High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

Buying with confidence: What NSW apartment buyers should check beyond the defect headlines

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

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>
New research released this morning from Residex, the research arm for Onthehouse, has listed 10 suburbs for expected house growth and a further 10 for unit growth that they believe will perform over the next five years.
Property market growth, overall, is expected to be steady over 2014, however some areas, particularly those in the inner ring, will potentially prove lucrative.
<blockquote>
The findings show promising areas in every capital city's inner ring for investors.
</blockquote>
John Edwards, founder of Residex, said that the findings show promising areas in every capital city's inner ring for investors.
“We are expecting to see Sydney and Melbourne’s growth rates slowdown in the next six months and in other national markets next year. Although inner ring areas often fall into the least affordable class compared to their suburban neighbours, the data indicates there are still opportunities for savvy investors, in the right suburbs," he said.
“From a national perspective, I’m expecting to see commentary from the RBA later this year that will affect consumer sentiment and again moderate growth. This will mean changes in the recent strong national growth trends. Property investors will need to be cautious about which suburbs they invest in – particularly in inner city areas, which will deliver a very mixed range of returns."
He also noted that stable growth "never occurs in a linear way", with a fall expected to be seen in growth numbers by the end of the year, with two to three years of minimal to zero growth. By 2018, strong growth is expected to re-emerge, along with the results of the suburbs below to 2019.
Overall, units are predicted to bring in lower returns than houses should. Inner ring suburbs will bring an average of 4% to 8% over the next five years, with Melbourne dominating the top five.
“Melbourne is defying past predictions. My feeling is that there is an oversupply of property, especially units, but demand is currently being propped up by three main factors: property developers are managing their units well; international buyers are supporting new unit sales; and higher public confidence is being driven by factors like good clearance rates at auction," Edwards said.
“Anybody buying property over the next 12 months needs to be aware of the growth patterns, now more than ever it is important to do solid research around the market to back up your decisions with data and insight.”
See over page for the top predicted growth suburbs
<hr class="system-pagebreak">
<img src="/images/2014/04/14/edwards%20april%2014%20one.png" alt="">
Source: Residex/Onthehouse 
What are your thoughts on these suburbs' growth potential? 
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jduke-EHk3XBmHkn

John Edwards' 10 house and unit suburbs expected to outperform for the next five years

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Recently released data from the Australian Bureau of Statistics (ABS) shows that as at June 2013, the rate of population growth in Australia’s capital cities was significantly greater than that of regional markets.
Perth topped the charts as the city to consistently record the fastest rate of population growth with 395,000 new persons moving to Perth between 2006 and 2013. However in raw number terms, the increase in population has been much greater in Melbourne and in Sydney.
Between 1991 and 2013 Sydney added an additional 1,084,169 residents, Melbourne 1,153,248, Brisbane 826,621, Adelaide 198,141 and Perth 746,243.
As at June 2013, ABS reported that almost two out of every five Australian’s (39.4%) lived in either Sydney or Melbourne, however, the proportion of Australian’s living in Sydney or Melbourne fell slightly from 1991 (39.7%). This is largely due to a rising prominence of Brisbane and Perth as population centres.
In 1991, 21.3% of Australian’s lived in Sydney, 18.5% in Melbourne, 8.2% in Brisbane and 7.1% in Perth. By 2013, 20.6% of Australian’s lived in Sydney, 18.8% in Melbourne, 9.7% in Brisbane and 8.5% in Perth. Despite the declining prominence of Sydney, the proportion of Australian’s living within our four largest cities has increased from 55.0% in 1991 to 57.6% currently.
<img src="/images/2014/04/10/kusher-april-10-foru.gif" alt="">
The rising prominence of Brisbane and Perth as population centres has really emerged over recent years. Obviously the resources sector boom has driven this to some extent with escalating demand for professionals working and associated with this sector.
Darwin was the only other capital city to record an increase in its overall proportion of the national population over the period, shifting from 0.5% in 1991 to 0.6% in 2013.
Adelaide recorded the largest decline in its proportion of population over the period across the capital cities, falling from 6.3% of the national population in 1991 to 5.6% in 2013.
Sydney and Melbourne continued to be the most significant population centres however; Melbourne is catching Sydney quite quickly. In 1991, 3,672,914 persons lived in Sydney and 3,194,707 in Melbourne, a gap of 478,207 persons. By 2013, the gap had reduced to 409,128 persons.
During the same period, regional Queensland was the only regional market to record a greater increase in population than within the capital city. Over the period, Brisbane's population increased by a total of 826,621 persons compared to an 869,231 increase in Regional Queensland’s population.
The surge in population across Regional Queensland is linked to the growth in those markets directly adjacent to Brisbane, Gold Coast and Sunshine Coast.
Regional Queensland’s population has increased due to the ‘sea change’ phenomenon which has seen significant migration and development along the state’s coastal communities.
Over the year, the ABS reported that Australia's population increased by 1.8% with capital city regions recording population growth of 2.1% over the year compared to a 1.2% annual increase in regional population.
<img src="/images/2014/04/10/kusher-april-10-three.gif" alt="">
From 1995 onwards, capital city populations have consistently increased at a faster rate than those in regional areas. In June 1991, 64.6% of all Australian’s lived within a capital city and by June 2013 the proportion had risen to 66%.
Almost two thirds (66.3%) of all Australian’s live within a capital city, up from 64.6% in 1991.
Based on the ABS results, Australian’s are showing an ongoing preference to live in capital cities rather than regional markets. This is largely due to job security found in the cities.
With home values rising at a much faster rate in Sydney and in Melbourne than in other capital cities it will be interesting to see over the coming years if we see an outflow of population from Sydney and Melbourne to other more affordable capital city housing markets such as Brisbane and Adelaide.
Of course a key driver of any shift away from Sydney and Melbourne will be providing well-paid jobs and a high quality of life while ensuring that housing remains relatively more affordable than it is within Sydney and Melbourne.
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ckusher-ujnxiKuFQs

Capital cities' job security remains attraction for population growth

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I had the good fortune to meet two investors from Dallas, Texas last week - visiting in part, to survey the Australian real estate terrain and in return, provide a unique opportunity to glimpse the madness of it all through foreign eyes.
A cursory look through the press paints a colourful picture for our visiting observers.  Obviously, the spectacular rise in Sydney’s valuations has come under incredible scrutiny over the past 12 months or so. 
Like any upswing in the property cycle, it’s been exacerbated by a mix of forces, culminating in a shortage of effective supply against a bull run of speculation, which all agree has an inevitable end by date and no doubt subsequent correction when the tide changes (‘when’ being the operative word.)
The latest stats from RP Data’s capital city Home Value Index for the first quarter of the 2014 have evidenced “a near record level of growth throughout the month of March” rising in excess of 2% coupled with an “ongoing escalation in housing finance commitments”.
Sydney dwelling values are now reportedly 15.8% higher than their previous peak, some distance from Melbourne, which shows a more ‘subdued’ 4.7% ‘post peak’ increase (movements, which in industry speak are neatly termed a ‘recovery’.)
In response, the RBA, are like a read blowing in the wind, employing the same old wooden tools they’ve always relied upon as they warn investors in their latest <a href="https://www.rba.gov.au/publications/fsr/2014/mar/pdf/0314.pdf" target="_blank">Financial Stability Review</a>, - (like <a href="https://www.rba.gov.au/publications/fsr/2013/mar/html/bus-house-bal-sheet" target="_blank">last year’s</a> review, when stating how “undesirable” it would be “if households were to exhibit less prudent behaviour than they have over the past few years”) - that the:
“Cyclical upswing... cannot continue indefinitely” and any ease in lending rates holds the “potential to encourage speculative activity in the housing market”.
Community service groups hurriedly rush to Canberra, flagging a wealth inequality crisis, presenting yet another shandy of submissions to the rinse and repeat sequel of the last Senate inquiry into housing affordability,
And as Barclay’s Chief Economist <a href="https://www.smh.com.au/business/the-economy/australias-house-prices-flashing-red-debt-to-income-ratio-at-record-levels-20140404-362bz">Keiran Davies</a> sounds the alarm, reporting household debt to disposable income has hit a record “177% peak”, the public outcry against foreign investment bidding up prices has prompted the Coalition’s conservative version - reminiscent of Kevin Rudd’s 2010 <a href="https://news.domain.com.au/domain/home-investor-centre/blogs/domain-investor-centre-blog/what-housing-policy-20120621-20pcl" target="_blank">‘1-800-I-SAW-AN-ASIAN-AT-AN-AUCTION’ </a>debacle - to assess <a href="https://www.dailytelegraph.com.au/news/nsw/fears-chinese-investors-are-pricing-firsthome-buyers-out-of-the-market-will-be-investigated-by-parliament/story-fni0cx12-1226855755918">“what is happening on the ground”</a> and stave off the growing concerns that seem to indicate rules are not being adhered to.
The analysis my two new friends from Texas would hear from economists in response to the above backdrop is equally schizophrenic.
Whilst the Governor of the RBA <a href="https://www.theaustralian.com.au/business/economics/fitch-affirms-rating-warns-over-property-boom/story-e6frg926-1226874747119" target="_blank">Glenn Stevens is telling audiences</a> that a modest overheating in housing markets could have “long-term negative consequences for economic growth.”  AMP’s chief economist <a href="https://www.ampcapital.com.au/article-detail?alias=/olivers-insights/April-2014/Australian-housing-to-the-rescue-%E2%80%93-but-is-it-too-h" target="_blank">Dr Shane Oliver</a> is assuring the “normative” response to low interest rates producing a sharp surge in established house (land) prices, is “great news for the economy!”
According to Oliver, housing may show an “overvaluation criteria for a bubble,” but, we’re not in one yet, otherwise “property spruikers [would be] out in a big way” or “buyers rushing in for fear of missing out!”
Obviously Dr Oliver has not been attending many auctions or property seminars of late – otherwise he’d have plenty of evidence of the above practices (at least in the two biggest capitals.)  They’re all but engraved into Australian culture.
Notwithstanding, <a href="https://www.smh.com.au/business/the-economy/housing-bubble-fears-property-prices-could-fall-10-to-20-per-cent-20140331-35sg7" target="_blank">Christopher Joye</a> is back to the task of boosting his readership figures, evidencing the quite the opposite - warning overvalued prices could see “unprecedented 10 to 20% losses across the board” when/if the market 'normalises'.
Grave concerns indeed, albeit, it whistles the same tune as most industry commentary regarding affordability, with anxieties only going so far as to ensure an already inflated platform can be sustained (through prudent lending, of course) without open and strong advocacy into the policies that would stop these cyclical peaks and corrections, which result in numerous crash predictions, inevitable pain for new home buyers, a real wealth inequality crisis – for what seems to be for no more than generating publicity, whilst maintaining the status quo. 
“Build more houses!”
Unfortunately, the assumption – both here, and overseas – remains, that the only way to make houses more affordable, is to increase the supply of new dwellings.
Building more accommodation seems like an easy prescriptive cure, with supply verses demand being a well-tested economic model – that is, until it comes to the land market.
We can’t seem to deliver this supply at normative prices for the locational price/distance trade off.
Speculative activity, further promoted by a constipated planning system, has resulted in ever increasing land values, on ever decreasing lot sizes.
Analysis by RP Data shows vacant land prices over the past 20 years, have lifted from a median rate of $76.47 per square metre, to $507.70 per square metre, as of the end of 2013. Whilst the average ‘lot’ size has dropped from 700 square metres, to 500 square metres – and in some states, less than 400 square metres over the same period.
Obviously reforms to the planning process would greatly assist, however contrary to common belief, it would not alone provide a cure.
To truly restore housing back to fair value, we would have to remove the level of speculation manufactured into the structural design of our housing market and this is one side of policy reform Government has repeatedly refused to address.
Speculation
To be clear, an increase in the natural price of land, is an expected result when economies are improving due - for example - to capital investment in infrastructure, as is the case in Australia currently, with Tony Abbot’s desire to be knighted the ‘Infrastructure Prime Minister.’
Infrastructure intensifies the use and demand for land as the population grows, assisting job creation and collaboration between individuals.
Therefore, taken alone, rising values should be a ‘good’ thing for our country – (and economy) – or at least they would be, if the gains truly benefitted the community.
Any manufactured improvement to a location’s public amenities, gifts a beneficial trade-off to the owner, who receives a windfall in remuneration as the resulting economic impact boosts productivity.   
This increase in values is what economist’s term 'economic rent', although expressed rather misleadingly in popular vocabulary as capital growth.
To clarify – capital infers something that can be reproduced through productive activity, however we know from housing data, that the true gain in house prices is really collected in the rising cost of land, which takes up a 4.1 trillion dollar share of our 5.02 trillion dollar housing market.
 <img src="/images/2014/04/11/cashmore-april-11-two.jpg" alt="">
Land cannot be reproduced because it can’t be moved, it’s fixed in supply, and therefore any financial benefit derived from improving the surrounding facilities, is merely soaked into the ground.
This is why land banking is <a href="https://propertyupdate.com.au/land-banking-the-property-development-strategy-of-the-pros/">promoted</a> within the industry as a popular investment strategy – although to be clear, it’s not investment at all.
Investment implies the creation of wealth, whereas speculating is a zero-sum game; the wealth is not created, the landowner does nothing – and for the homeowners in Australia, lucky enough to be situated close to the best seats in town, it’s a generous tax-free unearned windfall.
Unwontedly or not, land bankers who hold their underutilised plot in lieu of capital gains, are free loaders on the economy and building activity does not respond to demand, but is only boosted when values are assessed to be on an upward trajectory.
Policies such as negative gearing, depreciation, capital gain exemptions, the encouragement to acquire properties and gear against them in self managed super funds, as well as the use of the family home as a wealth reserve for retirement, enforces speculation into the foundational makeup of our property market.
Land cycles
But I’m not informing Australian’s of anything they don’t already know.  People have become acclimatised to property being expensive, and our housing has become expensive because its value is derived from its accumulated and speculated future capital gains - correctly termed economic rent.
According statistics, home buyers typically move every 10 years or so. The price they are prepared to pay, is balanced against the price they expect to achieve, minus expenses – and in all my years assisting buyers, (barring the odd downsizer) I have never met a single one who calculated otherwise.
This is why property cycles – this is what promotes speculation. 
The banking sector, which has a monopoly on this process (after all, how many can purchase a property without a mortgage?) increases the volatility of this cycle markedly, however banks, lending, money (credit) creation, lack of regulation does not cause the cycle, (or stop the cycle).  Speculation does. 
We had land booms and busts before the evolution of our modern banking system – and without a change to the structural makeup of our housing market, we’ll continue to have them.
Lending restrictions can mitigate risk, but due to the vested interests of banking system, it will not remove it to the degree needed to stop the cyclical impacts.
Easy Earnings
Notwithstanding, for those home owners and investors who purchased over the last decade or so, making money through buying, holding and acquiring property (land) has been a far more effective in accumulating wealth by way of earning income and channelling it it into productive activities.
The BRW rich list is littered with examples, and for those who are not involved in the business of property, land is where they invest their dollars.
Of course, for the first home buyer on a single wage priced out – the mantra resumes that we just need to build more dwellings, the process of which contains just as much speculative activity in its design (including how we fund for infrastructure) so as to exacerbate the problem.
But how does it look to our Texan friends?
Well let’s just say, they’re not rushing to move here.
Texas is one of the top locations for interstate migration in America.
As with Australia, the economy has been super charged by way of a commodity boom, but unlike Australia, industries such as tech, manufacturing and business services are thriving and hiring in droves. 
The expansive list my new Texan friend’s reeled off, highlighting the number of companies moving their central operations into the state (rather than ‘offshore’ as they do here) is impressive, and when I asked how much they would spend purchasing a ‘home’ I was told that “three times annual earnings” would buy the best in town, which was summed up by the comment “like the house my parent’s own”.
Most of the units and condos in Texas are rentals – owned by large investment funds for example, and used as a hedge against inflation and source of positive cash flow.
There are less family sized rentals (detached dwellings) albeit, because housing is affordable, there is also less demand.
Devoting earnings to building a property investment portfolio isn’t a consideration for most Texan residents.
The state didn’t experience a housing bust, because it didn’t experience a housing <a href="https://www.newgeography.com/content/001680-how-texas-avoided-great-recession" target="_blank">boom</a>. 
 <img src="/images/2014/04/11/cashmore-april-11-one.jpg" alt="">
The subprime crisis didn’t hit, because speculation was removed. 
This was in part due to liberal and well funded supply policy, which ensures housing is built on demand and essential infrastructure funded by way of a deductable municipal utility district tax, administered by residents, funded by a bond, and payed back proportionally over a lengthy period of time.  
The additional key however in what’s been termed the “Texas miracle” is low taxes on productivity, lack of state income tax and a good regulatory environment, offset by higher than average property tax.
It’s not perfect – Texas does not remove other taxes, such as sales tax, which has a destructive impact on commerce – and property is taxed as well as land (where as ideally, in a truly productive environment, only the unimproved value of land – the economic rent – should be subject to a tax, which is far easier to accurately assess than the total capital improved value). However it makes the point. 
Whilst Texas boosts and attracts productivity with lower taxes, discouraging speculation in the areas that destroy it, Australia leans to the opposite.
We’re not immune to real estate crashes and there is plenty of evidence to prove their increased severity when prices are allowed to escalate. But, the best way to mitigate the risk and protect against volatility, is to encourage the industries that advantage the working population most (manufacturing for example) and take the air out of those that advantage land speculators the most. 
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catherinecashmore-6LXia3pPQj

Looking at our housing market through foreign eyes

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Causing waves in Sydney's gay community, LGBTIQ icon Midnight Shift in Darlinghurst, at 85 to 91 Oxford Street, is up for sale, with two retail shops - up to 95 Oxford Street. The longest running Oxford Street hotel, with 31 years under its belt, has been a loved part of the street's culture for many years, but it appears its days may be numbered.
Samesame.com.au suggest that the closure may be due to a lack of business, with opening nights reduced from seven to four nights this month, but reassured that the venue is open for business as usual until the sale date. Midnight Shift began charging for shows in 2011, but has still been referred to as a "must attend" venue. The downstairs bar has remained free, but charges were increased to head to Upstairs Shift.
<img src="/images/bar.png" alt="">
<img src="/images/bar2.png" alt="">
The reduction of nights open was said to be due to changes in liquor legislation and the impact of a five-year freeze on the CBD entertainment precinct, the promotions manage for the venue, Leigh Harder, said in March.
While some have taken to Facebook lamenting the loss of an icon, it does provide a good chance for an opportunistic business and party-minded new owner to grab one of Oxford Street's renowned venues with 28 metre frontage.
<img src="/images/decor.png" alt="">
<img src="/images/pokey.png" alt="">
On approximately 849 square metres and being offered with vacant possession tenure, the colourful <a href="https://www.realcommercial.com.au/property-land+development-nsw-darlinghurst-501111067" target="_blank">Real Commercial listing was put up today</a>.
The listing notes that it is within "one of Australia's premier entertainment and retail precincts on the edge of Sydney," and that "Valuable hotel license and entitlements that can be purchased with the sale".
It has dual street access.
93 Oxford Street, which appears to be included in the listing, is Liquor on Oxford, which was sold in 2008 with a first level office lease to Midnight Shift on a 5+5 year lease commencing in September 2008 and a 5+5 year retail lease to House of Fetish from August 2008. The other shop appears to be a Pad Thai (pictured below) at present. According to RP Data, the November 2008 sale for 85-91 Oxford Street was for $8,250,000, settling in December. Before that it had been sold in 1994 for $3,300,000, with one other previously recorded sale - in 1992 for $2,900,000.
<img src="/images/pad%20thai.png" alt="">
Expressions of interest are closing 21st May 2014 after its listing today. Disco dancing, a stage and everything theatrical, Midnight Shift has been home to many a memorable night, including colourful Strip Karaoke, that will see some mourning its sale.
<img src="/images/theatre.png" alt="">
It is being advertised through Oxford Commercial, and sits between the Lick-Her Shop and House of Fetish.
It is currently owned by Arunta Investments after the 2008 sale, previously with the Midnight Shift title being in the hands of long-time owner Tim Berry, in a <a href="https://www.propertyobserver.com.au/https://www.starobserver.com.au/news/local-news/new-south-wales-news/berry-sells-midnight-shift/30033" target="_blank">somewhat bitter situation reported on by the</a> Star Observer back in 2010.
“Weighing the pros and cons of that, Tim decided that it was probably time that [Arunta executive director] Mark Madar gets the place and experiences for himself what it takes to run a pub," they reported Berry's partner Clarence Cruz as saying.
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Oxford Street, Sydney's oldest gay hotel venue up for sale

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Quest Abbotsford serviced apartments is set to open this month, one of eight new Quest properties to launch this year.
Part of Salta Properties’ $1.5 billion Victoria Gardens Precinct, Quest Abbotsford is a joint venture between Quest Serviced Apartments and the privately owned Salta Properties.
Situated next to the Terminus Hotel at 611 Victoria Street, Quest Abbotsford will comprise 93 new studio, one, two and three bedroom serviced apartments. Prices begin at $169 per night for a studio apartment.
According to Quest chairman Paul Constantinou, the upcoming opening of Quest Abbotsford marks the beginning of a growth period for the company.
<blockquote>
The upcoming opening of Quest Abbotsford apparently marks the beginning of a growth period for the company
</blockquote>
“Demand for extended stay accommodation is exceeding supply in Australia, which is why we are opening seven new properties across a range of CBD, suburban and regional locations in 2014. Quest Abbotsford will kick off this period of major growth for Quest as we continue to respond to the needs of business travellers,” said Constantinou.
The franchise has been accepting bookings and is set to open on April 28. Quest Abbotsford is one of eight new Quest properties set to open this year, along with projects at King William South in Adelaide’s CBD, Berrimah in the Northern Territory, Woolloongabba in Queensland, Wellington and Whangarei in New Zealand, Newcastle West in New South Wales and Melbourne Airport.
Despite the suggestion that it marks the beginning of a period of growth, it appears this may have already started.
Quest looked to <a href="/expert-insights/investing/quest-lists-sydney-olympic-park-serviced-apartments-as-appetite-for-australian-hotels-rises">sell their Sydney Olympic Park offering, after listing it in May last year</a>, seeking $39 million, to beef up funds for more than a dozen new projects. In June last year they <a href="/expert-insights/investing/surging-quest-leads-strongly-growing-australian-serviced-apartment-market">recorded 28% growth over two years</a>, leading the strongly growing serviced apartment market.
In September, they also opened a <a href="/news/quest-opens-second-serviced-apartment-hotel-in-mackay-following-positive-business-conditions">serviced apartment offering in Mackay</a>, their second in the area. There have also been <a href="/expert-insights/investing/quest-to-build-tullamarine-melbourne-airport-serviced-apartments">reports of plans to build in Melbourne's Tullamarine</a>.
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jrichardson-uRX5hFdKfN

Quest Abbottsford serviced apartments to open this month

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Former Hawthorn president Jeff Kennett yesterday suggested the Hawks AFL team ought consider relocating to Launceston in Tasmania.
It came after ongoing reports that Hawthorn had been considering selling their Waverley Park complex and moving elsewhere.
Speaking with 3AW broadcaster Neil Mitchell, Jeff Kennett said it would be in the best interest of the club to pack up and move across Bass Strait given their existing links to the island state.
"I think that would be the cheapest and most exciting option. I'm not sure that the board would agree with me [but] when you think it through clearly it could be the opportunity of a lifetime."
“The Aurora Stadium is the best surface in Australia,” he said before adding his property insights.
“The (players) could rent out their houses here (Melbourne) and buy new properties in Launceston, so financially they would do well."
<blockquote>
Many of the listings have enough bedrooms for at least half the team to bunk down with their footballer landlord.
</blockquote>
The outspoken former Victorian premier and former club president's latest radical proposal comes as the future of AFL matches at both ends of the Tasmania island are under increasing scrutiny - and at a time when the Tasmanian residential market remains problematic. Indeed RP Data puts<a href="/news"> the Launceston median house price </a>at $360,000 down from its $390,000 peak in 2010.
Nonetheless, Property Observer has come up with the pick of the slow selling crop from the 55 listings on realestateview.com.au starting with an historic house that goes to auction this weekend.
<a href="https://www.realestateview.com.au/Real-Estate/15-maitland-street-launceston/Property-Details-buy-residential-6842489" target="_blank">It is an 1863 Victorian mansion set in a walled-English Country Garden setting</a> at 15 Maitland Street (pictured above).
Its been marketed by agent Stuart Ferrall at Harrison Humphreys as having the comfort of the integrated hydronic heating in the home which comes with double brick interior walls. The basement cellar is special. Around $500,000 is tipped.
Many of the listings have enough bedrooms for at least half the team to bunk down with their footballer landlord.
There is a $1.1 million asking price on the 11 bedroom, 11 bathroom Kilmarnock House built in 1905 as a townhouse for John Ingles, a well-known Launceston merchant. 
The completed cost, as charged was a moderate £1,588 pounds, 15 shillings and threepence for the house at 66 Elphin Road (pictured below).
Last offered for sale 33 years ago, <a href="https://www.realestateview.com.au/Real-Estate/66-elphin-road-launceston/Property-Details-buy-residential-6452859" target="_blank">it is for sale through Harcourts agent Jeremy Wilkinson</a>.
<img src="/images/2014/04/11/launceston%20april%2011%20one.jpg" alt="">
Elsewhere on Elphin is a $760,000 offering (pictured below) which as been billed by Harcourts as a blue-chip investment - <a href="https://www.realestateview.com.au/Real-Estate/63-65-elphin-road-launceston/Property-Details-buy-residential-2107399" target="_blank">with a consistent rent return of $1,125 per week split amongst five units within the home</a>.
<img src="/images/2014/04/11/launceston%20april%2011%20two.jpg" alt="">
At West Launceston, there is a $920,000 asking price on Edenholme Grange, just minutes from the city centre and Cataract Gorge, through Harcourts agent Courtney Hogan. 
<a href="https://www.realestateview.com.au/Real-Estate/14-st-andrews-street-west-launceston/Property-Details-buy-residential-5511219" target="_blank">The 14 St Andrews Street property</a> (pictured below) - currently a 12 room bed and breakfast - is a magnificent eight bedroom house on over one acre of private grounds. It was built in 1881 by a sea captain.
<img src="/images/2014/04/11/launceston%20april%2011%20three.jpg" alt="">
The oldest on offer is on the so-called Quality Row, a heritage listed four storey Georgian residence built by James Bennell in 1843/44 at <a href="https://www.realestateview.com.au/Real-Estate/169-st-john-street-launceston/Property-Details-buy-residential-5891379" target="_blank">165 St John Street</a> (pictured below) with 12 pane sash windows with original shutters. 
<img src="/images/2014/04/11/launceston%20april%2011%20four.jpg" alt="">
No doubt the Hawk players would prefer something a little more contemporary akin to their Melbourne surrounds.
<a href="https://www.realestateview.com.au/Real-Estate/5b-eastbourne-street-south-launceston/Property-Details-buy-residential-6036073" target="_blank">So 5B Eastbourne Street at South Launceston</a> (pictured below) would be the go at $465,000.
It's a new double story home with three good sized bedrooms, two bathrooms, double remote access garage and a sleek, stylish kitchen.The property that boasts 27 squares of quality contemporary living including that must-have private alfresco BBQ area is listed through Ray White agent Steve McCann.
<img src="/images/2014/04/11/launceston%20april%2011%20five.jpg" alt="">
Apartment wise it would be hard to go past <a href="https://www.realestateview.com.au/Real-Estate/4-287-charles-street-launceston/Property-Details-buy-residential-1391122" target="_blank">the newly completed complex</a>, The Charles at 287 Charles Street (pictured below). Not cheap as with nine sold the remaining prices through Harcourts range between apartment 4 at $1,190,000 and apartment 13 at $1,650,000. 
Designed by the eventual penthouse owner, Josef Chromy, the multi storied luxury former hospital-turned hotel-apartment block with kitchens featuring top quality stainless appliances including inbuilt coffee machines, is situated in the Paris end of Charles Street.
<img src="/images/2014/04/11/launceston%20april%2011%20six.jpg" alt="">
The cheapest apartment in the town is $108,000 in the Best Western complex. T<a href="https://www.realestateview.com.au/Real-Estate/610-3-earl-street-launceston/Property-Details-buy-residential-6360425" target="_blank">he 610/3 Earl Street offering</a> (pictured below) through Ray White agent Veronica West is being marketed as a single bedroom strata unit on the top floor with a 10 year lease in place, showing an approximate return of 5-6%.
<img src="/images/2014/04/11/launceston%20april%2011%20seven.jpg" alt="">
Oh and for the coach or club president? No doubt that's the <a href="https://www.realestateview.com.au/Real-Estate/launceston/Property-Details-buy-residential-6554163" target="_blank">$3 million Old Marchington five hectare estate</a> (pictured below)<a href="https://www.realestateview.com.au/Real-Estate/launceston/Property-Details-buy-residential-6554163" target="_blank"> </a>10 minutes out of town at Relbia - recently voted the most popular residential property currently on the market in a Mercury newspaper feature.
<img src="/images/2014/04/11/launceston%20april%2011%20eight.jpg" alt="">
Vendor Robert Knott went strong on the the Greek symbology in Mediterranean themed artistry which includes the Sistine Chapel inspired ceiling artwork. It all sort of begins on the driveway turning circle with Tasmania's largest private fountain forming a centre piece. 
The marketing of Old Marchington says its overlooks vineyards and rolling pastures that could easily mirror a glimpse of Tuscany. 
The Hawks currently fly in, fly out for four AFL games annually.
They aren't alone. The North Melbourne Kangaroos will play two games at the Blundstone Arena at Bellerive oval in Hobart late in the 2014 season.
And the former Collingwood and Fremantle star Chris Tarrant does it five times a year signing up to play in the local league for North Launceston Bombers.
The 33-year-old, 268-game AFL veteran played one match for the Northern Bombers last season. Tarrant is set to play his first match for the season on Good Friday against Launceston, followed by the Anzac Day clash against Clarence, Lauderdale on 24 May, Burnie on 19 June and the Western Storm on 22 August.
<blockquote>
The Hawks currently fly in, fly out for four AFL games annually. 
</blockquote>
Tarrant lives on the mainland and keeps busy with business commitments in the health and fitness industry, about to release his own organic protein powder called Inta Organics.
Tarrant and his wife, model Lauren Strauss, live in a $3.15 million 1880s South Yarra house bought in 2012 after they sold their Adelaide Street, Armadale French Provincial style home for $3.85 million also in 2012, <a href="https://www.youtube.com/watch?v=5kTRy-JvAjc" target="_blank">having listed it initially in 2010</a>.
In 2005 Tarrant sold his three-level townhouse in Clifton Hill, just a drop punt from Victoria Park, where Collingwood trained for 112 years until they moved to the $17 million Lexus Centre in 2004.
 
{qtube vid:=5kTRy-JvAjc}
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jchancellor-FAypfDUnLy

Not so cheap Launceston actually - potential homes for the AFL Hawks if they fly the Waverley eyrie

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I never used to think of myself this way, but as I get older, I'm increasingly becoming quite a traditionalist and something of a curmudgeon.
Don't really like change too much. Used to hate white weddings in churches, but now don't mind them - as long as they aren't mine, of course. Would probably keep the Australian flag the same given a choice (and, despite not being anything remotely close to a monarchist, probably inclined towards the status quo there too). I vote for centre-right parties. Still like to buy weekend newspapers and prefer hard copy books written on paper, though I do buy e-books too. If I wasn't vegetarian, I'd probably be described as a meat-and-three-veg type.
When it comes to finance and investment, I'm generally conservative and like to stick to the tried and tested, and prefer to diversify broadly rather than gamble too much on individual stocks.
I believe in the endurance of traditional market cycles, although they may appear to be shorter than in times past with the advent of faster information flow and especially since cycles are no longer to be carried along on a tidal wave of inflation. 
When I read in press articles that "Gen Y are lazy" or "young people are opting out", I generally don't believe them. Most younger people will be pragmatic and forge their way in life, just as previous generations always have.
While the specifics will always change, I believe that history repeats.
And having been around through a few market cycles, most unfashionably of all, I believe that monetary policy generally still works.
Low rates
If you have been reading my blog since late 2011, you'll know that my absolute conviction has been that cuts in interest rates would dramatically change the way people invest their dollars.
As I clarified the other day, and has been known about for decades, when it comes to investment markets, <a href="/expert-insights/investing/six-places-to-invest-money-and-four-rules-for-doing-so">interest rates are like gravity</a> - ultimately, you just can't get away from them.
Since Australia is not in recession and credit markets have remained liquid, if my belief is correct then after an initial lag the delivered cuts in interest rates should see property investors flooding back into the markets and share markets catapulted higher.
Markets 
The Australian Bureau of Statistics (ABS) released its <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0" target="_blank">Housing Finance data</a> this week, which is a key indicator of what to expect in the property markets in the months to come.
I pulled out the housing finance data specifically as it relates to investment loans, which printed as below:
<a href="https://3.bp.blogspot.com/-pDastlTKFXc/U0T-Y1yBaiI/AAAAAAAAMaQ/cwa_dJQ3oRE/s1600/Investment+Loans.jpg"><img src="https://3.bp.blogspot.com/-pDastlTKFXc/U0T-Y1yBaiI/AAAAAAAAMaQ/cwa_dJQ3oRE/s1600/Investment+Loans.jpg"></a>
The value of investment loans jumped by 4.4% after a fall last month and are now up by a monster 32.3% year on year to the highest level ever recorded in Australia's history.
To me this represents proof beyond any reasonable doubt that monetary policy still works and property markets remain sensitive to the cost of borrowing.
Most lenders offer interest-only loans to investors for five years, at which point they flip into principal and interest loans or must be renegotiated by the borrower. 
The total value of dwelling commitments chart prepared by the ABS tells its own story.
<div class="separator"> </div>
<div class="separator"><img src="https://www.abs.gov.au/ausstats/abs@.nsf/a866861f12e106e0ca256a38002791fa/05dbce56402ec566ca25723d000f2999/Body/0.1FF2!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Value of dwelling commitments, Total dwellings" width="248" height="320"></div>
Source: ABS
None of this is surprising when you consider that we have an interest rate of 2.50% yet an inflation rate of 2.60%.
After tax is paid on interest income, returns from bank accounts and term deposits are so dismal that return-seeking investors have been practically forced into the share markets or property investments.
Owner occupier mortgages and first home buyers
Owner occupiers can tend to march to their own drum to some extent, although of course fear of missing out can often see would-be home buyers jump into the market too.
But in the event owner occupier non-refinance commitments have also roared upwards by 17.5% over the past 12 months and owner occupier refinance commitments are a whopping 27.9% higher.
The first home buyer data, however, continues to be a complete waste of everyone's time since it fails to record the large number of first-timers who are electing to buy investment property first instead of a home, which, in Sydney at least, is a very regular occurrence.
There is no way to quantify this at present, but since every second inquiry I get as a property buyer fits into that category, it must surely be a significant factor - in New South Wales at any rate. 
As noted two years ago, if you don't listen to what the data is telling you, then you will certainly misinterpret it. 
Naturally a certain percentage of buyers are unquestionably priced out of the locations they want/need to buy in. 
But the recorded data is not commensurate with "an entire generation" of the population casually sitting out of the market, particularly when high LVR mortgages remain <a href="https://www.smh.com.au/money/borrowing/seeking-to-get-a-foot-in-the-door-20140401-35uqu" target="_blank">so widely available</a>, making saving deposits less of a hurdle than would otherwise be the case. 
Dwelling construction?
If the Reserve Bank's grand rebalancing plan is to work then new dwelling construction needs to take off, and there was healthy news from the data here too. I can't plot this any more clearly than the Housing Industry Association (HIA) has already done, so let's go with their chart:
<div class="separator">
<a href="https://4.bp.blogspot.com/-3mpHbrztgJk/U0UB5RC3fTI/AAAAAAAAMac/FFJ64X28QPY/s1600/HIAcons.jpg"><img src="https://4.bp.blogspot.com/-3mpHbrztgJk/U0UB5RC3fTI/AAAAAAAAMac/FFJ64X28QPY/s1600/HIAcons.jpg" width="400" height="202"></a> 
</div>
Source: HIA
Monthly figures were down a bit after an exceptionally strong month in January, but on a moving annual basis the number of finance commitments for new homes and construction was up by more than 14%. The trend since August 2012 is tremendously strong which bodes well for a large pick-up in dwelling construction.
History repeats 
At such times, experienced heads tend to speak the most sense. 
Back in 2004 at the end of Sydney's last boom the AFR's David Bassanese attracted a level of ridicule for suggesting that "housing affordability is just about where it should be". 
Prices in Sydney subsequently fell a little and were flat for some years, yet with dwelling prices having underperformed household incomes significantly over the past decade, now they are catching back up again. 
Steve Keen's old sparring partner Rory Robertson has been quite outspoken this week on the same subject, suggesting that buy-and-hold on Sydney property for the long term is a "no-brainer", and as for whether the market is demonstrating irrational exuberance...
<img src="/images/2014/04/11/tweet-april-11-one.jpg" alt="">
Other experienced heads such as economist Stephen Koukoulas also added that he wouldn't be surprised by higher prices....
<a href="https://2.bp.blogspot.com/-4rRcCUErWQM/U0UVhuwFliI/AAAAAAAAMa8/AL3MACrCVsI/s1600/KOUKOULAS.jpg"><img src="https://2.bp.blogspot.com/-4rRcCUErWQM/U0UVhuwFliI/AAAAAAAAMa8/AL3MACrCVsI/s1600/KOUKOULAS.jpg" width="400" height="67"></a>
Tight market 
It's very rarely noted that during the last boom period in 2003, the REIA recorded that Sydney's property markets had a vacancy rate as high as 4.4%. The rate of vacant properties was at an even more elevated 5.3% in the outer ring suburbs.  
By way of contrast, today's vacancy rate in <a href="https://www.sqmresearch.com.au/SQMResearchVacancyRatesFebruary2014.pdf" target="_blank">Sydney is just 1.6%</a>, and much lower still in certain popular market sectors, such as in the inner west: e.g. Erskineville 0.6%, Enmore 0.8%, and so on. 
Our capital cities and their infrastructure are bursting at the seams, and with <a href="https://www.smh.com.au/business/comment-and-analysis/is-australia-ready-for-23-million-more-people-20131028-2wb0n" target="_blank">2.3 million more people expected</a> to live in Australia in the next five years alone, we're going to have a heck of job keeping up.
If I learned one thing from the experience of the United Kingdom property markets since 2007, it's how the right properties in the right locations fare so much better when each cyclical downturn inevitably arrives, particularly the types of properties which are most in demand such as. For example, well-located dwellings close to the median price for the suburb. 
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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Investment mortgages crunch all-time record high

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The weekly auction market may capture the attention of many but just under 70% of all homes in Melbourne are sold at private sale.
While this market segment may not have a convenient weekly statistic that  summarises the level of demand and supply, other data in RP Data’s suite of information supports a similar role.
RP Data calculates the time on market for homes for sale at private sale and also the level of vendor discounting. These statistics are available at a metropolitan, council and suburb level. For the purposes of a broad market indicator, the metropolitan wide numbers are the most stable and reliable in a statistical sense.
The most recent time on market data is for the month of February. It showed that the average time between advertising and the contract of sale being signed was 57 days for houses and 65 for units in Melbourne.
For the housing market, this is considerably stronger than last year when it was 72 days, however, the unit market is showing the impact of high levels of new supply as it is now longer than a twelve months when it appeared as 60 days.
As new listings are almost   one third higher than this time last year, the current numbers paint a picture of a remarkably healthy market. It also reflects the fact that vendor discounting is also lower at -6.1% for houses compared to -6.7% a year ago and -5.8% compared to -6.5% for units.
This data shows that conditions present in the auction market are also apparent in the private sale across Melbourne.
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Melbourne's private sale market continues to tighten

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Australia’s budget has deteriorated faster than any other developed nation’s in the past six months, as Treasurer Joe Hockey continues to prepare Australians for a tough May budget.
Just over a month away from the budget, the International Monetary Fund’s <a href="https://www.imf.org/External/pubs/FT/GFSR/2014/01/pdf/text.pdf" target="_blank">Global Financial Stability Report</a> released yesterday suggests a need for taxation changes in order <a href="https://www.smartcompany.com.au/legal/politics/41251-hockey-claims-labor-hid-spending-tsunami-as-small-business-prepares-for-painful-budget" target="_blank">to reel in the budget deficit.</a>
According to <a href="https://www.afr.com/p/national/imf_says_budget_fall_fastest_of_nreHL5ZcDI84gjokyEAp6H" target="_blank">The Australian Financial Review</a>the budget would need to improve by at least $50 billion by 2020 to bring gross debt down to 70% (or 4.7% of GDP).
Speaking in Washington yesterday, Hockey said IMF estimates showed Australia’s increased healthcare and pension spending alone, unless changed, would cost an extra $93 billion of government spending per annum by 2030.
“That is the equivalent of an extra $61 billion a year in today’s dollars or the equivalent of an extra 4% of today’s GDP,” he says.
To pay for the ageing population, Hockey says Australia will need to raise the equivalent of the existing company tax, indicating major changes will be needed to Australia’s taxation system.
Hockey says with the current budget deficit and below trend growth, there could be budget deficits for the next decade.
“We are now grappling with growth stubbornly below trend as our economy rapidly transitions from the end of the resources investment boom, with rising unemployment and a deteriorating budget position,” he says.
The latest figures from <a href="https://www.imf.org/external/pubs/ft/weo/2014/01/pdf/text.pdf" target="_blank">the IMF’s Global Economic Outlook report</a> released earlier this month show Australia is still struggling to recover from the slowdown in mining-related investment.
The Australian economy is tipped to remain 0.5 percentage points below the trend growth rate of 3% to 3.25%. The IMF predicts Australia’s growth will remain “broadly stable” at 2.6% in 2014.
In 2015, GDP is only tipped to have increased 0.1 percentage point to 2.7%.
JP Morgan chief economist Stephen Walters told SmartCompany Australia has struggled to adjust to the post-mining boom.
“However, in context we’ve had the biggest boom we’ve seen in 120 years, so it’s not a surprise we’re having an adjustment period,” he says.
“As other economies come out of a recession, in this context we seem sluggish, but we’ve avoided having a recession for 23 years.”
Walters says JP Morgan is anticipating Australia to grow at 2.75% this year and 3% in 2015.
“Our estimates are a bit below the Reserve Bank of Australia’s estimates. We think the economy is still in an adjustment period… and when an economy goes through an adjustment, some sectors of the economy shrink by comparison. This is being seen in manufacturing and mining,” he says.
“The economy will start to pick up though, and growth numbers are expected to be higher each year. By 2016 things will be looking better. There will be boosts to exporting markets and consumer spending and construction will be strong.”
Walters says looking forward Australia’s biggest challenges will be recovering from a high exchange rate and managing the relationship with China.
“There has been a big hollowing out of the economy, with the exchange rate being too high for many businesses such as the car manufacturers and SPC Ardmona,” he says.
“[In the budget] welfare looks like an obvious target to hit. Also on the agenda will be negative gearing, the pension age and in the long term possibly GST.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Australia's budget detoriated faster than any other developed nation in past six months: IMF

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Strata office suites in a prominent building in Melbourne's Docklands have been listed for sale. 
The strata units are situated on levels one and two of the Site one building, at 757 Bourke Street - considered to be the heart of the Dockland's financial business district. Site one is an office, retail and residential complex comprising a total of about 1,435 square metres of fully air-conditioned office space split over two levels.
Marketing the suites are Ray White Commercial's Queensland associate director Chris Heydon and Blair Main Director of TM Realty Docklands.
“Each office is fully carpeted with plaster walls, suspended ceilings, heating and cooling, and data and electrical points throughout", said Mr Heydon.
The offices range in size from about 30 square metres to 65 square metres.
The tenancy mix in building consists of professionals ranging from lawyers, marketers, engineers and recruiters as well as some of Australia’s major sporting organisations. 
Each floor had two kitchenettes, shower facilities and male and female amenities.
“Office tenants will also enjoy access to the Trevor Main Business Centre on level one which consists of a reception area as well as four state of the art meeting/board rooms”, added Mr Heydon. 
The ground floor tenancies of the building included an IGA supermarket, Degani Bakery Café, Booji Café, La Tadka Restaurant and the Nixon Hotel Bar and Restaurant.
Nearby is also some of the country's biggest companies - the National Australia Bank, KPMG, Lion Nathan, March Mercer, and the Commonwealth Bank and many more. 
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