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

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The demand for properties in inner city Sydney is at an all-time high. Properties are selling at record prices upon first inspection, and the huge influx of investors returning to the inner city property market, means there is a shortage of quality stock available – particularly for properties priced up to $1.2 million.
Many vendors are holding on tight; refusing to part with investments they bought years ago that are now yielding rental returns as high as $800 per week, on a property they purchased for just $400,000 10 years ago.
There was a time during the early 2000s that investors shied away from purchasing properties in the inner city. Banks tightening their lending requirements and only financing between 60-80% of property values meant that many investors were cut out of the market and properties under 50 square metres were very hard to finance at all.
This was a tough period for investing in inner Sydney. Hundreds of new apartments were released to the market each year, but heavy finance restrictions fuelled lots of bad press about investing in city apartments. At the time, many experienced city agents were managing 30-40 listings simultaneously, and the time-frames to sell these apartments would span up to 12 months.
How times have changed! If anything, the financial crisis has helped the city market by giving buyers the confidence to invest in property again, as opposed to other high risk investments and shares and stocks which can be volatile.
New developments have been selling out in just hours upon release, and command exuberant prices – including Barangaroo, which completely sold out in hours despite prices starting at $1 million for one-bedroom apartments, and most recently York &amp; George, another inner city development which sold almost 90% of its apartments on the first day of release.
Self-managed super funds have also gained momentum, buying up investments in the inner city market; yields are so good with the guaranteed reward of long-term capital growth.
We’ve also seen a growing number of tenants who have chosen to buy into the market so as not to pay the ever increasing rental prices. It’s all part of the shift toward more and more local and international residents embracing our fabulous inner city lifestyle, and just wanting to be in it to enjoy it. It’s no wonder why the city of Sydney is one of the most in demand property markets in the world.
While it is encouraging to see our once tough inner city market experience such a boom, properties at the higher end of the market are still harder to move. This is particularly true for those who bought off-the-plan for properties priced over $1.8 million in the past four to five years.
These properties are still averaging 12 months on the market and there is a much smaller pocket of people who can afford to spend $2-$6 million on apartments in the city. The higher end is predominantly owner occupied and over time we look forward to this end of the market picking up.
As we say goodbye to 2013 we are excited for the year ahead and once again look forward to a buoyant inner city market place.

<hr>
Carlie Ziri is the director of <a target="_blank" href="https://www.lifestylepropertyagency.com/" rel="nofollow">Lifestyle Property Agency.</a>
 
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cziri-avMho78xfG

Inner Sydney market is booming, but we're still waiting for top end to kick off

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Online retail spending growth is slowing, as sales in the past month increased by only 0.3%, according to the latest NAB figures.
The low growth rate for the past three month is likely to have been caused by the lower Australian dollar, but experts suggest it’s only a “blip” in the broader scheme of online retail growth.
The NAB Online Retail Sales Index for October 2013 reveals online sales have increased by only 16% to $14.4 billion for the past 12 months, notably lower than the 26% year-on-year growth rate recorded this time last year.
Since this time last year, NAB figures reveal the value of online sales has increased by $2 billion.
The past three months have been particularly poor for online sales growth, with sales growth from traditional bricks-and-mortar retailers exceeding online retailers in October, recording rates of 0.5% and 0.3% respectively.
Growth of 0.3% was also recorded in September and in August NAB figures show online retail sales actually contracted by 0.2%
Retail Oasis director Nerida Jenkins told SmartCompany the slowdown in growth in the past few months has been influenced by the lower exchange rate.
“According to the RBA daily exchange rates, the dollar dropped below 90 in the first month of the last quarter, so the level of sensitivity around that currency drop kicked off the level of conservatism in online sales,” she says.
“Daily deals, fashion and electronic goods fared worst in this period, showing the more discretionary retail goods and international retailers were most affected by the lower exchange rate.”
Spend on international online retail goods contracted by 0.5% in October.
As the growth in online spending dips, so is the value of purchases consumers are making.
NAB analysis found 90% of all transactions made in the past year were for products under $100, with less than 3% of transactions to the value of $250 and just 0.2% of purchases were over $1000.
The average value of an online purchase has dropped from $64 in January 2010 to $41 in October 2013.
NAB chief economist Alan Oster said in a statement more people are looking to purchase low-cost goods online.
“Retailers are cutting prices to build sales volume, changes to shipping arrangements and a significant increase in people purchasing low-cost media products like eBooks, movies and music online are factors driving the lower transaction sizes,” he says.
“While areas like homes, appliances and fashion have seen declines in the average transaction size, the groceries and liquor, and personal and recreational goods sectors have experienced an upward trend since early 2010.”
NAB analysis also reveals domestic retailers now make up the dominant force in the online retail scape, accounting for 73% of businesses, up from around 50% three years ago.
Jenkins says online spend should pick up again in the next few months.
“People have started to settle into the lower exchange rate now. Consumer behaviour toward online is now maturing, but it’s not at an end,” she says.
“It will continue to grow in double digit figures, although perhaps at slower rates. Forces like the exchange rate and taxes will continue to act as short-term stimulants and detractors, but will not have much impact in the long term.”
This year online retailers have been pushing for the <a target="_blank" href="https://www.smartcompany.com.au/finance/tax/34727-gst-threshold-for-online-shopping-how-australia-stacks-up-compared-to-the-world">GST levy on overseas online goods to be lowered</a> from $1000 to $20.
Based on NAB’s retail figures, should the GST threshold be lowered to $25, this would yield revenue of $309 million.
Jenkins says this amount will not be enough to cover the administration costs.
“The level of administration to collect the tax will be higher,” she says.
National Online Retailers Association chief executive Paul Greenberg toldSmartCompany retailers need to “stop holding their breath about the GST and stop using it as a smokescreen for not innovating”.
“As an industry we’ve been waiting for some act of God which will give us some relief by levelling the playing field or a lower Australian dollar, but we’re deluding ourselves,” he says.
“We should stick to the three key pillars improving the technology of our business, looking at global opportunities and being customer-centric.”

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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yredrup-o4Anfe78KF

Experts suggest online sales slowdown is only a "blip"

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With the spring auction season over and the heat of summer upon us, property buyers and sellers are facing the inevitable question. With the holiday season around the corner, is it best to list before Santa comes around? Or should you wait until after the champagne pops and 'Auld Lang Syne' has been sung?
Property Observer went out and asked the experts: Should you consider putting your property on the market now or wait until after Christmas? And if so, when is the best time in 2014?
What's your thoughts?
<img alt="poll-results-dec-9" height="124" width="417" src="/images/stories/2013/12/09/poll-results-dec-9.gif">
 
Peter Bushby – President of the <a href="https://www.reia.com.au/%E2%80%8E" target="_blank" rel="nofollow" style="font-size: 14px;">Real Estate Insitute of Australia</a> (REIA).
<img width="125" height="167" src="/images/stories/2013/10/25/bushby-profile.png" alt="bushby-profile" style="max-width: 480px; font-size: 14px; float: right;">
THERE IS A BENEFIT, BUT PRIVATE TREATY IS THE BEST PATH
I often think that there is a benefit in listing prior to the New Year as a lot of people hold off and you can stand out more in this period before others list. I wouldn't auction over the period but private treaty listings are most suitable! 
The reality is a lot of people have more time over the holiday break to check out what is on the market and others potentially are doing preliminary work before starting - you are in that space ready to go as the volume returns after the break. 
I have found over my 40 years experience selling properties that while there are usually fewer buyers about from mid December to mid January, those that are around seem to be much more committed often wanting to use this time to get organised ready for their move. Issues like buying in an area so they can identify what schools kids may attend so they can get those issues of uniforms, etc bedded down, even if they don't settle immediately.
 
Frank Valentic – Managing director of <a href="https://www.advantageproperty.com.au/%E2%80%8E" target="_blank" rel="nofollow" style="font-size: 14px;">Advantage Property Consulting</a><img src="/images/stories/2013/10/22/FrankValentic-profile.png" alt="FrankValentic-profile" height="200" width="150" style="max-width: 480px; font-size: 14px; float: right;"> 
DEPENDS ON WHETHER THE PROPERTY IS TENANTED
 I think it depends upon whether you have a vacant investment property versus if the property is a tenanted or owner/occupied property.  I would put a vacant property on the market now as a private sale/forthcoming auction with prior offers invited, to try and keep holding costs down and reduce interest payments with the possibility of still making a sale over the Christmas/New Year period.
Otherwise, if you were to wait until after this period before launching it, you would have five to six weeks of interest payments and if it takes around 34 days afterwards which is the average days on market for a property in Melbourne, your holding costs would be doubled.  
If the property was owner occupied or tenanted so the holding costs would be reduced or not as relevant if you were living there,  I would hold off launching the property until mid-January to cash in on the pent up demand that usually sees strong results in the early February auction period.  
Most years the market starts strongly with many people relocating, New Year’s resolutions and sometimes even a February interest rate cut to spur things on.  I would definitely wait to capitalise on the strong current Melbourne auction market and see competitive bidding for a property where holding costs weren’t an issue.
Article continues on next page. Please click below.  
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Ben Kingsley – Chair of <a target="_blank" href="https://www.pipa.asn.au/" rel="nofollow" style="font-size: 14px;">Property Investment Professionals of Australia</a> (PIPA)<img alt="ben-kingsley-profile-2" src="/images/stories/2013/11/22/ben-kingsley-profile-2.jpg" height="200" width="150" style="max-width: 480px; font-size: 14px; float: right;"> 
AS A BUYER, NEW STOCK IS ALWAYS WELCOME
Speaking from the buyers side, as an independent property investment advisor and director of a buyers agency business, my team and I are constantly on the hunt for properties that meet our clients briefs.  So speaking from a buyers position any new stock is welcome for analysis and inspection, especially in a sellers market which is what we are experiencing in the Melbourne and Sydney markets even this late in the year.  
In the current market, The facts are that good quality properties in superior locations and suburbs are still attracting strong interest and are being bought under stiff competition by highly interested buyers, so any new stock is keenly sort and reviewed.  
Speaking from the sellers side, the best way for a vendor to determine if now is the right time or if early 2014 will be better will come down to two things - firstly how much you have been watching the buyers interest in your localised area and more specifically the level of interest in 'like' properties to yours.   Secondly, how much faith and trust you put in the skill of your selling agent.  They are in the market every day, so the best agents will have a real finger on the pulse in terms of the level of underlying  demand right now compared to what their experienced tells them about the upcoming autumn selling season.  
It a simple case of 'horses for courses'.  In some areas now is as good as any to sell up and start to plan for your next move in 2014, but demand should be very strong to consider this.  If not sure , then the smart money would be to wait until early 2014, as many people use the festive season break to make big decisions about their future - and property is a big decision, so this often leads to higher levels of underlying demand as the selling season kicks off in early autumn.
 Andrew Wilson – Senior economist, <a href="https://www.apm.com.au" target="_blank">Australian Property Monitors</a><img src="/images/stories/2013/10/04/AndrewWilson-profile.jpg" width="125" height="150" alt="AndrewWilson-profile" style="max-width: 480px; float: right;"> 
MARKET ACTIVITY IS LIKELY TO SLOW DOWN IN 2014
Housing markets traditionally wind down as the Christmas holiday break approaches but the level of the wind-down is dependent on the nature of the local market dynamics.
The Melbourne and Sydney housing markets are currently being characterised by an unprecedented end-of-year surge in auction listings with thousands of properties due to go under the hammer right up until the last Saturday before Christmas.
Melbourne and Sydney home buyers are keen to take advantage of the strongest market conditions since 2010 and wary perhaps that next year’s market conditions may not be as strong. And they are likely to be correct.
Declining economic activity is likely to moderate buyer activity in Sydney and Melbourne next year even if as is increasingly likely interest rates are cut again in the New Year.
The autumn selling season of 2014 however will remain relatively active in both Sydney and Melbourne although auction clearance rates are likely to be below current levels – particularly in Sydney. Prices will still increase moderately over the year but not at the same levels recorded in 2013 and with most of the increases occurring over the first half of the year.
Other capital city markets should perform close to current levels although buyer activity and house prices in Brisbane are set to rise on the back of an improved local economic performance in 2014. The market is clearly signalling that now is a good time to sell in Sydney and Melbourne with selling conditions in most other markets likely to remain consistent at existing levels well into 2014.
Article continues on next page. Please click below. 
 
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Paul Biller - Principal of <a href="https://www.1stcity.com.au/" target="_blank" rel="nofollow">1st City Hasemer &amp; Caldwell-Eyles</a> <img alt="biller-profile" src="/images/stories/2013/11/15/biller-profile.jpg" height="200" width="150" style="max-width: 480px; float: right;">
SERIOUS BUYERS ARE ALWAYS LOOKING AND THE HOLIDAYS ARE NO EXCEPTION
With the holidays fast approaching, sellers often wonder if they should list their properties now or wait until the New Year.
The conventional rule used to be that you shouldn’t list your home during the holiday season. Potential home buyers were too preoccupied with attending parties, buying presents or planning vacations. But with the Internet and the marketing process having become far more sophisticated than in previous times, buyers for good quality properties can be found all year round making the issue of timing less critical today than in the past. Serious buyers are always looking and the holidays are no exception. Buyers can check out the latest listings from their mobiles or tablets on the go.
Due to our work commitments and hectic lifestyles, many serious buyers will use the holiday period to monitor real estate more closely than they may do during the year. Many sellers however believe that buyers disappear over this period and choose to wait until the New Year to commence marketing their properties. The effect for those that are on the market during this time often results in high prices being achieved as there is far less competing properties for the buyers to choose from.  
In reality, all that really phases out over Christmas are the auctions. Private treaty sales continue unabated with many properties being marketed “on the quiet” to great effect.  
Another benefit is that lenders can process loans faster as they are typically not as busy at this time of year enabling prospective buyers to act quickly in finalising a purchase.  
My advice is that if you are considering selling – start the process now in order to capitalise on the low levels of stock. If you are not able to close a sale by Christmas, market the property for a February auction.  
 Kevin Lee - Buyers agent at <a href="https://www.smartpropertyadviser.com.au/%E2%80%8E" target="_blank" rel="nofollow">Smart Property Adviser</a> 
<img src="/images/stories/2013/11/15/kevin-lee-profiel.jpg" alt="kevin-lee-profiel" height="200" width="150" style="max-width: 480px; float: right;">
TAKE YOUR CHANCES IN THE NEW YEAR
Ho, Ho, Ho - Santa is about to arrive for some! Maybe......  
It's the $64,000 question on everyone's lips. Should I sell now or should I wait till 2014? Normally there's not much happening in the thousands of residential property markets across Australia between the end of November and mid to third week of January.  
Australia tends to pretty much have a complete 'shut down' mentality when it comes to school holidays, Christmas and New Year all combining into one hot summer. The only things guaranteed to be still on every year though, are the Boxing Day sales; Sydney to Hobart Race; the cricket and the great Aussie BBQ. 
This year however there are plenty of properties still on offer, with auctions scheduled right up to the afternoon of Saturday December 21st. And I think we'll see hundreds of new listings and/or auctions in the second week of January.
Anecdotal evidence I have is that the old 'supply and demand' equation has been hard at work in many parts of Australia - especially in my home town of Sydney. Here's what you need to know and what you need to prepare for:  
1) Over the past four months or so, in Sydney we've witnessed the lowest number of properties for sale in 14 years. 
2) Due to a long period of super low three-year fixed rates - between 4.69% and 4.99% for seven months - thousands of overzealous or uneducated buyers in Sydney have paid above the odds for some very average properties
3) Vendors in many parts of Sydney are getting caught up in the frenzy - and reacting by asking ridiculous prices.
4) Thousands of people who just managed to purchase their first property with a sub 4.99% interest rate are not at all prepared for an interest rate increase.
5) This group don't understand that on a $350,000 mortgage, a mere 2.0% increase to their rate, in fact represents a 40% increase to their interest bill each month.
6) They don't 'get' that their principal and interest repayments on that $350,000 mortgage will go up by $449 per month, from $1877 to $2326 - for owner occupiers this is after tax money people.
7) So you're a first time investor? Sorry - for you that 2.00% increase to your interest rate equates to an extra $583 per month!
Parts of the Sydney property market are 'insane' right now; others have seen an uplift that was literally years in the making. Whilst others are still having to cut their asking price by $500,000 or more - it's all relevant. Three or four months ago was possibly the best time to sell; I'm seeing that now.
There's certainly a lot of mixed messages out there right now, it's hot and cold in different suburbs - including within the auction space.  
So, rather than take my chances next year, a couple of weeks ago my wife and I decided to sell our 100+ year old investment property in Sydney's northern districts pre-Christmas via auction. Due for auction last Saturday, and although it drew strong initial interest that dwindled away (damn lawyers!!!) so we withdrew it from the auction process on Monday a week ago.
Having a great agent though (Amy Kaslar @ LJ Hooker Beecroft) means that we exchanged contracts yesterday for a price that wasn't great; but it wasn't bad either. In this instance we just didn't want to wait and see what the New Year might bring. <a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a> 
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po-LsXgBTHBmX

Should you list before Christmas? The experts have their say

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Hi Margaret,
I'm a new investor and I'm about to invest in a property in Broken Hill. The property is vacant at the moment but the real estate has advised a potential rent of $200.
I'm also yet to do a building and pest inspection. 
Would you be able to give me some advice?
Kind regards,

Ashis
 

When new investors begin the process of choosing their very first investment property, usually they are motivated and guided by the desire to get something as affordable as possible.  In doing so, they consider a price range within their budget, and then go looking for a house to match.  Next, they usually find out the rent return and if it seems as if it will provide a reasonable cash flow, they believe they have a good buy on their hands.
The problem with this approach is that, while it means that you will buy something within your comfort zone in terms of price, with a rent return likely to cover most costs so that your weekly personal cash flows are not too badly impacted, it completely ignores one of the most important features of successful investing – and that is buying a property which will grow and so increase your net worth.  While getting a neutral or positive cash flow is indeed of considerable importance (as highly negative cash flows can cause financial distress and potential early exit), owning property which never grows (or grows very little) will do no more for you than never owning property at all!.
Broken Hill, in my opinion, falls within the category of an area which has affordable housing  and rental yields of over 6%.  However, it has a population which is only not growing; in 2011 it lost 80 people!  There are over 500 properties currently listed, with only four people looking per property available, as compared to a state average of 20.  Combined with a lack of employment opportunities, these facts indicate that there are simply no drivers for property price growth and you’re likely to be left with a property which does nothing in the short and medium term, and likely in the long term too.  You will essentially buy yourself a headache (which most properties are, at some time), with no capacity for a reward at the end!
While I am definitely not a proponent of spending up big when it comes to buying investment property, I believe there is far more risk in buying a cheap property with no demand drivers than there is in buying a more expensive property in an area where you have confirmed employment opportunities, population growth and suitable provision of infrastructure.  Such an area can still have a rental yield sufficient to cover your costs and not stress your budget today,  and in addition to this it can provide growth of your asset and the capacity to leverage into more properties, and thus build a larger portfolio.
Regards,
Margaret
 
<hr>
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News.
She is the founder of <a rel="nofollow" target="_blank" href="https://destiny.com.au/dotnetnuke/en-au/home.aspx">Destiny</a>.
Have a property question? <a target="_blank" href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Should I buy my first investment property in Broken Hill?

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It would leave you breathless, wouldn’t it?
Maybe a little unsure about your sanity?
I mean, picking up the phone and taking a call that changes your life doesn’t happen every day!
Some lucky people have had the experience, like those whose numbers came up on Tattslotto and others – like winners of the Mater Foundation’s Home Lottery – who paid $2 for a ticket and then probably forgot about it ...
Until, that is, they had Mater’s commercial director, Bruce Dennehy, on the line trying to convince them they had won the main prize: a million dollar house in an exotic location somewhere along the east coast.
Good causes, such as Mater’s, are easy to support. The lottery has been running for more than 50 years giving families an opportunity to win luxurious homes, holidays - and even gold. And the best part is that all money raised goes to the Mater Mothers’ and Mater Children’s Hospitals, helping sick kids and babies.
“With six million-dollar properties up for grabs in the raffle each year, the chance of winning is achievable,’’ Dennehy – ever the salesman - said.
But rather daunting: Such as when the winner of Mater Prize Home lottery No.249 – the most recent - opened her life-changing winner’s letter...  and thought her eyes were playing tricks on her. Unsure as to whether the letter was genuine she asked her neighbour to read it, too! 
After jumping up and down with excitement and phoning Dennehy for verification, the wonderful news began to sink in: She had a new $1.6 million riverfront apartment at Kangaroo Point, Brisbane.
At first the ecstatic mum – ‘no names please’ - wanted to keep the news a surprise for her young daughter: “I was going to get her ready for school the next day and just keep driving past. But I told her I had a surprise and she just kept guessing. I ended up giving her the letter to read.’’
Did she ever dream of winning? “As a parent I have always had that thought in the back of my mind: ‘What if something happens to me? What will happen to her?’ So, I bought tickets as I knew it would be a way of making sure my daughter was looked after for the rest of her life.
“Now, it feels like we are just renting an apartment for the week. This really has changed everything for us. I have to work a lot and, at the moment, we only get Sundays together. This will give us more quality time together!”
Every year more than 100 supporters <a target="_blank" href="https://www.materprizehome.com.au/main-prize-homes/">win homes</a>, cars, gold bullion and holidays in the Mater Foundation lotteries. The million dollar prize homes all have waterfront views and are in sought after postcodes, such as Hope Island and Biggera Waters on the Gold Coast, and the chic inner-west suburb of Rhodes in Sydney.
<img style="display: block; margin-left: auto; margin-right: auto;" alt="mater_dec_6_one" src="/images/stories/2013/12/05/mater_dec_6_one.jpg" height="180" width="240">
The joy of winning can take a while to sink in. Just ask first prize winner No. 236 Stacy Copelin, above, a lucky cupcake baking, tennis loving Cairns local. She is the owner of Seven Stars Cupcakery and, now, a new million dollar home. 
But, such was the unexpected nature of her call from Dennehy that she almost hung up on him!
Copelin, who was driving at the time, thought he was trying to sell her more tickets. Dennehy then told her she should ‘’put down what you’re doing’’ but she refused, thinking their conversation would end soon. Luckily, it didn’t!
Realising speed was of the essence, Dennehy abruptly told her she had won the competition: a new million dollar home in the tropical city! It’s no wonder Copelin pulled over straight away and had to be convinced he wasn’t joking.
The spacious home on two blocks has a pool, tennis court and large outdoor living area. Copelin says that while her win still hasn’t sunk in, she is planning a big family Christmas and will never stop supporting Mater Lotteries as a VIP. 
<img src="/images/stories/2013/12/05/mater_dec_5_two.jpg" alt="mater_dec_5_two" style="display: block; margin-left: auto; margin-right: auto;" height="180" width="240">
At only 26, Aaron McCabe, above, could not believe his luck when he received the call from Bruce Dennehy notifying him that he had just won the million dollar Kawana prize home in draw 236.
The win didn’t sink in until he got home to check the ticket numbers were correct and that the prize really was his. “I was in complete shock, I couldn’t believe it at first.”
Once he got a hold of his nerves he told mum and dad - then had to spend five minutes convincing them of his good fortune.
McCabe – an electrician - said that with several building projects across the Sunshine Coast he might consider making a sea change. With Christmas approaching, he’ll spend a couple of weeks up there with family and friends, celebrating all that the coast has to offer and spending time in the pool and outdoor entertainment area enjoying lakeside views.
<img src="/images/stories/2013/12/05/mater_dec_5_three.jpg" alt="mater_dec_5_three" style="display: block; margin-left: auto; margin-right: auto;" height="180" width="240">
“Are you joking?” was all Shana Maguire could say when she was told over the phone that she had just become a million dollar Mater Prize Home winner in draw 233. The 21 year old was a VIP Club Plus member, but it was the extra tickets she bought over the phone that won her a new million dollar lifestyle and $50,000 in gold bullion.
“I wasn’t saving because I never thought I could ever afford to buy a house, she said, but her generous support has changed her life. “I just love the house,’’ she said.
“Most people don’t believe that people win these houses. All my friends and mum’s friends are going to buy tickets now because they know that real people do win.”
<img src="/images/stories/2013/12/05/mater_dec_5_four.jpg" alt="mater_dec_5_four" style="display: block; margin-left: auto; margin-right: auto;" height="180" width="240">
In the wake of the Queensland flood disaster, Rockhampton couple Alan and Michelle Ebert, above, have found dry land by winning a fully furnished $1 million house in Kingscliff - and $50,000 in gold bullion - in draw 232.
“We have always struggled for everything that we own and have been living in government housing the size of the Mater Prize Home’s lounge room,” Michelle Ebert said.
“When we signed up as VIP members we were simply hoping to raise money for research and Mater hospitals. I never thought we’d win anything like this, or even own a home, so I encourage everyone to buy a ticket for a chance to win and help those patients at the same time.”
Mater Foundation is the charitable arm of Mater Health Services and Mater Medical Research Institute. The foundation aims to promote, engage and steward philanthropic support to fund clinical care, education and research for the prevention and treatment of disease in people of all ages.
Dennehy said that, every year, the foundation arranges fundraising activities including the lottery, popular events, and direct mail appeals. Money raised helps buy medical equipment, fund research to diagnose, treat and cure life-threatening diseases, and support patients and families financially and emotionally.
He said the charity relied on community, corporate and individual support and donations to help ensure the half million babies, children and adults treated at Mater each year have access to “exceptional’’ care.
“By making a donation to Mater Foundation you can make a difference to countless lives by supporting health care projects that benefit people of all ages: from new born babies to the elderly.’’
Mater’s main prize home lottery No.250 is being drawn on December 17 with the first prize being this $1.42 million home on Bribie Island, Queensland. Tickets are $2.
Can’t you just see yourself in that pool?
 
 <img src="/images/stories/2013/12/05/mater_dec_5_house.jpg" alt="mater_dec_5_house" height="194" width="470">
<a title='"Bribie Island" ' href="https://www.materprizehome.com.au/main-prize-homes/house1/"></a>
<a href="https://mce_host/staylor@propertyobserver.com.au" target="_blank"> staylor@propertyobserver.com.au</a>
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staylor-63KgDrKwoY

Winning a home: How a $2 ticket could change your life

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The latest <a target="_blank" href="https://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbyCatalogue/7DB4DD841EA3A2A5CA2574B9001E26F6?Opendocument">population projections</a> from the Australian Bureau of Statistics (ABS), released last week, suggest Australia’s future population growth will be considerably greater than previously indicated. As a result, Australia’s population debate should move away from simplistic pro or anti-population growth posturing and towards the question of: “how much is too much?”
The ABS produces three main series of projections in relation to differing input assumptions for future fertility, mortality and migration levels. The projections show the population growing to between 34.3 and 41.9 million in 2050 and between 42.3 and 69.5 million in 2100.
These future population sizes are significantly larger than the equivalent figures from the previous ABS <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/allprimarymainfeatures/FF590BD57662A60BCA257C2E00172359?opendocument" target="_blank">2008 projections</a>.
The “medium” and “high” variant projections for 2050 also exceed the 35.9 million projected by the <a href="https://archive.treasury.gov.au/igr/igr2010/report/pdf/IGR_2010.pdf" target="_blank">2010 Intergenerational Report</a> (IGR3, which sparked the so-called <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2010-01-29/the-population-debate-do-you-want-a-big-australia/313846" target="_blank">“Big Australia”</a> debate), and the 35.3 million “base case” scenario in a recent Productivity Commission <a href="/news">report</a>.
Bipartisan support for high immigration
The major reason for these larger projected populations is their incorporation of higher levels of net international migration. Reflecting <a href="https://www.immi.gov.au/media/publications/statistics/immigration-update/nom-march-2013.pdf">forecasts</a> by the Department of Immigration and Citizenship and ranging from 200,000 to 280,000 per annum, these migration levels are over 33% higher than those the ABS adopted five years earlier, and also significantly above the 180,000 per annum used in IGR3 and the Productivity Commission’s “base case”.
The assumption of a constant annual number for net immigration ignores the potential implications of an increasing population for the <a href="https://www.hwa.gov.au/sites/uploads/health-workforce-2025-volume-1.pdf">demand for skilled migrants</a> and family migration.
The high levels of immigration during the Gillard government era were at odds with Gillard’s <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2010-06-27/gillard-shuts-door-on-big-australia/884050" target="_parent">expressions of opposition</a> to a “Big Australia” made prior to the 2010 election. Then-opposition leader Tony Abbott also <a href="https://www.theage.com.au/national/36-million-too-many-says-abbott-20100429-twlk" target="_blank">expressed reservations</a> about population growth but <a href="https://www.abc.net.au/am/content/2010/s2799547.htm" target="_parent">support</a> for immigration and a larger population.
More recently, Abbott has adopted a <a href="https://www.news.com.au/national/opposition-leader-tony-abbott-announces-paid-parental-leave-scheme-to-encourage-baby-boom/story-fnho52qo-1226699348119" target="_blank">pro-population growth stance</a>, while opposition leader Bill Shorten has been <a href="https://www.theguardian.com/world/2013/sep/30/bill-shorten-immigration-leadership-debate" target="_parent">clearly supportive</a> of high levels of immigration. There appears little reason to anticipate significant cuts to immigration in the near future.
Birth rates
Both the current and the previous ABS projections assume the total fertility rate or <a href="https://www.un.org/esa/sustdev/natlinfo/indicators/methodology_sheets/demographics/total_fertility_rate.pdf" target="_blank">TFR</a> will ramp to the same long-run levels of 1.6, 1.8 and 2.0 births per woman. However, the implications of fertility for population size are magnified gradually over time by the current projections’ higher immigration levels.
Considering the 2012 TFR is <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/F41B99AB234B2074CA25792F00161838?OpenDocument" target="_blank">1.93</a>, the recovery in the TFR since 2001 – and the possibility the proposed new paid parental leave scheme could affect fertility (even if <a href="https://theconversation.com/abbott-shouldnt-get-his-hopes-up-about-a-parental-leave-induced-baby-boom-17225" target="_parent">only slightly</a>) – the higher of the three fertility scenarios appears the most plausible.
In his book Battlelines, Tony Abbott concurs with Malcolm Turnbull’s <a href="https://www.apop.com.au/SAconfNOV03/M%20Turnbull.pdf">call for fertility</a> to be closer to replacement level. Since 2001, the gap between Australia’s TFR and the replacement level – which would lead to long run zero growth under zero migration and constant mortality – of 2.07 has more than halved with the increase being concentrated in the later reproductive ages.
With each of the successively smaller increases required to further halve the gap to replacement level, the <a href="https://www.demographic-research.org/volumes/vol26/14/26-14.pdf" target="_blank">very long-run implication</a> for the size of the Australia-born population of continuation of the annual levels of fertility, mortality and migration more than doubles.
The implication of continuing support for fertility levels to be closer to replacement levels would appear to be that either a future very big Australia would abandon net immigration, or a certainty that there is no long run limit for Australia’s population.
Ageing beyond ‘living longer’
The increasing life expectancy also contributes to the projected growth. The forecast increases in life expectancies the ABS uses for its “low” and “medium” variant projections are considerably lower than those published in the peer-reviewed <a href="https://www.tandfonline.com/doi/abs/10.1080/00324728.2012.689316#.UpV33cRQKSo" target="_blank">academic literature</a> and the forecasts used by IGR3 and the Productivity Commission.
This projection series presents conservative estimates of the population implications of the migration levels they use. Of its main projection series, the ABS’ “high” variant would appear to be the most plausible for the longer run.
The ABS projections show the inevitability Australia’s population ageing, with the numbers aged over 65 rising to between 20.9% and 22.5% in 2050. Most of the increase would occur even without further improvements in life expectancy, reflecting lower birth rates and the legacy of past improvements in mortality.
Higher immigration partly explains the magnitude of population ageing as being somewhat less under the current ABS projections than under its previous projections.
City limits
Arguably, the most challenging aspects of the projection results are the future sizes of the largest cities. The projected populations in 2050 range between 7.4 and 7.9 million for Sydney and between 7.0 and 8.4 million for Melbourne. One fear is that these larger populations will aggravate traffic congestion.
Recent increases in births will have a flow-on effect on the numbers reaching the driving ages from the latter part of the current decade onwards. With higher levels of immigration adding to numbers on the road, the need to improve transport infrastructure will be all the more pressing.
The tip of the iceberg
The latest ABS projections show the substantial long-run implications which fertility and migration near the current levels and ongoing improvements in life expectancy would have for Australia’s population size over the period to 2101.
The projected growth over this period is just the tip of the iceberg compared to what would result from sustaining such patterns over an even longer period.
 
<hr>
 Nick Parr is Associate professor in demography at <a target="_blank" href="https://www.mq.edu.au">Macquarie University</a>.
Nick Parr receives funding from the ARC and the Institute of Actuaries Australia.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/why-our-big-australia-is-getting-bigger-20846">original article</a>.
 
 
<img width="1" height="1" alt="The Conversation" src="https://counter.theconversation.edu.au/content/20846/count.gif">
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nparr-cDPXWRvWUW

'Big Australia' is going to get a whole lot bigger

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Current data from the Real Estate Institute of Western Australia (REIWA) show that sales turnover lifted during both October and November pushing Perth’s median house price to a new record.
The data show sales had returned to normal levels and indicate that for the three months to November Perth’s median house price climbed to around $530,000 – $535,000, up from the previous peak of $525,000 on the June quarter.
The main reason for the big rise in sales was that Perth was coming out of a big slump in turnover in the September quarter and had returned to more normal conditions.
The quarterly median for the three months to November was up by almost 4% and due mainly to the composition of sales during this period after strong first home buyer activity pulled the median house price down to $510,000 in the September quarter.
While first home buyer activity is still very evident, there was a solid increase in sales within a 10 kilometre radius of the CBD and a softening of activity in outer areas, particularly along the coastal sub-regions north and south of the city.
This shift in sales composition towards more expensive properties selling pulled the median upwards.
The data also show that in some of the coastal sub regions, such as parts of Wanneroo, Joondalup and in Rockingham there was a weakening in sales activity that had emerged through the month of November.
While this retraction is sales is only modest at around 2-3% on the previous month, it is accompanied by a drop in listings also in these areas which suggests that the fall in sales activity has nothing to do with oversupply.
It is more likely that first home activity in areas away from the coastal strip has been the focus of buyers in more recent times.
The number of properties on the market continues to recover from below average levels over the last year to now reach its highest point for the year. REIWA data currently showing 8,656 dwellings and 1,199 land lots for sale.
The rental market continued to turn in favour of tenants, with the number of available rentals growing and median rents coming down once again.
The median rent in the metropolitan area has dropped by just over 2% over the last three months to $460 across the board. This now breaks down to typical rents for houses coming in at around $470 per week and for units and apartments at around $450 per week.
Current REIWA data show rental listings lifted by 2% last week alone, to 4,419 properties on the market while the vacancy remains above average at around 3.2%.
 
<hr>
 David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank" rel="nofollow">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx" rel="nofollow" target="_blank">reiwa.com</a>.
 
 
 
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dairey-MVZf5ZguQC

 Perth median reaches a new high, while rents fall 

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Back in May some media outlets were telling us that the property boom was over.
After dwelling prices had recorded “the biggest rise in three years” in the March quarter (a 2.8% quarterly rise, as an average across the eight capital cities), data published in May was interpreted as the end of the alleged boom almost before it had started.
The limelight seekers at RP Data, who tend to sacrifice credibility at the altar of cheap publicity, had published (on May 1) their analysis of what happened to prices in April, apparently forgetting that it would take months before a full set of data was available to make an accurate call.
These (very) preliminary figures spat out of a careless computer found that prices fell 0.5% in April. This led multiple newspapers to declare the market recovery to be over.
It was, of course, a statistical aberration and prices, on average, continued to rise in subsequent months. The same media outlets were pretty soon shouting about “white hot” markets creating that most dreaded of property phenomena, the bubble.
That experience should have been a timely lesson that one month’s figures from one source are meaningless, particularly when there are numerous other research outlets with different figures.
But, no, we are back in the same territory again. The same rubbery figures factory reports price stagnation in November. Media, aided and abetted by RP Data mouthpieces, has declared the peak of the market.
Louis Christopher of SQM Research has disputed the validity of the figures. He says it’s wrong to claim that the market has peaked based on a single month’s figures. He’s right of course and anyone with any experience with real estate research would agree.
Privately, the boffins at RP Data would probably agree too. If they don’t, they need to find a new profession. But the objective is today’s headlines, not genuine analysis.
But hang on. If you dig down deeper in the dodgy data, prices allegedly rose 2.8% in November in Darwin, 1.2% in Adelaide and 2.9% in Perth. Sydney showed monthly growth of a tick under 1%, which, in annual terms, is still a strong growth rate.
Only Canberra and Melbourne showed significant falls.
So the basis for declaring the peak of this market cycle is flimsy indeed.
If you chose to place any credibility on these figures, which I don’t, you would interpret them as depicting markets still growing strongly in Sydney, Perth, Darwin and Adelaide.
So this so-called research fails on two major points. It treats Australia as one property market and declares that “dwelling values increased 0.1% in November”, ignoring regional differences, which show that most of our major markets are still rising strongly. And it places undue significance on a single month’s figure from a single data source.
And when you look at the figures from the same source for the three months to November, they actually show capital city homes values (again treated as one market) rising at their fastest pace in three years.
The end result of this shameless lust for publicity is misinformation and confusion for property consumers.
 
<hr>
 Terry Ryder is the founder of <a rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank" style="font-size: 14px;">hotspotting.com.au</a> and you can contact him via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a target="_blank" href="https://twitter.com/hotspotting" style="font-size: 14px;">Twitter</a>.
 
 
 
 
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terryryder-YECXbqmri2

One stat shows a market peak, but should we believe it?

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The Australian real estate market always slows down - some might suggest even shuts down - over the Christmas/New Year holiday break, especially after an exhausting year like 2013. 
But buyers, sellers and estate agents should always be ready for the next opportunity.
Mobile phone and iPad devices ensure we are all never far from the latest showcased property listing.
Sure we all want to take the formal Christmas Eve office closure and then the New Year's Eve fireworks, but there just might be times in-between and around these family events that get the 2014 sales activity well underway.
Successfully securing a transaction might be tricky with solicitors not keen to interfer with family holiday plans, but like most agents having executive assistants, there are staff who can do the legwork.
Even if it's not happening, the holiday slowdown can be used by estate agents for getting the mind and devices organised for the new year. Maybe sketching out or revising business goals and plans.
Our property commentators Jonathan Chancellor and Margie Blok give their pointers to ensuring a great start to the year because it won't be long before in the April Easter-Anzac Day break. Their tips, which are both contemporaneous and old-fashioned, could give you the opportunity or competitive edge in the unfolding 2014 marketplace.
HE SAID:
<img src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" width="150" height="225" style="float: right;">
Buyers:
*Follow up on properties that failed to sell at auction during November and December – vendors, whose properties have been languishing on the market for weeks, could be willing to listen to reasonable offers and also be more flexible in negotiating the terms of an offer. Also use this time to research sale prices of recent spring listings – the spring market has been quite frenetic, so take the time to guage where values are at now so you can be realistic about pricing the offers you make.
* Auction clearance rates normally trend downwards through December, so keep an eye out for those passed in prospects and put in a tough offer as you never know what sort of pressure the vendor will be under.
Sellers:
*Choose an experienced local agent, with a hyper executive assistant, who isn’t holidaying in Europe. Hopefully, the agent already knows the likely buyer from their long list of unsuccessful bidders at their spring recent auctions.
Use the Christmas/New Year period to tidy up your property and get it ready for a marketing campaign starting in late January. Spruce up the inside of your home as well as outside for it’s a lovely time of year to be in the garden.
* If your property failed to sell at auction in the run up to Christmas, instruct your agent to promote extended settlement terms on internet advertising, so buyers will have time to sell their property during January and February.
Agents:
*Keep networking, but in a relaxed fashion - schedule lunches, drinks or coffee with friends, past clients and vendors. Pursue strong and constant communication with both buyers and sellers as to what's been happening with their specific listing of interest.
*The challenge is to quickly and increasingly understand what’s happening in the new 2014 market – and to believe it. You have to be in an informed position to advise your seller and buyers the facts about price and where the market is going. Remember no year is exactly the same as the prior one. 
<img src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" width="150" height="225" style="float: left;">SHE SAID:
Buyers:
*Hot summer weather, and hoardes of holidaymakers, usually means a decrease in the number of people attending Saturday inspections – this could work to your advantage because competition for properties in popular price brackets may not be so strong. Be ready for the next opportunity by creating daily or weekly alerts for new listings on real estate websites
* Trawl the internet for listings where vendors have ignored their agent’s advice about making a property look good for sale. Search for properties which appear unattractive in photographs. Rooms with bad lighting and cluttered with knick-knacks can affect sale price, but these may not affect long-term value. Make realistic offers for properties which are demonstrably overpriced.
Sellers:
* Remember the old saying “the early bird catches the worm” – rather than wait until the February auction season, tell your agent to advertise your property as a forthcoming auction on the internet because buyers.
*If your property didn’t sell before Christmas, be sure to keep it looking in tip-top inspection order for eager buyers and expats (who are home for holidays during January) could be house-hunting.
Agents:
*Get back into the office swing during early January and use the time to stay in touch with your clients by calling to wish them a Happy New Year. Even if you make just 10 calls each day from Mondays to Fridays, this will add up to a large number of people over four weeks. Ring long time clients and those collected duing spring, so you let them all know of your continued interest in their purchasing and or sales.
* Update your databases and declutter your computer files, as well as other unnecessary paraphernalia lying around the office. Use this time to organize yourself in readiness for the year ahead. Evaluate your office systems and if these are not supremely efficient, then update software and set up new systems. Ensure that the website is kept up to date, and there's nothing more frustrating for readers if the sales or rental listings are actually no longer current.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>
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jchancellor-FAypfDUnLy

Making the most of the Christmas holiday downtime: advice for sellers, buyers and estate agents

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In one of the biggest Sydney industrial sales this year, listed property group Stockland has exchanged unconditional contracts on the Forrester Distribution Centre in Sydney's western suburbs of St Marys for $72.85 million.
Owned by the Goodman Australia Industrial Fund, the 12 hectare site at 40–88 Forrester Road incorporates three warehouses totalling 60,239 square metres. 
The centre is leased to ACI, a wholly-owned subsidiary of Owens-Illinois, on a 5.3 year WALE with fixed annual rental increases.
Stockland managing director Mark Steinert, said: "One of our key strategic focus areas is to grow our industrial business as a core part of our diversified portfolio.
"This asset is a strong addition to our industrial portfolio and demonstrates our disciplined approach to buying accretive assets in key, strategic locations.”
Stockland outlined its industrial strategy in May and the Forrester Road property represents the first purchase under that new direction. It also adds to Stockland’s existing industrial portfolio, which at June 30, 2013 stood at 13 industrial properties with a combined gross lettable area (GLA) of 963,047 square metres and a total value of $0.83 billion.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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