Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Investment

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GUEST OBSERVER
Every year the spring market attracts massive attention. September is seen as a litmus test for the rest of the year and a stern assessment of how resilient the property market really is. It’s the AFL Grand Finals of real estate – which, oddly enough, is on at the same time.
This year’s been no different. After a very strong winter, especially in Sydney and Melbourne, the pressure on the September markets has been huge. This has been exacerbated by the stringent restrictions brought in on investment loans by the major banks. Also, cautionary warnings of apartment oversupply have meant that investors are studying the market with high-beamed intensity.
But how much can we really read into September? Is it really just a snapshot in time or is it indicative of long-term market trends?
Let’s start with the clearance rates. Sydney’s clearance rates have slightly dropped as have Melbourne’s. Last year Sydney was hitting the 80% clearance mark regularly, whereas this year it’s been around the mid 70s. The so called “Super Saturday”, the last Saturday of September saw clearance rates in Sydney slip a fraction below 70 percent for the first time this year.  Melbourne has also lost a few points, from around the high 70s to mid 70s this month. However, it’s crucial to remember two important things: this year has seen a record number of properties come onto the market. This has been because such a buoyant winter has caused many owners to try and cash in quickly. So the market has been absorbing a flood of properties and the increased competition has led to a slight drop in clearances. A result in the 70% region for September is still very strong.
The second thing worth noting is that while clearance rates have dropped, prices really haven’t. So while various media outlets have been quick to prophesy doom and gloom there’s absolutely no evidence of falling prices. In the same article in Sydney Morning Herald’s Domain about the drop in clearance rates there was news of a Darling Point property going for almost $3 million above reserve. Auction results generally have shown that sales prices are still strong. The market is robust enough to cope.
There is a clear confidence in the local markets as shown by the numbers of investors going to auction. The markets have themselves repaid this confidence with still strong auction results and relatively short turnarounds.
To get a handle on the national figures you need to delve deeper. There is a clear disparity between cities like Sydney and Melbourne which have been relentlessly driving the property markets upward and that of cities like Darwin, Perth and Canberra which are all experiencing negative growth and sliding clearance rates. This then averages out the national sales figures. 
The media has also been a big factor. Every week there’s been warnings of an imminent burst in the property bubble or a collapse in prices. This can cause a flow on panic factor, with investors rushing to sell before doomsday arrives. So far doomsday is still running late.
It’s important to remember that since 2009 Sydney has recorded a phenomenal growth of 76 percent according to Core Data figures. If you bought a property back then, on average, you would have seen this jump by around $300K in the last six years. Sydney and Melbourne remain highly desirable cities to live in. They’ve shown their resilience and ability to absorb wild property price swings in the past. They’re both international cities highly attractive to overseas investors. Whilst an oversupply of apartments in both cities may slow down parts of the market in the short term - it will inevitably catch up again. 
Beyond the two big cities, outlying regional centers such as Wollongong in NSW and Geelong in Victoria have been experiencing record property price booms as investors start to look outwards.  In the Illawarra region, for instance, auction clearances are going over 80%, a truly remarkable outcome.
To understand the clearance rates each city has to be broken down into its geographic areas. These can wildly differ. For example, Sydney’s North Shore has been having very good clearance rates and the eastern suburb properties are firing yet the south western suburbs are identifiably weaker. In fact clearance rates in the south west have fallen in the last year from around 69.8% to 54.9%. This is a pretty dramatic drop. But does it speak for the rest of the heated Sydney market? Probably not.
So ultimately it comes down to picking the right long term growth suburb and choosing the ideal property type. A good long-term investment property will not be affected by the vagaries of the spring market. This is why it’s always an excellent idea to chat to a professional who can offer solid research and help create a strategy that bypasses the flurry of the market.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
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SamKhalil-UNoWQ73CmG

The property doomsday is running late: DPN's Sam Khalil

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If you listen to people who see real estate through generalised numbers, you would never invest anywhere in regional Australia.
There is no shortage of commentators ready to quote average numbers that, at face value, downgrade regional cities and towns as places unworthy of investor attention.
If the average capital growth for regional Australia is less than the average for the capital cities, it’s taken as evidence that the regions are inferior. That blanket assessment covers all regional locations.
The commentators should know better (some of them do, I’m sure, but don’t care about accuracy or balance) and so should the media.
The average for regional Australia includes every depressed or drought-affected country town on the continent. It includes all those locations impacted by the decline in the resources sector or by the growing use of workers camps to accommodate fly-in-fly-out workers, which has created price decline in specific areas. 
The generalised figure is dragged down by all those negative situations and disguises the locations which don’t fit the apparent norm. Many regional cities are above average and some are exceptional.
Locations like Toowoomba in Queensland, where price growth has been in double digits over the past 2-3 years, or Gosford in New South Wales, where many suburbs have delivered growth higher than Sydney’s.
Investors need to consider the advantages of focusing on regional Australia, which can present a win-win-win situation: lower entry prices, better rental yields and great prospects for capital growth, if they do their research and identify the best places to buy.
Then they need to consider the fundamentals of what makes a good destination for their investment dollars: a large and growing population, a strategic location, economic diversity, good infrastructure, services that attract residents from the wider area, good transport links to key locations like the nearest capital city, affordable prices, low vacancy rates and strong rental yields.
Across the vast continent of Australia, there are many towns that simply don’t fit the criteria.
That’s irrelevant. What matters are the ones that do.
Yesterday Prime Minister (for now, anyway) Malcolm Turnbull made an announcement that’s pertinent to this discussion. He announced a contract for the construction of army vehicles worth over a billion dollars and one that will secure many hundreds of jobs in the Victorian regional city of Bendigo. 
Thales Australia, which will manufacture the new armoured personnel carriers, is one of many major businesses that are based in Bendigo but operate nationally. 
Bendigo is one of those regional cities that tick most of the investment boxes. It’s strong, it’s growing, there’s big spending on new infrastructure, it has great economic diversity and it now has faster connections to Melbourne through the $5 billion regional rail link. 
It offers the affordable prices and attractive rental yields that you usually cannot find in Melbourne and other major capital cities.
But if you looked only at the sweeping generalisations of shallow commentators, you would never consider it.
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> 
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terryryder-YECXbqmri2

Advantages of regional property investment: Terry Ryder

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The hardest sell in Australian real estate is convincing anyone they should invest in Tasmania.
It’s been many years since I wanted to try. But the time has arrived to put Tasmania back on the investor radar screen.
For years Tasmania has ranked last or second last among the states and territories on most economic and property indicators. It has a reputation, justified in many cases, as a place that lacks growth of any sort that matters, whether it be population, economic or housing prices.
It’s a cruel reality that it’s easy to get a bad reputation and very hard to lose it. Tasmania is emerging from the deep doldrums that had it ranked last on the list of investment possibilities for most Australians – but it will take time to convince anyone.
But, for the first time in many years, Tasmania’s main cities have been included in the Hotspotting reports that forecast of the growth markets of the future.
Slowly, but steadily the news is getting better. Economic indicators have improved and market dynamics are more positive.
A recent NAB report gave a generally optimistic outlook for the Tasmanian economy. It found that the state’s economic outlook had improved over the past year, thanks in part to increased business investment and a domestic tourism renaissance.
“This trend is set to continue as the Australian dollar falls, making domestic holidays more attractive for Australians,” it said. “Meanwhile, a falling unemployment rate alongside a rising participation rate suggest that the fundamentals in the Tasmanian labour market are improving. 
“This is further supported by a slowing rate of interstate migration, which points to a stabilising labour force.
“Stronger activity in dwelling construction is also expected to contribute positively to growth.”
The report forecast economic growth of 2.25% in 2015-16 and 2.0% in 2016-17. 
The tourism revival is a big part of the brighter picture. A record 988,000 interstate travellers crossed Bass Strait in 2014-15, a 13% increase. With international visitors up 22%, overall visitors totaled 1.15 million.
With Qantaslink adding 11 return flights to Hobart per week, meaning an estimated 60,000 additional visitors per year, that record may be surpassed.
Visitor spending rose 9% (or $150 million) to $1.89 billion last financial year, so the industry packs some punch for the state’s economy.
Against that background, property markets have been slowly improving over the past 12-18 months. Sales volumes have grown in both Hobart and Launceston – in baby steps, but heading in the right direction.
Affordability is a big factor in favour of the Tasmanian market. Hobart’s median dwelling price of $320,000 looks attractive to mainland investors when placed alongside Melbourne’s $560,000 and Sydney’s $770,000.  
Hobart also looks good from the viewpoint of rental returns, particularly units which have a median rental yield around 5.5%, the best among the capital cities. The median house yield, 5.2%, is second only to Darwin.
It brings to mind the last time Tasmania had a genuine property boom, back in 2003/2004, when it caught the property invesetment wave from the mainland. With Melbourne prices now high after a couple of years of solid growth, we may see a similar pattern of behaviour this time around.
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> 
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Tasmania the hardest sell in Australian real estate: Terry Ryder

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GEUST OBSERVER
At a time when there are stark differences in the performance of various property markets around Australia, investors need to remain level headed.
Many property investors are all too easily swayed by what everyone else is doing.
Whether it be their friends, family or colleagues or what they’ve seen in the media, many investors will feel a need to do as other do, in other words, follow the pack.
While I won’t go into the reasons behind this behaviour – I’m a qualified accountant not a psychologist – to me it’s absurd to largely base your investment decisions on what others are doing. 
Right now, the property markets in each of Australia’s capital cities are recording quite contrasting performances.
Indeed, Sydney and Melbourne are experiencing substantial capital growth while prices in other cities, such as Perth and to a lesser extent Brisbane, have remained fairly subdued.
While there a number of factors that need to be taken into consideration when purchasing an investment property, one of the fastest ways to diminish your wealth is to overpay for your asset. 
Investors typically overpay during a boom market, when confidence is high and there’s no slowdown in sight.
On the other hand, significant profits can be made when investors buy during a flat market and capitalise on the ensuing upswing in prices.
This is simply counter-cyclical investing – buying when everyone else is selling and selling when everyone else is buying.
While ebbs and flows will always occur in property markets, investors need to remember two things.
<ul>
<li>Wealth creation through property investment is a long-term strategy </li>
<li>Investing at the wrong time can significantly set you back, while purchasing at the right time can give you a massive boost</li>
</ul>
Unfortunately, many property investors often get caught up in the hype and become followers, instead of leaders.
 
Damian Collins is the founder and managing director of Momentum Wealth and can be contacted <a href="https://www.momentumwealth.com.au/damian-collins/" target="_blank">here</a>.
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Don’t be a sheep, be a shepherd: Damian Collins

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Units in Newcastle are so hot right now, according to Herron Todd White, who see the demand driven by the number of recently-completed projects that began in 2013 and 2014.
Herron Todd White's September Month in Review found prices agreed to at the time have increased significantly creating the "holy grail" for off the plan purchasers and property speculators. 
The review noted that this is not always the case in Newcastle and only comes around during the growth phase of the market. 
"Speculators who purchased units off the plan in 2006 and 2007 had to wait for quite a period before there was capital growth joy," the report noted.
"A recent conversation with a leading local real estate agent revealed all but several units were pre-sold in a 90 plus unit complex with 10 purchasers on a waiting list should any initial purchasers wish to cash out prior to completion of the complex. This highlights the strength of the unit market, especially towards the more affordable end of the market.
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"If we were to look at the smaller unit development market, the mums and dads level of undertaking, it appears that activity in this sector is up from previous levels significantly. Anecdotally the number of valuations we have completed where development approval has been granted for three to five units is up significantly from 12 months ago."
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Newcastle apartment market so hot right now: Herron Todd White

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NFL San Francisco 49ers rookie Jarryd Hayne, currently chasing his American dream, has a property investment portfolio back home in Sydney.
The priciest is a terrace in Darlinghurst that cost $1.58 million in 2013.
He recently rented it out with a $1,100 weekly asking rent through the Our Estates agency. 
What caught my attention was prior attempts to lease the West Avenue property at $1,700 a week.
There was a simple reason for the sharp rental difference - Hayne had bought it fully furnished and until recently had continued its short term rental setup.
Only trouble was the $1,700 short term tenants were few and far between - and it needed higher attendance to maintenance than the typical six or 12 month rental agreement.
His gross investment rental return now equates to around 3.6% - which sits between the median yield range of Sydney houses and apartments. 
Gross rental yields are trending lower, according to the CoreLogic RP Data, with Sydney's gross rental yield currently at 3.1% for houses and apartments at 4.1%.
CoreLogic's head of research Tim Lawless noted Sydney rents had increased by around 2.5% over the past year while values have climbed 17.6 per cent higher.
"It is easy to see how yields are getting squashed," Tim Lawless said.
Investors seeking yields will be likewise challenged if they head to other capital cities, as the Melbourne house yield sits even lower at 3% and at 4.1% for apartments.
Risky Darwin ranks as the highest capital on offer at 5.5% yield for houses and for units. National gross rental yields sitting at 7.8% in 1996 are now at a low of 3.5% for houses. 
It is not to say rents aren't constantly rising across Sydney.
Onthehouse calculates house rental growth in Sydney has averaged 4.75% over the past 25 years, putting the typical rental income for a Sydney house at $680 a week and $560 for an apartment. It is $400 outside of Sydney for NSW houses and $345 for NSW units, both reflecting around 5% gross yields.
The REINSW’s latest vacancy rate sits at 1.9% with population growth helping to fill vacant Sydney homes and potentially greater upwards pressure on rents. 
This is especially likely in those suburbs where newly constructed dwelling supply is in short supply. 
The inner-city had Sydney’s highest rate at 2.1% as plenty of newly constructed apartments are completed.
The middle-city sits at 1.7% and the outer-city fell at 1.6%. 
"The low yield scenario has largely been overlooked by investors who appear to be more focused on chasing future anticipated capital gains rather than aiming for cash flow," Lawless noted this week.
After such strong recent price growth there must inevitably come a pause, possibly lengthy.
I'm thinking after three years with around 15% annual price growth, that the investment focus on bricks and mortar ought sensibly shift to being a bit more about the yield.
It is though a rare occurrence for weekly rents to outpace dwelling values for growth as Tim Lawless says since 1996 there have been only two periods - around 2008 and 2011.
I don't see capital city yields returning to the highs of the 1990’s, but is reasonable to presume upcoming improvements in yields. 
The emergence of the more professional longterm SMSFs investors and their retirement income purpose might help shift the focus towards the rental side of the investment.
Then what would be terrific was if it also triggers a shift to long tenure European-style rental agreements. Short term rentals aren't the best foundation for improving anyone's housing situation.  
This article was first published in the Saturday Daily Telegraph.
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49ers rookie Jarryd Hayne reaping Sydney rental yield

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A freehold commercial building leased by the Commonwealth Bank of Australia in the Latrobe Valley town of Morwell, east of Melbourne, has been sold by Ray White Commercial for $1,060,000.
The building on a prominent corner site at <a href="https://www.realcommercial.com.au/property-offices-vic-morwell-500833223" target="_blank">200 Commercial Road, Morwell</a> was sold to an investor by Brett Diston of Ray White Commercial Victoria on behalf of a private owner for a yield of 7.0%.
Mr Diston said the approximately 420 sqm building offered a fantastic investment opportunity.
“The Commonwealth Bank is a long term tenant in the building with a 5+3 year lease in place,” he said.
“The property returns net rental income of approximately $75,000 per annum with 5% annual rent increases.
“It’s money in the bank for our astute purchaser.”
Morwell is located approximately 150km east of Melbourne and is the administrative centre for the Latrobe Valley, the energy production centre for Victoria.
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Freehold Morwell Bank investment sold for $1,060,000‏

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GUEST OBSERVER
The Sydney property market is reasonably discerning. 
With the new APRA guidelines interest rates for investors are higher than for home buyers and already in most cases investors have a 20% deposit which means they have a buffer built in.
Some, particularly those with self managed super funds have hefty deposits.
It is also important to remember that only 30% of Australians actually have mortgages.
Real estate is also attractive as negative gearing creates affordability and there is tax effectiveness and income. First home buyers should not be waiting to enter the market at the right time. It is about buying when you can afford to buy.
If the market shortens rents go up and they are worse off. First home buyers should not be trying to speculate on the property market because you don’t make money in real estate in the short term. Real estate has a seven year cycle so there is no real right or wrong time to buy or sell.
It is not like playing the share market, it has a much longer cycle.
Malcolm Gunning is president of the Real Estate Institute of New South Wales and can be contacted <a href="https://www.reinsw.com.au/imis15_prod/">here</a>.
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Spring Sydney property market is reasonably discerning: REINSW's Malcolm Gunning

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GUEST OBSERVER
We’ve seen a spate of stories and articles recently about how foreign investment is unlikely to slow down. 
There’s been much print around the unabated interest of Chinese investors in Sydney. 
We’ve also read about the eagerness of foreign investors to find building opportunities in Melbourne. There are now predictions that Perth will have another housing boom off the back of foreign investment. So across most of Australia, the enthusiasm for property from overseas buyers is still aflame.
This is partly to do with current world factors – the easing off of capital controls in China; the freeing up of other markets like India and a rapidly growing middle class in various parts of Asia. But this only tells part of the story.
The restrictions brought in by APRA earlier this year and then passed on by the main mortgage lenders were aimed to curb the rising tide of investment. However these measures have plainly had little effect.
Australia is now firmly in the sights of foreign investors and it’s highly unlikely that this will change. Here are some reasons why:
1) Growth of apartments in capital cities: The Asian investors, especially, are very attracted to apartments as an investment. It’s a commodity they understand well as it’s the mainstay of most major Asian cities. Melbourne has been going through a frenzy of apartment building over the last few years and this doesn’t show any sign of slowing down. With Melbourne predicted to outstrip Sydney in terms of population in the next fifty years, buying an investment property in the city is a pretty safe bet. Sydney also has seen an expansion of apartments into traditional suburban areas such as the North Shore and Sutherland Shire. 
2) Sydney and Melbourne now truly global cities: For many years Australia was in a little bubble and something of a secret tucked away from the world. Most of the investment was European and British. It wasn’t roughly until the 1990s and the determined push to make Australia’s major cities international and cosmopolitan that it really turned up on the radar of overseas investors. Certainly events like the 2000 Sydney Olympics helped promote the country. With major financial headquarters in Sydney and Melbourne, both cities offer an easy and accessible base for the foreign investor.
3) It’s the lifestyle: Australia has an extremely friendly environment compared to other countries. It’s worth noting that much of the foreign investment has been aimed at the eastern seaboard: Sydney, Melbourne, the Gold Coast and other parts of Queensland. The weather, beaches, excellent health care and a small population make it a honey pot for Asian investment. International agency CBRE reports that of the total foreign investment into Australia in the lat few years, two thirds of it is from Asia. This is highly significant as Australia’s lifestyle and environment compares very favourably to most Asian countries and is unlikely to change.
4) Economic advantages: When Australia survived the GFC in 2008, its strong and stable economy meant that it was very attractive proposition to foreign investors. The government’s tax breaks for property investment make it even more so. Other cities like London and Hong Kong have clamped down heavily on overseas investment, making Australia, with its relaxed foreign investment rules, a prime target.
Will this hurt local property investment?
It’s actually unlikely that foreign investment will damage local property investment. While it adds a bit more competition it also boosts the building and architecture industries. It creates jobs and energises the economy. It drives up property prices, but this simply means that capital growth on all investments move upwards. So all investors benefit from the upsurge. It’s also worth remembering that foreign investors are often playing in a different pool. Mum and dad or first time investors may typically go for cheaper investments in the outer suburbs, as a way of cautiously dipping their toes in the water. 
Foreign investors (Asian investors especially) tend to zone in on specific areas and types of dwellings. So while there’s been much alarm sounding and panicking about the effect of foreign investment, there really doesn’t need to be. If anything it confirms the desirability of Australia as a property investment option. And as long as the local investors ensure they have sought out information and a comprehensive service from a property professional they’ll be in a strong position.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
Direct Property Network (DPN) provides clients with an end to end property investment solution from selecting the right property through to settlement and beyond.
 
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Foreign investment and why Australia is attractive: DPN's Sam Khalil

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Brisbane’s western fringe strata office and retail market is strong in suburbs such as Milton and Toowong with some capital values found smilier to those in CBD investments.
Ray White Commercial head of research Vanessa Rader said premium assets in terms of location, size and access demand rents up in the $800 per sqm to $1,050 per sqm gross face range, with some achieving capital values in the region of $17,000 per sqm.
“Prime retail assets are more reasonably priced in the $8,000 per sqm to $12,000 per sqm range and are also strongly food or convenience driven tenancies in locations such as Sherwood Rd, Toowong,” she said.
"While some areas in the western fringe have a high vacancy rate, it’s a different story for a number of quality assets in Milton."
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