, European laundry and an open plan living and dining area. This unit with about 65 square metres of internal space also has a balcony with parkland views. It is located with direct access to public transport and the Eastern Freeway. According to RP Data, Donvale's median unit price was $565,000 for July.
<ul>
<li>Price: $459,000</li>
<li>Bedrooms: Two</li>
<li>Car spaces: One</li>
<li>Drive to CBD: 23 minutes</li>
</ul>
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