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

Joel Robinson

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

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

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

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Hotspots

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Is investing (or should one say, "speculating") in single industry towns a good idea?
In a word – no.
Single industry towns are typically offer a poor risk versus return equation and can represent excessively perilous locations in which to purchase an investment property.
Two of the main advantages of residential property are that everyday investors can generally use greater leverage than they can in other asset classes, and due to only a small percentage of the housing stock turning over in any given year, price movements generally tend not to be volatile.
However, just as a sportsman's greatest strength can also be his Achilles heel, so it is in real estate investment.
Using high levels of debt in an illiquid asset where there is a sustained or drawn-out price reversal means that punters can be stuck with a leveraged investment which is steadily declining in value, which is just about the worst thing an investor can do.
That's why I only recommend investing relatively close to the centre of the largest and growing capital cities for the long-term.
Risk v return
Of course, the concept of risk v return holds that if you pick the right town and you are not using excessive leverage, then it is possible to make fast gains in single industry regions.
Massive price gains in the Pilbara during the mining construction boom proved this to be true.
But the flip side is that if you don't get out again before the market peaks, there may be very few willing buyers on the way back down the price curve.
We have seen this in the Pilbara too, plus plenty of other regions which were tipped as hotspots in 2012 based upon the false premise of a mining construction boom that was - somewhat ridiculously – supposedly going to go on for decades.
Cash buyers or those with 50% plus deposits may be more willing to take on such a risk, but generally speaking, it is too risky a proposition.
Macroeconomic environment
OK, with all the above caveats and disclaimers out of the way, are there any towns or regions which are set for such a boost in 2015 and beyond?
Indeed there are.
If you study and have a basic understanding of Australia's macroeconomic environment then the answer to this question should write itself.
Australia is now coming down the other side of the mining construction boom with intention surveys suggesting a capex bust which could be one for the ages.
Meanwhile, as engineering construction collapses globally bulk commodities markets have been flooded with supply as the new mines come online and pump export volumes out at a record pace.
What does this mean for property markets?
Two things – a cash rate set to decline to a record low of perhaps 1.75% by 2016 – which will fire up some of the investor-heavy inner ring capital city markets - and a currency which has rapidly dropped off a cliff from around 110 US cents to below 78 cents.
 <img src="/images/2015/02/23/usd.png" alt="">
What about regional towns and cities?
Summarily, the towns and regions which are likely set for a property market boost include tourism regions and those with a heavy emphasis on dollar-exposed industries.
There are several regions which immediately spring to mind.
Firstly, these include a couple of Queensland's major coastal tourism regions.
Secondly, there is also a conurbation in tropical north Queensland which is long overdue to pick up after suffering a diabolical property market performance for the past decade and a half.
Be wary, however, as unemployment rates are elevated up in parts of the north, and these can be both volatile and illiquid markets.
And thirdly, while parts of Tasmania were clobbered by the dollar as it soared towards 110 cents against the US dollar, there should correspondingly be some relief as the dollar has  been dumped all the way back to 78 cents.
A word of warning, though – some of Tasmania's industries such as forestry will never regain their former glories - one of Australia's most established companies Gunns was thrust into administration an subsequently there were suggestions by the administrator of the grand old company having traded while insolvent.
Hobart's property market appears to be tightening considerably, which suggests a "landlords' market" is finally arriving after no price growth in real terms over the past decade.
There are several such regions and towns which could well see a 20% or more uplift in property valuations.
But I still wouldn't recommend investing in them. Sure you might get a 20% uplift, or perhaps even more, but then what?
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Investment strategy
Investing in residential property in growing capital cities can work well over the very long-term as an inflation hedge since new properties must be built to house the immigrant population and they will always be built in today's dollars and at today's construction and labour costs.
High transaction costs and capital gains taxes upon subsequent sale reflect that property does not generally work well as a regularly traded asset.
Over the long-term dwelling prices can be driven higher by:
<ul>
<li>a growing population; and</li>
<li>the growing wealth of that population.</li>
</ul>
While you might see either or both of these in a single industry town for a period of time, it is unlikely to be a sustained dynamic, and much of the wealth from an economic boom tends to filter back to capital cities in any case,
If property prices do genuinely take off in region then land is often released for development resulting in a glut and a corresponding market crash, as we have seen in some of Queensland's coal towns, including Moranbah.
Ask yourself how would you cope with a four week vacancy? Or a 4four month vacancy? If the answer is "not too well" then steer clear.
Furthermore if you hear vested interests in a market using phrases such as the following, alarm bells should probably begin to chime:
"Only 15-20% of employment in this region is employed in mining/tourism/forestry/other industry" – directly perhaps, but what about indirectly in related services industries.
And anyway, if unemployment rates are rising, 15-20% is a very significant figure.
"It's only a blip, this will blow over" – is the commentator qualified to opine on the industry outlook? Particularly if until only recently they thought the boom times would last for decades?
Timing the market is tough
Of course, like most markets, residential property is chock-a-block full with folk who think they are smarter than the market.
But, just as most drivers on the roads believe they are "better than average", by definition they cannot all be correct.
And indeed, they aren't.
You only have to look at some of the recommendations by expert advisors in the media over the past six or seven years – in fact, even over the last three - to know that picking regional property hotspots can be a hit-and-miss game.
Since the market bottomed in 2009, meanwhile, we have seen capital growth of around 78% in London on the Office for National Statistics indices.
In Sydney we have seen capital growth of around 60 since that time, with another massive year of price growth ahead.
For long-term sustainable capital growth - and a more accessible price entry point - investors should also consider inner ring Brisbane, in those suburbs with constrained supply (there are several which are not) and very low unemployment.
Instead as a property investor you should leave the single industry towns for the gamblers and construct a plan to compound or snowball your wealth for as long as you live.
The wrap
Remember, businesses and industries tend to have a life cycle, which is why for most average investors it is much safer to acquire assets which they can onto hold forever, such as an index fund.
This "all caps" approach works because all industries will not simultaneously decline, and if one company falls upon hard times, then another business from a different industry steps up to take its place.
And it's a bit like this when investing in property in capital cities.
The majority of jobs in the modern era are in the services sphere, with finance, banking, insurance and healthcare likely to be amongst the most thriving sectors.
Basic common sense dictates that investors should acquire property within easy commuting distance of where the great bulk of those jobs are located, in landlocked and supply-constrained suburbs, and hold on to them for the very long-term.
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>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
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pwargent-M4siyDbqQY

Risk v return: Is investing in a single industry towns a good idea? Pete Wargent

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GUEST OBSERVATION
Ipswich has one of the fastest growing populations in Australia over the last decade.
When a few marketing jazz words are combined with a low entry price and above-average rental yields, it’s never been difficult for the so-called property guru to attract property investors to Ipswich. But does the region really stack up?
With its vast amounts of developable, cheap land available, Ipswich plays a key role in the <a href="https://www.propertyology.com.au/keep-granny-ditch-the-flat/" target="_blank">state government’s strategy</a> to try and direct population growth away from the coast.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="176">
Population Growth
</td>
<td valign="top" width="158">
2003-2013
</td>
<td valign="top" width="201">
2008-2013
</td>
</tr>
<tr>
<td valign="top" width="176">
 
</td>
<td valign="top" width="158">
(10yrs)
</td>
<td valign="top" width="201">
(Post-GFC)
</td>
</tr>
<tr>
<td valign="top" width="176">
Australia
</td>
<td valign="top" width="158">
1.7%
</td>
<td valign="top" width="201">
1.8%
</td>
</tr>
<tr>
<td valign="top" width="176">
Queensland
</td>
<td valign="top" width="158">
2.4%
</td>
<td valign="top" width="201">
2.1%
</td>
</tr>
<tr>
<td valign="top" width="176">
Ipswich
</td>
<td valign="top" width="158">
4.2%
</td>
<td valign="top" width="201">
3.7%
</td>
</tr>
</tbody></table>
The impact of a relatively large volume of sales of new properties in a developing region creates a distortion between the data for changes in median property values and the real change in property values.
As the graphic below illustrates, dwelling supply and population growth have kept pace with each other. In spite of the regular hotspot rhetoric that Ipswich cops from time to time, its property market performance has in fact been quite underwhelming.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2015/01/27/Ipswich_SupplyDemand_2006-2014.jpg" alt="">
With a traditional blue-collar demographic, successive state governments and the Ipswich City Council have had to work hard to create sufficient jobs for its growing population.
The award-winning Springfield masterplanned community has been developed over the last decade as a satellite city - Brisbane’s version of Parramatta.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2015/01/27/Ipswich_GreenfieldMap.jpg" alt="">
Already with a new hospital, business park, and railway line, Springfield currently has several good projects in the pipeline. These include a $50 million expansion of the University of Southern Queensland, $70 million headquarters for GE, $80 million Mater hospital, $100 million Brookwater resort and plans to further extend the Orion shopping centre.
The existing Amberley RAAF base has also been spoken about as an anchor tenant for a potential aeronautical precinct.
Investors could do worse than Ipswich, although it is far from our first preference. With so much land flagged for development, expect to see significant new supply, mostly concentrated around Springfield, Ripley, and Redbank Plains.
There is currently in the vicinity of $275 million in house and land packages currently under construction. The Springfield Land Corporation has also just announced a proposal to develop 10,000 new apartments.
Simon Pressley is managing director of <a href="https://www.propertyology.com.au/" target="_blank">Propertyology</a>, a full-time property market analyst, accredited property investment adviser, and Australia’s (REIA) Buyer’s Agent of the Year (2012+2013+2014).
Picture courtesy of Clarebear/ <a class="mw-mmv-license cc-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank">CC BY-SA 3.0</a>.
 
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spressley-sBoeMhannA

How the Ipswich region stacks up: Simon Pressley

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Just when you thought affordability was becoming a word of the past, I’ve unearthed another hard to believe story on the Gold Coast, alongside further evidence of the appeal of the local market as local demographics continue to evolve.
Our Gold Coast Team have just launched a new residential project located in the heart of Robina, on the doorstep of the thriving $2.5 billion town centre.
Robina is a classic and now very successful masterplanned residential community that has gone from strength to strength over the last two decades.
Perhaps best known as the home of the Bond University, Robina is now delivering the dream of the planners, it’s a thriving desirable community. Yes, it has access to great beaches and much more.
As a potential place to buy into the Queensland real estate market it offers a range of opportunities that will appeal to both future residents and investors alike. I also think that the development mix adds to the area’s appeal.
The choices are dynamic and importantly aim to meet the needs of singles, families, retirees and students across a variety of prices. Variety is important with apartments, villas, townhouses and detached homes.
While the Robina Town Centre is the focus of the area, there’s a direct train link to Brisbane. While employment is diverse across the Bond University, Varsity Lakes IT hub and now a brand new football stadium will also create economic momentum.
Robina’s history doesn’t extend much past the late 1980s, which makes the rate and scale of development impressive as it has matured into a business, medical, commercial and residential centre.
Robina has certainly proved to be centrepiece of Gold Coast development and with a strong future.
Picture of Robina courtesy of <a href="https://commons.wikimedia.org/wiki/User:TravellerQLD" target="_blank" title="User:TravellerQLD">TravellerQLD</a>/<a class="mw-mmv-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">CC BY-SA 3.0</a>.
 
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pchittenden-eLqUUC8TWW

Robina has proved to be centrepiece of Gold Coast development: Peter Chittenden

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I talk a lot about infrastructure in connection with areas we rate as future hotspots. I often refer to infrastructure as the ultimate driver of values in residential property.
Over many years of researching outperforming areas, the Hotspotting team has found that the common denominators of most good growth areas are affordable real estate, good infrastructure (with a bonus of spending on new infrastructure) and proximity to major jobs nodes.
Many hotspots fit this basic formula: affordability + infrastructure + jobs = price growth.
Nothing in real estate is ever quite that simple, but that basic recipe is a pretty good starting point for property investors.
The term “infrastructure” covers all manner of things, but the key elements are transport infrastructure and education-medical infrastructure.
The core impacts of these types of infrastructure is that they create tremendous economic activity and jobs (leading to real estate demand) while under construction and they improve the amenity and appeal of locations once completed.
Transport infrastructure covers roads, tunnels, bridges and rail links which improve the accessibility of areas. Nothing revolutionises the appeal of a location like the creation of new train links.
Last week Channel 7’s Today Tonight interviewed me about my high rating of the suburb of Forrestfield in Perth.
There were two key factors. Apart from the inherently good qualities about this suburb (location, amenities, etc), it stood out in the short-term because of recent rises in sales volumes, leading inevitably to price growth. But, taking a longer-term view, the central factor was the state government decision to create a new rail line linking central Perth to Forrestfield via the airport.
In some ways, education-medical infrastructure is even more influential. I link hospitals and universities together because often they are clustered in the same location in our major cities.
One of the characteristics of this type of infrastructure is that it creates employment while under construction, but even more jobs once completed. Any suburb or precinct with a cluster of major medical and education facilities in its midst has a extraordinary source of accommodation demand. So much activity, including real estate demand, is generated around these types of facilities.
Infrastructure is the chief reason we rate the Sunshine precinct in Melbourne’s west so highly. The area already has a major hospital and two university campuses, but new spending will take this precinct to a new level. Another hospital is planned and an $800 million transport hub is being built as part of the $5 billion Regional Rail Link.
Events like this are game changers for property markets.
Big ticket infrastructure is influential in its own right, but one of the bonus benefits is the new activity it generates. If a major new hospital is built, other development will sprout around it.
Queensland’s Sunshine Coast is a transition economy, one that is evolving from a weak economy reliant on unreliable tourism to one with other strong factors. The game changer there is the $2 billion University Hospital. It’s a significant event by itself but it’s causing all manner of new ventures to spring up in its shadow.
There’s the Oceanside Kawana Health Hub, the $60 million Health and Social Wellbeing Learning Precinct and the $40 million IRT Woodlands retirement community.
These projects are all consequences of the creation of that massive new hospital. A whole new industry is being created and is helping to make the Sunshine Coast one of the most compelling regional economies in Australia.
Investment in infrastructure and property developments in the Sunshine Coast Region totals around $15 billion. No other regional city in Australia comes close to that level of investment (other than Gladstone, where those three huge gas facilities are under construction).
Terry Ryder is the founder of <a href="https://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://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
If you missed our free webinar with Terry Ryder, 'The Best and Worst for 2015: Top 5 Hotspots and 5 Places to Avoid', you can <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=2e37cb3570&amp;e=035e81ff9a" target="_blank">watch the video or download the slides here</a>.
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terryryder-YECXbqmri2

My basic formula for identifying hotspots: Terry Ryder

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One of the specialist property magazines, for lack of an original idea, is featuring what it calls “the age-old stoush” of capital growth v cash flow.
This recurring theme in property media – whether you should buy for good capital growth or for good cashflow prospects – shows a fundamental lack of understanding.
Investors do not have to make that choice. A good property investment will provide both.
There are myriad opportunities around Australia to secure properties that pay their own way and are located in areas with the core drivers to deliver good capital growth as well.
Currently, the best income yields in the nation are found in Cairns. The days of double-digit yields in mining towns and resources-driven regional centres are over, for now at least. Cairns, meanwhile, can readily provide investment properties with gross yields in the 7-8% range.
Cairns is also a strong prospect for ongoing capital growth. The North Queensland centre has a poor record but in hotspotting the recent past is irrelevant. The future is another country.
Cairns’ future will be different from its past because there is fundamental change taking place in the city’s economy. Like others including the Sunshine Coast and Port Macquarie, Cairns is re-inventing itself, so that it is no longer just a tourism town.
Tourism-based economies are fragile and habitually bad real estate performers. It’s only when economies diversify through infrastructure spending and creation of new industries that their real estate performance improves.
Cairns is undergoing that process. There is major spending on infrastructure, city leaders are working hard to encourage economic diversity and, as a bonus, tourism is thriving again.
In New South Wales, Dubbo is one of the strongest regional economies. It offers an attractive package for investors: affordable property with good rental returns, underpinned by a growing population, a strong economy with diversity and plenty of jobs generation.
It’s not too hard to find houses with returns above 6% and the median house price has increased 10% in the past year. In other words, good cashflow and good capital growth is on offer.
At the Victoria-NSW border, Albury-Wodonga is one of the nation’s most important regional economies, underpinned by a strategic location with strong road, rail and air links. Houses are typically priced in the $200,000s and rental yields in the 6-7% range are common.
In the past 12 months, many suburbs including <a href="/news">Lavington</a>, <a href="/news">North Albury</a>, <a href="/news">West Albury</a>, <a href="/news">Wodonga </a>and <a href="/news">West Wodonga</a> recorded median price growth of 8% and above.
There are myriad examples in regional Australia. Toowoomba and Rockhampton in Queensland, Tamworth and Goulburn in NSW, and Bendigo and Ballarat in Victoria, are all strong growing cities that offer the desired combination of good cashflow and superior growth.
It’s a formula that can also be found in capital cities. Brisbane and Adelaide will be among the growth leaders in 2015 and both present options for investors seeking the best of both worlds.
In affordable Logan City, the municipality the bridges the urban gap between Brisbane City and Gold Coast City, eight suburbs have recorded median price growth between 8% and 13% in the past 12 months.
There are also a dozen suburbs with median rental yields in the 5.7% to 6.7% range.
The most compelling location in Adelaide, in terms of 2015 growth prospects, is the municipality of Salisbury in the city’s north. This is an area with good infrastructure and lots of major job nodes. Most of the LGA’s suburbs have median prices below $300,000, with typical yields in the 5.7% to 6.5% range.
Virtually every suburb in this precinct has shown some sort of capital growth in the past year, with more to come in 2015.
The question occupying the minds of property investors is not whether they should chase capital growth or cashflow, but which of many available options should they choose to achieve both.
Terry Ryder is the founder of <a href="https://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://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
Terry will be participating in a webinar on 'The Best and Worst for 2015: Top 5 Hotspots and 5 Places to Avoid' on 3 February.
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Best of both worlds - the cities where you can find capital growth and cash flow: Terry Ryder

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In February last year, NAB released a list of suburbs tipped to enjoy above average capital growth over the next year.
The list was compiled from responses from a panel of respondents involved in the real estate industry, including agents, developers, fund managers and investors.
This year, 28 <a href="/expert-insights/investing/the-28-suburbs-tipped-to-enjoy-above-average-2015-price-growth-nab-economics-survey">outperforming picks</a> have been chosen including Sydney's Penrith, Melbourne's Essendon and Perth's Kelmscott.
But how did last year's picks fare?
Property Observer has cast an eye over the 27 suburbs picked out by NAB's respondents at the beginning of 2014, excluding the city centres – Darwin, Brisbane, Melbourne, Sydney and Perth – due to lack of specificity.
The suburb where NAB's respondents seem to have gotten it the most wrong is Perth's Subiaco.
Rather than enjoying "above average capital growth", Subiaco saw, according to Corelogic RP Data, that unit prices decline over 2014 by 6%. There was 1.8% median house price growth over 2014.
CoreLogic RP Data's December figures report that Perth wide, house prices were up 2.1% for the year, while units were up 1.9%.
This Subiaco house, at <a href="https://www.realestate.com.au/property-house-wa-subiaco-118078359" target="_blank">72 Townshend Road</a>, sold for $810,000 in October last year (pictured below). The price was just 1.8% up from the $795,000 vendors paid for it in 2009.
<img src="/images/2015/01/28/subiaco%20house.jpg" alt="">
Buyers paid $340,000 for <a href="https://www.realestate.com.au/property-apartment-wa-subiaco-117587127" target="_blank">10/36 Bagot Road in Subiaco (pictured below)</a> in August last year, only $5,000 than vendors paid in 2009 – a difference of just 1.4% over five years, or average annual growth of 0.03%.
<img src="/images/2015/01/28/subiaco%20unit.jpg" alt="">
However, NAB's respondents certainly did get it right with their pick of Liverpool, in Sydney.
According to CoreLogic RP Data, Liverpool houses recorded 24% median price growth over 2014, well above the city's already impressive average of 13.4%.
The south-western suburb had a median price of $629,000 in December.
After just six months of ownership, the owners of <a href="https://www.realestate.com.au/property-house-nsw-liverpool-118478895" target="_blank">the Liverpool home</a> pictured below flipped it for $625,000, $89,000 higher than their purchase price of $536,000.
<img src="/images/2015/01/28/liverpool%20house.jpg" alt="">
Over 2014, Liverpool's median unit price increased by 12.2%, while Sydney's median unit price was up 8.3% for the same period.
In November last year, the unit at <a href="https://www.realestate.com.au/property-apartment-nsw-liverpool-118305579" target="_blank">10/5 Charles Street in Liverpool</a> sold for $115,000 more than its October 2013 purchase price.
<img src="/images/2015/01/28/liverpool%20unit.jpg" alt="">
The vendors paid $230,000 for the home in 2013, before trading it for $345,000 in November – a 50% increase in just 13 months.
Here are NAB's Residential Property Survey 2014 picks for above average growth, and their actual 2014 median price capital growth, according to CoreLogic RP Data.
South Australia:
<ul>
<li>St Peters Houses: 5.6% Units: 0%</li>
</ul>
Western Australia:
<ul>
<li>
<a href="/news">Mandurah</a> Houses: 5.6% Units: 9.8%</li>
</ul>
<ul>
<li>Maylands Houses: -2.6% Units: 0.0%</li>
</ul>
<ul>
<li>South Lake Houses: 4.8% Unit: 9.9%</li>
</ul>
<ul>
<li>Subiaco Houses: 1.8% Units: -6%</li>
</ul>
Queensland:
<ul>
<li>Bulimba Houses: 16.1% Unit: 3.9%</li>
</ul>
<ul>
<li>Caboolture Houses: 3.5% Unit: -8%</li>
</ul>
<ul>
<li>New Farm Houses: 9.2% Unit: 4.2%</li>
</ul>
<ul>
<li>Toowoomba (City) Houses: 4.7% Units: -22%</li>
</ul>
<ul>
<li>West End Houses: 6.6% Units: 0.4%</li>
</ul>
New South Wales:
<ul>
<li>Blacktown Houses: 18.7% Units: 14.9%</li>
</ul>
<ul>
<li>Darlinghurst Houses: 26.1% Units: -4.8%</li>
</ul>
<ul>
<li>Dulwich Hill Houses: 8.1% Units: 21%</li>
</ul>
<ul>
<li>Liverpool Houses: 24% Units: 12.2%</li>
</ul>
<ul>
<li>Marrickville Houses 11.1% Units: 13.1%</li>
</ul>
<ul>
<li>Penrith Houses: 20.9% Units: 15.1%</li>
</ul>
<ul>
<li>Potts Point Houses: 0.0% Units: 3.7%</li>
</ul>
<ul>
<li>Rosebery Houses: 5.6% Units: 16.3%</li>
</ul>
<ul>
<li>Surry Hills Houses: 16.5% Units: 17.6%</li>
</ul>
Victoria: 
<ul>
<li>Cheltenham Houses: 10.6% Units: 7.8%</li>
</ul>
<ul>
<li>Frankston Houses: 6.3% Units: 4.1%</li>
</ul>
<ul>
<li>Glen Iris Houses: 9.5% Units: 3.5%</li>
</ul>
<ul>
<li>Hastings Houses: 0.9% Units: 8.6%</li>
</ul>
<ul>
<li>Highett Houses: 13.9% Units: 3.1%</li>
</ul>
<ul>
<li>Point Cook Houses: 3.4% Units: -13.5%</li>
</ul>
<ul>
<li>Richmond Houses: 10.3% Units: -0.2%</li>
</ul>
<ul>
<li>Toorak Houses: 7.8% Units: 4.9%</li>
</ul>
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jrichardson-uRX5hFdKfN

Liverpool took off, but Subiaco was a dud: winners and losers in NAB's 27 survey predictions for 2014

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Miles, which is often considered together with Chinchilla, is a small town in the Surat Basin Western Downs area in Queensland.
It recently fell onto Property Observer’s radar again due to its status as the highest yielding suburb in Queensland for houses, at 11.17%,  according to RP Data.
Half an hour west of Chinchilla and about an hour and a half east of Roma, Chinchilla, Miles, Roma and Dalby are regularly mentioned in the same breath. However, Chinchilla offers a 5.88% rental yield, while Roma boasts 7.09% and Dalby's yield is recorded at 5.52%. Not quite the striking on-paper statistics seen in Miles.
Click to open in new window:
<a href="/images/2014/11/13/miles%20nov%2013%20one.png" target="_blank"><img src="/images/2014/11/13/miles%20nov%2013%20one.png" alt=""></a>
Originally known as Dogwood Crossing when established in the 1800s, Miles is a country town with over 20 historically important buildings and with a strong agricultural background.
Today, it also has a significant mining influence.
According to RP Data, the median weekly advertised rent is $750, with a median price house being $349,000, providing this strong rental yield figure.
However, while this may instantly put the area on some peoples’ hotspot lists, it may be worth taking a closer look.
Over the past three months, the median price movement was down 9.94%, with figure down 8.16% over 12 months. Over the past three years, the median price has increased by 39.60%, representing an average annual growth of 16.92%.
With a seven year average hold period, even with the 102 days on market average, it’s not looking too bad for the long-term property owners in Miles.
In fact, Matusik Property Insights, writing a report about Miles a couple of years ago, pointed to the fact that almost 10% of Queensland’s manufacturing gross domestic product is produced within the Western Downs region, with the energy resources sector boasting the potential to more than triple their gross regional product in the years ahead.
“Recently there have been a number of gas fired power stations built with others being proposed. There are both solar generated power and wind generated power projects being proposed in the Western Downs,” their report noted.
“However, the Surat Basin is not dependent on any one industry or commodity, with coal, gas, power generation, solar energy, coal seam gas, water projects, rail infrastructure, farming and supporting businesses all present in the area. This means the area’s economy is protected from downturn if one industry sector endures a bad period. In fact, there are over 4,500 businesses in the Western Downs Regional Council according to official figures from the Australian Bureau of Statistics (ABS).”
They noted that a large number of new workers were expected for Chinchilla, Miles and Roma, with an expected figure of more than 42,000 workers required to service the new projects in the Surat Basin (you can see a list of those near Miles over the page).
The number of transient miners in the area was expected to increase from 4,000 to 16,000 by 2015.
“To this end, it should be noted that during 2010, the Western Downs Regional Council recorded a 57% increase in residential dwelling approvals compared with the previous year.
This reflects the high demand that exists in the area for additional housing arising from the region’s strong levels of economic activity and job creation.”
In July 2012, Surat Basin Property Group’s chief operating officer Jason van Hooft told Property Observer that the opportunities for investors in the Surat Basin are <a href="/news/qld/chinchilla-queensland-mining-hotspot-or-one-underpinned-by-marketeers">“unique in Australia”</a>, pointing to the fact they’d already built and sold 200 house and land packages in Chinchilla.
“For a start, we are not that isolated, being only 3.5 hours' drive from Brisbane, and secondly the towns of Chinchilla and Miles are long established country communities with existing infrastructure, existing thriving communities and broad-based economies," van Hooft said.
“If you like, the resources boom is the icing on the cake for these centres,” he said.
Last year, approval was given for a 3,000 bed mining camp for Miles. Interestingly, <a href="https://www.nexthotspot.com.au/" target="_blank">NextHotSpot</a> pointed to the limitations on capacity in Miles and Chinchilla when picking their hotspot of Toowoomba for this year.
“With major job creation in the Surat Basin on the way (perhaps 27,000 jobs over the next 3 years) and the small towns of Dalby, Chinchilla and Miles unable to accommodate other than in mining camps, Toowoomba becomes a natural capture point for much of the overflow,” they explain.
Looking at house sales that have occurred over this year, there have been remarkably few in Miles.
It seems that this past year has been slow, if not backwards, but that investors holding on for the long term have done well with very few currently selling out to realise losses.
Many property owners purchased at the beginning of the 2000s for $100,000 and below. These investors have seen their properties doubling, or more, on sale price.
However, gains have been slower since 2010. Two properties purchased in 2011, for $290,000 and $140,000, sold for a $25,000 gain and a $35,000 gain respectively.
A March 2012 buyer, who purchased a large home for $750,000 and was noted in the listing as “motivated”, took a $100,000 drop to sell in June this year.
Another property, on Daisy Street, sat on the market for 497 days, initially listed at $240,000 in November 2012. It finally achieved $225,000 in April 2014.
Perhaps capital gains are not as forthcoming this year.
But what about that double figure rental yield that remained elusive for <a href="/news/qld/can-you-really-get-a-double-digit-rental-return-in-queenslands-mount-morgan">our runner up town of Mount Morgan yesterday</a>?
Rising rents have been an interesting experience in Miles. The Residential Tenancies Authority of Queensland in 2012 noted an increase in Miles  from $300 to $550 per week for a  three bedroom house, as well as in Chinchilla from $320 to $375, over the year to the December quarter 2012. Looking at their more recent data (based on bonds lodged), it seems that four bedroom homes are rented at a median $450 per week and three bedrooms at $375. Last year, this was $550 and $700 respectively. There was weak or no data for townhouses or apartments.
The major thorn in the side for Miles is the scary figure that emerges when looking at the vacancy rate. With a 28.2% vacancy rate recorded by SQM Research, managing director Louis Christopher told Property Observer when vacancy rates get that high, it’s worth looking a little deeper and being suspicious of the figures.
Looking for new developments, Surat Basin Homes’ The Pines Miles ‘Parkland Living’, with House and Land packages from $447,346 has recently seen Stage one and two completely sold, with 135 residences to be sold across the estate. They are particularly aimed towards property investors.
Considering that in the 2011 Census a total of 1,854 people were counted, any development of this size has the capacity to have a big effect on the local property market.
Hotspotting.com.au’s Terry Ryder told us that the towns of the Surat Basin, including our focus of Miles, have been afflicted by the same problems seen in Gladstone and Mackay.
“The demand forces are still strong but developers have piled in and oversupplied the markets in that area, including also Chinchilla,” said Ryder.
“Miles has had exceptional price growth in the past five years, but in the past 12 months the median price has dropped 27%. Average time to sell a house in Miles is now six months and discounting is close to 20%.
“The number of house sales in Miles in the past five quarters have been 17, 10, seven, three and zero,” he said.
“Developers have an incredible capacity to destroy boom markets and Miles is yet another example.”
When searching the rental listings, it’s clear that an abundance of new properties do exist. Looking for houses only, and not including surrounding suburbs or office-homes, approximately 78 rentals remain. Rent per week ranges from as low as $200 per week for a two bedroom, one bathroom “tidy” home to $1,200 per week for a five bedroom, six bathroom family offering.
One of the listings was undisclosed.
The rest currently available fall into these brackets:
$700 or more: 4
$600 to $699: 7
$500 to $599: 14
$400 to $499: 25
$300 to $399: 19
$200 to $299: 7
Assuming we owned a home that we were aiming to rent for the upper brackets, it appears that the standards are quite high if you’re aiming for a quick tenant – particularly with that amount of competition on the market.
Property Observer looked at the current rentals and found that 41 were advertised as fully furnished, 14 were brand new with a further 12 mentioning they were close to new or in a ‘new estate’. Another 19 advertised the property as renovated.
Of all the listings, eight offered rental incentives, such as free rent, or the ability to negotiate with the landlord on the price.
All in all, it seems that the investors who did the best in Miles did so some years ago, although this situation may change with a number of projects coming up.
Photo of Miles main street courtesy of <a href="https://commons.wikimedia.org/wiki/User:Mattinbgn" title="User:Mattinbgn">Mattinbgn</a>/<a class="mw-mmv-license cc-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank">CC BY-SA 3.0</a>.
See over page for a list from Advance Western Downs in 2012 for projects planned in Miles.
<hr class="system-pagebreak">
According to Advance Western Downs, a number of projects are planned, completed or underway in Miles and close by locations as of 2012.
Here are the projects:
Australia Pacific LNG - coal seam gas to LNG project (Construction)
Columboola South Transmission Network - part of power supply project (Construction)
Columboola Substation - part of power link project (Construction)
Columboola to Wandoan South Transmission Project - transmission line and substation (Construction)
Queensland Curtis LNG - Coal seam gas development (Construction)
Arrow Surat Pipeline - Connected Surat Basin coal seam gam with LNG facility in Gladstone (Planning)
Cameby Downs Expansion Project - Increase mine rate (Planning)
Columboola Project - Mining operation JV between MetroCoal and SinoCoal (Planning)
Nathan Dam and Pipeline - Water supply for mining, power, urban, agriculture operations (Planning)
Surat Gas Project - Coal seam gas exploration expansion (Planning)
Cameby Downs Mine Project - Coal mine (Operation)
Condamine Power Station - Coal seam gas power station (Operation)
Kenya to Chinchilla Weir Pipeline - water supply during coal seam gas project (Proposal)
Columboola Creek Crossing - coal mine (Proposal)
Davies Road - coal mine (Proposal)
Rywung - coal mine (Proposal)
Surat Project - exploration project (Proposal)
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jduke-EHk3XBmHkn

Miles, Queensland: The limping Surat Basin hotspot

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Earlier during 2014 Apartments.com.au highlighted the strengthening momentum <a href="/news/hot-or-what-the-collingwood-apartment-juggernaut-rolls-on">Smith Street</a> Collingwood was gathering as one of Melbourne's must-live destinations. With the apartment development landscape in the area changing rapidly, it pays to once more visit the current state of play in terms of Smith Street and Collingwood as a whole.

While many have now progressed to construction, a second wave of apartment projects are emerging as a multitude of developers look take advantage of continuing buyer interest in the suburb.

<h2>At construction</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image22.jpg" rel="gallery-all" title="All Collingwood projects currently under construction"><img alt="" class="image-article-full-width-580px" height="763" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image22.jpg?itok=Kno1Nc95" title="All Collingwood projects currently under construction" width="580"></a>

<figcaption>All <a href="/developments/collingwood-vic-3066">Collingwood projects</a> currently under construction</figcaption></figure>Eight major apartment projects are currently at various stages of construction, yielding in the vicinity of 980 apartments. With completion for the majority expected mid to late 2015, Collingwood will see an appreciable swell in residents at these projects progressively achieve completion.

Seen above in clockwise fashion are <a href="/buildings/you-and-i-450-smith-street-collingwood">You and I</a>, Oxley Apartments, <a href="/buildings/41-peel-street-collingwood">41 Peel Street</a>, <a href="/buildings/yorkshire-1-robert-st-collingwood">Yorkshire Brewery</a>, <a href="/buildings/little-ox-2-johnston-street-collingwood">Little Ox</a>, <a href="/buildings/tapestry-apartments-80-stanley-street-collingwood">Tapestry Apartments</a> and <a href="/buildings/oxford-peel-22-peel-street-collingwood">Oxford &amp; Peel</a>. Last but not least is <a href="/buildings/smith-co-132-172-smith-street-collingwood">Smith&amp;Co.</a> which under developer Banco Group announced on Apartments.com.au yesterday the final release of extra spacious apartments over the top levels of the development.

<h2>Registration and sales</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image27.jpg" rel="gallery-all" title="Ever closer to construction; projects at registration and sales"><img alt="" class="image-article-full-width-580px" height="405" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image27.jpg?itok=gGOtAWce" title="Ever closer to construction; projects at registration and sales" width="580"></a>

<figcaption>Ever closer to construction; projects at registration and sales</figcaption></figure>In between the construction boom and surge of new projects in their infancy a handful of developments are seeking to make the transition from sales to reality. Shown as accepting registrations of interest on developer Preview Property's website, <a href="/buildings/this-is-collingwood-60-66-islington-street-collingwood">Islington Apartments</a> joins Angelo Property Group's <a href="/buildings/haus-apartments-416-smith-street-collingwood">Haus Apartments</a> as the two projects most likely to progress to construction next, with the latter having already completed site demolition.

Factoring in <a href="/buildings/this-is-collingwood-60-66-islington-street-collingwood">9 Smith Street</a> and The Patersons which also at sales and front Smith Street yet are considered to be in Fitzroy, the four projects may well add in excess of 250 apartments to the area.

<h2>The new wave</h2>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image35.jpg" rel="gallery-all" title="The next wave lining up Collingwood"><img alt="" class="image-article-full-width-580px" height="889" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image35.jpg?itok=cUp3S1lG" title="The next wave lining up Collingwood" width="580"></a>

<figcaption>The next wave lining up Collingwood</figcaption></figure>Here are the seven latest Collingwood projects in waiting, with only <a href="/buildings/the-lantern-195-wellington-street-collingwood">195 Wellington Street</a> holding approval. Clockwise once more <a href="/new-apartments/386-smith-street-collingwood">386 Smith Street</a>, <a href="/buildings/peel-by-milieu-47-peel-street-collingwood">109 Wellington Street</a>, <a href="/buildings/little-oxford-7-little-oxford-street-collingwood">7 and 9-15 Little Oxford Street</a>, <a href="/buildings/trilby-466-smith-street-collingwood">466-482 Smith Street</a> and <a href="/buildings/28-stanley-street-collingwood">24-28 Stanley Street</a> find themselves at planning while Koúl Property enters the suburb with their proposed predominantly brick building at 203-205 Johnston Street which has yet to hit the official planning channels.

These projects combined are slated to hold in excess of 250 apartments; while the number of apartment developments continues to flow, the smaller site size dictates that fewer apartments will be contained within each development on average.

Not yet submitted for approval are two additional projects which will add approximately 200 additional apartments. Angelo Property Group is set to go again with 365 Smith Street which in time will host in excess of 100 one and two bedroom apartments and retail tenancies fronting Smith Street. Gurner also plans a return with 107 Cambridge Street (following 24-28 Stanley Street) which is expected to carry 92 apartments in an Elenberg Fraser-designed complex highlighted by an almost lace-like facade.

All in all the mass of residential developments within Collingwood ensures Apartments.com.au will be writing about the area for some time to come.
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silvermb

Hot or what? The Collingwood apartment juggernaut rolls on

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The most recent Real Estate Institute of Queensland (REIQ) statistics show that rental markets remain tight, with south-east Queensland’s Logan and Ipswich becoming strong rental hotspots for investors.
REIQ CEO, Antonia Mercorella, said that the latest Residential Rental Survey, conducted at the end of September, found that just four of Queensland’s 16 major regions recorded significant changes in vacancy rates.
She noted that this is evidence of a two-tier residential rental market across the state.
“Logan and Ipswich are emerging as the south-east’s rental hotspots as tenants move further afield from inner-Brisbane in search of more affordable rents,” Mercorella said.
“For the rent you’d pay for a three-bedroom house in Brisbane, you can get a four bedroom house in Brisbane’s outlying areas for up to $65 less a week.”
She noted that, for this reason, Logan and Ipswich are now very tight rental markets with the lowest vacancy rates in the Greater Brisbane region.
By the close of September, Brisbane City LGA recorded a 2.3% vacancy rate, relatively stable since the end of June.
“Brisbane’s middle to outer suburbs – those 5-to-20 kilometres from the CBD - recorded a slight easing in vacancy levels, up 0.2% to 2% at the end of September,” she said.
“The city’s inner suburbs, on the other hand, recorded a vacancy level of 2.9%, down from 3.4% at the end of June.”
The Residential Tenancy Authority’s records of median weekly rents for the September quarter also noted relatively steady rents across the LGA, with greater Brisbane returning to a vacancy rate seen 12 months ago – 1.7%.
“Vacancy levels in the Moreton Bay and Redland City council areas remained relatively steady over the three months to September, with both recording 1.8%,” she said.
“While not quite as tight as Logan and Ipswich, strong investor activity and tenant demand are setting the scene for competitive rental markets in both LGAs.”
Logan City’s vacancy rate currently sits at 1.5%, with Ipswich City at 1.6%, both down 1.4%.
Picture courtesy of Wikimedia Commons/Clarebear/ <a class="mw-mmv-license cc-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank">CC BY-SA 3.0</a>.
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Logan and Ipswich emerge as south-east Queensland rental hotspots: REIQ

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There are eight regional cities expecting capital growth above double digits over the next three years, according to the Australian Housing Outlook 2014-2017 prepared by BIS Shrapnel for QBE.
The cities are located in New South Wales, Victoria and Brisbane.
Here are the markets QBE is tipping to grow:
New South Wales
Newcastle: Total price growth of 15% forecast for 2014/2015 and 2015/2016, accelerating in the latter year as affordability in Sydney becomes more challenging and outward migration picks up. Minimal increases expected in 2016/2017, resulting in total growth of 17% over the three year horizon.
Illawarra: The local rental market is tight, with vacancy rates low. Price growth is expected to be 7% per annum over 2014/2015 and 2015/2016, with rises around 1% in 2016/2017, to a total of 16% over the three years.
Victoria
Ballarat: With growth below that of Geelong and Bendigo over 2013/2014, population growth has remained strong and vacancies tight. Prices are expected to rise by a total of 11% in the three years to 2016/2017.
Bendigo: A strong economic environment and the new $600 million Bendigo hospital is underpinning employment. As a result, 6% growth is forecast over 2014/2-15, although a progressive slowing will then occur. As of June 2017, the three year growth is expected to total 10%.
Queensland
Gold Coast: A total 15% growth is forecast for the three years to 2016/2017. This is on the back of prices down 16% from peak in real terms as of June 2013. A pick up in the construction sector, and infrastructure will help underpin growth.
Sunshine Coast: A total 14% increase is expected over the three year period on the back of the Sunshine Coast University Hospital, and strong intrastate and interstate migration.
Townsville: Vacancy rates increased over the past 12 months, with the median price dropping by 1% due to the impact of fiscal consolidation on jobs. However, conditions are expected to improve to a total 10% growth over the three years.
Cairns: Showing signs of a recovery, vacancy rates have tightened with a lack of supply coming onto the market. The median house price has already seen a 10% gain, and can expect a further 14% over the next three years as the tourism sector strengthens.
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