Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Joel Robinson

What does it really mean for a building to be 'green'?

A who's who of Australian surfing, business and entertainment has emerged on title records following the completion of Esprit Rainbow Bay, the latest boutique beachfront apartment development by former professional surfer Paul Gedoun's S&amp;S Projects.

The completed project has attracted an enviable collection of owners, many with long-standing ties to the southern Gold Coast and the surf culture that has helped define Rainbow Bay and neighbouring Kirra for generations.

Given Gedoun's own background in surfing, it perhaps comes as little surprise that some of Australia's most recognisable surfers have chosen to buy into the development overlooking one of the country's most celebrated stretches of coastline.

Pezet Matheson directors Jayde Pezet and Todd Matheson launched the project in late 2021, and have managed the sales campaign all the way through to its sell-out and recent completion.

<img alt="Esprit" data-entity-type="file" data-entity-uuid="08fc6261-b84e-4b09-8a44-66d3067fd0d1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-29%20at%208.51.05%E2%80%AFAM.png?VersionId=4AOcb6ETZwNUnMPdTtz1B3pZAIB_jgZ2" />

Former world champion Mick Fanning, who grew up in Coolangatta, secured an apartment in 2023. He paid&nbsp;$2.07 million. Last year he sold his Bilinga home for over $16 million.

Three-time world champion Joel Parkinson also purchased in the development, alongside big wave surfer Mark Mathews. Mathews bought the most expensive apartment in the building, spending just over $4 million.

Joining them is Rip Curl founder Doug Warbrick, whose company helped shape Australia's global surfing industry over the past five decades.

The appeal of Rainbow Bay has extended well beyond the surfing community.

International DJ Paul Fisher purchased an apartment through his investment vehicle, YLB Developments, an abbreviation of his trademark phrase "You Little Beauty".

The purchase comes as Fisher and his wife Chloe are developing their own luxury apartment project further north in Palm Beach. Their boutique beachfront development, Pescado, comprises just seven apartments on Jefferson Lane, which start from just shy of $6 million. The couple intend to retain the two-level penthouse as their Australian base between international touring commitments.

Melbourne Storm coach Craig Bellamy and his wife Wendy have also invested in Esprit, purchasing two apartments after spending decades holidaying on the southern Gold Coast. They also have a luxury apartment in Joe Adsett's Rockpool, less than 400m away from Esprit.

<h2>Boutique project draws owner-occupiers</h2>

Esprit launched in 2021 and sold strongly, with buyers drawn to its boutique scale, beachfront position and contemporary design.

The completed development comprises 94 apartments across 11 levels, offering expansive floorplans designed primarily for owner-occupiers rather than the investor market.

Crowning the building is Club Esprit, pitched as being the Gold Coast's first residential rooftop wellness centre. The roof features a&nbsp;25 metre magnesium lap pool, which is surrounded by wet daybeds and poolside cabanas,&nbsp;multiple barbecue areas,&nbsp;a yoga and relaxation play lawn, and a private dining room with a kitchen scullery, bar, lounges, and an outdoor terrace.

The wellness centre is&nbsp;fully equipped with a Technogym, ice bath, infra-red sauna, steam room, thermal room, and treatment room. The roof has views spanning&nbsp;Rainbow Bay, Snapper Rocks and the Pacific Ocean.

<h2>S&amp;S Projects continues to shape Rainbow Bay</h2>

S&amp;S Projects founder Paul Gedoun has become one of the key figures behind Rainbow Bay's evolution over the past several years.

After establishing S&amp;S Projects, Gedoun has focused on delivering lifestyle-driven apartment developments designed primarily for owner-occupiers seeking a permanent coastal home.

Esprit is Gedoun's third completed project in Rainbow Bay, following Flow and Awaken, both of which achieved record prices for the suburb.

He is now delivering <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, a 38-apartment development on Boundary Street that is currently selling, and has no plans to leave the precinct anytime soon. S&amp;S Projects has also lodged plans for its fifth Rainbow Bay development, an 88-apartment project on Boundary Street featuring a strong wellness focus.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">First look: S&amp;S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street</a>

&nbsp;

&nbsp;

&nbsp;

Who's who of buyers revealed as Esprit Rainbow Bay settles

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Property investment

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<div>It's the end of financial year!</div>
<div> </div>
<div>It was a really strong finish to the year for share markets today, closing up by 1.8 percent. However, the Aussie stock markets finished the financial year down by an underwhelming 4.1 percent.</div>
<div> </div>
<div>With the tax year now having come to an end, it will soon be time to lodge those tax returns.  </div>
<div> </div>
<div>Holiday homes under scrutiny this year</div>
<div> </div>
<div>Last year, the Australian Taxation Office (ATO) designed and implemented new compliance strategies for foreign investors in Australian property, including stakeholder engagement (with advisers, agents, and associations), improved data matching, and a broad investigation strategy into illegal foreign purchases.</div>
<div> </div>
<div>This year - as well as those claiming excessive work-related expenses such as travel expenses, self-education, uniform, mobile phone, and internet costs – it is resident Australians with rental properties that are more likely to be under scrutiny from the ATO at tax time - in particular those will holiday homes.</div>
<div> </div>
<div>During the past year ATO Commissioners have advised Farifax Media and SBS News that they have been in contact with thousands of owners of rental properties in order to clarify their entitlements or request clarification about claims that they've made. </div>
<div> </div>
<div>The ATO has further reportedly sent correspondence to some holiday home owners recommending that they "review the nature of their claims" before dropping in their next returns...oops! 
</div>
<div>With well over 2 million Australians lodging tax returns declaring ownership of a rental property - spread widely across all income brackets – the landlord sector is substantial, and there are potentially significant liabilities to be raised by the ATO.</div>
<div> </div>
<div>Click to enlarge</div>
<div><img src="/images/2016/07/01/ATO1.jpg" alt=""></div>
<div> </div>
<div>Owners of holiday homes should take a good deal of care not to make claims for net rental losses for periods when their property has not actually been made available for rent. </div>
<div> </div>
<div>In particular owners of holiday homes claiming deductions for a full year when the property has been vacant for long periods might expect to get a tap on the shoulder from the tax office.</div>
<div> </div>
<div>According to ATO legislation the principles that apply to a rental property also apply to a holiday home if it is rented out - if you rent out your holiday home, you can claim expenses for the property based on the proportion of the income year it was rented out or was genuinely available for rent.</div>
<div> </div>
<div>However, if a holiday home is advertised in ways that limit its exposure to potential tenants, then the property may not be deemed “genuinely available” for rent – for example, if the property is not widely advertised, or if the advertised rents are set at unrealistically high levels.</div>
<div> </div>
<div>Since the ATO’s interest was flagged some months ago, net rental losses declared or claimed on holiday homes could be lower this year as this loophole is sewn up...</div>
<div> </div>
<div>Airbnb and online networks</div>
<div> </div>
<div>There may also be some confusion relating to the rise of online networks such as Airbnb, with more Australians than ever before choosing to rent out their own homes, or a part of their homes. </div>
<div> </div>
<div>Remember, rental income is assessable and therefore you may have tax to pay at year end - don't try to be sneaky and under-report rental income it or you may be penalised! </div>
<div> </div>
<div>For Airbnb hosts there are two types of allowable deductions. Firstly, there are costs directly associated with generating rental income or with the rental area (for eaxample, photography, commercial cleaning costs, food for tenants, Airbnb fees and commissions, or food made available to tenants). </div>
<div> </div>
<div>And secondly there are costs which may be apportioned, often based upon the applicable floor area, including your mortgage or rent, utilities, internet and phone costs, insurance, and so on.</div>
<div> </div>
<div>Keep records and receipts through the financial year and make sure you set aside some money for the tax liability!</div>
<div> </div>
<div>Also, be aware of the potential legal and liability risks or short term tenancies and other tax implications thereof, such as capital gains tax (the principal place of residence is normally exempt, but generating rental income from the home may trigger a change in this status).  </div>
<div> </div>
<div>Repairs and maintenance</div>
<div> </div>
<div>There is also often genuine confusion for some property investors over what deductions can be claimed.</div>
<div> </div>
<div>Perhaps the most common mistake made by landlords on lodged tax returns is claiming deductions for repairs and maintenance for expenses which are actually capital costs. </div>
<div> </div>
<div>Property investors are not allowed to claim repairs and maintenance deductions for defects or pre-existing damage that was in evidence at the time they acquired the property. Such improvements are considered to be capital in nature.</div>
<div> </div>
<div>Where investors are unsure they would be well advised to check the rules relating to deductions made available by the ATO for free online, or to engage a tax agent or property specialist tax accountant that is familiar with the rules. </div>
<div> </div>
<div>Net rental losses declining</div>
<div> </div>
<div>Declared net rental losses have declined sharply in recent times, falling by more than half over the last two tax years for which data is available, largely due to lower interest rates. </div>
<div> </div>
<div>The average net loss claimed by investors has fallen by 64 per cent since 2008 as mortgage repayments have become cheaper. These figures will continue to decline in 2015 and 2016 with interest rates having fallen.</div>
<div> </div>
<div><a href="/images/2016/07/01/NG.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/07/01/NG.jpg" alt=""></div>
<div> </div>
<div>While the ATO will doubtless generally be looking for expenses claimed in error as part of their investigative reviews or audits, it is worth noting that many investors also fail to claim deductions which they are entitled to. </div>
<div> </div>
<div><a href="/images/2016/07/01/NG2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/07/01/NG2.jpg" alt=""></div>
<div> </div>
<div>In particular, not all owners of rental properties are aware of the potentially generous capital allowances and tax depreciation deductions for plant and equipment which are available under the tax legislation.</div>
<div> </div>
<div>If you are in doubt, a property specialist tax accountant can help you to avoid making costly mistakes!</div>
<div> </div>
<div>
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 latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

Tips and traps for property investors: Pete Wargent

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Gladstone on Queensland’s Central Coast is set for a rise in investor and owner-occupier activity on the back of a three-fold expansion in its fledgling tourism sector, burgeoning port activities and real estate affordability, according to Raine &amp; Horne.
“Property values in Gladstone are presenting investors and owner occupiers with an opportune time to enter the market in a ‘destination location’ with outstanding potential,” said Mark Patton, principal of Raine &amp; Horne Gladstone.
“Gladstone is on the edge of the Southern Great Barrier Reef and more cruise ships are bringing additional tourism dollars and jobs to the port,” said Patton.
“The extra jobs will benefit the real estate sales market, and we expect to see the current median price of $375,000 to start to head north. There will be some rental pricing pressures too, which savvy investors have noted,” said Patton.
Tourism is a major growth sector in Gladstone with 17 cruise ships booked to dock in its deep water harbour in the next 18 months, according to Gladstone Area Promotion and Development Limited.
“The target is set to increase to around 50 per year in the next five years, with other cruise lines showing amazing interest in visiting our port,” said Darryl Branthwaite, chief executive officer, Gladstone Area Promotion and Development Limited.
“We have a deep-water port where people can walk straight off the boat without needing to tender in on smaller vessels as they do in destinations such as Airlie Beach, Hamilton Island and Cairns.
“There is massive opportunity for the tourism SMEs to evolve and expand with every ship bringing between 2,000 and 6,000 passengers to Gladstone along with between 700 and 2,000 crew.”
“We are at the tip of Southern Great Barrier Reef and being further south in the cooler waters, we have avoided the El Niño warmer currents, which have affected Far North Queensland and the northern reef.
“Scientists have now stated that the northern reef is recovering, the coral is spectacular, the beaches are white, the water is warm and crystal clear, and the fishing is awesome.”
The Gladstone region, which has a growing population of around 73,000, has been regularly written off as a one-trick economic pony by many experts who claim the town is too dependent on mining, according to Patton.
“This is just not true. It is Queensland’s largest multi-commodity port, which handles the export of more than 36 different commodities including coking and thermal coal, aluminum, bauxite, wood chip, cement, calcite, machinery, fuel, and even grain from the Banana Shire, to the Central Highlands,” he said.
“Additionally, Gladstone is home to a number of major industrial giants such as mining explosives specialist, Orica, and two of the world’s largest alumina plants, Queensland Alumina and Yarwun.”
Gladstone is the major Central Queensland fuel bunkering hub, and this service is set to expand, according to Branthwaite.
“There is interest from an oil refinery to be constructed in Gladstone, along with a bio fuels plant and a steel facility,” he said.
“The three LNG plants on Curtis Island, which cost more than $25 billion each to build, could expand especially with Arrow Energy buying up the British Gas (BG) share of QCLNG.
“Moreover, the shipping and tugboat work required with each of the LNG ships is very frequent and will provide hundreds of additional jobs,” said Branthwaite.
“The maintenance programs for each of these LNG plants also will start to have an effect on the Gladstone economy within the next two years.”
Branthwaite is predicting supply chain activities supporting the LNG plants will take up some of the commercial property vacancies left over from the heady days of the construction surge.
“Alternatively, suppliers to the LNG sector may even construct their own commercial premises,” he said.
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jonathanchancellor-7SQnKwU6yx

Gladstone real estate set to cruise on the back of tourism sector: Raine & Horne

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Hi Margaret, just wondering if things have changed in the Lockyer Valley and whether it is a growth area and worth looking at from a long term investment perspective?
Answer: 
When you make that decision to invest in property, there is much more to consider than whether an expert is predicting whether an area will make a good investment, or not.
You see, working out whether an area has the potential to be a good investment is a little like asking how long is a piece of string – that also depends upon the piece of string, and who cut it in the first place. 
You must start by establishing a few things about yourself – the time till you will need to realise this investment, the personal cash flows you can afford to support along the way, and how much is your borrowing capacity.  You also need to know whether your immediate reliance will be on growth, giving you equity quickly to be able to buy more property, or on cash flow – providing enough rental return to enable you to stay in the market and make your loan repayments and meet expenses.
Some investors have plenty of equity in their own home which allows them to buy more than one property, and so they can afford to wait for growth and buy in areas which may be a little more speculative or long term.  Such areas, as long as they have the correct growth drivers, will grow in the long term and probably get pretty good rent returns in the short term. 
Other investors have no equity or little in the way of deposits, and so each and every purchase must grow immediately, or they won’t be able to add to their portfolio.  Always remember that to make money from property you need to buy more than one, and so it is important to really understand what you can afford both in terms of supporting the property financially in the short term and seeing it grow in the longer term.
Once you know this you can establish what you can afford, whether you need a higher or a lower rental yield and if you can wait until the longer term for that important growth to occur.  Make no mistake, cash flow is important but if the property never grows, it’s most likely not worth the time and effort to buy it.
In terms of the Lockyer Valley, it’s a growing area, but it’s on a very slow burn and, in my opinion, will be so for some time.  Considered the ‘salad bowl’ of Southern Queensland, there’s still quite a way to go until the population mass reaches the critical point where super infrastructure begins to be built, population explodes and the micro economy burgeons.  I have no doubt that, over the longer term this is an area which can deliver some reasonable results, but that term is going to be quite lengthy.
It’s now up to you to determine whether you can speculate long enough and wait for this growth, or whether an area with more assured growth, sooner (albeit one which may have relatively lower yields) is more up your alley.
 Have a property question?  <a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20/n%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;" target="_blank">Ask Margaret!</a>
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Property market in Laidley, Gatton and Lockyer Valley: Ask Margaret 

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<div class="cq-article-content-paras section">
Queensland rather than NSW is the favoured state for property investment, according to a survey of investors by the Investar group.
More than a third (34 percent) of investors indicated Queensland as their first preference for investment, just ahead of NSW (31 percent) and Victoria (22 percent).
WA (7 percent) and SA (5 percent) attracted lmited interest.
The survey was at odds with actual searches on the Investar website, as analysis of the last 120,000 searches over the past three months, showed more than 43 percent of potential investors were actually looking for opportunities in New South Wales, compared to 33 per cent in Queensland.
It revealed a preference for more affordable regional locations.
</div>
<div class="cq-article-content-paras section">
Most-searched-for locations on Investar
<ol>
<li>​Brisbane City</li>
<li>Southport, QLD</li>
<li>Gold Coast, QLD</li>
<li>Logan Central, QLD</li>
<li>Wallsend, NSW</li>
<li>Newcastle, NSW</li>
<li>Northern Brisbane</li>
<li>Hunter Region, NSW</li>
<li>Central Coast, NSW</li>
<li>Labrador, QLD</li>
</ol>
 
</div>
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The top 10 investor search localities on Investar

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GUEST OBSERVER
Regardless of their size, investors and fund managers such as superannuation funds, syndicators, listed property trusts, charitable trusts or larger high net worth families, are often out on the market looking for the same type of investment product - properties that are ‘accretive’. 
Put simply, this means that several tick boxes need to be ticked for the ideal investment property, such as:
<ul>
<li>
Lease term - ideally needs to be longer than the average Weighted Average Lease Term (WALT) of the portfolio (generally this is 4-5 years)</li>
<li>
Yield – ideally needs to be higher than the running average return and higher than debt costs </li>
<li>
Building Quality / Location – this typically means relatively modern in an established location</li>
</ul>
 
With many buyers searching for the same type of investment, the competition quickly becomes crowded for property that ticks all the boxes, and the above criteria becomes an investment hurdle.
This is where Core Plus investments come in
As the investment hurdles can be difficult to overcome, some investors are turning to Core Plus investments.
Core Plus is a value-add story, where the core is the initial yield on which the property is bought and the plus relates to an immediate increase in the property’s value.
Investopedia defines Core Plus as a fixed-income investment management style that permits managers to add instruments with greater risk and greater potential return to core portfolios. This type of investment is considered moderate risk/moderate return, and is slightly higher on the risk scale due to the additional enhancements needed to bring the property to value.
Supplementing the core yield
The core yield may be supplemented by any one or a number of the following:
<ul>
<li>
Surplus Land – where a building provides the initial running yield but surplus land can be developed or sold to increase the return</li>
<li>
Lease Extension – where the tenant may have a long right of lease renewal or no renewal at all and the purchaser backs themselves to be able to renegotiate a better lease position offering immediate upside value </li>
<li>
Under Rented – when the passing rent is less than the estimated rental value. After purchase,  the investor backs themselves to increase the rent to achieve a better running yield</li>
<li>
Change of Use – where a building is zoned as one type but then redeveloped as another (for example an industrial building can be redeveloped to accommodate retail to provide higher rents, or even residential where “air space” can be developed) </li>
<li>
Land Fragmentation – where a large unsubdivided or englobo block of land is subdivided into small parcels where the end result is a higher overall value</li>
<li>
Land/Building Purchase – where the ‘existing’ building on the site is deemed obsolete or unleasable, so the investor purchases at land value with the building free</li>
</ul>
Investment hurdles are difficult to move past, so Core Plus is becoming an innovative way for investors to take on increased risk to boost their portfolios. The reality is that investors are using Core Plus as an alternative investment formula.
Paddy Callesen is a managing director of the Savills Auckland office and can be contacted <a href="https://www.savills.com.au" target="_blank">here</a>.
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Adding the ‘plus’ into core plus investments: Paddy Callesen

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As the major regional centre in Queensland, Townsville has an opportunity to shape a new and sustainable economic future if it can connect to the growing business, trade and investment opportunities in key Asian markets, according to ANZ.
The optimism for Townsville’s farmers and businesses in light of the significant demand from Asia comes as ANZ recently hosted its Opportunity Asia Forum, bringing together local business leaders to discuss the growing export and diversification opportunities for North Queensland into Asia.
ANZ general manager regional business banking Christine Linden said Australia’s reputation for high quality produce and North Queensland’s proximity to Asia gives local business a considerable edge.
“As Asian economies continue to grow and generate demand for a wide range of our goods and services, Australian businesses need to be ready to capitalise on the export opportunity. By sharing industry and sector trends from across the region we work towards cultivating an environment where North Queensland businesses are informed and empowered to look to Asia for real growth,” said Ms Linden.
ANZ regional executive Veronica Kregor said the event came at an time for the region with recent investment announcements including the increase in military spending from the Singapore Government and planned Federal Government rail infrastructure and marine maintenance investments, all pointing to a brighter future.
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FNQ's Townsville future rests with key Asian markets: ANZ

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GUEST OBSERVER
Home loans: The number of loans (commitments) for people who are buying or building homes to live in (owner-occupiers) fell by 0.9 per cent in March after rising by 0.9 per cent in February. The number of refinancing transactions rose by 8 per cent.
The value of loans by owner-occupiers and investors to build new homes rose by 1.7 percent in March after a rise of 2.7 per cent in February. The value of loans to build new homes stood at a record high $3.59 billion.
The average home loan cross Australia stood at $357,500 in March, up 5.9 per cent on a year ago, but down 7.4 per cent in the past four months.
Consumer sentiment:The Westpac/Melbourne Institute index of consumer confidence rose by 8.5 per cent in May to 103.2 after sliding by 4 per cent in April. The confidence index is up 0.8 per cent on a year ago. A reading of 100 is the dividing line separating optimism from pessimism.
The housing finance data has implications for banks, building material suppliers and retailers. The consumer confidence data is important for retailers and consumer-facing businesses. Building &amp; building material companies are affected by dwelling starts including Boral, James Hardie, Adelaide Brighton, Brickworks, AV Jennings Limited, Devine Limited and Beacon Lighting.
What does it all mean?
The latest data onthe housing sector could be classified as somewhat old news given that it predates the Reserve Bank interest rate cut last week. What it does do is provide a useful barometer for housing activity earlier this year. And in that context housing activity remains solid. The value of loans to build new homes stood at a record high $3.59 billion. There is a healthy pipeline of work, with owner occupiers likely to dominate home building and buying.
Interestingly the number of home loan refinancing transactions lifted sharply up by 8 per cent in March. And the proportion of fixed rate loans jumped to 14.9 per cent - the highest reading in 16 months. The intense competition by lenders has resulted in home owners shopping around for the best rates on offer and more are locking in those cheaper rates. The lift in refinancing will provide additional savings to household budgets – injecting fresh spending power into the economy. No doubt the latest interest rate cut will spur another round of refinancing although the increasing likelihood of further cuts to the cash rate may result in less fixed rates being taken up.
<a href="/images/2016/05/12/Screen%20Shot%202016-05-12%20at%2010.43.09%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/12/Screen%20Shot%202016-05-12%20at%2010.43.09%20AM.png" alt="">
The monthly consumer confidence data is now merely useful as a check against the timelier weekly survey. The ANZ-Roy Morgan survey has the same number of survey respondents as the monthly series, has been running over the same number of years and covers the same questions but is conducted each week. And what is clear from both surveys is that confidence levels are a little higher than where they were a month ago.
Importantly the weekly consumer confidence survey provides a better picture of the shifting landscape in regards to the Federal budget, latest interest rate cut and movement in the Australian dollar. And in that regard confidence levels are healthy although it is unlikely to translate through a substantial lift in spending. The weekly confidence data will be analysed more closely given the Federal Election campaign currently underway.
What do the figures show?
Housing finance - number
The number of new owner-occupier housing loans (commitments) fell by 0.9 percent in March after rising by 0.9 percent in February. Excluding therefinancing of dwellings, the number of loans was up by 6.7 percent.
Loans by owner-occupiers for the construction of homes fell by 2 percent in March; loans to buy newly-erected dwellings fell by 5.2 percent; and loans for the purchase of established dwellings (excluding refinancing) fell by 0.5 percent. The number of refinancing transactions rose by 8 percent.
Housing finance - value
The value of new housing commitments (owner occupier and investment) fell by 0.2 percent in March after a 2.2 percent increase in February. Owner-occupier loans fell by 1.2 percent while investment loans rose by 1.5 percent.
The value of loans by owner-occupiers and investors to build new homes rose by 1.7 percent in March after a rise of 2.7 percent in February. The value of loans to build new homes stood at a record high $3.59 billion.
Housing finance – other statistics
The proportion of first-time buyers in the home loan market fell from 14.6 percent to 14.2 percent in March – a 12 year low. (However the figures take into account refinancing loans and as such the figures may misrepresent the true situation). The proportion of fixed rate loans rose from 13.2 percent to 14.9 percent in March. And the average home loan across Australia stood at $357,500 in March, up 5.9 percent on a year ago, but down 7.4 percent in the past four months.
Consumer sentiment:
The Westpac/Melbourne Institute index of consumer confidence rose by 8.5 percent in May to 103.2 after sliding by 4 percent in April. The confidence index is up 0.8 percent on a year ago.
The current conditions index rose by 4.2 percent while the expectations index rose by 11.6 percent.
All five components of the index rose in May:
The estimate of family finances compared with a year ago was up by 3.2 percent;
The estimate of family finances over the next year was up by 7.2 percent;
Economic conditions over the next 12 months was up by 13.2 percent;
Economic conditions over the next 5 years was up by 14.8 percent;
The measure on whether it was a good time to buy a major household item was up by 4.9 percent.
<a href="/images/2016/05/12/Screen%20Shot%202016-05-12%20at%2010.48.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/12/Screen%20Shot%202016-05-12%20at%2010.48.23%20AM.png" alt="">
Gender &amp; demographics: Men (index reading of 107.8, up 8.6 percent) were more optimistic than Women 98.8, up 8.3 percent). The sentiment index for young people fell by 3.4 percent to 105.9 in May. Across the other demographics: 25-44 years (index 110.4, up by 11.1 percent); 45 years plus (index 97.5, up 9.9 per cent).
Housing outlook: A good time to buy a dwelling? – Index up 12.1 percent in the month but down 6.4 per cent on the year.
What is the importance of the economic data?
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator onthe housing market.
Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. According to Melbourne Institute: “The survey of consumer sentiment was first undertaken in 1973 and was conducted on a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been conducted monthly ever since.” Confident consumers may be more inclined to spend, especially on major items.
What are the implications for interest rates and investors?
It’s important not to ‘over-think’ consumer confidence. For most punters, the Aussie dollar, interest rates, petrol prices, home prices and the job market are the key factors determining whether someone is positive or negative on supposedly ‘economic’ issues
The Reserve Bank will look to next week’s jobs data to gauge how the labour market is tracking. CommSec expects a further rate cut in coming months.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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Refinancing on the rise, confidence “Ok”: CommSec's Savanth Sebastian

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The price gap between houses and apartments in many Australian cities is closing as property investors exhibit a significant degree of herding behaviour, according to new research.
The research comes amid speculation that Australia is in a housing bubble. Herding behaviour is leading to excessive borrowing, further fuelling apartment prices, particularly in Sydney.
A major cause of the sub-prime crisis in the US was a herd mentality, in which home buyers were influenced by purchasing behaviour of others. More recently a widely publicised 2015 report by global fund manager PIMCO suggested that low interest rates and rising house prices in Australia were driving similar behaviour.
We examined whether there was formal evidence of a herd mentality in Australian metropolitan property markets. To do so, we looked at the dynamic interaction between house prices and apartment prices in Australian capital cities using monthly CoreLogic RP Data from December 1995 to June 2015.
<h4><a href="/images/2016/05/12/image-20160416-26305-8y7601.png" target="_blank">Click to enlarge</a></h4>
<img src="/images/2016/05/12/image-20160416-26305-8y7601.png" alt="">
<h4>
Figure 1. Monthly house and Apartment prices (December 1995- June 2015) Note: Green dotted lines show the narrowing of the pairs over time. CoreLogic RP Data
</h4>
Figure 1 shows house and apartment prices exhibit a strong degree of co-movement and both prices tend to deviate from each other quite often. Nevertheless, every now and then the price gap has narrowed.
Except for Canberra, in all cities the narrowing takes place after a long period of widening. There are at least two reasons why there is a long-run relationship between house and apartment prices. First, houses and apartments are considered as substitutable investments. Second, negative gearing and capital gains provisions encourage people to borrow against the equity in their home to purchase an investment property, which is typically an apartment. When the price of the family home increases, this boosts demand for apartments, pushing up their price as well.
We found that in some cities such as Sydney, investors can equally profit by purchasing apartments because rising house prices eventually push up apartment prices and vice versa.
We found house prices significantly affect apartment prices across all cities. But in only four cities (Adelaide, Melbourne, Perth and Sydney) apartment and house prices influenced each other equally. However, when apartment prices are on the rise (i.e. the market is bullish), the positive impact of house prices on apartment prices is substantially larger. This implies that investors exhibit a significant degree of herding behaviour. Such evidence of herd mentality is highest in Sydney and lowest in Darwin.
Our finding for Sydney is consistent with a widely accepted view by RBA officials who argue that prices have grown too fast and there is a housing bubble threatening to burst. Vernon Smith, who won the 2002 Nobel Prize in Economics and visited Australia in July 2015, also recently said Sydney house prices are in a bubble.
There are various ways in which this herd mentality might be reined in, including adjusting interest rates, tightening lending criteria, changing negative gearing and reforms to self-managed superannuation. Some of these initiatives have already been introduced.
In order to address a similar problem, in February 2014 Canada decided to ban rich foreign nationals from purchasing property and, as a result, some turned to Australia as their next favourite destination.
Although Australia has partially recognised this issue by prohibiting the purchase of established properties by foreign investors, there still remains several loopholes that go undetected, making housing extremely unaffordable for young Australians. This has increased intergenerational inequality between millennials and baby boomers that policy makers must be brave enough to make hard decisions about based on evidence rather than election outcomes.
Abbas Valadkhani is professor of economics, Swinburne University of Technology and can be contacted <a href="https://theconversation.com/profiles/abbas-valadkhani-177513" target="_blank">here</a>.
Russell Smyth is professor, Department of Economics, Monash Business School, Monash University and can be contacted <a href="https://theconversation.com/profiles/russell-smyth-144621" target="_blank">here</a>.
Both are authors for The Conversation. 
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The herd driven housing bubble that could trigger an apartment bust

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GUEST OBSERVER
Whenever you buy a property for the purpose of taking advantage of capital growth, it's going to be a process that comes with an assortment of expenses.
You'll want to be prepared for the various costs you're going to have to cover and know how to get the most out of your investment.
First of all are the costs directly related to the purchase of the property. That means paying stamp duty on top of the property value, which depends on both the price of the home and on which state you're in. Note that you can reduce stamp duty on house and land packages - depending on if the land falls within your particular state's guidelines, you could end up paying it on the land and not the house. You may also have to pay for the services of a solicitor or conveyor, who will oversee the settlement process and ensure it goes smoothly.
If you require investment finance, which you almost certainly will, you'll also need to pay for the various costs involved in a loan application and have a deposit of at least 10 per cent of the value, whether through savings or home equity. Depending on how much of the value you're borrowing, you may also need to pay for lenders mortgage insurance.
<div class="columns small-10 large-5 vgrid-small-offset-bottom-1 vgrid-small-offset-top-0 large-push-1 right">You yourself will have to take out cover for the property, too. You might choose to take out landlords insurance if you're planning to rent the property out, which can protect your property from any damage, whether wilful or accidental. If you're constructing a new home, you'll need building insurance, too. </div>
Finally, don't forget the cost of building inspections and, for existing properties, pest inspections, which will give you peace of mind but can run into hundreds of dollars each. You'll also need to factor in any moving costs for furniture, plus council rates. 
With so many expenses, to take care of, it's a wise idea to do all you can to maximise your profit. This can involve a number of tax-reducing strategies:
<ul>
<li>Claim as many tax deductions as you can on the costs involved in running the property, from advertising for tenants to driving over to inspect the home.</li>
<li>Have a professional quantity surveyor carry out a depreciation schedule, so you can claim the depreciation of your investment property and its contents come tax time.</li>
<li>Consider structural factors like whose name the property is under. If your partner is not earning money, for example, they can't reduce their tax - so it's worth putting it mostly in your name.</li>
<li>Complete a tax variation form so you can receive tax off-sets with every pay cheque</li>
</ul>
Remember to speak to professional property experts like DPN to make sure you've got your bases covered. In some cases, we can access occupation specific benefits which may avoid the need for mortgage insurance.
SAM KHALIL is founder and director of <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
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Get the most out of your investment: DPN's Sam Khalil

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Yes, I know everyone hates elections but the more I look at this election the more I like it simply because real estate is front and centre.
History will judge whether the government and opposition erred by allowing negative gearing into the debate, although what they have done is to finally open that can of worms which previously had been removed from all discussions.
When you take the time to contemplate the direction that property prices are headed (thanks mainly to all these new developments) there are plenty of dark clouds building. For mine; the smartest solution is to simply limit the number of investment properties to a single tax file number. Opinions vary that negative gearing is driving the values of property although investors account for just one third (approximately) of purchases, so that in itself can’t be the major contributor.
The problem why Australia’s property prices are so high sees the blame at failed political policies where prices have increased two to three times than that when the Baby Boomers were buying property – which by the way were single income families. Governments have failed miserably when it comes to infrastructure where we only ever hear of Very Fast Trains in an election year – come July 2, we in all probability won’t hear it mentioned for another three years.
Opinions when it comes to real estate are always interesting where today we see many property markets starting to ease and nobody comes out and states that this is actually a good thing. Many of Australia’s property markets are actually self-medicating and correcting which is great news given the damage a crash can cause. Naturally we should not also forget that property markets historically slow when an election is announced although many parts of Australia had already started to re-calibrate their prices downwards – we have passed the peak.
This week we saw that for the first time in seven years Australia was now recording deflation – which immediately called for the Reserve Bank of Australia (RBA) to cut the cash rate when they meet next week. Even if it were to cut the cash rate say – 0.25 you can rest assured that the banks won’t be passing this on.
I’ve been on the public record as being opposed to federal government policy in December 2008 when off – the – plan – purchases by foreigners were raised from 50 to 100 per cent – the governments have not addressed nor even discussed this. With interest I have noted that this month the ANZ, Commonwealth Bank and this week Westpac are no longer lending money to foreign buyers wanting to buy residential property in Australia.
The major lenders have already implemented black – spot areas where they will no longer finance new apartment developments. Interestingly nobody has even bothered to raise this with any politicians given this is a significant stance by the major lenders that relates directly to government policy. Now we can expect this to remain the case for quite a few years to come with Sydney and Melbourne embarking on massive new development construction – the major lenders have massive exposure here.
Now should the ALP be elected what does this do to their new policy regarding negative gearing? I can tell you what it will do to off – the – plan acquisitions (new property) – it will shut it down almost immediately. Investors are not permitted to buy existing properties, only new – despite 93 per cent of investors preferring to buy existing.
One would think that there should be much more debate about the repercussions to the economy with the major lenders now not lending to foreign buyers. Then of course one can’t rule out a significant price correction given these new developments are massively over valued due mainly to foreign buyers driving these prices. Investors aren’t going to be buying into these new developments for negative gearing purposes when they know full well that these properties are facing a significant value correction.
One only has to look at the body language of the major banks to see quite clearly they have already commenced direct action to minimise their exposure to this newly created property market.
The problem as I see it is that politicians are making some huge mistakes in judgement when it comes to our property markets but sadly nobody is asking them the right questions. A classic example of this the banks deciding to restrict all loans to foreign buyers which is in direct contradiction to the federal governments policy – which we all know is dumb. Even funnier is that the government did not bat an eyelid when the major lenders announced this policy review.
<h5>MOSMAN – 2088</h5>
Number of houses on the market this time last year – 61
Number of houses on the market last week – 43
Number of houses on the market this week – 45
Number of apartments on the market this time last year – 52
Number of apartments on the market last week – 50
Number of apartments on the market this week – 55
<h5>CREMORNE – 2090</h5>
Number of houses on the market this time last year – 1
Number of houses on the market last week – 7
Number of houses on the market this week – 9
Number of apartments on the market this time last year – 15
Number of apartments on the market last week – 26
Number of apartments on the market this week – 26
<h5>NEUTRAL BAY – 2089</h5>
Number of houses on the market this time last year – 2
Number of houses on the market last week – 11
Number of houses on the market this week – 11
Number of apartments on the market this time last year – 30
Number of apartments on the market last week – 27
Number of apartments on the market this week – 23
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
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