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

Property market

<html><body>
EXPERT OBSERVER
<div id="post-body-2450267814035243586" class="post-body entry-content">
<div>There was a significant rebound in business confidence and conditions in May, albeit they still, of course, remain at historically weak levels:</div>
<div> </div>
<div>Business confidence jumped 20 points higher, but is still in negative territory, while business conditions improved by 10 points over the month. </div>
<div> </div>
<div>Via the NAB Survey, <a href="https://1.bp.blogspot.com/-A8DtJIwNCOM/Xt8jOdG5hVI/AAAAAAAA2OM/Ho9bYL4tHukFvsEFIsFTPJZ-uwa0HChfgCNcBGAsYHQ/s640/Nab1.jpg" target="_blank">Click to enlarge</a>:</div>
 <div class="separator"><img src="https://1.bp.blogspot.com/-A8DtJIwNCOM/Xt8jOdG5hVI/AAAAAAAA2OM/Ho9bYL4tHukFvsEFIsFTPJZ-uwa0HChfgCNcBGAsYHQ/s640/Nab1.jpg" width="640" height="216" data-original-height="543" data-original-width="1600"></div>
 <div>Source: NAB Survey</div>
 <div>Well, it's a decent start, as restrictions are eased.</div>
<div> </div>
<div>There have been some spectacular results for Australia in respect of COVID-19 today, with only two new confirmed cases, with two cases remaining in ICU:</div>
 <div class="separator"><img src="https://1.bp.blogspot.com/-e6ppm6ZYJwg/Xt8k9UNyS3I/AAAAAAAA2Oc/LoA_SuoFzrcH8CUFePxERXc0g-K9GuVBACNcBGAsYHQ/s640/CV1.jpg" width="640" height="360" data-original-height="805" data-original-width="1426"></div>
<div> </div>
<div>Both of the new confirmed cases were returned overseas travellers, held in New South Wales quarantine:</div>
 <div class="separator"><img src="https://1.bp.blogspot.com/-1CquvNlMRtE/Xt8lM9RQcpI/AAAAAAAA2Og/392PQbZziKAnh-d5STbyM0vBC3als33LgCNcBGAsYHQ/s640/cv2.jpg" width="640" height="360" data-original-height="798" data-original-width="1412"></div>
 New Zealand is also now officially COVID-19 free.</div>
<div>
 PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
</div>
</body></html>

pwargent-M4siyDbqQY

Business conditions begin to claw back: Pete Wargent

<html><body>
EXPERT OBSERVER
There are 3 key drivers of property prices.
<div>
(i) Supply - the rate of construction and the properties listed for sale on the market;</div>
<div> </div>
<div>
(ii) Interest rates - the cost of borrowing; and</div>
<div> </div>
<div>
(iii) Population growth - immigration, natural population growth (births minus deaths), and interstate migration.</div>
<div> </div>
<div>Or, as depicted in his infographic:</div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-JfAMyhsEwDU/XsC1SuAaGqI/AAAAAAAA1xE/oWHfOVu6Wt4Dg29nArHLDV26HjXIy8SaACNcBGAsYHQ/s640/FIN.jpg" width="640" height="360" data-original-height="445" data-original-width="791"></div>
 
<div>Source: Tim Boyle, Finalytics</div>
 
<div>People often state that the unemployment rate is critical, but this argument isn't backed up by any hard statistics. In fact the last couple of times the unemployment rate spiked housing prices soared the following year, as pointed out by Stuart Wemyss of ProSolution, Game of Mates author Dr. Cameron Murray, and others:</div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-mGeIhomU-Rw/XsDARe3SG3I/AAAAAAAA1xg/AF7pCtVj6yImNusAc2_soCsN-9f2dwlHQCNcBGAsYHQ/s640/A3.jpg" width="640" height="366" data-original-height="423" data-original-width="738"></div>
 
<div>There's also an enormous fiscal stimulus washing through, comfortably dwarfing anything we've seen in recent decades. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-SwOd64SloIQ/XsDAdNa9cVI/AAAAAAAA1xk/IA2iutyq4sE-ulOJVokqdP6KWZMNVqNCwCNcBGAsYHQ/s640/Stim.jpg" width="640" height="638" data-original-height="738" data-original-width="739"></div>
 Boyle's 3 drivers today In that context, here's what's happening with Boyle's 3 key drivers today. Supply is extremely tight at the moment. Dwelling construction is plunging towards 70-year lows and vendors aren't listing either. <img src="https://1.bp.blogspot.com/-ituPSwbTdvU/XrNkMZcBltI/AAAAAAAA1lM/lSj4XGqL1Gcc-lP5wKWKzjVlXG5YWXJ-gCNcBGAsYHQ/s640/CL2.jpg" width="640" height="386"> 
<div>Source: CoreLogic</div>
 Lending rates, meanwhile, are at the lowest level in modern history. <img src="https://1.bp.blogspot.com/-HHbGid402-g/XrNlXdwQxnI/AAAAAAAA1lc/Fd54mmUYX1kJWedMT-5JdHyEbCZFOZD3ACNcBGAsYHQ/s640/CL3.jpg" width="640" height="398"> 
<div>This effectively allows borrowers to take on bigger mortgages, as I showed in my recent post on lending trends. ANZ have just noted the same thing: <div class="separator"><img src="https://1.bp.blogspot.com/-bGysfQwD18o/XsDAo9GSxRI/AAAAAAAA1xs/Vx2-pm8vZHE32TUM-20dz-8UmDRRD4DyQCNcBGAsYHQ/s640/ANZ1.jpg" width="640" height="448" data-original-height="801" data-original-width="1143"></div>
 The big unknown factor at this stage is population growth.
</div>
<div> </div>
<div>My base case expectation or scenario is that within the next few months the powerful interests such as the Property Council, Australia's universities, the airlines, Tourism Australia, and big business at the top end of town will have forced the government's hand to reopen the borders, albeit with a period of enforced quarantine.</div>
 
<div>As for the thesis that things will be totally different after COVID-19...well as a gallant but struggling home-schooler I reckon that's total garbage! People can't wait to get back and out to spend, socialise, travel, go to work, and holiday again.</div>
 It's just the way we're designed, we're pack animals. 
<div class="separator"><img src="https://1.bp.blogspot.com/-r9TZrsC6zMw/XsC1SYxsobI/AAAAAAAA1xA/_k9XLZBNywgB_0ApBK_96zfH9-jzlSPNACNcBGAsYHQ/s640/JT.jpg" width="640" height="308" data-original-height="361" data-original-width="747"></div>
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<div>And moreover, Australia will likely be seen as one of the safest and most desirable countries on earth in which to live.</div>
<div>
 PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
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The three drivers of property prices: Pete Wargent

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The adverse impact of the <a href="/expert-insights/buying/changes-the-real-estate-industry-will-experience-as-a-result-of-the-coronavirus">COVID-19 pandemic</a> on Australian industries has been a widely circulated narrative for the past two months with many speculating a ‘new normal’ is on the horizon. As we navigate through these uncertain times, the property industry, in particular, has demonstrated its ability to quickly adapt to changing circumstances and consumer behaviour.

It is a responsibility that falls on us, as property <a href="/developers/icd-property">developers</a>, to aid the industry in any way we can and despite an overall unfavourable impact, COVID-19 has perhaps been the catalyst to expedite changes that were forthcoming.

<h2>Adapting to new buyer behaviour</h2>

New regulations in regards to <a href="/guides/covid-19-is-it-possible-to-practise-social-distancing-at-home-absolutely">social distancing</a> have resulted in developers swiftly shifting their regular customer service and sales offering to private appointment only. As a result, this has led to fewer enquiries but the enquiries that have come in are much more qualified and serious.

This is due to the fact that by the time these individuals have stepped into our sales centres or display suites to meet with an agent, they have most likely already visited our website, read the brochure, and looked up the project in the news. By doing this, they have essentially pre-qualified themselves so by the time they reach their private appointment, they have a clear understanding of the project and a list of specific <a href="/guides">questions to ask</a>. 
  
With a large proportion of the population in self-isolation, the industry has also witnessed a spike in online visitation to resources such as <a href="/">Apartments.com.au</a>, with project websites and social media channels also growing in popularity.

We’ve also seen a greater demand for project brochures, floor plans and price lists to be made available online for purchasers to browse from the convenience and comfort of their homes. Similarly, many projects are looking to have showroom videos and 3D virtual tours of apartments created to upload online. This level of convenience has even stemmed to e-contracts, as individuals refrain from in-person interactions.

<h2>
Shaping the future of the property market  </h2>

This technology has been available for a number of years but the uptake wasn’t there. The way agents and businesses have operated has been largely dictated by the way consumers behave and now that this behaviour has pivoted, a new way of operating is being explored. Prior to social distancing and new regulations, we continued to do what we had always done because it seemed to work but now we’re exploring how to be more efficient. The changes we’re currently witnessing would have come eventually but COVID-19 has inadvertently caused us to adopt them sooner; it has made us reflect on whether the way we do business is the smartest way. This isn’t exclusive to the property industry, with many industries forced to reconsider their ways of working. 

Take for example telemedicine - Australia has been slow to adopt this practice but amidst a pandemic, everything went digital. Why would we ever go back to in-person consultants for a script refill when it can be done online?

Only time will tell whether these changes will be short-lived or if as a collective, we will put a greater emphasis on technology and efficiency. But for the time being, the most important thing we can do is to support Australians and local businesses. Within our own business, we are working hand in hand to navigate this tough market with our partners and consultants. 

By remaining involved in advocacy groups such as the <a href="https://www.propertycouncil.com.au/">Property Council of Australia</a> and the UDIA, we can safely keep construction sites open to stimulate the economy and keep Australians in jobs, while ensuring <a href="/developments">developments</a> are progressing healthily through planning and construction. It is times like these you need to remain agile when the going gets tough - it will only make us stronger on the other side.
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Melvie

The future of the Australian property market post COVID-19 according to ICD Property's Sal Quah

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EXPERT OBSERVER
The Real Estate Institute of Queensland (REIQ) is seeking urgent action from the Queensland State Government to assist in maintaining the stability of the Queensland property market in the face of the economic impacts of the coronavirus (COVID-19) pandemic.
Queensland’s residential real estate sector is worth over $1 trillion and employs over 50,000 Queenslanders directly with many more employed in associated industries. Activity within the real estate sector contributes in excess of $30 billion every year to the Queensland Government.
Protecting and sustaining the Queensland real estate sector is critical to safeguarding our property market and supporting our local economy. In order to do so, strong action needs to be taken.
The REIQ has proactively developed a set of recommendations and proposed initiatives that will assist in minimising the potential economic impacts of the coronavirus (COVID-19) on the real estate sector. In order to maintain stability and optimism in the Queensland property market during the coronavirus (COVID-19) pandemic, The REIQ is urgently asking the Queensland State Government to:
a. Extend the First Home Buyers Grant to established housing: Expanding the First Home Buyers Grant beyond new construction will stimulate economic activity through the introduction of increased numbers of first home buyers to the broader property market. 
b. Implement a 50% reduction in development application costs across all Local Governments and introduce streamlined application processes: Removing barriers to development and reducing costs will assist to boost construction levels, increase competition and importantly, reduce cost for the end purchaser.
c. Deliver a 75% reduction in stamp duty for the period of the coronavirus (COVID-19) pandemic: A short-term, but significant, reduction in stamp duty payable on property transactions will have a positive effect on confidence within the property market. This, in turn, will offset the predicted drop in real estate transactions expected during the immediate crisis period. 
Lessening the financial burden of stamp duty in particular will lessen the perceived financial risk and act as a significant incentive to purchasers who may otherwise be discouraged from purchasing during this crucial period.
Similarly, such an initiative would encourage vendors to list their properties during the coronavirus period, buoyed by the likelihood of increased buyer activity.
In the 18 months following the end of the coronavirus (COVID-19) pandemic, The REIQ are urgently seeking the following further stamp duty related reforms to continue to support and stimulate the property market, which include:
a. Removal of stamp duty for persons aged 65+ years: This will encourage older Queenslanders to move into age-appropriate accommodation by reducing the financial burden of such a move. A likely consequence of this would be greater access to housing stock for younger Queenslanders.
b. A 50% reduction in stamp duty where residential investment property purchases are committed to the permanent rental market in Queensland for 3 years or more: A significant reduction in stamp duty for residential investment properties will have the effect of stimulating property investment in Queensland.
c. A 40% reduction in stamp duty for all other residential property purchases: A significant reduction in stamp duty payable on non-investment residential property purchases will have the effect of instilling confidence into the property market and provide incentive to individuals Australia-wide to consider migration to Queensland.
In calling for a 50% reduction in stamp duty for property purchases committed to the permanent rental market for 3 years or more (b), a natural consequence of the Prime Minister’s rental eviction moratorium and similar measure introduced to combat the financial impacts of the coronavirus (COVID-19) is that property investors (current or prospective) are likely to lose confidence in residential real estate as a viable investment option. 
Queensland has rapidly growing residential rental demand, a situation likely to be exacerbated by the financial impacts of the coronavirus (COVID-19). The combination of increased rental demand and decreased property investment is a looming social time bomb. More than 90% of Queensland residential investment property supply is provided by ‘mum and dad’ investors who are most likely to be sensitive to increased risk to their property investment returns.
A significant decrease in stamp duty payable on residential investment properties, qualified by enforceable commitment by investors to making that property available to the permanent rental market, will have the dual effects of stimulating investment confidence and activity. It will position Queensland as a highly attractive investment market and ensure adequate supply is maintained to meet increasing demand.
To support property owner generally impacted by potential reductions in rental income, and households financially impacted by the coronavirus (COVID-19), The REIQ is also urgently requesting the Queensland State Government to facilitate the following:
a. Provide a significant reduction or temporary removal of land tax for the period of the coronavirus (COVID-19) pandemic;
b. Waive local government rates for those who have lost their income as a result of this crisis; and,
c. Implement a 50% discount on local government rates to assist household budgets and assist in stimulating the Queensland economy. 
Finally, to directly support the real estate profession that provide front line contact with participants in the property market and an invaluable service to property owners, investors and tenants, both commercial and residential, The REIQ is urgently seeking the Queensland State Government to:
a. Provide a 12-month extension to all existing licence and registration holders in Queensland, commencing 1 May 2020;
b. Provide Queensland State Government funding to The REIQ to assist it to continue to provide essential resources, training and support to the real estate industry, during the coronavirus (COVID-19) period and beyond; and,
c. Provide Queensland State Government funding to establish a Property Think Tank to identify new initiatives to maintain and regenerate local property markets and create opportunities and jobs within the real estate sector, with the consequential benefit being the continued generation of State Government revenue.
The REIQ believes that it isn’t enough to put money in people’s pockets during this time; instead, we need maintain confidence in the Queensland property market and assist the real estate sector to ride out this crisis and emerge stronger and more resilient for the benefit of all Queenslanders.
The REIQ fundamentally believe these relief package measures will keep Queenslanders employed within the State’s second largest employment sector, keep essential services functioning at this critical time, and most importantly accelerate our State economy’s recovery once this crisis has passed.
ANTONIA MERCORELLA is the CEO of the REIQ 
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j.ballantyne1990-6AQqhLzZaK

REIQ urgently calls on State Government to protect Queensland property market: Antonia Mercorella

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<h2>OPINION:</h2>

Earlier this month, I wrote about <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market">how the market will react to the Coronavirus (COVID-19)</a> before it became a pandemic. Now, three weeks on, we have seen the impact it has on numerous <a href="/guides/covid-19-how-to-adapt-to-working-from-home">businesses and our daily lives</a>. Currently, Australians are living through one of the <a href="/news/covid-19-how-the-world-previously-recovered-from-sars-and-whether-or-not-we-can-do-the-same-this-time-round">most significant economic and social upheavals</a> in our history.

For the real estate industry, the most direct impact from changes announced by the government would certainly be the social distancing restrictions prohibiting open inspections and auctions. These restrictions have forced a lot of new changes to the way they operate, including virtual inspections and online auctions. Last weekend we saw a mix of selling via online and phone auctions, as well as going back to more traditional ways of selling such as private sale or selling by tender.

Virtual Reality for real estate has been around for many years, allowing people to “try before you buy” without spending time and money travelling to scope out properties. However, the traditional open house has always proved popular as one can physically see, touch, hear and even smell the house and environment they may potentially be living in. But with these restrictions in place now, <a href="/guides">technology will again come into the forefront</a> and will eventually become the new norm.

While the industry is able to change and adapt, the more telling signs will be the impact on the number of listings and days on the market. From the seller’s point of view, if they are not under pressure to sell, they may hold off until after this pandemic is over. On the other hand, if we continue to see job losses, many house owners under financial stress may be forced to sell.

For investors, at a time when many people sit on the sidelines waiting to see what’s going to happen, many will see this as a great opportunity to buy a property considerably cheaper than they would have a few weeks ago and much cheaper than they will have to pay for it in 12 months.

The government has no choice but to offer relief for those affected by the crisis. The Prime Minister reinforces that they are “building bridges” to help us get to the other side. At this stage, it looks like commercial and residential landlords will be receiving some type of support, such as concessions on negative gearing and land tax. This will mean they will be asked to forgo rent, hence easing some pressure off renters. Already several major retailers, particularly those in shopping centres, have said they will not pay rent while closed. This is likely to extend to office tenants that are under similar stress.

The RBA and the government’s focus is on supporting businesses and households who will suffer significant income hits, forcing an emergency rate cut to a record low of 0.25%. RBA governor Phillip Lowe explained,

<blockquote>
“We are clearly living in extraordinary and challenging times, the Coronavirus is first and foremost a very major public health issue, but it’s also become a major economic problem and it’s having deep ramifications for financial systems right around the world.”
</blockquote>

It is still uncertain as to what the ultimate economic impact of COVID-19 will be, as well as what the fall out will be for property. However, with most economists accepting that we’re heading for, if not already in, a recession, some are wondering if COVID-19 will finally cause our property markets to crash. 

The bright side is that historically, after each global disruption, there has been a rebound and increase in property prices, and there is no reason to suggest this will be any different as the underlying property fundamentals are still strong.

<a href="/news/covid-19-understanding-what-you-can-and-cant-control-the-importance-of-cross-referencing-facts">Look after one another</a> and <a href="/guides/covid-19-how-apartment-dwellers-can-keep-themselves-safe-during-self-isolation">stay safe</a>.
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Changes the real estate industry will experience as a result of the Coronavirus

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What impact will COVID19 have on the property market? CoreLogic's Eliza Owen

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EXPERT OBSERVER
So it’s 1946 and we’re about to see the largest increase in birth rates the country has seen for some time until 1965, roughly 5.5 million Aussies were born. 
Post the depression and war, our guys and gals got together and lovingly created what we now know as the baby boomer generation. The Boomers have been known throughout history to be a real bunch of trend setters, not just because of their teenage antics throughout the swinging 60’s and 70’s but due to the sheer size of the cohort and their housing preferences they have had an impact on property markets worldwide. 
Now when you think about it logically, most of us aspire to live the great Australian dream and buy a property one day, a house with a yard would be good and while it’s not always the first property you buy it is often a house that was home to the Boomers and their growing families. 
Fast forward 55 years and you’ve now got a group of people that are 55 – 74 years old, have already or are near to exiting the workforce and typically own their homes. I’m sure you’ve got a fair idea about what happens next… 
Well it’s not as obvious as you might think, given the rising costs of living and aged care options that are now available we’re seeing more and more boomers simply stay put. 
Let’s say you were hanging up the shingle and putting yourself out to paddock (retiring), one of your first thoughts might be around whether you have enough money/assets to live out your retirement years. 
We don’t discuss financials but often we see clients factor in the value of their home as part of their retirement strategy and you get the call, “Hey Chris, can you come over and tell me what the house is worth”. 
So we establish what the house might be worth and then you start to wonder where you’re going to live if you did sell; a luxury apartment, over 55’s resort, buy some wheels and do the Grey Nomad thing or just plain old downsize to a run of the mill apartment. Let’s be real about it, you’re going from a house to something smaller and while you’re wanting something cheaper to put some cash in your pocket you’re probably not wanting to jeopardise your lifestyle. 
This is where it gets tricky when you’re then looking at apartments in and around where you already live, often we find that the price variance between large-ish or luxury apartments that downsizers typically go for are not all that much cheaper than the houses they’re moving from when you factor in all the costs. 
So is it worth it?  
Well not always and that’s why we are seeing an increase in the number of Boomers that are choosing to ‘Age in place’ which has had a flow on effect in the property markets supply. 
As a direct result of less detached homes coming to market there’s essentially less people upgrading because there isn’t the supply to do so, house prices have typically held fairly strong in recent times and are continuing to rise in capitals due to low supply in contrast to apartments in the same markets. 
With more and more apartments being delivered in metro areas to meet demand, we are fast moving toward a unit economy in the big cities whereby the great Australian dream hasn’t been lost, it’s just become more realistic to consider apartment living. 
So when you’re wondering why there’s not the same volume of property on the market compared to past years, I guess you need to ask yourself the question. Is this the new normal?
CHRIS ORR is the Residential Director at Savills
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Is this property market the new normal? Savills Chris Orr

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EXPERT OBSERVER
Here’s a one-step guide for identifying a charlatan in the real estate commentary space. Those who claim markets are rising because we have record low interest rates have just identified themselves as pretenders.
With that simple process, we’ve eliminated all the chattering economists in the land and a large chunk of the electronic media glitterati who don’t allow a lack of knowledge get in the way of strong opinions.
They’re the same people who talk about Australian real estate as a single market – e.g. “Australian property prices will rise 5% this year”. This is a red flashing light that the talking head is an idiot. Even discussing one city as a single market is foolhardy (refer last week’s column about Sydney, which highlighted the different scenarios currently in play).
Here’s what passes for analysis with most of these counterfeit commentators: if Event A coincided with Event B, then Event A must have caused Event B – obviously. It’s the first and last refuge of people who know little about real estate dynamics and want to pretend they have something to say.
The problem is that Events A and B also coincided with Events C, D, E, F and G.
The thing about interest rates is that they’ve been at record lows for years. The only recent change is that they’ve gone even lower. They were super low when Sydney and Melbourne were having their big boom, so naturally that must have been the cause, according to those who subscribe to the Event A/Event B theory.
But those super low interest rates failed to cause booms in Brisbane, Adelaide or Canberra, nor in Perth or Darwin which both were going backwards steadily while the Big 2 were surging. Most of regional Australia also failed to boom, although Hobart and regional Tasmania eventually got on board with what I regard as a mini-boom.
So clearly some other forces must have been in play. That’s where Events C, D, E, F and G become relevant. More on that later.
The other thing about the interest rates theory is that it contradicts the lessons of the past. Those who think that “low interest rates = real estate boom” and “rising interest rates = real estate bust” haven’t been students of history.
Genuine nationwide property booms are extremely rare in Australia. ABS data on annual house price growth in Australia’s biggest cities show that, since 1970, there have been only four years in which all the major markets boomed at the same time. Only four years out of the last 50 – two years late in the 1980s and two years in the early part of this century.
During the other 46 years different scenarios have been playing out in different locations, all dictated by local conditions, oblivious to the level of interest rates and other big picture items.
During those two periods when we had national property booms, the late 1980s and the early 2000s, we had high interest rates – much higher than they are today. They kept going higher and the booms kept rolling on. Mortgage rates got as high as 17% before the profligate Eighties finally collapsed.
And it all makes perfect sense. The economy was raging, consumers were confident and spending big, and rates were rising to try to dampen things down. That’s when people are most likely to splurge on real estate.
Interest rates are low now because the national economy is generally rather beige and consumers aren’t that bullish. The exceptions have been Sydney and Melbourne, where the local economies have outperformed the national scenario, boosted by strong population growth and big infrastructure spending.
In trying to understand why markets do what they do, you have to consider both the macro and the micro factors, but paying particular attention to the micro ones.
Here are the macro factors that rolled out one by one to change the general situation from negative 12 months ago to positive now:
1. The Federal Election was decided.
2. The week following the Election, APRA announced relaxations of its lending guidelines.
3. The re-elected Federal Government announced tax cuts.
4. The RBA brought on a series of reductions to the official interest rates.
5. Mainstream media stopped obsessing on negatives and became significantly more upbeat.
6. Consumer sentiment towards real estate started to rise.
7. Buyers started to become active, but supply remained low.
8. Auction clearance rates started to improve.
9. Prices started to react in the big cities.
10. Forecasters published upbeat predictions for 2020 outcomes.
11. The ABS published loans data that showed improvement.
12. Consumer sentiment towards real estate improved further.
13. The federal scheme to boost FHBs clicked in.
14. Etc etc etc.
That’s the big picture. The national climate underpinning real estate improved, with interest rate cuts just one small factor- and overall not that consequential. Labor losing the un-losable Federal Election was probably the biggest one.
But the reality is that the things that matter the most happen at a micro level. Real estate markets are highly individual and arise out of local economies. That explains why Perth and Darwin have been going backwards while Sydney and Melbourne have been booming (and then busting and then recovering), amid stagnation in Brisbane, Canberra, Adelaide and elsewhere.
Local economic events are paramount. Look at Regional Victoria. While Melbourne was descending in 2018 and the first half of 2019, many regional centres in Victoria were experiencing double-digit annual growth in their house prices. Geelong, Ballarat, Bendigo, Warragul, Pakenham, Echuca, Mildura, Benalla and many others experienced strong markets with prices rising.
Regional Victoria is one of the national leaders on important factors like economic performance, population growth, low unemployment and infrastructure spending. Each individual regional centre has its own local dynamics, which provide reasons why local markets will rise or fall.
All of this is good news for property investors, because it means that there are always growth markets to be found, somewhere in Australia.
When people ask “Is this a good time to buy real estate?”, they’re asking the wrong question. A much smarter question would be “Where is it a good time to buy real estate?”
Because in this large and diverse nation, it’s always a good time to buy – somewhere.
Terry Ryder is the founder of hotspotting.com.au ryder@hotspotting.com.au twitter.com/hotspotting
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terryryder-YECXbqmri2

Housing markets aren't just rising because of record low interest rates:  Hotspotting's Terry Ryder

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The Members Equity Bank's findings from its fourth Quarterly Property Sentiment Report reveals that the rising house prices are yet to crush the home ownership dreams of First home buyers.
The survey of 1,000 Australians in the property market took place in at the start of the month - the first quarter of 2020. 
Compared to the second quarter of 2019 where only 38 per cent of FHBs intended on buying property, FHBs' hopes of breaking into the market have jumped dramatically with 51 per cent of FHBs planning to buy property in the next 12 months. 
ME’s general manager Andrew Bartolo said, “Rising property prices carry the risk of squeezing first-home buyers out of the market, however they also signal a healthier market that presents a worthwhile long-term investment. 
“In the case of FHBs, the recent property price recovery has likely nudged them to get in while they can – as though it’s ‘now or never’ – and has created a sense of FOMO.
“Low interest rates and commentary in the market for the support of FHBs may have also contributed to an increase in home-buying intentions.” 
Over half predict house prices will continue climbing.
Recent property prices across Australia’s key property markets aren’t expected to halt any time soon, according to Australians in the property market. 
55 per cent of respondents expect prices to rise over the next 12 months. This is a massive leap from the mere 38 per cent who predicted price rises in the third quarter of 2019 when the market first began to turn. 
Strong house value growth is predicted by Victorians more than any other state, with 67 per cent of Victorian respondents predicting prices to go up. This is a 10 percentage point jump from last quarter’s prediction, and a 34 percentage point jump from their prediction for the second quarter of 2019.
All other major cities had a more optimistic outlook on prices than last quarter, including WA where more were predicting price falls than rises in the last quarter.
Positive house price expectations were seen across owner occupiers, FHBs and investors. 
Overall property market sentiment improves.
The report shows sentiment towards the property market has improved for the third quarter in a row, increasing to net positive 21 per cent. This is 3 percentage points up from the fourth quarter in 2019, and up 14 percentage points from the second quarter in 2019 when the report first started.
“Considering a combination of market factors including the buzz of home value growth, a solid spring selling season, plus rate cuts and signs from the RBA that rates will stay lower for longer, it’s no surprise overall property sentiment has improved,” said Bartolo. 
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Investor optimism has dipped slightly and is now on par with that of owner occupiers, as rising prices present a potential barrier to this cohort. 
Spending habits take another hit.
ME’s report revealed price positivity and overall market sentiment isn’t flowing through to spending habits. 
Recent property price movements have negatively impacted ‘willingness to spend on discretionary items’ for another quarter in a row. It remains the only area of personal finances that has stayed net negatively impacted - sliding deeper from net negative three per cent to net negative eight per cent over the past quarter. 
All other areas of personal finances analysed such as sense of wealth, financial confidence, savings behaviour and debt situation, remain net positively impacted by recent price movements. 
“Despite market positivity and a stronger sense of wealth, there’s less willingness to spend on discretionary items – a trend that bucks the wealth effect theory. Much broader economic dynamics are obviously at play,” said Bartolo. 
Growing optimism eases financial worries, but affordability remains an issue 
Growing optimism over the past quarter has eased most financial worries, but housing affordability still tops the list. 
Ninety-two per cent of respondents agree that ‘housing affordability is a big issue in Australia’, up from 89 per cent in the forth quarter of 2019. 
ME’s report explored level of personal worry towards affordability, as well as acknowledgement of the issue, for the first time and found net 14 per cent agree with the statement ‘I’m worried about property becoming unaffordable’ – making it the top worry. 
All other perceived worries in ME’s report have eased to the lowest point since the survey began in the second quarter of 2019. 
Tight credit policies are becoming less of a concern with only net six per cent agreeing it’s a worry, which is down from net agree 16 per cent last quarter. 
Concern over negative equity has dropped dramatically to net disagree 34 per cent, from net disagree 12 per cent last quarter. Likewise, worry about being forced to switch to interest only payments also slid to net disagree 30 per cent from net disagree 12 per cent last quarter.
Not enough choice in the market 
The report also compared the perception of choice in the property market. Forty-six per cent of respondents believe there is not enough choice, with this figure jumping to 57 per cent among FHBs. 
“Housing supply has picked up slightly, but with prices rising and demand outweighing supply, there’s no wonder that almost 1 in 2 Aussies don’t think there’s enough choice available,” said Bartolo. 
“With so many FHBs planning to buy in 2020, yet most stating choice in the market is a barrier, addressing this issue should be a focus in the year ahead.” 
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Rising prices yet to crush first home buyers ownership dreams in 2020: ME Bank

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A recent Herron Todd White (HTW) residential report has noted most Canberra suburbs have maintained median price points for standard dwellings while medium density and unit stock have seen some small declines.
Active sections of the market include standard housing at the entry level price points in some of Canberra’s fringe and outer suburban locations.
"Generally purchases are looking for large blocks within established suburbs that provide access to good education and employment services," the valuation firm said. 
Entry level price points for this style of housing range between $550,000 and $650,000. 
"Most homes within this section of the market provide three- and four-bedroom accommodation, generally 30 to 60 years old and, in many cases, the dwellings are ready for some renovation and upgrading," the valuation firm added. 
A recent sale was a three bedroom house in Fraser which presents opportunity to update or to extend. 
Set on more than 1,100sqm, the house at <a href="https://www.realestate.com.au/sold/property-house-act-fraser-132268290" target="_blank">19 Carrodus Street</a> (pictured below) comprises three bedrooms, open plan living and modern bathroom.
It's just a short distance to Fraser Primary. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/12/4/fraser%20.jpg" alt="">
Inner suburban locations in Canberra’s north and south set a higher price point, generally $1 million-plus.
The report notes this section of the market is also relatively stable with families looking to move on the property ladder with their second or third acquisition.
Again block size, location and proximity to schools and other services are the main drivers.
This section of the market ranges from $1 million up to around $3 million.
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"Market activity for property in the $3 million plus price point is slower, with buyers generally more discerning. 
"Location, block size, build quality and level of inclusions are major factors influencing this section of the market," the valuation firm said. 
A one level five bedroom residence in Griffith has recently been sold for $3.3 million. 
Designed by Paul Tilse and built by Classic Constructions, the home at <a href="https://www.realestate.com.au/sold/property-house-act-griffith-132269770" target="_blank">12 Bremer Street </a>(pictured below) offers 366sqm of living space with 99sqm garage.
It features five bedrooms, living and dining room with high ceilings, cinema, gourmet kitchen, rumpus room and alfresco entertaining area.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/12/4/griffth.jpg" alt="">
Price points in the medium density unit market range from $200,000 to $275,00 for a one- bedroom unit recently constructed in a fringe Town Centre location, to $400,000 to $500,000 for a centrally located unit in Canberra’s inner north or inner south.
"Both investors and owner- occupiers are active, however strong supply within the medium density market has had an impact on activity.
"Being in close proximity to or directly in Town Centres including Tuggeranong, Woden, Canberra City, Belconnen or Gungahlin is important for rental return, low vacancy and potential future growth." 
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