<p data-end="309" data-start="290"><strong data-end="309" data-start="290">Article summary</strong></p>

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
<p data-end="896" data-section-id="ojaazg" data-start="792">Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.</p>

<p data-end="1358" data-start="1137">The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.</p>

<p data-end="1358" data-start="1137">[smartcode_project:default project_id=90059 project_image_fid=374075]</p>

<p data-end="1577" data-start="1360">Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.</p>

<p data-end="1781" data-start="1579">The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.</p>

<p data-end="1977" data-start="1783">The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.</p>

<p data-end="1977" data-start="1783">[smartcode_project:default project_id=90059 project_image_fid=374059]</p>

<p data-end="2314" data-start="1979">One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.</p>

<p data-end="2423" data-start="2316">Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.</p>

<p data-end="2519" data-start="2425">"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.</p>

<p data-end="2688" data-start="2521">"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."</p>

<p data-end="2688" data-start="2521">[smartcode_project:default project_id=90059 project_image_fid=374060]</p>

<p data-end="2840" data-start="2690">Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.</p>

<p data-end="2900" data-start="2842">"Materiality tells the story of a place," Williamson said.</p>

<p data-end="3105" data-start="2902">"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."</p>

<p data-end="3300" data-start="3107">Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.</p>

<p data-end="3300" data-start="3107">[smartcode_project_cta:default project_id=90059]</p>


Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

<p data-end="288" data-start="269"><strong data-end="288" data-start="269">Article summary</strong></p>

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289"><strong data-end="374" data-start="291">DVB Projects is preparing to launch its second Gold Coast apartment development</strong>, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443"><strong data-end="513" data-start="445">The 34-level tower will comprise just 49 ultra-luxury residences</strong>, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574"><strong data-end="646" data-start="576">The launch follows strong demand at DVB's nearby Sea Glass project</strong>, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718"><strong data-end="787" data-start="720">The development adds to the transformation of Old Burleigh Road</strong>, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<p data-end="1011" data-start="790"><a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.</p>

<p data-end="1296" data-start="1013">The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion</p>

<p data-end="1296" data-start="1013"><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" /></p>

<p>The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.</p>

<p>“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;</p>

<p>“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."</p>

<p>Brown says the site itself is "exceptional."</p>

<p>"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." /></p>

<p>The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.</p>

<p>A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.</p>

<p>Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" /></p>

<p>Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.</p>

<p>“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.</p>

<p>“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.</p>

<p>“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”</p>

<p><img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" /></p>

<p>Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.</p>

<p>With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.</p>

<p>[smartcode_project_cta:default project_id=145141]</p>


DVB Projects to launch second Broadbeach apartment tower as demolition commences

<p>A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.</p>

<p>Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.</p>

<p>While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.</p>

<p><img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" /></p>

<p>Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.</p>

<p>Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.</p>

<p>The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.</p>

<p><img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" /></p>

<p>The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.</p>

<p>In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.</p>

<p>Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.</p>

<p>According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.</p>

<p>Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.</p>

<p>The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a></em></p>

<p>&nbsp;</p>


Alfred Street the latest North Sydney pocket to be transformed by residential development

<p>Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.</p>

<p>For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.</p>

<p>Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.</p>

<p>"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374893]</p>

<p>Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.</p>

<p>The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;</p>

<p>Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.</p>

<p>Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=269527]</p>

<p>Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.</p>

<p>"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."</p>

<p>The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.</p>

<p>"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."</p>

<p>[smartcode_project:default project_id=7354 project_image_fid=374892]</p>

<p>Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.</p>

<p>Construction is underway with completion expected in mid-2027.</p>

<p>[smartcode_project_cta:default project_id=7354]</p>


Boutique Gordon townhomes now come with a BMW iX3 50

<p>Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.</p>

<p>The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.</p>

<p>The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.</p>

<p><a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.</p>

<p>The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359521]</p>

<p>The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359527]</p>

<p><a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.</p>

<p>"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.</p>

<p>"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.</p>

<p>"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.</p>

<p>"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=145590 project_image_fid=359523]</p>

<p>The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.</p>

<p>Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.</p>

<p>EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.</p>

<p>WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.</p>

<p>"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.</p>

<p>"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."</p>

<p>Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>[smartcode_project_cta:default project_id=145590]</p>


Vitale breaks Byron Bay records with EADE sales flurry 

<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

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<div>At the headline level it was another spirited month for housing finance nationally, with the seasonally adjusted $32.6 billion in October being the sixth greatest month on record following a lending blitz through 2015.</div>
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<div>Although owner-occupier commitments increased again in the month, investor finance continued to slump, dropping by 6.1%.</div>
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<div>The devil of this data series forever lies within the detail, with a number of sources indicating that there has been a level of jiggery-pokery with regards to the classification of loans between owner-occupiers and investors (since there is now a clear price incentive to opt for homebuyer loans).</div>
<div> </div>
<div>The second chart below shows that owner-occupier commitments and refinancing have both increased solidly, while APRA's macroprudential measures have ensured that investor finance is now falling away quickly.</div>
<div> </div>
<div>The net result was that total housing finance in trend terms remained flat in the month at $33.2 billion.</div>
<div> </div>
<div><a href="/images/2015/12/9/HF2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF2.jpg" alt=""></div>
<div> </div>
<div>
<div>Whether or not housing markets can push forward in 2016 will depend upon the extent to which the growth in owner-occupier loans can offset declining investor lending. </div>
<div> </div>
<div>Certainly we can see that the number of owner-occupier loans is trending up, but equally there is a chance that tightening mortgage rates could slow this sector of the market going forward.</div>
<div> </div>
<div><a href="/images/2015/12/9/HF3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/12/9/HF3.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>Skipping down to the state level we can see that the trend number of owner-occupier commitments is in decline in Western Australia, Tasmania, the Northern Territory, and Queensland, which is home to a significant number of declining regional markets in line with the resources investment collapse.</div>
<div> </div>
<div>The trend in the number of owner-occupier commitments in the Australian Capital Territory has been stone dead flat for months.</div>
<div> </div>
<div>The increase in the number of mortgages written has been driven purely by the two most populous states, New South Wales and Victoria. </div>
<div> </div>
<div><a href="/images/2015/12/9/HF4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF4.jpg" alt=""></div>
<div> </div>
<div>
<div>Generally speaking the higher value loans are written in the capital cities, and as such the dollar value of owner-occupier commitments tends to be a better indicator of what is playing out in the capitals.<br><br>In terms of the trend <strong>value</strong> of owner-occupier commitments, both Western Australia and the Northern Territory are again in decline. </div>
<div> </div>
<div>The Brisbane market is faring relatively well at the present time, helping to nudge the aggregate value of owner-occupier commitments in Queensland steadily up, while Victoria and New South Wales in particular are rising fast.</div>
<div> </div>
<div>In fact, trend monthly owner-occupier commitments in New South Wales have ripped up the chart to sit some 43 per cent higher over the year at more than $8 billion (awooga!).</div>
<div> </div>
<div><a href="/images/2015/12/9/HF5.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/9/HF5.jpg" alt=""></div>
<div> </div>
<div><span>As noted, when it comes to housing finance the devil is always in the detail: more than $3 billion of the New South Wales monthly figure related to refinancing, and over the past year there has also been a slight uptick in finance for renovations.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/12/9/HF6.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/12/9/HF6.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>Overall, there are many more different trends to cover than can be analysed in one blog post - it was a solid result nationally, and it all rather depends upon which market you are interested in.</div>
<div> </div>
<div>One thing that we can say with certainty is that the investor boom is a cooked goose for this cycle, with investor finance now down by 9.2 per cent year-on-year. In 2016, the homebuyer sector of the market will swim back into focus.</div>
<p> </p>
<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>
</div>
</div>
</div>
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Investor boom is a cooked goose: Pete Wargent

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<p><span>The past 12 months mark one of the state’s strongest residential property markets we have seen in recent years. </span></p>
<p><span>More homes went to auction than ever before with multiple records falling, including the highest number of auctions held in a single day, weekend and year. High transaction volumes, low interest rates and buyer and vendor confidence all contributed to strong capital growth. As the year draws to a close, it is timely to review the market in 2015 and the outlook for Victoria in 2016.</span></p>
<p><span><strong>TRANSACTIONS &amp; AUCTION VOLUMES</strong></span><span style="line-height: 1.3em;"> </span></p>
<p><span>Transaction volumes in Victoria have been at their highest in five years with around 116,000 sales in the year to November 30. This is a 5% increase on last year when there were 110,400 transactions. </span></p>
<p><span>In the year to November 30, around 40,000 auctions have been held with almost 30,000 homes selling under the hammer. Just over 37,000 of those auctions were held in Melbourne, compared to 2,500 in regional Victoria where private sales are more popular.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>The key to the 2015 market has been auction levels, which have hit an all-time high in recent months. In the last weekend in November, multiple national auction records fell including most auctions in a single day with 1,648 auctions held  - 22 more than the previous record which was set in October last year. November 2015 was also a record month for auctions with 5,669 auctions held – 259 more auctions than the previous record month (November 2014). </span><span style="line-height: 1.3em;"> </span></p>
<p><span><strong>MEDIAN PRICE GROWTH</strong></span></p>
<p><span>Significant house price growth has been recorded in metropolitan Melbourne throughout 2015 with the median surpassing the $700,000 barrier for the first time ever in the September quarter. Growth has been widespread across the city, with price increases recorded in all three regions – inner, middle and outer. </span></p>
<p><span>Growth has been consistent during the year. In the first quarter of 2015, the median house price topped $671,000, up from $664,500 in December 2014. Suburbs in the city’s south east experienced the highest growth in the first three months of the year with Mount Waverley, Bentleigh and Beaumaris all up more than 16% on 2014 figures. </span></p>
<p><span>Solid price growth continued in the June quarter with metropolitan Melbourne’s median house price almost reaching $700,000, at $698,000. Melbourne’s eastern suburbs recorded the highest median house price growth in the quarter with Templestowe, Glen Waverley and Balwyn North all rising by at least 17%. </span></p>
<p><span>The September quarter saw the city’s median house price rise 4.5% to a record high $729,500. Bayside suburbs Brighton, Dromana and Seaford topped the highest growth suburbs in the third quarter of the year, up more than 17 per cent on June quarter figures. </span></p>
<p><span>House prices have also increased in regional Victoria over the year with the median house price hitting $347,000 in the three months to September 30. This was up from $341,000 in the first quarter of 2015. </span></p>
<p><span><strong>MILLION DOLLAR SUBURBS</strong></span></p>
<p><span>Buyer demand in traditional million dollar suburbs has pushed up the median house price in neighbouring areas. As a result of the ripple effect, more of these suburbs have joined the million-dollar club this year. There were 61 suburbs valued at $1 million or more in the March quarter, and this has since increased to 87 in the September quarter. Toorak remains Melbourne’s most expensive suburb with a median house price of almost $4 million. This is followed by Canterbury and Balwyn with median house prices of $2,430,500 and $2,281,000 respectively.</span></p>
<p><span><strong>LOOKING AHEAD</strong></span></p>
<p><span>While clearance rates moderated slightly in November, they have still been strong given the record auction levels – and continuing high auction numbers to late 2015 indicates a high level of vendor confidence.</span></p>
<p><span>The mix of population increases, a robust economy and relatively low interest rates is likely to also encourage buyer interest moving forward.  </span></p>
<p><span>Across Melbourne, the market is likely to remain steady, with solid growth in a range of areas across the city. This growth is likely to be strongest in Melbourne’s inner and middle suburbs, which have seen strong buyer interest in recent months. </span></p>
<p><span>While this growth may not be as strong as what has been experienced this year – with up to five per cent increases per quarter – a city-wide population upturn and low interest rates both signal consistent buyer demand in the first quarter, and into the second quarter, of the new year. </span></p>
<p><em>‎Enzo Raimondo is chief executive officer of <a href="https://www.reiv.com.au" target="_blank">The Real Estate Institute of Victoria</a>.</em></p>
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Melbourne auction activity at all time high: REIV's Enzo Raimondo

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<p>The future is a different country and 2016 will certainly be a different place to the year just ending.</p>
<p>As Sydney’s boom ends, other locations around Australia are stepping up as locations poised for price growth. Success in property investing will depend, as always, on buying in the right places.</p>
<p>But there are a number of key steps investors need to take before considering where they might buy in 2016. Here’s my five-step process to stay safe and do well in the year ahead.<span style="line-height: 1.3em;"> </span></p>
<p class="Body"><strong>1 Develop a plan</strong></p>
<p class="Body"><span style="line-height: 1.3em;">Most wannabe investors start the process with the search for properties to buy. They’re destined to fail from the very start.</span></p>
<p class="Body"><span style="line-height: 1.3em;">No one should start looking online for properties before taking a series of steps leading to that point. There needs to be a plan, which should contain goals, strategies and tactics.</span></p>
<p class="Body">If you don’t know the end game – your ultimate goal – it’s difficult to develop a strategy for getting there.</p>
<p class="Body">Part of the planning process is understanding yourself. I receive emails every day from people who bought investment property in a resources-related location and now are freaking out because the market is down. These kinds of locations are always volatile and most investors don’t have the temperaments or financial means needed to ride the troughs while they wait for the peaks.</p>
<p class="Body">There are myriad ways to invest in real estate. Most people think passive investment – buy a property and find a tenant – but there are other options. The investment technique you choose will dictate what you buy and where you buy it.</p>
<p class="Body"><strong>2 Be willing to pay for quality research and good advice</strong></p>
<p class="Body">All of the truly successful investors I know, people with 20, 30 or more properties, spend money to make money. They treat property investment as a business - they spend on advice from experts and on good research sources before making any buying decisions.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">The proposition of most wannabe investors is this: Yes, I’ll spend $500,000 buying an investment property, but No, I won’t spend $50 on a research report, and I won’t spend $500 on an independent valuation to make sure I’m paying the right price and I certainly won’t spend $5,000 accessing specialist advice on how to invest wisely and build a property portfolio.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">It’s the worst kind of false economy.<span style="line-height: 1.3em;"> </span></p>
<p class="Body"><strong>3 Build a team</strong><span style="line-height: 1.3em;"> </span></p>
<p class="Body">Part of the process outlined in step 2 is building a team of experts. They include mortgage brokers, research specialists, property advisors who can help develop strategies, accountants who understand real estate investment (many don’t), specialist lawyers and depreciation experts.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">You need a team of consultants you can go to for quality advice. Refusing to spend money on these things is another example of false economy.<span style="line-height: 1.3em;"> </span></p>
<p class="Body"><strong>4 Education and research</strong></p>
<p class="Body">It’s alarming how little the average punter knows about real estate. They’re proposing to spend hundreds of thousands of dollars on something about which they know nothing, other than vague impressions absorbed from media.</p>
<p class="Body">Research is the foundation of all successful investment strategies. It takes time and if you don’t have the time, you need to be willing to spend money buying good research. If you’re unwilling to spend the time or the money, forget about property investment.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">I often tell audiences a key part of the research process is to stop reading newspapers. Newspapers are full of misinformation, much of it sensational negatives, about residential property.</p>
<p class="Body">Right now, mainstream media is running simplistic and misleading story lines such as: the boom is over, the bubble is about to burst, no one can afford to buy, etc. The reality is that, while Sydney’s boom is winding down, there are many locations around the nation which will have growth markets in 2016 and beyond.</p>
<p class="Body">People should read specialist sources of real estate information – like Property Observer – where they can access information and opinions from people with genuine credentials.</p>
<p class="Body"><strong>4 Look for locations with the right fundamentals.</strong><span style="line-height: 1.3em;"> </span></p>
<p class="Body">It’s no accident that some locations out-perform on capital growth. Areas become hotspots with superior growth for clearly defined reasons.<span style="line-height: 1.3em;"> </span></p>
<p class="Body">Investors might consider why Sydney has had three years of rising prices, while most parts of Australia have been dormant or going backwards. Sydney boomed for specific reasons – and record low interest rates have had little to do with it.</p>
<p class="Body">Four years ago New South Wales had one of the weakest economies in Australia. Today it’s the clear No.1, by a considerable margin. Sydney’s boom fed off that.</p>
<p class="Body">What changed? In 2011 the worst state government in the history of Australia was tossed out in a landslide election defeat. The new regime started governing to reactivate the state economy. They started spending money on infrastructure around Sydney and today tens of billions of dollars are being poured in roads, rail links and hospitals. It’s had a massive impact.</p>
<p class="Body">Another factor is that Sydney had 10 years without any major price growth before 2013. From 2004 to 2012, prices had risen only about 15% - but rents had increased an average 70%. It had become cheaper to own real estate than to rent it. The city was primed for an explosion of buying and price growth.</p>
<p class="Body">Many things drive real estate markets but one of the most influential is infrastructure – both existing and new. Areas with good infrastructure – transport links, schools, medical services, jobs nodes – will always be solid performers. Areas with that, plus spending on major new infrastructure, will have additional impetus.</p>
<p class="Body"><strong>5 Beware the high-rise unit markets.</strong></p>
<p class="Body">The greatest danger for investors in 2016 will come from buying real estate in markets that are oversupplied – or heading for surplus.</p>
<p class="Body">Primarily that means the high-rise apartment markets, where developers are building towers of units destined for sale to overseas investors. It will lead to rising vacancies and falling rents (leading to falling values) in specific locations.</p>
<p class="Body">The danger markets include central Melbourne, central Brisbane, central Perth and the beachside suburbs of the Gold Coast.</p>
<p class="Body">For success in 2016, stick to the genuine residential markets. Buy established dwellings in suburban markets – and always check local vacancy rates and also building approval data. A location may have a 2% vacancy rate, but if building approvals doubled in the last 12 months, there may be oversupply in its future.</p>
<p class="Body">In simple terms, the best buying in 2016 for future growth will be found in Brisbane, Adelaide, Hobart, parts of Melbourne and selected regional centres, including the Gold Coast, the Sunshine Coast, Cairns, Port Macquarie, Newcastle and environs, Albury-Wodonga, Geelong and Bendigo.</p>
<p class="Body"> </p>
<p class="Body"><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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As Sydney’s boom ends, other locations step up: Five tips from Terry Ryder

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<p>GUEST OBSERVER</p>
<p>This week 1,667 capital city auctions were held, less than last week (1,831)  and also less than one year ago (2,603).</p>
<p>Auction volumes were substantially higher last year as there were only two weeks between the Easter long weekend and the ANZAC day weekend. Preliminary results show that 68.6 per cent of auctions were successful this week, marking the third consecutive week of auction clearance rates below the 70 per cent mark. This week’s result is higher than last week (67.1 percent), but much lower than one year ago when 78.9 percent of the capital city auctions held were successful.</p>
<p><a href="/images/2016/04/19/20160418-capital-city.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/19/20160418-capital-city.jpg" alt=""></p>
<p>Across Australia’s largest auction market of Melbourne 882 residential homes were taken under the hammer this week, with a preliminary clearance rate of 71.7 per cent, falling from 73.2 per cent last week (the strongest result since February) and lower than one year ago (79.5 per cent). While the clearance rate fell, auction volumes rose from 803 last week. The most auction activity for the city was held in the Inner region where 170 homes went to auction and 73.5 per cent of reported auctions were successful.</p>
<p><a href="/images/2016/04/19/20160418-melbourne.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/19/20160418-melbourne.jpg" alt=""></p>
<p><strong>Sydney</strong> has recorded a preliminary clearance rate of 69.7 percent this week across 457 auctions, compared to a low of 67.1 percent last week and a substantial difference from 87.0 percent one year ago, which happened to be the 11th consecutive week for the city of clearance rates over 80 percent, and the city’s clearance rate remained above 80 percent until mid-July. This week’s top performing Sydney sub-region was the Eastern Suburbs with a clearance rate of 87.0 percent, followed by Sutherland (84.2 percent) and North Sydney and Hornsby (80.4 percent).</p>
<p><a href="/images/2016/04/19/20160418-sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/19/20160418-sydney.jpg" alt=""></p>
<p>The preliminary clearance rate across <strong>Brisbane</strong> was 53.5 per cent this week, up from 47.7 per cent and also higher than the 46.4 per cent last year. This week 145 Brisbane auctions were held, compared to 160 last week and 140 one year ago. With the two upcoming public holidays, it is expected that Brisbane’s auction market will be relatively quiet over the next two weeks. This week 47 Gold Coast auctions have been reported with 21 sales.</p>
<p><a href="https://blog.corelogic.com.au/wp-content/uploads/2016/04/20160418-brisbane.jpg" rel="attachment wp-att-6654"><img class="aligncenter size-full wp-image-6654" src="https://blog.corelogic.com.au/wp-content/uploads/2016/04/20160418-brisbane.jpg" alt="20160418 brisbane" width="971" height="653"></a></p>
<p>Adelaide saw 99 auctions take place this week and based on the 75 results so far, the preliminary clearance rate was 66.7 per cent. Last week Adelaide’s clearance rate was 63.6 per cent, while one year ago it was higher, at 69.7 per cent.</p>
<p>The number of Perth auctions held this week was 30, down from 36 both last week and one year ago. Preliminary results show 28.6 per cent of Perth auctions cleared this week.</p>
<p>Preliminary results for Canberra show the clearance rate for this week sitting at 71.9 per cent, up from 61.9 per cent last week when 68 homes were taken to auction.</p>
<p>There were 9 Tasmanian auctions this week with 5 reported results and 4 sold.</p>
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Capital city clearance rate below 70 percent for three weeks running: CoreLogic RP Data's Shana Miller

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<div>The Housing Industry Association (HIA) released its Land Report for the December 2015 quarter, which showed that land prices continued to soar through 2015. </div>
<div> </div>
<div>The median lot price in Australia ripped +5.2 percent higher in the three months to December alone to $234,600. </div>
<div> </div>
<div>Over the last half decade median lot values have increased by about +22 percent, while lot sizes have also been shrinking, meaning that land prices per square metre have been increasing sharply. </div>
<div> </div>
<div><a href="/images/2016/04/21/HIA.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div>
<img src="/images/2016/04/21/HIA.jpg" alt=""><br><div> </div>
<div>This has not been regional Australia phenomenon through this cycle, with price rises driven overwhelmingly by the capital cities (although Adelaide's lot prices actually decreased in the year to September 2015). </div>
<div> </div>
<div>The same dynamic was in evidence this quarter, with capital city land prices screaming another +6.6 percent higher in just three months, while the number of transactions tightened again by a further -2.3 percent. </div>
<div> </div>
<div>That said, there are two "regional" locations which have experienced solid population and employment growth, and now have elevated and rising land prices, being the Sunshine Coast ($272,000) and the Gold Coast ($230,500). </div>
<div> </div>
<div>The coastal areas of south-eastern Queensland are enjoying the lower dollar and increasing tourism, particularly from China as far as I can tell.  </div>
<div> </div>
<div>As you can see in the chart above, it's clear that supply isn't keeping pace with demand, with the number of lot sales actually declining by -1.6 percent in the December quarter. </div>
<div> </div>
<div>Transaction levels have been fading for nearly two years now despite rampant demand.</div>
<div> </div>
<div>Indeed vacant residential land sales crashed lower in Sydney (-22.3 percent) and Brisbane (-20.1 percent) on supply restrictions in the quarter, although there were increased sales volumes in some other capital cities. </div>
<div> </div>
<div>Through the course of 2015 vacant land sales dived by 14 percent, and by a staggering 19 percent in the capital cities, where demand is actually higher. </div>
<div> </div>
<div>The HIA noted that the dynamic of falling sales and rapidly rising prices points to supply bottlenecks.</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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Capital city land prices through the roof: Pete Wargent

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-4441479046766558951" class="post-body entry-content">
<p>Looks like someone forgot to tell Sydney's inner west about its alleged oversupply of apartments.</p>
<p><span>Erko.</span></p>
<br><div class="separator"><a href="/images/2016/04/22/Erko.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/04/22/Erko.jpg" alt=""></div>
<br><br>St. Peters.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<a href="/images/2016/04/22/St%20Peters.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="/images/2016/04/22/St%20Peters.jpg" alt=""></div>
<br><br><div>You can also add to this Haberfield, Stanmore, Sydenham, Five Dock, Canada Bay, Abbotsford, Chiswick, etc. etc. all of which have remarkably tight vacancy rates of 1 per cent or under. </div>
<br><div>In fact, stretching the tarp out a bit further, and while on the subject, you might also add Surry Hills, Ultimo, Darlinghurst, Botany, Banksmeadow, Roseberry, Eastlakes, Redfern, Waverley, Bronte, Coogee, South Coogee, Pagewood, Maroubra...</div>
<br><div>Heck even Waterloo and Zetland have a vacancy rate of 0.5 per cent (OK, so that one might not a real number).</div>
<br><div>Maybe when we start to see some numbers beginning with a 4-handle it might start to get interesting, but if anything, for quality properties at least, the rental market actually seems to be tightening and rents rising. </div>
<div> </div>
<div>Out west? Maybe a different story there, granted.<br><br><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>
<strong><span style="text-decoration: underline;"><br></span></strong>
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No inner west Sydney rental oversupply: Pete Wargent

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<div>Following APRA's actions to slow investor lending, annual credit growth in this sector has fallen very sharply over the past 9 months from 11 percent to 7 percent, with undoubtedly more declines to come.</div>
<div> </div>
<div>The Reserve Bank's Financial Aggregates figures for March showed that housing credit has continued to switch its focus towards homebuyers, with annual owner-occupier credit growth increasing to a 66-month high of 7.2 percent.</div>
<div> </div>
<div>The net result is that annual housing credit growth has gradually moderated to 7.2 percent, from a cyclical peak of 7.5 percent six months previously.</div>
<p><a href="/images/2016/05/02/A1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/02/A1.jpg" alt=""></p>
<p><br><span>Overall credit growth in the economy has also eased back to an annual pace of 6.2 per cent. </span></p>
<p><a href="/images/2016/05/02/A2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/02/A2.jpg" alt=""></p>
<p><br><strong><span style="text-decoration: underline;">Business and banking</span></strong></p>
<div>Business credit growth notched up a result of only 0.3 per cent growth for the month, with the annual pace of growth steady at 6.5 per cent.</div>
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<div>This mirrors softening trends suggested elsewhere such as in the ABS lending finance data series, while initial and secondary capital raised on the securities exchange has also slowed in 2016.</div>
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<div><a href="/images/2016/05/02/A4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/05/02/A4.jpg" alt=""></div>
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<div>The cost of business funding is at a record low, but research has shown that expected returns and hurdle rates can be a more important driver of business or project funding decisions.</div>
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<div>In terms of bank lending and funding, although growth in term deposits has been understandably weak in the prevailing low interest rate environment, the growth in other bank deposits has been hugely strong.</div>
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<div>Combined with equity raisings this means that banks will have few problems meeting their funding requirements in 2016, strong deposit growth and capital raised helping to offset any moderate rising in funding costs.</div>
<p><a href="/images/2016/05/02/a3.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/02/a3.jpg" alt=""></p>
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<div>Bank funding costs declined significantly in 2015 in any event, and sit way below the levels seen in 2012 or during the financial crisis.</div>
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<div><strong><span style="text-decoration: underline;">Housing and outstanding credit</span></strong></div>
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<div>Although the pace of growth has slowed a notch, overall outstanding housing credit has continued to power higher to $1.55 trillion.</div>
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<div>The composition of housing credit has shifted dramatically over the past eight months, with the investor share of outstanding credit having fallen by fully 3 per cent over that timeframe, a remarkably rapid shift in market dynamics exacerbated by loan reclassifications.</div>
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<div>One other curious observation is how personal credit is actually now in decline. <br><br>One wonders whether this is related to the growth in the use of mortgage buffers and offset accounts, as it is certainly very unusual to see personal credit going backwards in Australia, even with mortgage repayments at such low levels for many existing homeowners.</div>
<p><a href="/images/2016/05/02/A6.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/02/A6.jpg" alt=""></p>
<div>Total credit increased by 1.5 percent or $38 billion in the first quarter of 2016 to a grand total of $2.54 trillion.</div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<p><span style="line-height: 1.3em;">Overall, the result was pretty much as expected on all fronts, with tightening measures restricting the annual growth in housing credit somewhat over the past six months to 7.2 per cent, and total credit growth a bit steadier at 6.4 percent.</span></p>
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Annual housing credit growth moderating: Pete Wargent

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<div>Well, the Reserve Bank of Australia (RBA) went ahead and did it anyway, with no telegraphing needed!</div>
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<div>With global interest rates and inflation remaining stubbornly low, the Official Cash Rate was cut by 25 basis points at 2.30pm to its lowest level in history, on the back of much softer than expected inflation figures.</div>
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<div>The cash rate is now at a historic low of 1.75 percent.<br><br>Obviously this is unbelievably happy news for homeowners who can probably barely believe the affordability dividend that has been slung their way since the financial crisis.</div>
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<div>
<div>This will pull forward demand for homebuyer loans, although restrictions on investor credit will mean that this interest rate cut may be somewhat less stimulatory than some of those delivered previously. </div>
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It will be interesting to see who passes on what from the three major lenders that haven't yet announced, but it wouldn't be a surprise to see some of the major banks holding back a few basis points of the 25bps cut. </div>
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<div>That said with the guillotine threat of a Royal Commission hovering above their respective heads, perhaps the majors will need to pass on a minimum 22bps...lol.</div>
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<div>Interestingly National Australia Bank (NAB) immediately announced that it would pass on the full 25 basis points to variable rate homeowners. </div>
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<div>It is interesting to remember that an interest rate cut is rarely a "lone wolf", and this potentially makes it much more likely that we'll see a "double tap" (i.e. interest rates only tend to be cut if significant action is deemed necessary). <br><br>Counting against this, however, the wording of the statement's final paragraph which noted that "at this meeting" growth prospects would be improved by monetary easing. Does this mean that no further cuts are expected? Perhaps so, though that's open to interpretation.<br><br>The RBA's policy decision is <a href="https://www.rba.gov.au/media-releases/2016/mr-16-10" target="_blank">here</a>.</div>
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<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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The long slow march to zero? Pete Wargent

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<p class="Body">Confidence means a lot to real estate markets. And it’s been a long time since Australian real estate has had such a concerted shot in the arm as on Tuesday this week.</p>
<p class="Body">Against the predictions of virtually every economist in the land, proving yet again how little they understand, the RBA dropped its official interest rate to depths not seen before. Most of the major lenders have dropped their mortgage rates accordingly.</p>
<p class="Body">The same economists who incorrectly predicted the RBA board’s decision will also tell you that record low interest rates equals a property boom. Goodness knows where that comes from – certainly not from any historical precedent and certainly not from the experience of recent years where only Sydney has had a market worthy of being described as a boom (no, not even Melbourne’s performance warrants the boom tag).<span style="line-height: 1.3em;"> </span></p>
<p>I note that RBA Governor Glenn Stevens doesn’t see the rate cut reigniting boom scenarios. "In reaching today's decision, the board took careful note of developments in the housing market, where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate," he said in a statement. "At present, the potential risks of lower interest rates in this area are less than they were a year ago."<span style="line-height: 1.3em;"> </span></p>
<p class="Body">So I don’t expect the rate cut, replicated by three of the four major banks, to generate anything dramatic in the market. But it will generally help the psyche of property consumers. And the next affordability index will likely show a further improvement.</p>
<p class="Body">On the same day, Federal Treasurer Scott Morrison delivered his first Budget, which reiterated strongly that negative gearing won't change, nor will investors be slugged more on capital gains tax.</p>
<p>“We will not remove or limit negative gearing,” Morrison said in his Budget speech. “Those earning less than $80,000 make up two-thirds of those who use negative gearing. They are teachers, nurses, police officers, office workers and tradesmen. We do not consider that taxing them more on their investments is a plan for jobs and growth.”</p>
<p class="Body">Amen to that. The tragic thing about those who justify their anti-gearing stance on the grounds that it’s all about housing affordability is that scrapping negative gearing won’t make housing cheaper. Even Bill Shorten says it won’t force down the value of homes, therefore affordability won’t improve. Shorten, like so many others, doesn’t understand the affordability issue and is targeting the wrong culprits.</p>
<p class="Body">Another event on Tuesday was publication of building approvals data which showed there’s still some life in building approvals, although the monthly bounce may be an aberration because the longer-term trend is down (from record high levels, it must be said).</p>
<p class="Body">This closely followed the release of price data for April, which shows that the home value index has risen in the past three months of the year in seven of the eight capital cities.</p>
<p class="Body">That includes a 3.9 percent rise in Sydney. That would tend to rubbish claims of a collapse in values and a bursting of the bubble. I say “tend” because this is one set of figures from one source and it’s not uncommon for another major source to publish figures that are largely contradictory.</p>
<p class="Body">Based on the CoreLogic numbers, however, Adelaide’s prices rose 4. percent in the past three months and Brisbane was up 2.8 percent. I’ve been predicting good growth in those two cities, but I’m not getting overly excited because of what I said in the previous paragraph.</p>
<p class="Body">But, according to these figures, even Perth and Darwin showed glimmers of price growth in the latest quarter.</p>
<p class="Body"><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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Rate cut gives real estate a shot in the arm: Terry Ryder

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<p><span style="line-height: 1.3em;">The latest ratios of household finances highlight that the ratio of debt to disposable income is at a record high however, the value of household assets is also at a record high level.</span></p>
<p>With record low interest rates, the ratio of interest payments to disposable income is the lowest it has been since early 2003.</p>
<p>The ratio of household and housing debt to disposable incomes are each at historic highs of 186.3 percent and 133.8 percent respectively with the ratios increasing by 3.4 percent and 4.3 percent over the past year; </p>
<p>Over the period from 1988 to 2015 standard variable mortgage rates have fallen dramatically and that has surely contributed to household’s preparedness to take on more debt.</p>
<p><a href="/images/2016/03/31/Screen%20Shot%202016-03-31%20at%201.11.34%20PM.png" target="_blank">Click to enlarge</a></p>
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<p>Over recent years the ratio of interest payments to disposable income has been falling with the ratios for households and housing now sitting at their lowest levels since 2003. The higher ratio of interest payments currently compare to 1988 when interest rates were substantially higher.</p>
<p>This is reflective of the much higher cost for household assets, particularly the cost of residential housing.</p>
<p>The data shows that although households have significant debt, particularly for housing, the value of the assets they hold is substantial. The ratio of household debt to disposable income is currently 186.3 percent however, the ratio of household assets to disposable income 862.8 percent, the highest it has ever been.</p>
<p>Similarly, the ratio of housing debt to disposable income is 133.8 percent however; the ratio of housing assets to disposable income is 471.3 percent.</p>
<p>What is interesting is that the ratio of household assets to disposable income is still lower than its previous peak in December 2007 at 476.2% percent, however, it is nudging back up towards its previous record high.</p>
<p>The value of household assets is significantly greater than the value of the debt. Based on this data, the ratio of household debt to assets is 21.6 percent and the ratio of housing debt to housing assets is 28.4 percent.</p>
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<p>Australian households are heavily indebted due largely to residential housing and while high; the value of the assets held is much greater than the debt. It’s important to consider that this is a national view.</p>
<p>Across different regions the ratios are likely to be substantially different. Furthermore, lower interest rates and a fairly strong labour market over recent decades have contributed to a willingness to borrow. Should either of these factors to change it could lead to a dramatic deterioration in the value of these assets while of course the debt would remain.</p>
<p>Importantly, mortgage arrears remain low and the Reserve Bank has reported that the typical mortgage holder is currently more than two years ahead on their mortgage repayments. This coupled with higher rates of household savings provide a potential buffer if unemployment were to rise sharply or interest rates began to increase.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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