<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

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.

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

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

<html><body>
Brisbane and the Gold Coast’s median house price now sits at $475,000, according to the latest quarterly data from RP Data-Rismark.
Houses in Brisbane and the Gold Coast were up 10.6% from the March quarter of last year. RP Data’s results still put Brisbane and the Gold Coast’s quarterly median house price behind those recorded in Sydney, Melbourne, Perth and Darwin.
Property Observer takes a look at last quarter’s sales to see just what you can get for Brisbane and the Gold Coast’s median house price.
<a href="https://www.realestate.com.au/property-house-qld-runcorn-116188719" target="_blank">26 Premworth Place, Runcorn</a>
<img src="/images/2014/04/28/runcorn.jpg" width="460" height="345">
This three bedroom brick house in <a href="/news">Brisbane’s south</a> sold for $463,000 in March. The twenty year old home sits on a 465 square metre block, with buses and local schools within walking distance.
<ul>
<li>Price: $463,000</li>
<li>Bedrooms: Three</li>
<li>Drive to CBD (Brisbane): 17 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-burleigh+heads-116146079" target="_blank">6 Arbury Hill Close, Burleigh Heads</a>
<img src="/images/2014/04/28/image10.jpg" width="460" height="345">
Set on a 715 square metre block, this four bedroom home in <a href="/news">Burleigh Heads</a> was secured for $465,000 last month. The house includes built in robes in all rooms, two bathrooms and open plan living, kitchen and dining areas. The vendors purchased the Gold Coast house for $285,000 in 2002.
<ul>
<li>Price: $465,000</li>
<li>Bedrooms: Four</li>
<li>Drive to CBD (Gold Coast): 18 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-north+lakes-115624731" target="_blank">2 Kultarr Street, North Lakes</a>
<img src="/images/2014/04/28/north%20lakes.jpg" width="460" height="345">
Situated in the outer-northern Brisbane suburb of North Lakes, this four bedroom, two bathroom house changed hands for $472,000. The home has ducted air conditioning throughout and an open plan living and dining area. The 563 square meter plot backs onto a nature reserve.
<ul>
<li>Price: $472,000</li>
<li>Bedrooms: Four</li>
<li>Drive to CBD (Brisbane): 38 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-chermside+west-116119807" target="_blank">15 Ben Street, Chermside West</a>
<img src="/images/2014/04/28/chermside.jpg" width="460" height="345">
This four bedroom home sold in March for $450,000. The property is located in <a href="/news">Chermside West</a>, just over 10 kilometres from the Brisbane CBD. Set on 696 square metres, this home was purchased by the vendors for $197,000 in 2002.
<ul>
<li>Price: $450,000</li>
<li>Bedrooms: Four</li>
<li>Drive to CBD (Brisbane): 18 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-runaway+bay-115611487" target="_blank">28 Clam Street, Runaway Bay</a>
<img src="/images/2014/04/28/main%206.jpg" width="460" height="345">
Vendors picked up $482,000 for the sale of this home in Gold Coast’s <a href="/news">Runaway Bay</a>. It has three bedrooms, a newly renovated bathroom and polished floorboards throughout. The property also includes a well-sized backyard and pool.
<ul>
<li>Price: $482,000</li>
<li>Bedrooms: three</li>
<li>Drive to CBD (Gold Coast): 19 minutes</li>
</ul>
</body></html>

jrichardson-uRX5hFdKfN

What can you get for Brisbane and the Gold Coast’s median house price?

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We're not asking the right questions. That's why the property industry is getting so many misleading answers about important issues.
I think this explains, in part, why so many believe we have an affordability crisis and a housing shortage, when so much of the research data contradicts these widely-held beliefs.
Surveys of prospective first home buyers usually ask whether they think they can afford a home. The answer is meaningless, or at best misleading, unless there are further questions.
Those might include:
<ul>
<li>
Why do you think you can't afford to buy? 
</li>
<li>
Have you tried to buy? 
</li>
<li>Where have you looked? </li>
<li>Are you willing to compromise to get into the market?</li>
</ul>
The big problem, as I see it, is not an affordability problem but an expectation problem.
If you read between the lines in industry surveys and street interviews by media, it's clear many wannabe home buyers have a perceived problem because they've absorbed newspaper headlines and looked no further.
Why bother when you read daily that prices are through the roof (when in reality this is true only of Sydney)?
Others have a problem because they want their dream situation in their first purchase. People are quick to complain they can't afford a home but then we discover they want to live in a million dollar suburb.
Many commentators on real estate issues such as affordability apparently believe nothing ever changes. The assumption is that the current generation of young adults want what their parents wanted and should behave accordingly. That assumption is wrong.
<blockquote>
The big problem, as I see it, is not an affordability problem but an expectation problem.
</blockquote>
When the market share of first time buyers declines, it's assumed there's an affordability problem. No other option is considered. The possibility of demographic change is overlooked.
This is the nub of the issue because it's clear that today's 20-something's have different priorities to their parents. Married with kids and a mortgage before the age of 30 is not on the bucket list. Lifestyle takes priority and commitments can wait.
There's a similar issue with the idea of an undersupply of housing. Individuals and organisations stating under-supply as a fact (one that's accepted by many journalists without question) also fall into the trap of believing nothing changes.
Their analysis is flawed because they're using out-dated models about how many new dwellings are needed for a particular level of population growth. The assumption is that the average household size is X and if you divide population growth by X, that's how many houses should be built.
But a lot has changed. Young Australians are staying longer at home with their parents. Overseas migrants comprise a major chunk of population growth but it's coming from non-traditional sources with different household patterns.
Household sizes are rising again. Whereas in the past the typical household was a small family in a big house with surplus bedrooms, people are now buying homes that reflect their actual needs - e.g. opting for a two-bedroom apartment rather than a large, expensive and wasteful four-bedroom house.
The bottom line is that housing demand is created when someone buys a block of land and engages a builder. If that's not happening to the degree many expect because of what their formula tells them, then the formula is flawed.
The industry that complains about the alleged housing shortage is the industry whose job it is to build houses. If the vast undersupply they claim is real, there's a massive opportunity being missed by the industry doing the grizzling.
The industry will continue spinning its wheels until it starts asking the right questions. If there's a shortage, where are the queues at housing estates? And why is there no rental growth? And what are the real reasons young people have stopped buying in numbers?
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

The problem with first home buyers isn't affordability, it's expectations

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Not all Sydney home owners have been beneficiaries of the recent price fillip.
Hunters Hill appears the laggard standout suburb with 0.9% price growth over the past year to its current $1.6 million house price median.
Sydney house prices are up 16.9% over the past year.
''It is no surprise that Hunters Hill has been flat,'' Dr Andrew Wilson, the senior economist at Australian Property Monitors, told the Fairfax Media local paper.
''A lot of prestige suburbs are still playing catch up and Hunters Hill is a classic example of that.''
Dr Wilson said the strongest growth for prestige suburbs like Hunters Hill was before the global financial crisis.
''But with the stockmarket rising they are certainly set to catch up now,'' he suggested.
But Property Observer reckons there's more systemic issues at work hampering price growth - certainly more so off the riverfront than the prestige waterfront trophy homes.
And indeed it is most evident that there are two Hunters Hills - with many of the laggard sales being on the other side of Burns Bay Road, and away from the more popular sandstone and jacaranda peninsula. So a high proportion of slow price growth happens on Bonnefin Road, Abigail Street and Avenue Road, almost Gladesville in location hanging off the Hunters Hill coat tails.
The suburb is a low demand locality historically with an unusually higher proportion of its sales being to devoted upgraders within - not naive about the pricing so therefore careful not to over pay. So not the usual high volumes coming in from elsewhere around Sydney, but they certainly do come from mostly the inner west suburbs like Strathfield.
Its village retail life is hardly vibrant and the single main road entry point must be a bother sometimes.
There have been around 120 house sales since early 2013 of the 2,200 freestanding abodes in the peninsula suburb which Property Observer put under the spotlight.
They ranged from $925,000 to $5.3 million. 
Just the three sales went backwards including the $1.8 million sale last year of the five bedroom at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113801467" target="_blank">3 Gladesville Road</a> which had <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/52541" target="_blank">sold in 2007 at $1,875,000</a>.
The four bedroom <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/170882" target="_blank">5 Ramleh Street</a> went backwards to $1.36 million last year from $1.43 million in 2007.
The priciest price reversal was <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113106287" target="_blank">Kyarra, the 1886 sandstone mansion</a> which sold for $4.5 million at 1 Madeline Street (pictured above) last year having sold at $4.7 million in 2004.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-116045247" target="_blank">3 Martha Street</a> went up - but just $10,000 from $2.3 million in 2003 to 11 years later a $2.31 million sale earlier this year.
The <a href="https://www.domain.com.au/Property/For-Sale/House/NSW/Hunters-Hill/?adid=2009730390" target="_blank">23 Bonnefin Road</a> sold for $2.8 million last year having sold at $2,794,000 in 2007 with $500,000 works to convert it from its duplex status in the meantime.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-112893451" target="_blank">36 Abigail Street</a> sold for $1.71 million in 2013 having sold at $1.68 million a decade earlier in 2003.
The four bedroom cottage at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113048891" target="_blank">45 Everard Street</a> sold for $1,406,000 in April last year having sold at $1.35 million in March 2010 and $1,261,000 in June 2006 with its then contemporary addition, suggesting to Property Observer the price malaise is longer term than Dr Wilson attests.
Ditto Emsworth, the 1906 house at <a href="https://www.homesales.com.au/sold/19-the-avenue/hs569633.aspx" target="_blank" style="line-height: 1.3em;">19 The Avenue</a> sold for $1.34 million last year having sold at $1.3 million in 2007 and at $1.1 million in 2002.
The renovation opportunity at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113960383" target="_blank">2 Johnson Street</a> sold last year at $1.38 million having sold at $1.35 million in 2006.
The 1886 extended house at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-114061947" target="_blank">4 Alexander Street</a> sold for $3.3 million last year having sold at $3.25 million in 2008.
The riverfront home at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-115862427" target="_blank">37 Bonnefin Road</a> sold for $3,155,000 earlier this year having sold at $3.05 million in 2007. Not much growth between 2007 also at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113687311" target="_blank">21 Madeline Street</a> with its sale of $2.66 million in 2007 and $2.7 million last year.
The house at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113219875" target="_blank" style="line-height: 1.3em;">65 Woolwich Road</a> sold for $2 million last year having sold in 2010 for $1.91 million.
The contemporary home at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113574783" target="_blank">17 Augustine Street</a> sold for $1.88 million last year having sold at $1.8 million in 2011.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-107421916" target="_blank">36A Barons Crescent</a> sold for $1,505,000 last year having sold at $1.4 million in 2006.
The three bedroom renovated house at 48 Bonnfin Road sold for <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/178504" target="_blank">$1.52 million</a> last year having sold at <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/59334" target="_blank">$1.45 million</a> in 2008.
The sale of <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-114303163" target="_blank">80B Park Road</a> shows not even the introduction of a fresh estate agency can overcome the price lethargy with it selling at $1,328,000 last year having sold at $1.29 million in 2006.
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jchancellor-FAypfDUnLy

House sales showing Hunters Hill is Sydney's price growth laggard suburb

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Currently, more than $47 billion worth of infrastructure projects are planned for Brisbane city, with suburbs emerging as those to benefit most from the spend, according to Place Advisory.
Director of Place Advisory, Lachlan Walker, said that while all areas of Brisbane will see themselves doing well from the improved infrastructure, there will be some potential hotspots.
“The current infrastructure pipeline has more than $47 billion worth of major projects in various stages, all of which will further enhance the attractiveness of the city, drawing in both owner occupiers and investors," Walker said.
“But while we know Brisbane as a whole will benefit, we can certainly pinpoint some particular suburbs that will benefit more than others from infrastructure planned or underway, and by benefit we mean see a marked increase in demand to live there, resulting in greater price and rental growth.”
He pointed to the following suburbs and the infrastructure they will benefit from:
<a href="/news">Brisbane City</a>
Underground Bus Loop: Currently in concept stage. To connect at George Street, Queen Street, Albert Street and Adelaide Street in the CBD to reduce confestion and travel times.
“Since it only runs through the city, the Underground Bus Loop will benefit residential properties located in the CBD itself, as well as neighbouring Spring Hill,” said Walker.
<a href="/news">Spring Hill</a>
Underground Bus Loop
<a href="/news">Woolloongabba</a>
BaT Tunnel: Currently in concept stage. This will be a 5.4 kilometre proposed north-south tunnel to bring trains from Dutton Park to Spring Hill. Walker expects that the journey will be shortened in this area from the southern suburbs to the inner north suburbs, helping reduce the requirement to travel through CBD conhestion.
“It will be built to accommodate the additional 130,000 workers expected for the CBD and adjacent suburbs over the next 20 years, and will fulfil the need for public transport services for the next 50 years,” he said.
<a href="/news">Dutton Park</a>
BaT Tunnel
<a href="/news">Toowong</a>
Legacy Way: A tunnel set to connect the Western Freeway at Toowong with the Inner City Bypass at Kelvin Grove. It will minimise congestion and allow easier access to the airport, and will cut out the use of major roads.
“Upon completion Legacy Way will almost halve peak travel times between the Western Freeway and the ICB," he said. Indooroopilly Shopping Centre Redevelopment : Expected to come to a completion soon. Involves expansion and renovation of existing shopping centre and an adjoining new plaza at the junction of Station and Stamfords Roads.
“With the redevelopment aiming to bring a quality of shopping that’s currently lacking in the western suburbs, it will benefit the entire area, including Indooroopilly itself, as well as Toowong, St Lucia, Taringa, Graceville, Chelmer, Sherwood, Fig Tree Pocket, Jindalee and Kenmore,” said Walker.
<a href="/news">St Lucia</a>
Legacy Way
Indooroopilly Shopping Centre Redevelopment
<a href="/news">Indooroopilly</a>
Legacy Way
Indooroopilly Shopping Centre Redevelopment
<a href="/news">Hamilton</a>
Kingsford Smith Drive Upgrade: In concept phase. Running off Kingsford Smith Drive, it will reduce congestion and benefit local residents.
Brisbane Airport New Parallel Runway: Currently under construction. Looks to support the needed flights in and out of Brisbane, which may result in increased demand for property with access to the airport.
“Consequently we believe suburbs such as Hamilton and Nundah will see a boost in popularity from the construction of the new parallel runway. They’re in close proximity to the airport and easy to get to and from for travellers," said Walker.
<a href="/news">Nundah</a>
Brisbane Airport New Parallel Runway
Other suburbs that may benefit: <a href="/news">Taringa</a> (from Indooroopilly Shopping Centre Redevelopment) and Mt Coot-tha (both benefiting from Legacy Way), and <a href="/news">Graceville</a>, <a href="/news">Chelmer</a>, <a href="/news">Sherwood</a>, Figtree Pocket, <a href="/news">Jindalee</a> and <a href="/news">Kenmore</a> (from Indooroopilly Shopping Centre Redevelopment).
Despite these benefits for the area, Walker said that the best time to buy is as soon as the infrastructure project is announced.
“However, once the benefits of the project flow through to the area there will only be increased demand from buyers and renters, and this means prices and rents will continue to grow, or at the very least be stable.”
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jduke-EHk3XBmHkn

Nine Brisbane suburbs to become property hotspots: Place Advisory

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"It’s been almost impossible to give accurate price guidance when potential purchasers are prepared to fight and bid aggressively, resulting in some delighted vendors," the Ray White chairman Brian White recently noted.
The admission accompanied the Ray White Group achieving $3.2 billion in March sales nationally.
"How wise are vendors to have embraced auction in this cycle," <a href="https://www.raywhitegroup.com/white-paper/" target="_blank">he said in his latest monthly advisory</a>, The White Paper.
"All of the talk in Australia is about Sydney.
"But it went much broader than Sydney," he said earlier this month.
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"It’s always a good sign for Australia when New South Wales is powering.
"It becomes a catalyst for confidence across the nation," he said. 
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"Ray White in Victoria set a new record reflecting a dramatically improved Melbourne market," he said.
He pinpointed a number of offices that "showed just how big some real estate agencies can become.
"For example, <a href="https://rwdbgroup.com/" style="line-height: 1.3em;">Double Bay</a> did $120 million, <a href="https://rwremuera.co.nz/" style="line-height: 1.3em;">Remuera</a> in Auckland did $55 million, <a href="https://raywhitegw.com/" style="line-height: 1.3em;">Glen Waverley</a> in Melbourne also did close to $50 million.
"All massive increases over any previous level."
Last November he noted New South Wales was the standout with its first $1billion month, adding the experience at Ray White Balmain where Sam Kelso and Emily Sim opened a new business and were profitable in the first year, was "inspiring." 
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"We’re seeing record auction clearance rates," he wrote in late 2013.
"Property prices are increasing in most markets, particularly the big cities. 
"The highest percentage of property is now being taken to auction. 
"Confidence to upgrade one’s home is being backed by enthusiasm of a cycle a-go.
"Sooner or later, the cycle will lose intensity," he acknowledged. 
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</div>
Mr White likes to call markets as accurately as possible, and in the past weaker markets once noted "There's a terrible statistic in the industry that shows about half of sales are made at a price that is less than the owner was previously offered."
And he had also advised the only softness was the confidence hit that resource regions in Australia are now experiencing. 
"On a bearish note, prices are dropping in resource areas.
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"A reminder of how closely linked property prices are to economic activity," he said. 
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Brian White has said the continued focus on China had resulted in the company being recently invited to present at a key investment conference being held by CCPIT – the arm of the Chinese Government promoting investment within and outside of China.  
But adding that while project sales continued at remarkable levels - "what would this market look like if it no longer had Asian interest?" 
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Ray White chief says auction price guidance "almost impossible" in aggressive Sydney market

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So the talk is that NRAS might be stopped in the upcoming May Federal Budget.
For mine, this is one government scheme that really works for the building industry and low-income households.
We have worked on several NRAS-based new projects.
I support the media blast by Metro and the UDIA.
Read on to see what we wrote about NRAS back in 2011.
To my surprise, very few investors (and sadly fewer property gate-keepers) know about NRAS.  And if they know something about it, then they are dismissive of it.  And mostly – I feel – out of fear and/or ignorance.
Yes, like most government schemes, what NRAS is and its merits, have been poorly communicated.  And in some instances, its application further entrenches its incorrect “welfare housing” persona.  But overall, it is a great scheme and too few investors (and developers) are taking the $10,000 annual rental subsidy seriously.
<blockquote>
For mine, NRAS is one government scheme that really works for the building industry and low-income households.
</blockquote>
So what exactly is NRAS?
The National Rental Affordability Scheme (NRAS) is a federal government initiative designed to tackle the issue of affordable housing.
NRAS is not a public or social housing programme, but rather a tax incentive to provide quality housing at below market rental rates.
Run in conjunction with state governments, NRAS aims to induce more investment in the lower price range of the residential construction and rental market by offering inducements to investors who participate in the scheme.
NRAS offers property investors a tax-free incentive for each property while participating in the scheme for a maximum of 10 years.
Currently, this incentive is $9,524 per year for every NRAS dwelling an investor owns, comprising a federal government contribution of $7,143 per dwelling, available as a refundable tax offset; plus a state or territory contribution of $2,381 per dwelling per year, as a cash payment or in-kind financial support.
In return, rents for NRAS dwellings must be charged at no more than 80% of the market rent valuation and there is to be a maximum of one rent increase for each dwelling each year.
In Queensland for example, the state government maintains a list of NRAS-approved tenants, who must meet strict eligibility requirements.
When a vacancy occurs, eligible rental applicants are referred to approved tenancy managers who manage NRAS properties on behalf of owners.
Standard residential tenancy laws apply to NRAS properties just as they do for any private residential investment.
In other words, the same rules regarding evictions, maintenance obligations and responsibilities of tenants apply to NRAS tenants as they do to other tenants in the private sector.
Rents are indexed annually in line with the percentage change in the rental CPI component, except in years four and seven when independent valuations are required.
And, importantly, investors may exit the scheme at any time with appropriate notice and without any financial penalties.
In general, NRAS projects are well-located in terms of jobs, amenities and public transport.  And in general, the design and quality of NRAS dwellings compares favourably with any private non-NRAS dwelling.
NRAS properties often co-exist within developments with other non-NRAS product.
Some of the points of difference that NRAS offers to property investors are:
<ul>
<li>All the benefits of a normal investment property with added annual tax-free government incentives</li>
</ul>
<ul>
<li>Investors can apply property expenses, non-cash deductions and allowances against a lower assessable rental income, increasing the gearing benefit</li>
</ul>
<ul>
<li>More than 1.5 million Australian households are eligible to rent NRAS properties, hence vacancy risk is negligible</li>
</ul>
<ul>
<li>Tenants are selected on their potential to be good tenants and their capacity to meet strict eligibility requirements</li>
</ul>
<ul>
<li>In many markets, NRAS properties often deliver a cash flow positive investment</li>
</ul>
<ul>
<li>Importantly, self-managed super funds can purchase</li>
</ul>
<ul>
<li>NRAS dwellings are private property – no government holds or caveats.</li>
</ul>
So here we have a scheme that shows many investment properties as cash-flow positive in the first year – and these are more often than not backed up by impressive (well by residential property standards) independent financial analysis.
What’s not to like here?  You are making money from day one; providing affordable rent for those that are finding it a bit hard; have a ten-year rental guarantee (assuming the government doesn’t water down or scrap the scheme); hassle free-management (on paper at least) and a box of chocolates from the government every year.
It appears to tick all the boxes.
Several of our developer clients inform us that their NRAS product is now the first to sell to investors.
Yet the banks are scared of it and will only finance 70% of the purchase price.  Some banks flatly refuse to be involved.  So, too, do too many solicitors, accountants, loan brokers and real estate agents.
True to form, valuers are discounting end prices by 20% – one assumes because the owner can only charge 80% of market rent and most valuers won’t include a subsidy when determining value, despite it coming from the government and being a 10-year programme.
Yes, NRAS is somewhat new; it hasn’t been that well communicated and it is a government-funded subsidy.  But welfare housing it isn’t and gone are the days where one’s residential investment strategy was as simple as “buy and forget”.
Our mindset is that property investors will need to look for every break they can get.
NRAS is a break worth considering.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

NRAS is an investment break worth considering

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I’ve been asked to write an answer to the question, “Which is better – an apartment or house?”
It’s one of the most common queries buyers ask - especially in light of what seems to be an inexhaustible high-density apartment boom, taking place in Sydney and Melbourne in particular.
In New South Wales alone, the latest data from the ABS shows apartment approvals near a record high, numbering 25,517 units in the year to February 2014 - a 69% share of total figures. Country wide, approvals of both units and apartments now sits at its highest level in <a href="https://www.macrobusiness.com.au/2014/04/australias-supply-side-squeeze-continues/" target="_blank">history</a>.
In Sydney in particular, the news is deemed ‘positive’ – assumed to put downward pressure on both rents and prices. But contrary to popular belief, additional supply of property does not always equate to lower prices.
For decades, the city’s supply has been hampered by stringent planning requirements, allowing big developers with a greater financial capacity to hold the upper hand. Consequently, a larger proportion of developers currently active in CBDs gain their funding offshore (which, according to some analysts, is expected to reach near 100% in Melbourne by 2016). 
<img src="/images/2014/04/28/cashmore-april-28.jpg" alt=""> 
In NSW, the shortage of stock required to cater to the needs of a market, which currently consists of over 50% investors in central areas, has resulted in a spike in prices, which has diverged considerably from other states.
Sydney is booming, and the real estate agents are busy making hay. However, it’s hard to term these dwellings as affordable – or for that matter, desirable.  They are not built for home buyers - they’re temporary pit-stops for renters who need to stay centrally located.
Groups such as Charter Keck Cramer estimate up to 90% of the apartments released in Melbourne’s central regions since 2009 have been sold to investors – albeit, it doesn’t make them good investments.
Complexities of construction
In order to maximise yield, they typically have a floor size of around 60-70 square metres (for a two bedroom dwelling) – compromising natural light and storage space along the way.
Furthermore, the challenge of keeping apartment prices low is complicated by zoning regulations, rendering some neighbourhoods immune from dense development, whilst others have been given the green light.  
This further limits the tight concentration of land where construction can occur and from a micro perspective, escalates already inflated land values for the sites deemed suitable.
The developers are not altogether to blame. Getting planning and building approval for an apartment block is a costly venture, requiring 100% debt cover and often resulting in a period of years from concept to ‘lock up’ (a six year period not being unusual).
The complexities include levies for funding of communal facilities (such as underground parking, street lighting and so forth), which understandably contributes significantly to the cost of the product and often a lengthy period to resolve protests from existing residents, who understandably fear the social and economic impact causing a downward valuation on their own wealth fund for retirement.
To obtain the necessary funding, larger percentages are marketed to overseas buyers using vastly inflated commissions.
High owner corporation fees to fund the required security features, lighting in corridors, lifts, lifestyle amenities (such as a gym or roof top garden for example) equate to at least a few thousand a year.
Some developments offer rental guarantees, promising a return not possible once it’s expired. And should the developer encounter financial difficulties during this period, there is no government legalisation backing up any promise of payment.
Good investments?
To give some idea - the floor plan below was taken from a building just north of Melbourne’s CBD, which was purchased off the plan in 2012 for $580,000, and sold some 18 months later for $476,000.
 <img src="/images/2014/04/28/cashmore%20april%2028%20two.png" alt="">
A sample floor plan for a two bedroom off the plan apartment.
Another in the block was promised a rental return some $50 a week higher than it achieved on the open market, examples such as this leave most local investors hoping tax concessions will help compensate their losses.  
Having worked in a rental apartment previously, I can anecdotally confirm turnover in this type of development is high - with renters generally preferring lowrise to highrise - and despite common belief that renters are poverty stricken ‘wanna be’ home owners, the demographic that live in apartments (typically young, childless, working couples) have aspirations that often exceed what’s currently on offer.  Therefore, whether we’re increasing supply for the ‘needs’ of the rental sector in central localities on a micro level is questionable.  
Melbourne’s Southbank has vacancy rates often topping 8%, which also falls in line with data obtained from Prosper Australia’s recent speculative vacancy report, which analyses water usage to assess residential vacancies across the metropolitan region over a 12 month period – the methodology of which is explained in detail <a href="https://www.prosper.org.au/2013/11/01/speculative-vacancies-in-melbourne-2013-report/" target="_blank">here.</a>
The research shows 7.9% of accommodation in the suburb uses no water at all, and over 22% less than 50 litres per day (a statistic which may be influenced to a limited extent, by some being serviced apartments).  Needless to say, periods of vacancy which put downward pressure on yields, is not what most investors have in mind when acquiring a property – yet an increasing number are doing so in their SMSFs and are acutely reliant on cash-flow.
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Buying close to the city a better option?
All of the above, works on the assumption that most people like to live close to the city and whilst this may apply to residents in their early years, who delight in the hub and bub of an inner city lifestyle - including student renters who need to locate close to nearby university campuses - there isn’t much evidence that the rest of us are prepared to give up space to live in the type of accommodation constructed.
Indeed, the idea that demographically we’re becoming a nation of downsizers is somewhat mythological, but it doesn’t stop the flow of regular articles suggesting we’re all becoming a nation of happy strata dwellers. Once again, it’s often another excuse by property commentators (including buyer advocates specialising in apartment sales –often not openly obvious when you cruise their websites) to promote this option over others. 
Whilst we’re likely to see a trend toward apartment living due to lack of feasible alternatives, it’s been shown the elderly overwhelmingly downsize to medium density accommodation, thereby avoiding highrise developments altogether. Younger generations in their 20s and 30s have a greater propensity towards high density living, with the proportion increasing; however, figures still only peak around 14% at the age of 27 and the trend across all age groups is marginal, with only one in 20 choosing this form of accommodation nationwide (as of the 2011 census).
Obviously, most local home buyers prefer houses to apartments – and for the highrise price tag of a two bedroom flat, there’s far more bang for buck in established accommodation that doesn’t come with the additional risk of a view being built-out, queues to exit the car park, and 150 immediate neighbours traversing through various stages of their housing ‘career’.
At 44%, the typical Aussie home still has three bedrooms and the stats show only one or two residents occupy the majority, with a big increase in the number of four-bedroom homes, which now make up almost a third of our total housing stock. 
The single person household is no longer the fastest rising demographic. In the five-year period to 2011, lone person households had dropped from 24.4% to 24.3%, while group households (shared accommodation) jumped from 3.9% to 4.1%.  Whether the trend continues will become apparent in time.
In the rental demographic, this is likely due to reasons of affordability – renting a one bedroom inner-suburban apartment can often be more costly than an older three or four bedroom detached dwelling a few suburbs out. Therefore, it makes sense to share and this trend is mirrored in international markets – such as the UK and Canada, which produce similar data in their own census breakdowns.
Most of the first home buyers who cross my path also follow the above pattern.  Rarely do they opt for a one bedroom apartment – unless they’re restricted to a particular suburb. Most opt to move outwards and purchase something larger and if given the option, would rather rent until they’re able to afford a suitable property for their five- to seven-year time needs. 
Affordability constraints driving buyers away from city areas
Extra supply for the buy to let market should not be diminished, and it’s not my intention to do so.  However, there’s a broader need to establish quality accommodation for a larger proportion of home buyers who will accept townhouse living if locating inner city, but reject high density developments. And contrary to popular belief, it is possible to accommodate an equal number of residents in medium density dwellings without building to the skies.
Movements such as <a href="https://www.policyexchange.org.uk/images/publications/create%20streets.pdf" target="_blank">Create Streets</a> in the UK are at the forefront of pushing low rise initiatives, and Robert Dalziel – the London-based architect for Rational House, who visited nine cities around the world, including Mexico City, Shanghai and Berlin, has comprehensively examined how high-density can be made agreeable for a broad demographic of home buyers.  More information can be found in his book –commissioned and published the Royal Institute of British Architects: entitled <a href="https://www.propertyobserver.com.au/https://www.amazon.com/House-In-The-City-Architecture/dp/1859464521" target="_blank">A House in the City — Home Truths in Urban Architecture.</a>
Therefore, the major part of Victoria’s growth (mirrored in other states) has been evidenced in fringe localities such as Wyndham, Melton and Whittlesea. And one thing we’re not short of in Melbourne (and for that matter most other states,) is land.  Albeit, as I’ve written previously - regulatory constraints in outer suburban localities have increased land prices disproportionally, making the entry point for such developments effectively double what it should be. 
To demonstrate, following correspondence with Wendell Cox, author of the <a href="https://www.demographia.com/" target="_blank">Annual Demongraphica Housing Affordability Report</a> in reaction to a recent piece I <a href="https://catherinecashmore.com.au/wp/?p=494" target="_blank">wrote</a> outlining differences in international markets, Cox constructed a nice little chart which cuts through the usual measures used to convince readers that ‘housing has never been more affordable’, with an overwhelming focus on mortgage serviceability rates alone.
Instead, it demonstrates the speculative nature shaping the property cycle, which affects not only established house prices, but building activity as lot sizes reduce, whilst land prices per square metre, outpace income growth considerably.  (Something, which only a broad based land tax coupled with changes to supply policy will solve.)
<img src="/images/2014/04/28/cashmore-april-28-two.jpg" alt=""> 
Source: Demographia
Cox points out that ‘urban containment’ – contrary to the political rhetoric – does not result in cheaper prices.  However, to date, every reform put in place to release more land and build an abundance of accommodation, has resulted in higher prices per square metre both here and similarly in the UK and USA.
What to do?
Back to the question at hand – quite evidently, purchasing a new off the plan flat in either Sydney or Melbourne is not going to grant a windfall in economic rent (capital gains).  
You’ll often read commentators dictating that apartments perform better in their median data than house prices – and whilst it may be the case over the short term, it has not been proven over the long-term. In fact, over a long time frame, median detached house prices have outperformed unit prices and there are sound fundamental reasons why this may continue.
Broadly speaking, as a “set and forget”, providing you’re careful with the pre-purchase due diligence (strata reports - ensuring its not a stratum or company share title, which can cause issues in terms of financing and attracting future demand - fees, size, price, zoning, position, facilities, and so forth) apartments generally attract a higher yield, are low maintenance, and when issues with the building do occur, they are typically handled by the owners’ corporation and/or property manager.
Purchasing land offers more options – (subject to feasibility) - allowing extension, subdivision, back garden granny flats and so forth - our largest demographic of buyer are families and therefore land is still the golden nugget for most accommodation seekers.
No matter what kind of buyer you are – at some point you’re going to want to sell the home and move on, therefore acquiring an option that maximises consistent demand is critical in any equation.
Albeit, with the apartment choice being either an aged block in need of maintenance or new and subject to over supply. Or in terms of a house – budget restrictions only allowing a compact block in a fringe development in which landowners have control over how they ‘drip feed’ supply onto the market, I quite often advise purchasers to consider an alternative option. 
And, for that piece of advice, you’ll have to contact me direct.
You can contact Catherine via <a href="mailto:cc.cashmore@gmail.com" target="_blank">email </a>or <a href="https://twitter.com/ccashmore_buyer" target="_blank">Twitter</a>.
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catherinecashmore-6LXia3pPQj

Which is a better investment – an apartment or a house?

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A Hurstville Hungry Jacks premises sold for $6.65 million at auction last week.
It reflected a yield of around 2% for the Forest Road premises. 
The vendor’s reserve was $3.15 million according to William Gunning from Gunning Commercial.
Strong buyer interest from local buyers and mainland Chinese investors meant the Hurstville retail market was strong with yields sometimes under 5%.
Late last year the Huaxing Supermarket premises at 198 Forest Road fetched $2.23 million when sold to L &amp; J Zhang Pty Ltd. The premises are 209 square metres.
The last big sale was $11.65 million last June when 124 Forest Road was sold to Shanghai Lihua Hurstville Pty Ltd by Smart Giant (Aust) Pty Ltd.
In 2012 the refurbished two-storey retail strip property leased to NAB sold for $9.013 million equating to a yield of 5.85%.
The bank branch sits on a 418-square-metre site at 252 Forest Road.
On the office front, earlier this year Centuria sold a 4,800 square metre commercial office building at 8 Woodville Street, Hurstville for $17.35 million ($3,615/m²), reflecting a yield of 8.3%.
It last sold for $13.38 million in 2008 when bought from Immer (169) Pty Ltd. 
The office market is being watched closely as the NSW Office of State Revenue is moving from Hurstville to Parramatta premises.
The decision was part of the push which will see more than 3,000 public servants head west under the proposal of then Premier and Minister for Western Sydney Barry O’Farrell “decade of decentralisation” policy.
The Office of Environment and Heritage is also moving Hurstville to Parramatta.
The Australian Taxation Office’s announced last year that it would close its Hurstville office in early 2015, with the relocation or loss of about 500 jobs.
Gunning have listed an investment opportunity in a central location in the shopping strip and commercial precinct .
The 227-229 Forest Road building comprises four levels – with the upper three commercial space. 
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The property has multiple tenancies, and a rental income of $1,011,812 gross. The building size is 1,776 square metres.
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Retail investors hungry for Hurstville despite office market unrest

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Druids House, the office block at 302 Pitt Street, is set to become a hotel.
It follows its late 2013 purchase by Melbourne property developer brothers, Dean and Jonty Rzechta for around $10 million.
It had previously traded in 2004 for $5 million to G Capital Holdings, associated with Bill Gertos, when offloaded by the Grand Lodge of the United Ancient Order of Druids.
<a href="https://development.cityofsydney.nsw.gov.au/Datasource/DANotifications/1145200_022.pdf" target="_blank">The application before Sydney City Council is for the adaptive re-use as 136 room hotel</a>.
The application seeks a 10 storey addition to the six storey 1909 building set on 520 square metres between Bathurst and Liverpool Streets.
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A 500mm setback is proposed to levels six, seven and eight then levels 9-15 will be setback six metres from the street frontage. 
There had previously been off the plan marketing of residential units with prices from $425,000 for studio apartments, for a 10 months period beginning late 2010 that accompanied plans for a 17 storey apartment block.
It was marketed as an "extremely rare developer release, pre-DA opportunity."
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There is no heritage listing with the Lodge Room on level four the only strong reminder of the Druids’ occupation of the building. It is proposed to be removed, but there will be retention of the façade and windows, most of which date from 1927. 
Druids House was built as a five-storey 1909 factory for the Welsbach Light Company, known then as Welsbach House. 
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The Welsbach Lighting Company which was founded by Carl Auer von Welsbach, a chemist who is famous for inventing the gas mantle and the metal filament for light bulbs. 
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It was a fully-equipped factory in Sydney owned by the company, which had until then been operating in Australia by carrying out various stages of its manufacturing in England. But having German origins, the company was declared an enemy in 1914 and its occupation of the building ended.
In 1927, 302 Pitt Street was altered for use by its new owners, the United Ancient Order of Druids, a fraternal society founded in London in 1781.The Australian contingent of Druids had been active since the 1850s and another Druids House was established in Melbourne in 1927 at 407 Swanston Street. 
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At the time of the 1928 opening ceremony, the United Ancient Order of Druids had approximately 240,500 members and was playing an active role as a Friendly Society in Sydney.
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Druids House in Sydney was opened in 1928, with the Sydney Morning Herald reporting that the opening ceremony was attended by the assistant treasurer, Mr S. Stevens.
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The plans have been prepared by Scott Carver with an estimated $22 million cost for the company, Ninety Four Street.
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The last plans date back to 2011 when <a href="https://www.skyscrapercity.com/showthread.php?t=1336071" target="_blank">a 17 storey residential building was approved</a>, then in 1997 when Peter Skerrett held an option to buy 302 Pitt Street with residential prospects.
The current plans are likely to attract opposition from residents of the neighbouring Princeton complex.
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Druids House on Pitt Street set to become 15 storey Sydney hotel

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The Australian Bureau of Statistics (ABS) released Consumer Price Index figures for the March 2014 quarter earlier this week. 
The data showed that over the first quarter of the year inflation was recorded at 0.6%, down from 0.8% over the final quarter of last year.
Over the past year, inflation has been recorded at 2.9%.  The Reserve Bank (RBA) has an annual inflation target of between 2% to 3% over the medium term and although the reading is at the higher end of that band it is still within the range.
<img class="aligncenter size-full wp-image-3147" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-12.jpg" alt="Chart 1" width="500" height="184">
<img class="aligncenter size-full wp-image-3148" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-22.jpg" alt="Chart 2" width="500" height="179">
Interestingly, non-tradable (or domestic inflation) was outside of the target range at 3.1% but has fallen from 4.2% a year ago. On the other hand, tradable (or imported inflation) was recorded at 2.6% up from -0.2% a year ago.
<img class="aligncenter size-full wp-image-3149" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-31.jpg" alt="Chart 3" width="500" height="184">
Turning the focus specifically to housing, the housing component of CPI has increased by 3.6% over the 12 months to March 2014, its lowest annual reading since June 2012. 
Across the housing sub-categories, new dwelling purchases by owner occupiers rose by 2.4% over the year with relatively tame growth also recorded for: maintenance and repair of the dwelling (2.5%), rents (2.9%) and other housing (4.7%).  Water and sewerage recorded the greatest annual rise at 10.8% followed by: property rates and charges (7.9%), gas and other household fuels (6.9%), utilities (6.8%) and electricity (5.2%).
The 2.9% annual increase in rents was the lowest reading since June 2006.  Similarly, the 5.2% annual increase in electricity was the lowest annual rise since June 2007.  On the other hand, the 10.8% annual increase in water and sewerage was the greatest rise since the 12 months to June 2011.
Another important consideration is the impact of inflation on home values.  Calculating ‘real’ home values by adjusting the RP Data-Rismark Home value Index for inflation provides valuable insight.
<img class="aligncenter size-full wp-image-3150" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-41.jpg" alt="Chart 4" width="500" height="178">
As the above chart highlights, once you adjust for the impact of inflation the level of capital growth over the longer term is much lower. 
In fact, when you adjust for inflation, combined capital city home values peaked in the September 2010 quarter and are still -1.8% lower than that level.
<img class="aligncenter size-full wp-image-3151" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-51.jpg" alt="Chart 5" width="500" height="182">
Over the 12 months to March 2014, combined capital city home values have increased by 10.6% however, when you adjust for inflation the rise has been a lower 7.5%. 
Across each city the rate of capital growth over the year is somewhat lower when you adjust for inflation and markets such as Hobart and Canberra which have recorded low levels of value growth have actually recorded value falls.
<img class="aligncenter size-full wp-image-3152" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-6.jpg" alt="Chart 6" width="500" height="184">
Home values across the combined capital cities are currently 7.2% higher than their previous peak according to the RP Data-Rismark Home Value Index. 
However, as mentioned above, when values are adjusted for inflation the story is quite different with values -1.8% lower. 
Across every capital city except for Sydney home values are lower than their previous peak in inflation adjusted terms.
<img class="aligncenter size-full wp-image-3153" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-7.jpg" alt="Chart 7" width="500" height="179">
Looking at the compound annual rate of value growth over the past five, ten and 15 years in inflation adjusted terms you can see some interesting trends.  Sydney home values have increased at an annual rate of 3.6% over the past five years, but earlier soft market conditions have resulted in value growth of just 0.4% pa over the past decade.
Brisbane home values have fallen at a rate of -2.3% per annum over the past five years and over the same period Adelaide home values are -1.0% lower per annum, Perth values have fallen by -0.2% per annum and Hobart values have declined by -3.1% each year. 
Over the past decade, Darwin has been the standout performer with values rising by 5.9% per annum and the weakest market has been Hobart where values have fallen at a rate of -0.1% each year.
With mortgage rates at such low levels and the 10 years of no ‘real’ growth in Sydney home values it goes some way to explaining the rising demand and surging home values. 
Melbourne is also seeing strong capital growth but when compared to Sydney has been a much stronger capital growth performer over the past decade.  Despite a weak five years in terms of capital growth we are yet to really see the housing market heat up in Brisbane and Adelaide. 
In Perth the housing market was strong early in this growth phase however; capital growth is now fading despite the fact that values are still lower in real terms than they were five years ago.
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