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>
Seven banking, insurance and investment products have been received a 2017 Innovation Excellence Award from CANSTAR.
Some 52 submissions were entered, with the winners awarded based on the degree of innovation and potential impact on the market their product has.
Mitchell Watson, CANSTAR group manager, research and ratings said this year entrants have exceeded expectations for the achievements that will make consumers’ lives better.
"From convenient digital wallets and new mobile banking apps and functions, to innovative insurance options and a fintech investment solution, winning submissions this year are focused on meeting a gap in the market or providing better value for money solution," he said.
“It’s great to recognise our first fintech solution into the Innovation Excellence Awards category. Given the growing appetite for finance services tech innovation, it will be interesting to see how many more fintech solutions are in the ranks next year
CANSTAR 2017 Innovation Excellence Award Winners
The seven winners are BRICKX, Macquarie Bank Online Banking, MLC Pre-Claim Early Engagement Service, NAB Pay Digital Wallet, Rural Bank Farm Management Deposit Offset Account, Suncorp Cyclone Resilience Benefit and Westpac Quick Transfer.
BRICKX is a fractional property investment platform that enables Australians to invest in residential real estate for a small portion of the cost of buying a whole house or investment property.
BRICKX buys the properties upfront, each property is put into a standalone fixed trust, and the properties are rented out. Investors buy ‘Bricks’ in the unit trust that owns the property they are interested in. Each Brick gives the investor a beneficial interest in the rental income and possible capital gains from that property. In March the property portfolio was valued at $8.68 million.
BRICKX launched fractional property investment as a retail product through the ASIC Innovation Hub scheme.  Although other fractional ownership schemes or managed funds exist, BRICKX provides a lower point of entry for investing in Australian residential real estate, compared to other investment options in the market, with investments starting at less than $100.  
BRICKX has succeeded in becoming popular with Australian investors, with 2,150 investors using the platform in the four months since launching in September 2016. 
For more information, <a href="https://www.canstar.com.au/star-rating-reports/innovation-awards." target="_blank">click here</a>.
</body></html>

jonathanchancellor-7SQnKwU6yx

BRICKX announced CANSTAR 2017 innovation award winner

<html><body>
<img src="https://counter.theconversation.edu.au/content/74925/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The b-word is doing the rounds, barely a decade after the United States house price bubble burst spectacularly, setting in motion a global financial crisis. As Australian real estate prices continue to break records, many wonder whether this is sustainable. 
Economists disagree on how to define a bubble, or even whether bubbles exist. Intuitively, a bubble (and this applies to any asset, not just real estate) exists when the price of an asset is over-inflated relative to some benchmark. And here’s the rub: no one can agree on what that benchmark should be.
The benchmark could be an estimate of the asset’s value based on a collection of variables that plausibly affect its supply, demand and price, so-called fundamentals. For houses, these fundamentals include population growth, tax policy, household size, household income, and many others. 
But economists cannot agree on what fundamentals determine an asset price, or how important each fundamental is. As well, the value of these fundamentals can only be estimated, not observed. It’s subjective to the point that someone will always be able to concoct a story based on fundamentals to rationalise why house prices are at the level they are.
Some economists propose alternative benchmarks to measure a bubble, such as historical long-run averages or an estimate of the underlying value of a trend. If asset prices are greater than these averages or the trend, then we have a bubble. However, this definition is too simplistic because the economy is dynamic, ever evolving, and both long-run averages, as well as trends, do change.
Price hikes and bubbles
It’s only when asset prices reach outrageous heights that a majority of people, economists included, agree that it is overpriced and due for a major correction (a bubble burst). Even then some economists will deny the existence of a bubble. 
One of the earliest examples of an asset price bubble was the frenzy in the market for Dutch tulip bulbs in the seventeenth century — the so-called “Tulipmania”. Although the data is patchy and many historians have not exercised great care in retelling the story, there’s little else to explain how prices for Witte Croonen bulbs rose 26-fold in January 1637 and fell to one-twentieth of their peak value in the first week of February.
Yet, well-respected scholar Peter Garber argued that:
"The wonderful tales from the tulipmania are catnip irresistible to those with a taste for crying bubble, even when the stories are so obviously untrue. So perfect are they for didactic use that financial moralizers will always find a ready market for them in a world filled with investors ever fearful of financial Armageddon."
Assuming bubbles are a significant gap between the observed asset price and some appropriate benchmark value, the mere existence of this gap begs the question of how it came about. The answers mostly rely on psychology, which is why many economists (looking to represent the world in a mathematical model) struggle with the concept.
Bubble frenzy
Bubbles are ultimately a confidence game, in which the vendor sells the asset to a buyer at a profit, with the latter hoping to do the same in the future. This game relies on a powerful narrative that captures people’s imagination and persuades them their turn will be different. 
As George Soros, the famous US-Hungarian multi-billionaire hedge fund manager once remarked:
"Bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception."
This misconception is the consequence of human behaviour and traits that depart from the fully rational paradigm so often assumed in formal economics. Instead, as behavioural economists argue, people exhibit a number of biases.
These include, for example, the desire to find information that agrees with their existing beliefs (called confirmation bias) or the tendency to form decisions based on the most readily available information (called availability bias). People experience and seek to resolve their discomfort when they have two or more contradictory beliefs, ideas, or values and they also employ simple abstractions in thinking about complex problems and events (framing).
People are poor intuitive statisticians and care more about avoiding losses than about experiencing gains (called loss aversion). The list of flaws in human behaviour goes on. Moreover, humans, social animals that we are, compete with and emulate our peers, herd like sheep and act on rumours. 
Occasionally, all these traits and biases re-enforce each other and send the prices of houses, or shares or whatever, into the stratosphere.
Who’s afraid of a bubble?
The bubble itself is rarely a major cause for concern, although young Australian households looking to purchase their first home will disagree. The problem, of course, is that every bubble eventually pops and this correction is typically violent and painful, for two reasons. 
First, asset prices often fall faster than they rise, so the downward correction can destroy value in a very short space of time. And second, most bubbles are fuelled by debt, because the only way a bubble can expand in the later stages is if the demand for the asset is bolstered by debt.
This combination – high debt and falling asset prices – generates a vicious cycle in which distressed debtors scramble to repair their balance sheets and sell their asset. This in turn pushes the price of that asset even lower, causing further distress to similar owners of the asset, and so on.
The pain associated with a bursting bubble varies considerably. Sometimes economies rebound rather quickly from a burst bubble, as was the case after the breath-taking collapse of the dotcom bubble. 
However, housing bubbles are in a league of their own. Historically, they have always led to severe recessions, and there is no reason to believe this should change. The next time is not different.
The answers on how to deal with a bubble range from “nothing” to “whatever it takes”. The problem is that no-one (policy makers included) can reliably identify a bubble. 
If there is such a thing as a bubble, we will only know for sure when the bubble is already popping. Acting early to prevent a bubble expanding further is risky and unpopular. It’s a brave central banker who raises interest rates in anticipation of an increase in asset prices when the rest of the economy is humming along just fine, or even showing signs of weakness.
So, is Australia in the midst of a housing bubble? I will go out on a limb and answer in the affirmative. There are plenty of arguments why current house prices are exactly where they should be, based on the fundamentals.
But in my opinion these explanations do not pass the smell test: double digit increases in house prices, combined with unprecedentedly high household debt (more than 120 percent of GDP, the third highest in the world) and household debt servicing ratios (also the third highest in the world), make for a precarious situation. All it takes is a modest change in investor sentiment, a few interest rate hikes, or a noticeable increase in unemployment, and the whole scheme unravels. I hope I’m wrong, but history is on my side.
Timo Henckel is research associate, Centre for Applied Macroeconomic Analysis, Australian National University and author for The Conversation.
He can be contacted <a href="https://theconversation.com/profiles/timo-henckel-990" target="_blank">here.</a>
</body></html>

j.ballantyne1990-6AQqhLzZaK

Are record-breaking real estate prices sustainable?

<html><body>
Century 21 Australasia chairman Charles Tarbey believes property investment in Sydney's Rouse Hill, the Sunshine Coast, Melbourne and Perth may hold good prospects for future investment.
Writing on Peter Switzer's Switzer Daily, Tarbey said Melbourne apartments and homes in Perth will be areas to watch.
He said more and more Australians are turning to property as their preferred asset class and taking advantage of the current low interest rate environment to invest in the relative security of bricks and mortar.
"A question I am often asked concerns the best places to invest as people eagerly seek to discover the hotspots for their next property purchase. 
The nature of the real estate cycle means that markets are consistently changing and it is difficult to predict movements with certainty.
"Prudent property investors will be researching, looking at data, engaging with professionals and putting all of this together to make the most informed decision possible for their personal circumstances. 
"Here are a few of my thoughts on locations in Australia that may hold good prospects for property purchases moving forward."
Melbourne
"According to CoreLogic, Melbourne experienced a 1.5 eprcent lift in prices over the month of February, and a 13.1 percent increase for year-on-year," he said.
"The state of Victoria as a whole is a strong market, however Melbourne in particular holds good prospects over the long term as a place for investment due to the strength of the economy and the prices of properties compared to similar property brackets in its northern neighbour, NSW. 
"Apartments are steadily coming on to the market, but at a slightly greater rate than demand. Unit approvals have risen 32.2 percent compared to a year ago according to ABS data from January 2017, so investors should remain wary of unit purchases that don’t meet their strict investment rules. 
"I believe that Melbourne remains a place where property exists in a good price range for such an iconic city, which may mean it endures as an attractive and relatively safe investment destination when taking a long-term view."
Rouse Hill and Surrounding Areas
"Rouse Hill sits around 42 kilometres north-west of Sydney and has quickly emerged as an area with good prospects for property investment," he said.
"CoreLogic data shows the median sale price of houses has increased 53.6 percent over the past five year, equating to a compound annual growth rate of around 9 percent. 
"Infrastructure is often a valuable indication of a suburb with good investment prospects as accessibility is enhanced. With construction of the Sydney Metro North West rail project well underway, we have seen many new developments of both houses and apartments emerging in the area. 
"Homes selling with million dollar price tags have become more frequent as people are attracted by qualities such as the family-friendly lifestyle found in Rouse Hill and surrounding areas, as well its location that is in relatively close proximity to the city. 
"With such a rapid growth in prices of late many might be wondering whether they have missed the boat on Rouse Hill and surrounding areas. I believe there are still suburbs around Rouse Hill that hold value for investors and it is hard not to believe that Rouse Hill itself won’t continue to enjoy growth over the long term as the train line begins operation and this micro economy, fuelled by the North West commercial district, comes into its own."
Sunshine Coast
"Stretching from Caloundra up to Noosa Heads, the Sunshine Coast region has been on the radars of many Australians," he said.  
"The area offers a great coastal lifestyle, which makes it an attractive destination that can satisfy the needs of those looking for a new home, rental property or holiday home. 
"According to CoreLogic’s regional report for the September 2016 quarter, the Sunshine Coast was one of the top performers in Queensland, along with the Gold Coast, and experienced lifts in both house and unit values. 
"Median values across Queensland’s Sunshine Coast rose by 4.1 percent for houses and 3.0 percent for units over the year ending September 2016.
"The region may hold good opportunities for investors as properties are still relatively cheap compared to other markets, the region is fairly iconic for both Australians and international visitors, and the area’s relatively close proximity to Brisbane should see it be a desirable location for Queenslanders for many years to come. 
"However, if the market encounters an influx of interest, there runs the risk that it can result in an oversupply of rental stock. Investors should remain cautious of this and ensure they are borrowing within a predetermined budget to avoid any financial shock should they encounter difficulty in attracting and keeping a good tenant."
Perth
"The Western Australian market has been struggling for a while now as it encountered the effects of a downturn in mining activity. This has been particularly prominent in comparison to other state markets that have been experiencing continuously strong growth," he said.
"CoreLogic data showed that Perth home values have fallen by -0.9 percent over the three months to February 2017. While prices are still experiencing downward movement in many areas, this trend may begin to attract the interest of investors looking for value laden purchases. 
"Investors may be able to secure property at a fair price, and should be watching areas in and around Perth as its potential to stabilise is good and any large increase in mining activity can see that property market explode very quickly."
 
</body></html>

Century 21's Charles Tarbey gives future property hotspot list

<html><body>
Non-bank property financiers and advisory group Gresham Property is launching a $500 million fund for developer financing as it seeks to cash in on tightening of lending rules by major banks. 
The new fund has received backing from several institutional investors that believe there are still good development deals available to the banks who have elected not to lend because of their own capital constraints, reported the Australian Financial Review.
Gresham Property's joint managing directors Ami Simon and Mike Burley said the scale of the backing was proof of the shortfall in developer funding. 
"With APRA calling for the banks to tighten their lending standards and the banks significantly limiting the availability of development finance, we believe that having a non-bank lender step in to help fill some of the void will be a very positive change for the development community," Simon was cited as saying by the AFR.
He said the fund and others like it would "assist in addressing housing supply issues in tight east-coast markets".
"With housing affordability becoming a very significant issue, especially in the Sydney and Melbourne markets, having additional funding sources to help developers address the supply side should be a very positive development."
In 2015, Gresham launched a $400 million fund backed by institutional investors to lend to property developers reconsidering borrowing from banks.
“We are providing something which stretches beyond where the banks like to go," Gresham Property's joint managing director Ami Simon had said then.
Repeat warnings have come from the Reserve Bank of Australia and overseas organisations such as the IMF and OECD about Australia's property markets, and financial watchdog Australian Prudential Regulation Authority is pushing banks to adopt strict mechanisms for lending. 
In such a senario, Gresham's new fund could be a reprieve for developers. 
Gresham’s Mike Burley said the fund would be offering "stretched senior" debt and would be focused on property development and value-add opportunities across all property sectors.
"Projects involving residential development in metropolitan locations are expected to be a primary source of opportunity," Burley said.
"GPF6 will be targeting developers with well-located projects, in markets which are under-supplied, with high-quality presales requiring investments in the $25 million-$125 million range."
</body></html>

Gresham Property launches $500 million developer lending fund to cash in on banks’ reluctance

<html><body>
GUEST OBSERVER
<div class="WordSection1">
Federal government plans to restrict foreigners from buying more than half the homes or apartments in any new development will only discourage offshore developers from doing business in Australia.
The proposal pitched as one of a raft of possible measures in the May budget to help young Australians enter the property market would be a waste of taxpayers’ money and potentially disastrous for the economy.
Foreign buyers already faced a wide range of restrictions and fees when it comes to investing in property in Australia.
Enough is enough.
The roll-on effect if this latest proposal is included in the May budget could be an economic disaster for Australia. 
This is just a ploy from the Government to make it look like they are doing something for first home buyers but it will just discourage offshore developers from investing in Australia.
The foreign buyer restriction could be the last straw and could result in driving away foreign buyers investing in Australian property. Excessive surcharges and further restrictions on foreign buyers could also lead to fewer international students coming to Australia as well as a slower population growth and a rise in unemployment.
Most buildings developed by onshore developers rely on local funding which typically limits their sales to foreign investors at 15-20 percent of the total sales.
This was not the first-time foreign buyers have faced a limit on the dwellings they can buy in Australia.
Before 2009, there was a regulation that meant developers could only sell half of their new dwellings in any development to foreign buyers.
But this all changed when the Global Financial Crisis (GFC) hit and the then Labor government decided to abolish the foreign limit for off the plan properties. This meant foreign buyers could buy whole developments if they were marketed both locally and overseas.
 
Mark Mendel, is founder and chief executive officer of iBuyNew.com.au and can be contacted <a href="https://www.ibuynew.com.au/" target="_blank">here.</a>
</div>
</body></html>

jchancellor-FAypfDUnLy

Foreign investor restrictions could be disastrous: Mark Mendel

<html><body>
BRICKX, the innovative online platform that makes it easy to invest through fractional ownership, has seven properties for potential investment.
To mark its sixth month since launch to small investors, any Bricks brought today - March 16 - will not incur purchase transaction fees.
"This offer ends at midnight tonight (AEDT)," the chief executive, Anthony Millet said.
Investors have potential to receive both capital returns and net rental income. Its tenant for the Bondi property commenced late last year paying $900 per week, as forecasted.
<a href="https://www.brickx.com/" target="_blank">BRICKX</a> has a simple fee structure typically charging a 1.75 percent transaction fee when you buy or sell bricks.
There are no funds under management, performance, contribution, service, or withdrawal fees.
There are monthly expenses associated with each property, detailed on each property's cashflow monthly distributions.
There are some 2,746 BRICKX investors who can currently trade on the exchange.
Some 11,604 Bricks have been transacted in the last 90 days.
The seven properties have an $8,685,000 value.
Since launched in September with four properties on the BRICKX Platform, the venture won Fintech Startup of the Year 2016 at the Startcon awards.
Millet was cited by the Australian Financial Review recently as saying that it took three years to get the approval from the Australian Securities and Investments Commission for the product to ensure it was suitable for retail investors.
The company currently owns properties in Bondi Beach, Double Bay, Enmore, Annandale and Mosman in Sydney and at Port Melbourne and Prahran in Melbourne. 
The estimated net rental yield for these properties, as shown on its website, range from 1.48 percent to 2.88 percent. 
Prices of bricks range from $69 per brick for its one-bedroom property in Enmore to $158 per brick for a two-bedroom house in Melbourne. 
The property investment platform that allows investors to acquire small interests in residential properties buys a property and divides it into 10,000 ‘bricks’, which are then sold to investors. 
The platform has drawn interest from self managed super funds. Chief executive Anthony Millet said SMSFs typically invest six-and-a-half times more than other retail investors through the site.
The average number of properties in which SMSF investors have an interest is 2.7.
For more information, <a href="https://www.brickx.com" target="_blank">click here</a>.
</body></html>

BRICKX close to securing 2,750 investors as SMSFs take up fractional property investment 

<html><body>
Richard Butler, the principal of Richard Butler Property Advisors (RBPA), has appeared overnight on stage at a MIPIM presentation in Cannes.
Butler, who heads an independent and specialised Sydney-based property agency, is the only featured Australian at the annual international property conference.
RBPA commenced in August last year and has already executed $800 million in sales and acquisitions. 
RBPA will be rebadged as a new agency in April 2017 when Richard will be joined by a team of five partners.
The firm specialises in investment sales and advisory for both Australian and offshore based instuitutional and private buyers and sellers specialising in Sydney but acting nationally.  
Richard’s real estate career spans 34 years since he began his career at Raine and Horne Commercial in 1983.
Richard joined Richard Ellis in 1989 as Director, City Sales. In 1995, he was appointed Director, Asian Marketing (Eastern Seaboard Offices). In this role, he was responsible for coordinating all Asian marketing on behalf of the Sydney, Brisbane and Melbourne offices.  In 1998 Richard Ellis was acquired by CB Commercial and was eventually rebadged as CBRE.
Richard was appointed Acting Managing Director of the Sydney office and then established the highly successful International Investments team in the capacity of Senior Managing Director. 
Richard has executed well over AUD $21 billion in transactions in Australia and overseas covering the US, EMEA and Asia.
Butler moderated the MIPIM session, Where are the blue oceans in Asia?, a session that focused on the South East Asian real estate investments. 
Chiaranussati Suchad, who founded the SC Capital Partners Group in 2004, under which the Real Estate Capital Asia Partners (RECAP) funds were borne, was on the panel along with Desai Rushabh, head of Asia Pacific Allianz Real Estate and Yue Richard, the CEO &amp; CIO of ARCH Capital Management Co. 
Organised by Reed MIDEM, a subsidiary of Reed Exhibitions, <a href="https://www.mipim.com" target="_blank">MIPIM is currently taking place in Cannes</a>.
</body></html>

RBPA's Richard Butler addresses 2017 MIPIM

<html><body>
The housing market in Queensland grew moderately in 2016 with Q4 results showing a weaker result for units, according to the REIQ.
The REIQ Queensland Market Monitor: December 2016 quarter report found the Brisbane LGA median house price grew 1.6 percent this quarter, to a new high of $655,000.
The annual median house price grew 4.1 percent over the past 12 months. The unit market performed less well, falling 4 percent this quarter. CoreLogic has Brisbane's unit median price currently at $488,000.
Antonia Mercorella, chief executive officer, REIQ  said this is the consistent, sustainable growth that the Brisbane house market has become known for and it is great that it’s such a solid performer.
"The unit market performed less well, falling 4 per cent this quarter, with supply issues finally gaining traction that many had forecast.  
"However, over the past 12 months the unit market has only fallen 1.1 percent and over the past five years the market is still in positive territory, having grown 11.3 percent.
“These supply issues have, as expected, had a small impact on prices, however, we know that the market is an excellent self-regulator and developers are already scaling back projects scheduled for this year and in 2018," she said.
Ipswich: The Ipswich median house price increased marginally this quarter, by 0.8 percent, to $332,700.
"This market is holding steady. While it has only grown by a slender 0.9 per cent over the past 12 months it is about 5.5 per cent higher than five years ago," she said.
"The Ipswich unit market is much more volatile than the house market and this is partially due to the stuttering nature of supply coming onto the market.
"The median unit price fell 10.6 percent this quarter, to $272,750, however, over the past five years the market is still showing modest growth of 7.1 percent.    
"Logan and Moreton Bay: Logan and Moreton Bay houses were the strongest growth markets in the Greater Brisbane region this quarter, with Logan’s median house price growing 2.4 percent to $384,500 and Moreton Bay’s median house price growing 1.8 percent to $422,250.  
"Logan’s unit market is the most affordable in Greater Brisbane and fell 1 percent in the December quarter, to $250,500.
"Moreton Bay’s unit market fell 2.9 percent this quarter, however, with a median price of $330,000 it remains the second-most expensive unit market in Greater Brisbane after Redland.
"Redland: The Redland house market is the cream of the Greater Brisbane crop.
"With a quarterly median house price of $510,000, even though this market showed zero growth over the quarter, it remains the most expensive house market after Brisbane LGA.
"The Redland annual median house price grew 4 percent over the year, which is similar to Brisbane LGA levels, and has grown almost 15 percent (14.8 percent) over five years.
"Similarly, the unit market is also the most expensive in Greater Brisbane.
"Even though the quarterly price fell a startling 10.2 percent in just one quarter, the market is 7 percent higher than it was five years ago.
"It would be fair to say this is a fragile market at the moment.
</body></html>

Apartment prices weaken in Brisbane: REIQ

<html><body>
The Brisbane property market, in terms of public perceptions, is a victim of the way research companies and media choose to portray price growth.
It’s a stronger market than the published numbers suggest. Sales activity is generally buoyant and there are suburban precincts with growth markets right across the Brisbane metropolitan area.
But the various research firms publish a single figure to describe house price growth across an entire metropolitan area - and that’s what media reports. In the past year, the single figure published for Brisbane suggests only moderate growth, much lower than Sydney or Melbourne. It’s caused some talking-head pontificators to declare that “there’s nothing happening in the Brisbane market”.
But individual parts of the Brisbane metropolitan area have performed better than the reported research suggests. Over the past 2-3 years, various precincts have recorded double-digit annual growth in median prices - but the growth has not been felt across the board, so the overall Brisbane growth figures have been quite small.
Hotspotting analysis of sales activity shows that the Brisbane metro area is one of the most active capital city markets in Australia and I expect good price growth in specific areas in 2017.
Brisbane has greater buoyancy in its markets than do Sydney and Melbourne, where sales activity fell markedly in 2016. But media continues to report distorted figures for price growth and auction clearance rates in the bigger cities, especially for Sydney, creating a misleading impression.
The notion that Sydney house prices are still growing at an annual rate of almost 20 percent is ludicrous but various media outlets keep stating it as fact, because one popular source says it’s so. Domain chief economist Andrew Wilson, on the hand, says comparing all Sydney sales in 2016 with all sales in 2015 gives an annual growth rate of just 4.4 percent, while the latest figure from the ABS is 3.3 percent and the Real Estate Institute of Australia says 3.4 percent.
Meanwhile, Brisbane chugs along, largely under the radar of national media – but not property investors who are smart enough to do their own research. A recent national survey found that Brisbane is the No.1 choice for property investors who plan to buy in 2017. Cheaper prices and much higher rental yields, compared to the two biggest cities, are strong attractions for nationally-focused investors.
Having just completed my latest analysis of sales data, I can confirm that the leading precinct for market activity is the Moreton Bay Region in Brisbane’s far north, where affordability, infrastructure and proximity to jobs nodes are key factors.
The Redcliffe Peninsula, which is part of the Moreton Bay Region LGA, has received particular impetus from the completion of the Moreton Bay Rail Link, a long-awaited piece of transport infrastructure. Some of the Peninsula suburbs have recorded double-digit growth in their median house prices in the past 12 months.
But while the Moreton Bay LGA leads, there is growth to be found in almost every segment of the Brisbane market. Some of the middle-market precincts both northside and southside, which appeared to have faded somewhat in 2016, have revitalised and there are numerous areas with growth momentum.
Logan City, the mirror image of Moreton Bay in the south of the Greater Brisbane Area, has been a market leader in the past two years. It appears to have faded a little but still has growth precincts and will continue to attract home-buyers and investors because of its cheap housing, excellent transport links and generally strong infrastructure.
Ipswich City, the south-western precinct with similar qualities to Logan City, is also rising and many suburbs are now delivering good price growth.
Redland Bay, which encompasses the bayside suburbs in Brisbane’s far east, is also now producing rising sales activity. It attracts buyers because of its affordable bayside lifestyle. It is increasingly emerging as an area of economic development and has good proximity to the Port of Brisbane and to Brisbane Airport, where there are major employment nodes.
Investors should continue to avoid the inner-city apartment markets. The CBD and near-city suburbs all have vacancy rates in the 5-7% range and these will increase as new high-rise projects are completed. Median apartment prices and median rentals are falling.
The latest Market Monitor from the REIQ shows that median apartment prices fell in all the inner-city markets last year including the CBD (down 4 percent), South Brisbane (down 7 percent), Fortitude Valley (down 5 percent), West End (down 5 percent) and Woolloongabba (down 7 percent).
There are also suburban precincts, particularly in the middle-ring areas, with above-average vacancies too, thanks to over-building of small-to-medium developments of units and townhouses.
But those cautions aside, the Brisbane metro area is a place of busy markets where growth will be found by investors in 2017. It presents as a good hunting ground for those disillusioned by the high prices in Sydney and parts of Melbourne.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can  <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a>
</body></html>

terryryder-YECXbqmri2

Brisbane property market stronger than numbers suggest: Terry Ryder

<html><body>
Up until now it’s very clear that federal and state politicians do not want a debate on property markets as they well know that a major overhaul is what’s required – consumers would be much better off and government revenues would be significantly reduced.
This would explain why the last significant taxation review in Australia, happened back in 2000, with the introduction of the goods and services tax (GST).
In 2008, the then Rudd Government commissioned the Henry Tax Review which was then published in 2010 – this was supposed to be Australia’s tax system reforms for the next ten to twenty years. Sadly, this review was binned and never saw the light of day as it threatened the longevity of a politician’s career. More recently, Ken Henry had another attempt to shed light on Australia’s housing affordability woes – the recommendations were immediately muted.
In December 2016, the Turnbull government completed its 20-month inquiry into home ownership in Australia. The conclusion was that Australia had no structural problem with housing affordability! This would have to be the most embarrassing finding over the last decade of Australian politics.
Australia urgently needs a property inquiry that does not include politicians or banks – this must be independent with the findings released six months before the next federal election. Then constituents can decide who they will vote for based on these findings, and the logical person to head this is Ken Henry, although our elected politicians would cringe at such a thought.
 
The Turnbull Government sixteen months ago agreed to implement many of the findings from the Murray recommendations relating to bank competition – to this day the legislation has been ignored despite publicly agreeing to act. Much like the Turnbull Government announcing that the Productivity Commission would formally investigate an inquiry into bank competition- this too, has mysteriously disappeared.
Treasurer Scott Morrison indicated this week that the government was working on a housing affordability package in the May federal budget although he has effectively ruled out most of the solutions available that must be included.
<a href="https://www.propertyobserver.com.au/images/2017/03/10/House-Prices-since-GFC.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/10/House-Prices-since-GFC.png" alt="">
Australia’s big banks testified at a parliamentary inquiry into banking this week and all found to much amazement that Australia’s property prices aren’t over-inflated. Of course, they are going to say that because if they said they hold grave fears (which they all do) then there would be a huge sell-off of their respective shares. Like just what are these inquiries supposed to achieve? Maybe a lie detector would be an intelligent start – where this graph has the banks not remotely concerned.
<a href="https://www.propertyobserver.com.au/images/2017/03/10/Mortgage-Nation.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/10/Mortgage-Nation.png" alt="">
Again the Reserve Bank of Australia (RBA) left the cash rate at 1.50 per cent which takes me to a topic that I have written about – why does Australia have a one fit cash rate that fits all property markets? SGS Economics principal Terry Rawnsley announced that they found if interest rates were presently set for each state and territory that there would be massive variations across Australia. Sydney would currently be at 3.75 per cent, Melbourne would be 3.50 per cent, Adelaide, Brisbane and Hobart at 0.25 per cent and Perth at 0.5 per cent. Why is the RBA not looking at these models? For example, if Sydney was at 3.75 per cent then the variable rate would be at 7.05 per cent – but we all know that this would not be good for the economy and the government’s economic standing in the global economy. I can tell you one thing, if Sydney had a variable rate of 7.05 per cent clearance rates would be half of where they sit today.
These are just a few of the discussions we should be having today, although a fair and true representation can only occur when vested and conflicted parties are not involved in the debate. Rather make the findings, and then have the much-overdue debate.
Although Canberra would rather let you know that they are steering Australia to absolute greatness. In less than a month, April 1 (and this is not an April Fool’s joke) Australia will lay claim and become the titleholder for the longest economic expansion ever recorded before once it posts our 104th quarter of economic growth.
Yep – there is a valid argument why Australia must not have any economic reform and this would explain why economic paralysis has spread so fast and wide in Canberra. They will also tell you this planning and research has enabled Sydney to post the strongest annual growth in house prices since 2003.
My-bad, I am obviously barking up the wrong tree.
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/">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/">Virtual Realty News</a> since 2000.
</body></html>

Property market

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Property market

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News