<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer Big Projects brought in the renowned Sydney-based design studio YSG to craft the interiors for The Frederick, Big Projects' new Mermaid Beach project and YSG's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for Big Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Architecture, with landscape design by LDG.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Joel Robinson

Big Projects taps Sydney’s YSG for first multi-residential project at The Frederick Mermaid Beach

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p data-end="150" data-start="66">A rare new apartment development has been proposed on the fringe of St Ives Village.</p>

<p data-end="370" data-start="152">Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.</p>

<p data-end="370" data-start="152">The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.</p>

<p data-end="370" data-start="152"><img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" /></p>

<p data-end="745" data-start="537">“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.</p>

<p data-end="912" data-start="747">“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”</p>

<p data-end="1185" data-start="914">Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.</p>

<p data-end="1270" data-start="1187">The proposal would replace two single-storey brick buildings currently on the site.</p>

<p data-end="1270" data-start="1187"><img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" /></p>

<p data-end="1467" data-start="1272">St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.</p>

<p data-end="1635" data-start="1469">More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.</p>

<p data-end="1635" data-start="1469">NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: NewQuest Property proposes new St Ives apartment development

<p><a href="https://www.apartments.com.au/developers/centa-property-group">Centa Property Group</a> has achieved two major milestones at its <a href="https://www.apartments.com.au/new-apartments/bilinga-house-107-golden-four-drive-bilinga-qld-4225">Bilinga House</a> apartment development in the sought-after southern Gold Coast.</p>

<p>They've almost sold 50 per cent of the Golden Four Drive building, while at the same time announcing the commencement of construction through reputable builder Greyburn Construction.</p>

<p>The boutique 10-storey building, with 47 two- and three-bedroom apartments, now has a mid-to-late 2028 completion date.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5333]</p>

<p>The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed project is positioned just 200 metres from Bilinga Beach and brings a relatively rare apartment offering to a market that has seen limited new supply in recent years.</p>

<p>Residences have been designed to maximise natural light and ventilation, with open-plan interiors, generous glazing, and material palettes that reflect the surrounding coastal landscape.</p>

<p>Interiors incorporate engineered timber flooring, stone benchtops, and custom joinery, with layouts designed to adapt to both permanent living and lock-and-leave use.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Rothelowman Senior Project Leader Matthew Tencate said the design approach centres on liveability and community.</p>

<p>“Providing curated on-site amenities and communal spaces for residents that facilitate a sense of community, liveability, and wellness,” Tencate said.</p>

<p>Residents will have access to a suite of private amenities including a pool, gym, sauna, and communal alfresco areas, alongside practical features such as surfboard storage and bicycle facilities.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Centa Property Group Director Jason Yuen said the project has been designed to appeal to a range of buyers seeking flexibility in how they use their property.</p>

<p>“Bilinga House is designed for those who want the best of both worlds – a modern beachside escape with the flexibility to generate income when you're not there,” Yuen said.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5338]</p>

<p>Bilinga remains one of the quieter pockets of the Gold Coast, sitting between the more established hubs of Coolangatta and Palm Beach. Its appeal has strengthened in recent years, supported by proximity to the Gold Coast Airport and the Oceanway coastal path.</p>

<p>[smartcode_project_cta:default project_id=150037]</p>


Bilinga House apartments snapped up as Greyburn commences construction

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


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

<html><body>
<p><span>Bravo Eliza Owen of </span><em>On the House</em><span> for this fabulous time lapse video presentation of Sydney median house values over the past 35 years. </span></p>
<p>You can watch it <a href="https://www.youtube.com/watch?v=cC0xL24ecs0" target="_blank">here</a>.</p>
<div>There are a number of fascinating aspects to this piece, which suggested to me that home buyers and investors seeking long term capital growth should aim to buy in the best-located suburb that they can afford, and should also look for scarcity value.</div>
<div> </div>
<div>Bellevue Hill had a median price which broke through $200,000 in 1980 - around double Sydney's median house price at that time - yet the median house price in the suburb has exploded to $4.2 million today, more than four times the median house price in the harbour city.</div>
<div> </div>
<div>How so? A combination of a lack of new building - the result being scarcity value - combined with gross income and equity growth, with buyers and wealthy residents at the premium end of the market rarely reliant upon linear salary income for their house purchases. </div>
<div> </div>
<div>Other well located inner suburbs have demonstrated massively strong price growth as they have gentrified. </div>
<div> </div>
<div>Note how housing booms and corrections have been recurrent and have repeatedly been characterised by massive boosts in price in locations close to the city, with suburbs on the north shore and close to the water leading price booms and the western suburbs lagging behind.<br><br>Being located near a train line with a direct city link can help, particularly it seems on the north shore (cf. Killara, Gordon, which have historically led price growth in previous cycles).<br><br>On the other hand being in an industrial suburb under a flight path, historically at least, has been a negative, with inner western suburbs such as Mascot having lagged through the cycle. </div>
<div> </div>
<div>Due to this disparate nature of capital growth which has favoured suburbs closer to the city, the <em>On the House</em> figures show that today there is a significantly wider range of median house price values by suburb across Sydney than there was in the past.<br><br>I expect this widening of prices to continue. </div>
<div> </div>
<div>With a good deal of building having taken place on Sydney's outer south western fringe, median home values have increased sharply in that sub-region since 2011.</div>
<div> </div>
<div>However, recent auction results (or more accurately, should one say, the dearth of positive results at auction, with the outer south west recording a worrying preliminary clearance rate of "n/a" this week) suggest that a sharp correction could be in the post for that sub-region.</div>
<div> </div>
<div>Very interesting stuff.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <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>.</em></p>
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pwargent-M4siyDbqQY

35 years of Sydney house prices: Pete Wargent

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<p>Now, more than ever before, is the time to seriously consider and pay close attention to what your real estate agent promises you.</p>
<p>Don’t be too complacent and think that most agents actually care about your best interests. Most realtors wouldn’t shout you a cup of coffee, if it means actually putting their hand in their pockets to accommodate your needs.</p>
<p>No, this isn’t a rant about Vendor Paid Advertising (VPA). We’ve already had that discussion.</p>
<p>This article is about making sure, your agent, is looking after your best interests. Your interests when they suggest that your property is best marketed; via an auction campaign.</p>
<p>Below are some simple steps to follow and questions to pose to the agents that are hell-bent on auction strategies.</p>
<p>In this instance, the focus is on the auctioneer, more than the listing agent that wants to sign you up. Or in some cases: stitch-you-up.</p>
<p>Questions you need to ask about the auctioneer:</p>
<p>1)     Price: Is the auctioneer the cheapest in the area?</p>
<p>2)     Performance: How well does he/she perform?</p>
<p>3)     Pre-auction inspection: Will they actually come to view the home before the day of the auction?</p>
<p>4)     Price</p>
<p>Like everything, pay peanuts and you will get monkeys. But sometimes in the auction game, you also get very expensive baboons.</p>
<p>The key here is, don’t just base the decision on the criteria of “price”. Base your decision, in collaboration with the other two points, as well as price.</p>
<p>Performance</p>
<p>To help you better gauge the caliber of the individual that will have control of the sale on the day, make time to see them in action. Do it first hand and don’t rely on what their mate, the real estate agent, tells you about them.</p>
<p>Pre-auction inspection</p>
<p>I find it difficult to grasp the belief that an auctioneer, that has 5-9 properties to auction off in a period of 5 hours, can actually perform to their best of their ability on the day.</p>
<p>What I have seen is, most auctioneers stumbling and running late from appointment to appointment in Saturday traffic-jams in Sydney.</p>
<p>Their complacency, may have worked for them as people are prepared to pay 20-30% above the odds in a hot market; however, the tide has turned. Clearance rates are dropping weekly and rapidly.</p>
<p>You may be about to give a fool, the reigns of what is your most valuable asset. Think twice before you do. Perhaps the following points will assist you with your decision.</p>
<p>Foolish things agents and auctioneers do when they are under pressure</p>
<p>1)     Run an auction when no one has actually registered nor has anyone requested contracts prior to day of auction. I witnessed one last week. It was disastrous for     the vendor.</p>
<p>2)     Advertise low price-guides to draw a crowd only to pass the property in at the low price-guide.</p>
<p>3)     Calling vendors bid low, believing this will stimulate the bidding. I see this occur over and over again, and auctioneers do this even when the reserve is 15%-25% higher.</p>
<p>The common outcome: property is passed in at vendors bid and therefore, devaluing the potential of the property.</p>
<p>4)     Auctioneer not properly informed, if at all, about material facts such as; easements and covenants, development potential, history and not knowing in detail about the property.</p>
<p>5)     Auctioneers, thinking more about the traffic conditions they will encounter travelling to the next property, than the actual sale at hand.</p>
<p>6)     Agents and auctioneers conducting room auctions with 3 or more properties. Again, may have worked in a hot market, however, this is suicide for the vendor in normal circumstance.</p>
<p>Prevention is better than cure</p>
<p>To understand why agents are pushing auctions, you need to have a behind the scenes peak. Most real estate training manuals simply state:</p>
<p>“…Auction campaigns, gives the agent a definitive sales date. One that vendors and buyers are locked into… and you’re guaranteed your commission”</p>
<p>The above would be perfect if it also meant two outcomes:  first, the sale achieves the best price and second, the agent was ethical about the entire campaign. </p>
<p>If your agent’s recommendations of an auctioneer does not meet the above criteria and what you hear and see on the video; you may well lose tens if not hundreds of thousands of dollars.  Then again, ask yourself, is your property that unique to go to auction, and is it really the best strategy.</p>
<p>Happy selling. </p>
<p> </p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
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Pay close attention to what your real estate agent promises you: Edwin Almeida

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<div>A surprisingly soft inflation result, and one which puts further interest rate cuts right back in the frame, if indeed they ever snuck out of shot.<br><br>
</div>
<div>Headline CPI printed at 0.5% for the June quarter for an annual result of just 1.5%, well beneath the target range of inflation, thereby locking in the weakest run of inflation results we have seen in years.<br><br>Indeed the index numbers show that the headline result was weaker still, and only rounding took the headline figure up to 0.5% for the September quarter.</div>
<div> </div>
<div>The soft result was influenced by the declining price of vegetables (!), telco quipment &amp; services, and perhaps more predictably, automotive fuel. </div>
<div> </div>
<div><a href="/images/2015/10/29/Inflation1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/29/Inflation1.jpg" alt=""></div>
<div> </div>
<div><span>Non tradables or domestic inflation came in at a soft 0.4% for the quarter and 2.6% for the year, suggesting that domestic price pressures are fairly subdued, while tradables inflation remained very soft. </span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/29/Inflation2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/29/Inflation2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>Despite the Aussie dollar having tanked all the way from above parity against the US dollar to around 71.3 cents after this release, there still seems to be little evidence of inflationary pressure.</span><br><br><span>This is generally viewed as a sign of weakness for the economy, with wages growth sundued and sentiment too weak to see the higher prices of imports to be passed on to consumers.</span><br><br><span>Most significantly of all the underlying measures of inflation - the trimmed mean and weighted median - both came in at just 0.3% for the quarter, for annual prints of  2.1 and 2.2% respectively.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/10/29/Inflation3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/29/Inflation3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>These figures will be seen to add to the case for further interest rate cuts with inflation sinking towards the bottom end of the target range and unemployment remaining above 6%.</div>
<div> </div>
<div>Futures markets are undecided about an interest rate cut on Melbourne Cup Day next week (62% chance), but hav priced in a high probability of the cash rate being dropped once again before the Christmas break.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <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>.</em></p>
</div>
</div>
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Veggie price decline influences inflation outcome: Pete Wargent

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<p><span style="line-height: 1.3em;">One of the first things Property Bloom looks at when starting our design work on a development project is not the style of dwellings we'll build or what materials we'll use...it's something a lot less glamorous but vitally important.</span></p>
<p>We look at how to maximise the site area. As part of this, the boring old retaining wall comes into play.</p>
<p> When we assess a site we need to consider if the site will need retaining - most do - even the sites will very little fall will need some retaining after the site is cut - so we need to think about where the retaining walls will be built and the costs associated with building them.</p>
<p>In a perfect world, it would be great to build a retaining wall right on the boundary and share the cost with your neighbour (if their site needs retaining too). In new land estates we can easily negotiate this with our neighbours, however we need to consider more than getting the best result for both our clients and their neighbours.</p>
<p>We need to check with our local council to see  if they have specific requirements around  retaining walls. One council we work with insists retaining walls, footings and their associated drainage be located wholly within the subject property boundaries by a whole whopping metre. This can take up valuable space, but at least we know what we have to do. Other council's are not so clear and it's here we like to try and push the boundaries so to speak, to use all space to our advantage.</p>
<p>If a retaining wall is built on a shared boundary, council may request an easement be set up.  This is not such a big deal but something that needs to be considered.  Our  surveyor is our go to guy in these situations.</p>
<p>We look at the style of retaining wall to use. If we are on a strict budget, then we'll go with timber retaining walls. If we are tight on space and want a nicer finish, then we'll use concrete block retaining which can be purchased in different colours and doesn't need as much width as a timber retaining wall.</p>
<p>Of course, if you need to build a high retaining wall, generally over one meter, then it may need to be engineered. This means an engineer needs to design the wall and you'll have to submit the plans as part of your Development Application.</p>
<p>The best time to build a retaining wall is after the site is cut but before the slabs are laid. This gives the contractors the best access and means this work is taken care of early in the build phase.</p>
<p>I recently had a dispute with someone about whose responsibility it was to pay for an upgrade to a  retaining wall. It can be a grey area. In this case, there was an existing, old retaining wall situated wholly inside this person's side boundary.  They had knocked down the original cottage and built a new house and their land levels had changed as a result.  The properties were on a hill. Many years ago, their back yard had been retained and filled so it was level. The house on the lower side had been built to the natural contours of the land and their back yard fell to the rear.</p>
<p>After the people on the high side finished their new house build, the old retaining wall needed upgrading as it was made of stone blocks and their soil filtered through each time it rained, plus the existing wall was not high enough now works had been completed. In addition, there was more retaining required to the entire side boundary due to the change of levels during construction.</p>
<p>The responsibility for the erection of retaining walls rests with the person who <span style="text-decoration: underline;">excavates or fills</span> their land. It is not up to an adjoining landowner to contribute to the costs of a retaining wall, unless the wall is a common wall to support both cut and fill, for the benefit of both properties, on the common boundary.</p>
<p>To me this was cut and dry - their yard had been retained and filled at some stage (before these owners). They argued that the lower property had at one stage been cut (it hadn't but how do you prove this?).  The situation ended in a difference of opinions and a compromise was made by one party. It could have got ugly but at the end of the day, the additional cost was $500 and we put it down to an investment in future neighbour relations and hoped the neighbour appreciated this.</p>
<p>Works on common boundaries can be tricky business and communication is key but at the end of the day, if your development is going to benefit from a particular style or position of a retaining wall, then it may be easier to include it in the costs of the project and move on, after all the time saved on negotiating disputes can be put to better use.</p>
<p> </p>
<p><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em></p>
<p> </p>
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Pushing the boundaries: Jo Chivers

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<div>Delving into the detail behind the Consumer Price Index figures for the third quarter reveals that annual rental price growth in Australia is now tracking at its lowest level since June 1995, with rents up nationally by just +1.5% over the year to September 2015.</div>
<div> </div>
<div>The data series captured at the capital city level shows the cylical nature of property prices and rents.</div>
<div> </div>
<div>The national level figures show the marked contrast beteween rental price inflation in periods when investors and housing starts were knocked out of the market (1985-1987) and those where investors have flooded the market with rentals and construction has boomed (2012-date).</div>
<div> </div>
<div><a href="/images/2015/10/30/Rents1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents1.jpg" alt=""></div>
<div> </div>
<div>
<span>Naturally significant variances are evident across the capital cities.</span><br><br><div>Annual rental growth remained steady in Sydney (+2.5 per cent), but was softer in Melbourne (+2.2 per cent) and Brisbane (+1.1 per cent), while Perth has now slipped into negative territory on this series (-1.6 per cent) after a big run-up through the resources boom. </div>
<div> </div>
<div><a href="/images/2015/10/30/Rents4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents4.jpg" alt=""></div>
<div> </div>
<div><span>Looking at the annualised data reveals the softening trend, particularly in Perth.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/30/Rents2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/30/Rents2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>In the smaller capital cities, Hobart appears likely to play host to a level of rental growth over the year ahead with </span>vacancy rates in the Tasmanian capital having tightened sharply<span>.</span><br><br><span>On the other hand Darwin has the </span>opposite problem<span> and has now sunk into negative territory, joining Canberra where annual rents have been negative since the first quarter of calendar year 2014.</span>
</div>
<div><span> </span></div>
<div><span>Click to enlarge</span></div>
<div><span><img src="/images/2015/10/30/Rents3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Finally, a look at rental growth across 5 and 10 year time periods by capital city shows how the resources capitals enjoyed the bulk of rental growth until the end of the resources boom.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/30/Rents5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/30/Rents5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <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>.</em></p>
</div>
</div>
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Rental inflation soft: Pete Wargent

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<p><span>There were 2,493 auctions held across the combined capital cities this week, with a preliminary auction clearance rate of 63.3%, the second lowest clearance rate for the year. </span></p>
<p><span>Last week, a clearance rate of 64.9% across 3,143 capital city auctions was recorded. At the same time last year, auction volumes were lower than this week, with 2,033 properties taken to auction, however the clearance rate was stronger (68.1%). Clearance rates have been consistently trending lower, albeit on higher volumes, since April this year. The number of auctions being held so far across the Spring season is approximately 20% higher than what was recorded over the same period a year ago.</span></p>
<p><a href="/images/2015/11/20151102-Capital-City.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/11/20151102-Capital-City.jpg" alt="" width="665" height="498"></span></p>
<p> </p>
<p><span><strong>Melbourne’s</strong> clearance rate fell further this week, down to 65.4%, the second week in a row where the clearance rate has been below 70% after slipping to 69.7% last week. Auction volumes have also fallen in the lead up to Melbourne Cup, with 611 auctions held over the week, compared to 1,690 over the previous week. At the same time last year, the clearance rate was 69.6% across 220 auctions. Looking at Melbourne’s sub-regions, the North East region was the best performer in terms of clearance rates, with a 74.6% success rate across 72 auctions, followed by the Inner South region, where 72.9% of the 52 auctions sold.</span></p>
<p><a href="/images/2015/11/20151102-Melbourne.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/11/20151102-Melbourne.jpg" alt="" width="729" height="491"></span></p>
<p> </p>
<p><span>In </span><strong>Sydney</strong><span>, 1,361 auctions were held this week, up from 1,024 over the previous week. The preliminary clearance rate of 63.5 per cent has increased from a low 61.3 per cent last week; however it is significantly lower than this time last year, when a clearance rate of 75.6 per cent was recorded across 1,259 auctions. Looking at the sub-regions of Sydney, the City and Inner South region recorded the strongest clearance rate of 73.9 per cent across 119 auctions, while the Eastern Suburbs had the highest volume of auctions (206).</span></p>
<p><a href="/images/2015/11/20151102-Sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/11/20151102-Sydney.jpg" alt="" width="740" height="501"></p>
<p> </p>
<p><span>The preliminary clearance rate in </span><strong>Brisbane</strong><span> this week was 58.2 per cent, up from 48.8 per cent over the previous week. Auction volumes were lower this week with 186 auctions held, down from 223 last week. Meanwhile, across the </span><strong>Gold Coast</strong><span>, 51 per cent of the 49 reported auctions were successful.</span></p>
<p><a href="/images/2015/11/20151102-Brisbane.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/11/20151102-Brisbane.jpg" alt="" width="752" height="500"></span></p>
<p><span> </span></p>
<p><span><span>A total of 146 </span><strong>Adelaide</strong><span> homes were taken to auction this week, with a preliminary clearance rate of 58.1 per cent across 117 results. Last week, Adelaide was the strongest performer of all capital cities in terms of the clearance rate, recording a 70.3 per cent success rate across 91 reported auctions.</span></span></p>
<p> </p>
<p><a href="/images/2015/11/20151102-Adelaide.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/11/20151102-Adelaide.jpg" alt="" width="802" height="545"></p>
<p><strong>Perth’s</strong> clearance rate of 55.6 per cent across 49 auctions is up from the previous week, when 33 auctions were held and a clearance rate of 25.9 per cent was recorded.  Over the same week last year, the clearance rate was a lower 40 per cent, and 40 auctions were held.</p>
<p>Across <strong>Canberra</strong> a total of 130 auctions were held this week, the highest volumes have been all year, compared to 58 last week and 89 at the same time last year. Canberra’s preliminary clearance rate of 68.7 per cent is higher than it was the previous week (63.3 per cent).</p>
<p>In <strong>Tasmania</strong>, 6 auctions were reported to CoreLogic RP Data with 2 sales. Last week, 9 auctions were reported with 4 sales.</p>
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Combined capital city clearance rate below 65% for second week: CoreLogic RP Data's Shana Miller

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<p>The New South Wales property boom isn’t over. It’s just that it’s migrated from Sydney and now resides in regional NSW.</p>
<p>The latest Hotspotting research finds that there are twice as many suburbs/towns with growth property markets in the regions as there are in the capital city.</p>
<p>It’s really hard now to find suburbs with growth markets in Sydney. By “growth markets” we mean suburbs with rising sales activity.</p>
<p>Those that exist are mostly found in the distant outer reaches of the Sydney metropolitan area, in places like the Campbelltown and Liverpool LGAs in the south-west. This is yet another sign that the Sydney boom has run its course.</p>
<p>Most suburbs across Sydney are now what we call plateau markets. They’ve risen to a certain level over the preceding several quarters, passed their peak and have leveled off.</p>
<p>There are few instances of dramatic decline. This is one reason we don’t expect prices to fall to any great degree. As in 2004, the last time a significant Sydney boom ended after 2-3 chirpy years, price growth will fall away to increasingly low levels and values are unlikely to fall.</p>
<p>Meanwhile, the momentum has switched to regional NSW. This is good news for investors, provided they’re willing to shake loose from the capital city addiction that afflicts many consumers and consider the possibilities of buying in a strong regional city.</p>
<p>Buying in a good regional market presents what we like to call a win-win-win situation. Win #1 is lower entry prices. Win #2 is much better rental yields. Win #3 is good prospects for capital growth – provided you choose your target wisely.</p>
<p>There are plenty of places in regional NSW you wouldn’t want to buy. When we advocate regional locations, we’re thinking of those that meet some basic criteria.</p>
<p>You should be looking for a place with a substantial and growing population, in a strategic location well-connected to major centres by road, rail and air, at the heart of a broad region of people who travel to their regional city for retail, medical, education and other services – and, often, to retire.</p>
<p>The ideal targets will have economic diversity, good spending on infrastructure, low vacancy rates and one or two big kickers – specific events that represent the icing on the investment cake.</p>
<p>NSW, more than any other state or territory, has an abundance of strong regional centres that meet those standards.<span style="line-height: 1.3em;"> </span></p>
<p>And there are numerous among them for strong sales momentum pointing to price growth.</p>
<p>The Central Coast has been strong for a couple of years now, having caught some momentum from Sydney. The Gosford and Wyong LGAs were among the first regional areas to rise and they, like Sydney, appear to have passed their peaks, with sales levels tapering off.<span style="line-height: 1.3em;"> </span></p>
<p>But many others are rising. Newcastle and neighbouring precincts – including the Lake Macquarie, Port Stephens, Maitland and Cessnock municipalities – present as a large population centre with a bustling economy and plenty of growth markets.<span style="line-height: 1.3em;"> </span></p>
<p>Sales levels have surged over the past 18 months in Port Macquarie, a strong coastal city greatly boosted by big spending on infrastructure.</p>
<p>Albury and its twin city Wodonga at the Victorian border fits all the core criteria as a regional centre worth considering and currently has numerous suburbs with growth markets.</p>
<p>These are many others with credentials, including Dubbo, Goulburn, Bathurst, Orange, Wagga Wagga, Tamworth, Wollongong and the towns of the Southern Highlands.</p>
<p> </p>
<p class="Body1"><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em> </p>
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terryryder-YECXbqmri2

New South Wales property boom has migrated: Terry Ryder

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<p>The Australian Bureau of Statistics (ABS) released demographic data for the March 2015 quarter earlier today. The data showed that despite a quarterly bounce in population growth, the rate of growth continues to trend lower.</p>
<p>The national population increased by 1.35% over the 12 months to March 2015 which was the lowest annual rate of growth in nine years. Although growth slowed it should still be noted that Australia’s population increased by 315,952 persons over the past year. Although population growth has slowed it remains well above the long term average of 256,801 per annum.</p>
<p><a href="/images/2015/09/25/Chart-13.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/25/Chart-13.jpg" alt=""></p>
<p><span>Over the March 2015 quarter, the national population increased by 93,942 persons, substantially higher than what was recorded over the December 2014 quarter when the nationally population recorded an increase of 64,010 persons.  Over the 12 months to March 2015, the national population increased by 315,952 persons which is the lowest annual increase in population since the 12 month period ending June 2011 when the nation recorded population growth of 308,274 persons.</span></p>
<p><a href="/images/2015/09/25/Chart-23.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/25/Chart-23.jpg" alt=""></span></p>
<p><span>At a national level there are two components of population growth, natural increase (births minus deaths) and net overseas migration. Each of these measures recorded a bounce over the past quarter however, both components continue to trend lower on an annual basis. Over the 12 months to March 2015 natural increase was recorded at 142,898 persons and net overseas migration was recorded at 173,054. Natural increase was -9.7% lower over the year while net overseas migration was -16.0% lower, its largest annual fall since March 2011.  </span></p>
<p><span>While the decrease in the rate of natural increase implies a sharp rise in deaths or slowdown in births, it is important that the ABS has noted that there are problems with the preliminary natural increase estimates due to a lag in registering births in both NSW and Vic.  We are likely to an upwards correction to this data over the coming quarters which will lift the rate of population growth.</span></p>
<p><a href="/images/2015/09/25/Chart-32.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/25/Chart-32.jpg" alt=""></span></p>
<p>Across the states and territories the rate of annual population growth is lower compared to the same time a year ago across the board. Although population growth is slowing, the sharpest slowdown in population growth is being felt in WA and NT. In WA the rate of population growth has slowed to 1.4% over the year to March 2015 from 3.5% two years earlier.  Similarly, annual population growth in the NT was 3.0% two years ago and the latest data shows it at just 0.2% over the past year.</p>
<p>Looking at the components of population growth we will ignore natural increase at this juncture because the ABS have highlighted some issues with the data for NSW and Vic. The two other drivers of population growth at a state and territory level are overseas migration and interstate migration.  NSW and Vic are the major benefactors of net overseas migration to Australia while Vic and Qld are the only benefactors of interstate migration.</p>
<p><a href="/images/2015/09/25/Chart-4.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/25/Chart-4.jpg" alt=""></p>
<p><span>Over the 12 months to March 2015, net overseas migration to Australia was recorded at 173,054 persons. More than two thirds of net overseas migration flowed to NSW (38.9%) and Vic (31.6%). If you add in Qld (12.1%), the three most populous states accounted for 82.6% of net overseas migration. Although net overseas migration is trending lower, the impact of the end of the mining boom is very clear. In March 2013, annual net overseas migration was recorded at 41,745 persons in Qld, 53,834 persons in WA and 5,173 persons in NT. Over the past year, annual net overseas migration had slowed to 20,857 persons in Qld, 15,383 persons in WA and 1,041 persons in NT.  </span></p>
<p><span>Conversely in NSW where mining is a smaller part of the overall economy, net overseas migration has actually increased from 63,661 persons in March 2013 to 67,272 persons in March 2015. Similarly in Vic net overseas migration has been much stronger over the past 2 years, falling slightly from 55,562 persons to 54,745 persons. Of course while most of the overseas migration is coming to NSW and Vic, most of that is flowing into Sydney and Melbourne fuelling more demand for housing and helping to explain why home value growth in those two cities has been so strong.</span></p>
<p><a href="/images/2015/09/25/Chart-5.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/25/Chart-5.jpg" alt=""></p>
<p>At a national level net interstate migration cancels itself out and does not add to population growth however, at a state level it can greatly impact on population growth. Over the past 12 months, only Vic (9,774 persons) and Qld (6,195 persons) have seen a positive inflow of residents from other states. In fact, net interstate migration into Vic is currently at its strongest level on record. Qld has recorded a slight rebound in net interstate migration however, it continues to hover around its lowest level on record. For the length of this data series (since 1981) NSW has consistently lost residents to other states and that remains the case losing 6,195 residents over the year. </p>
<p>The outflow of residents from NSW is hovering at around record low levels. WA has typically been a benefactor of interstate migration however, it lost a net -1,269 residents last year; its greatest loss since June 2003. Again we can see the impact of the slowing of the resources sector. In March 2013, net interstate migration was recorded at a higher 9,026 persons in Qld and 9,691 persons in WA. Conversely, net interstate migration at that time was recorded at -15,513 persons in NSW and 3,454 persons in Vic.</p>
<p>The trends in overseas and interstate migration in particular show that the population growth tide has turned away from the mining states and is now firmly focussed on NSW and Vic which have relatively little mining sector exposure. These states are also creating more employment opportunities and are subsequently attracting both people migrating from overseas and interstate. Higher population growth means more demand for housing, which is one of the drivers pushing dwelling values higher in Sydney and Melbourne.</p>
<p>The more up-to-date overseas arrivals and departures data from the ABS indicates that permanent and long-term arrivals into Australia have continued to trend lower since March 2015. This indicates that net overseas migration is expected to continue to trend lower over the coming quarters. It is also likely to result in more of these migrants wanting to move to NSW and Vic due to the fact that these are the states where more jobs are being created.</p>
<p>This is of course despite the fact that the two capital cities in these two states recording home value growth which is well in excess of growth elsewhere.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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ckusher-ujnxiKuFQs

Population growth slumps to its slowest rate in nine years: Cameron Kusher

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<div>The ABS released its Residential Property Price Indexes to June 2015 last week. </div>
<div> </div>
<div>As you can see in the first chart below, over the dozen years since September 2003 on average established capital city houses (+89%) have outperformed attached dwellings (+73%).</div>
<div> </div>
<div><a href="/images/2015/09/28/RPI1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/28/RPI1.jpg" alt=""></div>
<div> </div>
<div>
<div class="separator">Since the full ABS indices only track back to Q3 2003, Sydney will naturally appear to be a moderate performer on this index, since the harbour city's preceding boom peaked on this data series almost immediately thereafter in Q4 2003.</div>
<div class="separator"> </div>
<div class="separator">The strongest performing cities through the mining boom were Darwin - by a huge margin - and Perth. </div>
<div class="separator"> </div>
<div class="separator">A number of cities in resources regions also performed strongly through the mining construction boom, although that particular dream has turned on a dime into an illiquid nightmare for many owners of property in mining towns.</div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2015/09/28/RPI2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2015/09/28/RPI2.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<div>
<strong><span style="text-decoration: underline;">Houses</span></strong><br><br>Looking in the second chart below at established houses only since Q3 2002, Sydney has been playing some serious catch-up over the past three years.</div>
<div> </div>
<div>Melbourne has also had a solid run, while there have been some steady gains of late for Brisbane, Adelaide and Hobart.<br><br>The most interesting point of note is how the long run data since 2002 seems to imply a convergence of the results for all eight of the respective capital cities.</div>
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<div><a href="/images/2015/09/28/RPI3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/28/RPI3.jpg" alt=""></div>
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<div>
<strong><span style="text-decoration: underline;">Attached dwellings</span></strong><br><br><span>Meanwhile the attached dwellings only index below reveals a similar pattern, although on average it records a slightly less dramatic incline through the present cycle to date, but less impressive growth in a number of cheaper cities where demand for apartment dwelling is less robust.</span><br><br><span>Note that the ABS data for attached dwellings only runs back to Q3 2003 which partly accounts for the lower growth over the full history of the data.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/09/28/Attached%20dwellings.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/09/28/Attached%20dwellings.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>Of course while these figures are useful indicators they are based upon averages and can mask any number of sub-trends.<br><br><strong><span style="text-decoration: underline;">Suburbs</span></strong>
</div>
<div> </div>
<div>The same holds true for long run analysis of median prices at the suburb level, where miniscule sample sizes can skew results materially.<br><br>There has also been the small matter of a once-in-a-century mining boom combined with a one-off structural shift to lower interest rates to take account of.<br><br>As as a result those "top 100 best performing suburbs" lists almost invariably include a number of remote suburbs that few people have heard of where median house prices are around $150,000.<br><br>Since $150,000 is more or less the cost of building a house today, it follows that the real appreciation in land values has actually been weak, and the strong "growth" results are just as likely to be quirk of sampling.<br><br>The <a href="https://petewargent.blogspot.co.uk/2014/10/long-run-uk-house-prices" target="_blank">house I grew up in</a> is a great example, having apparently achieved incredible compounding capital "growth" of an amazing 9 per cent per annum for fully 35 years!<br><br>Thing is, you take off the cost of the extension, the replacement of the dodgy carport with a garage, and various upgrades to the interior, and the capital growth in real terms has been zero percent.<br><br>Cheaper properties can sometimes come with other associated problems - such as tenancy or vacancy risk - while any unfortunately substantial repair cost (e.g. for the roof) can wipe away years of returns at a stroke due to the lower base cost of the asset.<br><br>Moreover suburb median prices are by and large a waste of time - the only statistics that really tell you anything worthwhile when it comes to real estate are like-for-like sales. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <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>.</em></p>
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Long run residential prices: Pete Wargent

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<p><span>On the last day of the month the Reserve Bank released its </span>Financial Aggregates <span>data for the month of August 2015, which showed another solid month for both housing credit growth (+0.6%) and business credit growth (+0.5%).</span></p>
<p><a href="/images/2015/10/01/RBA1.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/01/RBA1.jpg" alt=""></span></p>
<p> </p>
<div>Over the year housing (+7.5 per cent) and business (+5.3 per cent) credit has helped to take total private sector credit growth to its highest level since 2008 at +6.3 per cent.</div>
<p><strong><span style="text-decoration: underline;">Business credit grows</span></strong></p>
<div>Total business credit outstanding ticked up to above $800 billion, having recovered steadily since the financial crisis.</div>
<div> </div>
<div><a href="/images/2015/10/01/RBA2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/01/RBA2.jpg" alt=""></div>
<div> </div>
<div><span>Annual credit growth for the business sector increased at its strongest annual pace since February 2009, with Westpac forecasting further moderate gains in the months ahead.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/01/RBA3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/01/RBA3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Investor loans slowed</span></strong><br><br><div>There has evidently been a little innocent jiggery-pokery by Australia's major lenders when it comes to the splitting of investor and owner-occupier credit.</div>
<br><div>As you can see in the chart below, last month it transpired that tens of billions of dollars of credit had been misreported as owner-occupier credit, when in fact in related to investment housing.<br><br>The direction of the misstatement can hardly come as a shock.</div>
<div> </div>
<div>As a result the share of outstanding credit for investment housing is materially higher than previously had been thought (or at least, reported - I expect few market participants would be surprised).</div>
<div> </div>
<div>That said, the slow drip of measures taken to douse investor credit first became a trickle and now it is a flow, and it appears that APRA's intervention has now taken the sting right out of the investment lending sector, with some lenders having put the kibosh on new investment loans altogether.<br><br>You can see the impact of the restatement and then APRA's macroprudential measures in the red line below, with the total stock of outstanding credit not rising on a seasonally adjusted basis this month for the first time since 2011.</div>
<div> </div>
<div><a href="/images/2015/10/01/RBA4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/01/RBA4.jpg" alt=""></div>
<div> </div>
<div>
<div>Overall this is a healthy move for the market, which was at risk of becoming too "top heavy" with investors.<br><br>Although there is no oversupply of dwellings in aggregate, there clearly were too many investors piling into the market which had helped to slow rental growth to a 20 year low.<br><br><strong><span style="text-decoration: underline;">The return of owner-occupiers</span></strong>
</div>
<div> </div>
<div>However, it is too simplistic to say that the slowdown in investor lending will automatically put dwelling price growth into reverse gear.</div>
<div> </div>
<div>If there is one thing we know about banks in this country it is that they will look to lend against housing where possible, and as such we can expect lenders to push owner-occupier loans ever harder, using enticing mortgage rates of around 4 per cent to in order to expand home loan books.<br><br>The Reserve Bank Governor himself has predicted that more folk will opt to place themselves as "owner-occupiers" in due course. </div>
<br><div>Indeed, while investor credit is now almost certain to fall below APRA's advisory +10 per cent growth threshold over the next few months, owner-occupier credit has already been picking up the slack in rising by rising by +0.6 per cent in August.</div>
<div> </div>
<div>There has been a clear pick-up in the pace of owner-occupier credit growth over the past three months, and annualised home lending growth to owner-occupiers has increased to 43 month high at +5.6 per cent.</div>
<div>
<br>In turn this has helped total home lending credit growth rise to +7.5 per cent, which is now a 59 month high.</div>
<p><a href="/images/2015/10/01/RBA5.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/10/01/RBA5.jpg" alt=""></p>
<div><strong><span style="text-decoration: underline;">Investor share of credit falls</span></strong></div>
<div> </div>
<div>The restatement of the categorisation of investor loans saw the total share of investor credit blow out to an unprecedented 38.6 per cent last month.</div>
<div>However, with APRA's cooling measures now taking effect the investor share ticked downwards in August for the first time in 30 months, more evidence that the regulatory intervention will have a material impact on the investor sector.</div>
<p><a href="/images/2015/10/01/RBA6.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/10/01/RBA6.jpg" alt=""></p>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div> </div>
<div>Overall it was another month of strengthening housing credit, with owner-occupiers increasingly willing to take advantage of record low borrowing rates. </div>
<div> </div>
<div>Investor credit growth looks set to fall back to an annual growth rate of below 10 per cent, but in total housing credit is still picking up its pace to multi-year highs.</div>
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<div>---</div>
<div> </div>
<div>August was a quieter month for initial capital raised on the Australian Securities Exchange, although there was a strong volume of secondary cap raisings.<br><br>Total capital raised on a rolling annual basis has increased to its highest level since the great flood of recapitalisation over the year to May 2010.</div>
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<div><a href="/images/2015/10/01/ASX-1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/01/ASX-1.jpg" alt=""></div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <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>.</em></p>
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