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<p>A 60-apartment building nine storeys tall would be a rarity almost anywhere along this stretch of Moreton Bay, but that's exactly what's been lodged for a modest Deception Bay street better known for its single-storey weatherboard homes.</p>

<p><a href="https://www.apartments.com.au/developers/sherlock-construction-homes">Sherlock Construction Homes</a> is seeking to push Deception Bay’s emerging medium-density housing profile higher, lodging plans for a nine-storey apartment building near the suburb’s shopping centre and foreshore.</p>

<p>Dubbed Grosvenor Apartments, the proposal at 14-20 Grosvenor Terrace would replace two detached homes with a new building designed by&nbsp;<a href="https://www.apartments.com.au/architects/mode">Mode Design</a>&nbsp;which would&nbsp;reach nearly 30 metres, well above the site’s mapped 21-metre building height.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="86c21a25-5a97-4ca7-a361-80757137ea5b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20da%20front.png?VersionId=aXIujfvEhH33sLHOEjHFv9Ii6qxSvAF4" /></p>

<p>The apartment mix is weighted toward larger homes, with 14 three-bedroom apartments, 31 two-bedroom apartments and 15 one-bedroom apartments. Six apartment types are spread across the floors, ranging from 66 sqm one-bedroom units through to three-bedroom apartments of 116 sqm, most with private balconies or terraces.</p>

<p>Levels one through seven follow a consistent layout of six to eight apartments per floor arranged around a central lift and stair core, with the top floor, level eight, trading one apartment for a landscaped community breakout space rather than repeating the standard layout below.</p>

<p>Ground floor is dedicated to arrival and services, with a lobby, mailroom and manager's office, alongside 91 car spaces.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="b098bde0-5fe1-4e6c-9601-e5446612e5fc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20podium.png?VersionId=A0hfENMNxSxkfh9Jl6D4WJ9XIraeOukA" /></p>

<p>Mode Design's brief describes a "serene coastal-inspired design blending soft curves, natural textures and light-filled spaces to reflect the relaxed Deception Bay lifestyle."&nbsp;</p>

<p>The material palette leans on white and grey render, timber-look aluminium screening and stacked-brick-look finishes, with hanging greenery and vine planting proposed across balcony edges and ground-level walls.&nbsp;</p>

<p>Balconies feature asymmetrical geometries intended to vary the building's rhythm rather than repeat a single module up the tower, while lush planting is concentrated over the entry and level one balconies to soften the building's base.</p>

<p><img alt="First Look: Sherlock Construction pitches 9-storey tower for low-rise Deception Bay" data-entity-type="file" data-entity-uuid="c05c5693-3e00-42d0-b075-55c36094f4db" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Deception%20da%201.png?VersionId=cMKJgBsBaaVCd2dA5O22SOT38OT_.BPA" /></p>

<p>The design evolved following an April 2025 prelodgement meeting with council. At that stage, the project was conceived as a seven-storey building containing 45 apartments. The subsequently lodged scheme increases the development to nine storeys and 60 apartments while introducing one-bedroom residences to the mix.</p>

<p>Zone Planning argues the additional scale reflects the site's position within an area earmarked for increased residential intensity. The planning report points to the North Lakes-Redcliffe-Moreton Bay Rail corridor strategy, which identifies Deception Bay as a district-level activity centre and supports greater housing choice within urban neighbourhoods.</p>

<p>Market Square Deception Bay, Deception Bay Sports Centre, Deception Bay State School, public transport, community facilities and the Moreton Bay foreshore are all identified within approximately one kilometre of the site, while the property falls within a 400-metre walking catchment of Market Square.</p>

Joel Robinson

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

<p data-end="587" data-start="368">Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.</p>

<p data-end="778" data-start="589">The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.</p>

<p data-end="907" data-start="780"><a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.</p>

<p data-end="1052" data-start="909">The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.</p>

<p data-end="1311" data-start="1054">The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.</p>

<p data-end="1451" data-start="1313">The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.</p>

<p data-end="1676" data-start="1453">MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.</p>

<p data-end="1908" data-start="1678">Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.</p>

<p data-end="2142" data-start="1910">The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.</p>

<p data-end="2142" data-start="1910"><img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" /></p>

<p data-end="2308" data-start="2144">MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.</p>

<p data-end="2648" data-start="2310">"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.</p>

<p data-end="2797" data-start="2650">"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."</p>

<p data-end="2938" data-start="2799">The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.</p>

<p data-end="3216" data-start="2940">Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.</p>

<p data-end="3325" data-start="3218">Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.</p>

<p data-end="3442" data-start="3327">"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.</p>

<p data-end="3662" data-start="3444">"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."</p>

<p data-end="3818" data-start="3664">MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.</p>

<p data-end="4076" data-start="3820">"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.</p>

<p data-end="4375" data-start="4078">"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."</p>

<p data-end="4503" data-start="4377">Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.</p>

<p data-end="4741" data-start="4505">"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."</p>

<p data-end="4910" data-start="4743">The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.</p>

<p data-end="4951" data-start="4912">MAYD is targeting an early 2027 launch.</p>


First look at MAYD's North Kirra mixed-use precinct

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<p data-end="600" data-start="394">Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.</p>

<p data-end="733" data-start="602">But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.</p>

<p data-end="970" data-start="735">Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.</p>

<p data-end="970" data-start="735">[smartcode_project:default project_id=152737 project_image_fid=377679]</p>

<p data-end="1159" data-start="972">The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.</p>

<p data-end="1357" data-start="1161">It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.</p>

<p data-end="3400" data-start="3216">[smartcode_project:default project_id=152737 project_image_fid=377675]</p>

<p data-end="3400" data-start="3216">Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.</p>

<p data-end="1664" data-start="1517">Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.</p>

<p data-end="1826" data-start="1666">Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.</p>

<p data-end="1826" data-start="1666">[smartcode_project:default project_id=152737 project_image_fid=377685]</p>

<p data-end="2045" data-start="1828">Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.</p>

<p data-end="2269" data-start="2047">"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.</p>

<p data-end="2430" data-start="2271">A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.</p>

<p data-end="2606" data-start="2432">It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.</p>

<p data-end="2724" data-start="2608">At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.</p>

<p data-end="2892" data-start="2726">Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.</p>

<p data-end="2892" data-start="2726">[smartcode_project:default project_id=152737 project_image_fid=377680]</p>

<p data-end="3004" data-start="2894">Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.</p>

<p data-end="3214" data-start="3006">"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.</p>

<p data-end="3400" data-start="3216">The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.</p>

<p data-end="3400" data-start="3216">More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.</p>

<p data-end="3670" data-start="3538">&nbsp;</p>

<p data-end="3670" data-start="3538">[smartcode_project_cta:default project_id=152737]</p>

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

<p>A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.</p>

<p>Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.</p>

<p>Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374005]</p>

<p>The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.</p>

<p>Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.</p>

<p>Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374010]</p>

<p>Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.</p>

<p>The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.</p>

<p>“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.</p>

<p>[smartcode_project:default project_id=150999 project_image_fid=374002]</p>

<p>“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”</p>

<p>The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.</p>

<p>[smartcode_project_cta:default project_id=150999]</p>


Maréa Residences brings parkside apartments to Coolangatta

<p data-end="535" data-start="324">Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.</p>

<p data-end="717" data-start="537">The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.</p>

<p data-end="918" data-start="719">The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.</p>

<p data-end="1131" data-start="920">PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.</p>

<p data-end="1131" data-start="920"><img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" /></p>

<p data-end="1318" data-start="1133">Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.</p>

<p data-end="1433" data-start="1320">The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.</p>

<p data-end="1658" data-start="1591">A significant component of The One will be its residential amenity.</p>

<p data-end="1864" data-start="1660">More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.</p>

<p data-end="2011" data-start="1866">The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.</p>

<p data-end="2011" data-start="1866"><img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" /></p>

<p data-end="2191" data-start="2013">The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.</p>

<p data-end="2365" data-start="2193">PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.</p>

<p data-end="2473" data-start="2367">“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.</p>

<p data-end="2775" data-start="2475">“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”</p>

<p data-end="2943" data-start="2777">The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.</p>

<p data-end="3145" data-start="3001">PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.</p>


PDG secures approval for $1.5bn Southbank apartment development, The One

Property market

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<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">The outer Sydney land market is now in a strong growth phase, after being in a downturn for the best part of a decade. Rising land development in Outer Sydney has been driven by improved affordability, improved land availability, and improved transport infrastructure provision.</span></p>
<p>We have <span style="line-height: 1.3em;">profiled the various indicators relating to demand, dwelling and lot supply, and prices, in the outer Sydney land market, with a focus on the north west and south west corridors, as well as the central coast. The regions are defined as follows:</span></p>
<span style="line-height: 1.3em;">North West </span><span style="line-height: 1.3em;">(The Hills Shire, Blacktown and Penrith LGAs)</span><br><span style="line-height: 1.3em;">South West </span><span style="line-height: 1.3em;">(Wollondilly, Camden, Campbelltown and Liverpool LGAs)</span>
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<span style="line-height: 1.3em;">Central Coast (Gosford and Wyong LGAs).</span>
<p style="line-height: 1.3em;">STOCK DEFICIENCY</p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">Very low new dwelling completions between 2006/07 and 2011/12 saw a sizeable dwelling deficiency emerge in the Sydney market by June 2012. The combination of dwelling deficiency and improved affordability via low interest rates has been the key driver of the upturn in Sydney residential prices and demand for new housing. Completions have grown from a low of 18,400 dwellings in 2011/12 to 35,200 dwellings in 2014/15. While significant growth has occurred in high density dwelling commencements  </span><span style="line-height: 1.3em;">which rose by 123% in this time, new separate house starts have also increased by a sizeable 57% from 8,000 houses to 12,500 houses in the same period. This has been met by strong population growth, as New South Wales benefits from a strong, albeit easing, net overseas migration inflow, and a record low net interstate migration outflow, which has sustained the dwelling deficiency in Sydney despite rising supply. </span></p>
<p style="line-height: 1.3em;"> </p>
<p style="line-height: 1.3em;"><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.12.22%20AM.png" target="_blank"><span style="line-height: 1.3em;">Click here</span></a></p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;"><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.12.22%20AM.png" alt=""></span></p>
<p style="line-height: 1.3em;"> </p>
<p style="line-height: 1.3em;"><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.13.58%20AM.png" target="_blank">Click to enlarge</a></p>
<p style="line-height: 1.3em;"><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.13.58%20AM.png" alt="" width="757" height="487"></p>
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<p><span>DEMAND </span></p>
<p><span>Population Growth </span></p>
<p><span>Greater Sydney’s population growth slowed from 49,100 persons per annum over 1996–2001, to 30,700 persons per annum over 2001–2006 as a result of slowing net overseas migration and larger net interstate migration outflows. The impact was felt in Outer Sydney, with Inner and Middle Sydney population growth remaining largely unchanged. </span></p>
<p><span>Population growth recovered to 70,600 persons per annum over 2007–2011 as both net overseas migration boomed and net interstate outflows moderated, with Inner and Middle Sydney accounting for the majority of this increase. </span></p>
<p><span>Population growth has continued to strengthen over 2011 to 2015 to an estimated 79,200 persons per annum, with Outer Sydney now accounting for the larger share of the increase, are driving the emerging recovery in the broadhectare land market. </span></p>
<p><span>Greenfield development </span></p>
<p><span>Infill development of new houses can take place as knock downs, as well as new houses being built on infill or brownfield sites. The level of infill activity generally moves in line with the cycle, however it is significantly more stable than demand for greenfield houses being constrained by the more limited availability of sites. </span></p>
<p><span>As a result, any upturns in new house demand are accommodated by the more plentiful greenfield land. Over the 2001 to 2015 period, greenfield land is estimated to have accommodated around 44% of Sydney’s new house demand, being as low as 22% (in 2009) and as high as 70% (in 2001). Greenfield land is estimated to be accommodating around 55% of new houses in 2014/15. </span></p>
<p><span>House affordability </span></p>
<p><span>Housing affordability, as measured by mortgage repayments at the prevailing variable interest rate on 75% of a median priced home in Sydney as a percentage of average household disposable income for New South Wales, has averaged 33% over the twenty two years to 2014/15 (Chart 3). </span></p>
<p><span>The upturn in Sydney prices was initiated as interest </span><span style="line-height: 1.3em;">rates fell and the affordability ratio moved below the long term average. However, subsequent price rises drove further demand and price growth, with mortgage repayments on a median priced home of 37.7% of household disposable income at June 2015, currently worse than the long term average and approaching some of the worst levels recorded in 2004 and 2008. Further price rises will put house prices increasingly under pressure, particularly if interest rates also rise. </span></p>
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.15.56%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.15.56%20AM.png" alt=""></span></p>
<p> </p>
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.17.14%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.17.14%20AM.png" alt=""></p>
<p><span>Land affordability</span></p>
<p><span>The key to the upturn in the Sydney land market has been the improved affordability of new houses relative to the increasing median house price. Through the middle of the 2000s, the ratio of land prices to house prices, or alternatively the premium of buying a new house over an established house in Outer Sydney was at a worse level than in the 1990s and early 2000s.</span></p>
<p><span>However, the price of land relative to established housing in Outer Sydney has improved from 72% in 2005 to 52% in 2015—better than the late 1990s average. Conversely, the median new home cost is now slightly below established house median prices. </span></p>
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<p><span>SUPPLY</span></p>
<p><span>Land Production</span></p>
<p><span>Lot production was extremely low in the 2006 to 2010 period, with Outer Sydney producing just 1,900 lots on average over this timeframe.</span></p>
<p><span>Since the upturn, lot production in Outer Sydney has surged, reaching 6,000 lots in 2013/14 and is estimated 4,500 to have risen to 8,100 lots over 2014/15, which 4,000 represents a 35% increase.</span></p>
<p><span>Over the long term, North West Sydney (The Hills Shire, Blacktown, and Penrith LGAs) has generally accommodated 48% of lot production in Outer Sydney.<br> In comparison, South West Sydney (Liverpool, Camden and Campbelltown LGAs) has accommodated around 36%, and the Central Coast (Gosford and</span></p>
<p><span>Wyong LGAs) has accounted for 13% (Chart 5). More recently, the limited new lot supply elsewhere means that Outer Sydney lot production is now roughly evenly split between North West and South West Sydney. </span></p>
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<p><span>Lot Size</span></p>
<p><span>The median size of new lots in Outer Sydney has been falling since 2000, from over 700 square metres to below 500 square metres for the first time in 2013/14. </span></p>
<p><span>While lot sizes remain low in a long term sense, there has been a small increase in lot sizes in 2014/15 as developers increasingly serve the upgrader market as price points move beyond the realm of first home buyers. </span></p>
<p><span>The strong demand for land in Sydney means that developers are producing more profitable larger lots to target the upgrader market. Meanwhile, the first home buyer market is increasingly being serviced by the established home and apartment market. In new estates, the most affordable housing is being provided in integrated developments rather than small lots.</span></p>
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<p><span>PRICES</span></p>
<p><span>There was a correction in both land and house prices (as well as new house activity), through the latter half of the 2000s. Between 2005 and 2009, the Outer Sydney median land price fell by 10.5%, or a 20% decline in real terms. </span></p>
<p><span>With Outer Sydney median land prices over 2009 to 2013 remaining relatively flat (+4% increase in total), Outer Sydney house price growth returned (+25% in the same period), and land affordability improved back to 1990s levels. </span></p>
<p><span>Further strong growth in Outer Sydney median house prices in 2014 and 2015 (totalling +31%) has taken the median house price to an estimated $650,000 at June 2015. Growth in land prices has also returned although still remains below that of house prices (+21%) indicating a median of $335,000 by June 2015. This lower growth in land prices has allowed the cost of new houses to become more affordable relative to established houses and enabled upgraders to more easily sell their existing dwelling to upsize to a new home. </span></p>
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<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.27.44%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.27.44%20AM.png" alt=""></span></p>
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<p><em><span>Angie Zigomanis is senior manager, <span id="0.8280794406309724" class="highlight">BIS</span> <span id="0.5401298783253878" class="highlight">Shrapnel</span> and can be contacted <a href="mailto:azigomanis@bis.com.au" target="_blank">here</a>.</span></em></p>
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Strong growth for outer Sydney land market: Angie Zigomanis

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<div>
<em>Residex</em> released its data and property market update to 31 July which showed house growth over the quarter accelerate to "an astonishing" 7.6% to be 21.2% higher over the year.</div>
<div> </div>
<div>As the below <em>Residex</em> graphic shows capital growth in Sydney has continued to outstrip by far that seen in other capital cities where average growth for the quarter was under 1%.</div>
<div> </div>
<div>Sydney median house prices have now blasted well past $1 million at $1,017,500</div>
<div>
<br>Regional house price growth was relatively soft across all states and territories on this index. </div>
<div> </div>
<div><a href="/images/2015/08/31/Resi1.jpg" target="_blank">Click here</a></div>
<div> </div>
<div><img src="/images/2015/08/31/Resi1.jpg" alt=""></div>
<div>
<div>Sydney unit prices also recorded very strong 6.6 per cent quarterly growth to be 15.2 per cent higher over the year.</div>
<div> </div>
<div>
<em>Residex</em> has also recorded very strong growth in rents for houses and units over the past twelve months.</div>
<br><span>On the other hand median prices contracted in resources capitals Perth and Darwin over the past year.</span>
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<div><a href="/images/2015/08/31/Table_1_July_Stats_Summary2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/31/Table_1_July_Stats_Summary2.jpg" alt="" width="765" height="670"></span></div>
<div> </div>
<div> </div>
<div>
<div>These<em> Residex </em>updates are well worth a read.</div>
<div> </div>
<div>Discussed in this newsletter is how the increasing population density of Sydney may have contributed to outperforming capital growth.</div>
<div> </div>
<div>
<em>Residex</em> considers that strong captial growth in Sydney could continue for the next few quarters before stabilising at a high level.</div>
<div> </div>
<div>
<div>These<em> Residex </em>updates are well worth a read.</div>
<div> </div>
<div>Discussed in this newsletter is how the increasing population density of Sydney may have contributed to outperforming capital growth.</div>
<div> </div>
<div>
<em>Residex</em> considers that strong captial growth in Sydney could continue for the next few quarters before stabilising at a high level.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Astonishing Sydney boom accelerates: Pete Wargent

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<div><span style="line-height: 1.3em;">I'm in the midst of what will ultimately be my most comprehensive research project to date, and henceforth will aim to share a few high level viewpoints and findings on this blog page along the way.</span></div>
<div> </div>
<div>There are of course a multitide of factors which impact and drive housing markets ranging from macroeconomic drivers to monetary policy, and from consumption patterns to construction rates. </div>
<div> </div>
<div>But for today let's look briefly and specifically at Australia's demographics.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Population pyramid</span></strong></div>
<div> </div>
<div>Looking below at an Australian population pyramid - which for the purposes of this blog post I have flipped on its side - representing the estimated resident population as at 2014, we can immediately observe a couple of salient points.</div>
<div> </div>
<div>Firstly, although Australia does have an ageing population, in part thanks to our immigration program the demographic profile of Australia is markedly different to those found in some other developed countries, and considerably less "top heavy".<br><br>With skilled migration in particular often having favoured those in the 21-30 age bracket, there is presently a relative dearth of people in my age bracket, that being the 31 to 38 year old cohort (see Point A on the below chart).</div>
<div> </div>
<div><a href="/images/2015/08/31/PP1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP1.jpg" alt=""></div>
<div> </div>
<div>
<div>Depending upon your preferred information source the average or "typical" age of first homebuyers in Australia now ranges anywhere from 31 to 34 years of age, and that figure could potentially levitate further due to a combination of lifestyle factors and increasingly stretched deposit gaps in the two major capital cities.<br><br>Of course, an "average" covers a wide range of ages and strains of buyer, but recent data has suggested that a comfortable majority of first homebuyers are now in their 30s or 40s.<br><br><strong><span style="text-decoration: underline;">Investors in the ascendancy...for now</span></strong><br><br>
</div>
<div>The shape of the first chart above may therefore go some of the way to explaining the comparatively low volumes of homebuyers in the market through this cycle, with investors dominant to an an unprecedented degree, particularly in the largest capital city markets.<br><br>Naturally other factors have played a role here, particularly looser monetary policy which has encouraged those with existing equity generated through housing market ownership to redeploy it in a faithful manner.<br><br>Not only is there a relative paucity of 31 to 38 year olds where we might expect to find the bulk of first homebuyers, there is also an evident weak spot in the traditional "big spender" cohort.<br><br>Which is to say, there is a proportionate lull in the number of executives, senior managers and business owners commonly aged from around 45 to 55 (refer to Point B on the above chart).</div>
<br><div>While the wave of first homebuyers predominantly impacts dwelling prices at the entry level, it is those in these middle working years that are the heaviest spenders in the housing market, making their most material dwelling purchases at that stage in life.</div>
<div> </div>
<div>As you can see in the graphic above, the demographic pyramid does not present too kindly in respect of either cohort at the current time...and nor is it likely to do so for some years.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Looking swell (2021-2027)</span></strong></div>
<div> </div>
<div>In fact, rolling the chart packs forward by calendar year we find that it is not until around around 2021 that the number of potential first homebuyers reaches a critical mass which might be considered compelling, with the number of 31 to 38 year olds in particular mushrooming to a total of more than 3.1 million (from around only 2.6 million in 2014).<br><br>In the period through to 2027, that number is projected to have expanded further still to more than 3.3 million. </div>
<div>
<br>As this effective "spending wave" passes through 2021, therefore, the demographic factors for Australian housing market growth look to be particularly favourable from that year until around 2027 inclusive.<br><br>As you can see in the second chart below, not only will the total population of Australia have swelled significantly by 2021 to around 26.5 million, the clamour of potential purchasers in the 31 to 38 year old age bracket (Point A below) really begins to amplify.<br><br>Furthermore there will be a coinciding wave of Australians approaching the latter half of their fourth decade (Point B below), the time of life at which they are likely to make their most consequential home purchases. </div>
<div> </div>
<div><a href="/images/2015/08/31/PP2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP2.jpg" alt=""></div>
<div> </div>
<div>
<div>This isn't to suggest here that the demographics for homebuyer activity then deteriorate after 2027 as such, rather that the projected figures then plateau for a period of time and thereby stop improving so impressively.<br><br><strong><span style="text-decoration: underline;">City winners and losers</span></strong><br><br>Drilling down to the next statistical level, it can be found that from around 2021 the demographic waves will become very favourable for Sydney, Melbourne, Brisbane and and <span style="text-decoration: underline;">particularly</span> Perth (assuming the superfluity of mining boom migrants opts to stay put, and interstate migration away from Western Australia doesn't begin to bite).<br><br>Hampered by an interstate migration "brain drain" these demographic waves do not suggest a favourable environment for the Adelaide housing market, with barely any improvement discernible over the same time horizon.<br><br>Meanwhile the latest projections suggest that Tasmania's housing market demographics could potentially worsen quite appreciably in the years leading up to 2035, although such longer term projections by their very nature tend to be less than reliable.<br><br><strong><span style="text-decoration: underline;">Dwelling starts</span></strong>
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<div>
<br>While this is a blog post predominantly concerned with demographics, it's worth considering for a moment how the above findings tie in with the dwelling construction cycle.<br><br>Two of the "X-factors" which have impacted this housing market cycle have been an explosion in the volume of Asian capital invested in the Australian market and a hitherto unseen shift towards multi-unit construction.<br><br>Although 2015 will likely prove to be the market peak for dwelling starts, dwelling <em>completions</em> will remain elevated for the next few years.<br><br>In combination with a slowing rate of population growth, this will be one of the factors together with an erosion of yields which will eventually bring the current growth cycle to its end.</div>
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<div><a href="/images/2015/08/31/HIA.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/HIA.jpg" alt=""></div>
<div> </div>
<div><span>Since natural population growth and net overseas migration will take some time to absorb the excess dwelling stock, this also points broadly towards 2021-2027 as a likely period for housing market growth.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/31/AW1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/31/AW1.jpg" alt=""></span></div>
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<div>
<div><strong><span style="text-decoration: underline;">Long run demographics are healthy</span></strong></div>
<div> </div>
<div>While the latest data suggests that over the short term Australia's populaton growth is likely to continue to slow, over the very long run the demographics of Australia are exceptionally compelling, with the population potentially set to almost double by over the next half century.<br><br>Also note that immigration is projected to keep the headcount in the potential homebuyer age brackets expanding to heights that agents and other industry participants can only dream of today.</div>
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<div><a href="/images/2015/08/31/PP3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP3.jpg" alt=""></div>
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<div>
<div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>With life expectancies increasing there will evidently be a greater number of residents living well beyond the traditional retirement date in the decades ahead, although in time we might expect to see more folk working beyond the traditional retirement age too.</div>
<div> </div>
<div>The chart above implies that with the demand for capital city property likely to approximately double over the very long run, the likelihood of capital city land values in the landlocked inner- and middle-ring suburbs remaining anything less than singularly expensive appears quite remote.<br><br>Of course, it isn't possible to forecast or time markets so accurately, but over the near term there could easily be a relatively weak period ahead for housing markets as dwelling completions overtake demand, before a potentially strong rebound running broadly between 2021 and 2027. </div>
<div> </div>
<div>The most interesting and useful findings are those which incorporate the shifting composition of net migration at the suburb level, though I don't post detailed suburb research on my blog. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Making waves in the Aussie housing market: Pete Wargent

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<p>New South Wales auction results for the week ending Sunday August 30 show a preliminary clearance rate of <span>78%</span> from <span>1080</span> scheduled auctions.</p>
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<div class="num">According to data from realestate.com.au, <span style="line-height: 1.3em;">516 </span>were sold at auction within NSW, <span style="line-height: 1.3em;">142 </span>passed in and <span style="line-height: 1.3em;">142 </span>sold prior to auction.</div>
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<div class="num">One standout property in the Sydney suburb of Annandale was a two bedroom terrace at <a href="https://www.realestate.com.au/property-house-nsw-annandale-120376477" target="_blank">22 Collins St Annandale</a> which sold for $980,000.</div>
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<div class="num"><a href="https://www.realestate.com.au/auction-results/nsw?rsf=edm:auction:nsw" target="_blank">Click here to see the full state breakout.</a></div>
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NSW shows auction clearance rate of 78%: Realestate.com.au

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<p>Retail property giants, Westfield Corporation and Scentre Group, were among the last companies to report their results in August, along with Lend Lease, Charter Hall Group and several smaller property companies. </p>
<p>Westfield Corporation and Scentre Group, which each reported half-year results to June 30, 2015, hit their funds from operations forecasts and said they were in line to meet their full-year targets. </p>
<p>Development works are expected to drive profits for Westfield Corporation, which owns and operates Westfield shopping centres in Europe and the USA. It plans to start $2.5bn worth of projects in the coming year with $1.6bn of redevelopments already started in the first half of 2015. </p>
<p>Scentre Group, owner-operator of the Australian Westfield shopping centre assets, is also spending up on redevelopment with $825 million of works announced. Some of the costs will be covered using proceeds from the sale of four smaller shopping centres that did not fit with the group’s long-term strategy. </p>
<p>Several listed property companies have noted the high prices that quality commercial assets are commanding.</p>
<p>“We expect quality Australian property to remain attractive to both domestic and off shore investors given the high Australian property yield spread to bond yields and that the cost of debt remains near record lows,” Charter Hall Group joint chief executive David Harrison said in announcing the fund manager’s results. </p>
<p>Charter Hall Group delivered a statutory after-tax profit of $117.9 million, up 43.6%. Its operating earnings were $98.8 million, up 21.7%. </p>
<p>Cromwell Property Group, which owns offices and operates property funds, said market conditions had lead it to be a net seller of assets.</p>
<p>“We believe some of the current sales activity represents peak of the cycle pricing for prime office assets, notably in Sydney and Melbourne,” Cromwell chief executive Paul Weightman said.</p>
<p>Cromwell reported statutory profit of $148.8 million, down from $182.5 million in 2014. It delivered operating earnings per security of 8.35 cents per share and distributions per security of 7.86 cents, up 3% on the previous year and in line with guidance. </p>
<p>While asset prices were up, trading conditions in commercial property have been mixed.</p>
<p>National Storage REIT, which owns and operates self-storage centres, said weak business and consumer confidence and high levels of discounting among its competitors had created variable trading conditions for its business. </p>
<p>The REIT, which listed at the end of 2013 and was admitted into the S&amp;P/ASX 200 in June 2015, reported an after-tax profit of $48.7 million and underlying earnings of 8.2 cents per security in line with guidance. </p>
<p>Residential property markets are also variable across the country. </p>
<p>Lend Lease, like other major residential developers, reported revenue from its residential division was up dramatically. The group reported $5.2 billion in pre-sales revenue for the year, more than double the prior year’s result. </p>
<p>Sunland Group reported improving consumer sentiment in Sydney, Melbourne and south-east Queensland drove development margins higher and helped it deliver an after-tax profit of $30.1 million, 111% up on its 2014 result. </p>
<p>Peet Limited reported a statutory profit of $38.5 million, up 27% on the previous year’s result as lower sales at its developments in Western Australia and the Northern Territory were partly offset by the strong performance of its projects in Victoria.</p>
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Big property companies reporting strongly: Zoe Fielding

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<p>GUEST OBSERVER</p>
<p>In the next couple of weeks you’ll start to see all the signs of the change of season. Like many Sydneysiders, I’m looking forward to the longer hours of sunshine and flowers blossoming.</p>
<p>Inevitably, and unfortunately, we’re about to see an increase in property spruikers declaring “The main selling season is here!” (2012) “The market is poised for a bumper spring!” (2013), “There’ll be a strong surge in the traditional spring selling season!” (2014).</p>
<p>The chart below shows why:</p>
<p><span class="caption">Average ABS House Price Index Return by Season</span></p>
<div class="enlarge_hint"><a href="/images/2015/08/31/image-20150828-17468-500s53.jpg" target="_blank">Click to enlarge</a></div>
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<div class="enlarge_hint"><img src="/images/2015/08/31/image-20150828-17468-500s53.jpg" alt=""></div>
<p>The thing is, though, it’s just a marketing gimmick.</p>
<p>Yes, the house price index appears to increase a lot more, on average, in Spring. But so does the sales volume. Why would people knowingly jump into the housing market at the seasonal peak?</p>
<p>It couldn’t just be that these property buyers don’t know that this is the annual peak. For our relative size, the number of inquiries, studies and urban policy research should mean Australians are among the most informed in the world when it comes to real estate markets.</p>
<p>In a 2009 research article I explore this phenomenon (available on SSRN) and show that the “Spring bounce” is an artefact of inadequate statistical modelling.</p>
<p>Many house price indices are limited by the availability of data, and rely on median prices to get a sense for what’s going on across the market. However, the change in the observed median sales price can have more to do with the types of properties that are selling from period to period than the actual market movement.</p>
<p>The underlying reality is that nicer properties sell through Spring: typically larger, well-located, ready to sell properties. And, unsurprisingly, these nicer properties tend to sell for more. Why is this the case? In many situations it is because of the education and work calendar - families relocating (resulting in buying and selling houses) will more often than not do so over the summer break. Given property settlement times, this means looking for a new house through spring.</p>
<p>So what advice can we take from this? For those needing to move for the very reason outlined above and braving an upcoming auction, try to avoid FOMO (“fear-of-missing-out”), for another property will come on to the market soon. If you don’t need to buy now, the data would suggest you should wait until summer when many are away on vacation, and pick up a spring-listed property that remains unsold - hopefully for a discount!</p>
<p><em><span class="fn author-name" style="line-height: 1.3em;">Danika Wright is </span><span style="line-height: 1.3em;">Lecturer in Finance at University of Sydney and author for The Conversation. You can contact </span>her<span style="line-height: 1.3em;"> <a href="https://theconversation.com/profiles/danika-wright-121868" target="_blank">here</a>.</span></em></p>
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Spring selling season and other gimmicks

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<p>After a long Victorian winter, we’re on the cusp of spring. It’s an exciting season in Melbourne- especially for sports fans that look forward to the AFL Grand Final and Melbourne Cup. It’s also the busiest time of year for the property market and a time for aspiring investors to make a start.</p>
<p><span style="line-height: 1.3em;">Yet starting is often the hardest part of investing. It’s crucial to remember this spring that whilst you can’t control or even predict the market, much like the result of the Melbourne Cup or footy finals, you can control what property you purchase and where it is.</span></p>
<p>With property prices in Melbourne rising around 10% since last year, asset selection will be key to property purchase this coming spring if you’re not to back a loser. </p>
<p>There are two main factors that influence an asset’s performance; the property itself and where the property is located. </p>
<p>In a moment, I will identify the areas in Melbourne where we at Wakelin Property Advisory like to buy property and the prices they will typically cost this spring. </p>
<p>I’ll be look at investment grade one bedroom apartments, two bedroom apartments and two bedroom houses.</p>
<p>But first.</p>
<p>Let me briefly recap some asset selection criteria for Wakelin Property Advisory, and how it ensures we only recommend investment grade property to our clients.</p>
<p>Firstly, a property really needs to be held for ten years and the ideal situation is one where you never sell.</p>
<p>Scarcity is the vital ingredient to property selection. If there is an ample supply of a property type relative to demand – and there is scope for more to be built – that property isn’t scarce and it won’t grow in value. An investment grade must exist in finite numbers.</p>
<p>So typically, period style properties perform best, as to put it simply, they aren’t being made anymore.</p>
<p>So houses we tend to recommend are pre 1950s such as Victorian, Federation, Edwardian or Art Deco architecture styles.<span style="line-height: 1.3em;"> </span></p>
<p>Apartments we consider are older styled – up to the 1970s – one and two bedroom apartments.</p>
<p>Proximity to amenities, parks, shopping precincts, public transport and schools are also important in your selection.</p>
<p>A dedicated off-street car parking space is essential for inner city apartment purchases, and balconies or courtyards are also highly sought after.</p>
<p>Ultimately, you are seeking a property that has a proven record of capital growth over many years. One that has performed in the past will generally continue to perform.</p>
<p>Ok, so take a look at this map of Melbourne. </p>
<p>We are particularly interested in the inner suburbs, as they have the best track record of growth and in our view have the best long term prospects.<span style="line-height: 1.3em;"> </span></p>
<p>So let’s break it down further:</p>
<p>•Inner Eastern suburbs,</p>
<p>•The Bayside region,</p>
<p>•And, the inner north.</p>
<p>This includes areas like South Yarra, Armadale, Malvern, Toorak and Hawthorn.</p>
<p>Traditionally these areas represent the most expensive and sought after real estate in Melbourne, they have been the bluest of blue chips. So how much is one likely to pay to enter this market?</p>
<p>A good one bedroom apartment in South Yarra will start around $450 to 500,000.<span style="line-height: 1.3em;"> </span></p>
<p>$650 to 750,000 in the inner eastern suburbs gets a reasonable two bedroom apartment in somewhere like Hawthorn.</p>
<p>$850-$950,000 is the entry level for a two bedroom house in the eastern suburbs, with around $1million ideally needed to get something that will really perform in suburbs like Prahran.</p>
<p>Turning to the inner Bayside. It used to be that Melbournians paid little attention to its waterfront. But no longer....</p>
<p>It’s full of highly regarded locations such as Albert Park, Middle Park, Elwood and St Kilda.</p>
<p>So, for a two edroom house in this area you’d need at least $1.2 million, with room to move up to around $1.4 million.</p>
<p>For apartments, suburbs like Elwood can prove a great investment as well as parts of St Kilda.</p>
<p>Typically, you’d be looking to spend at least $450,000 in somewhere like this for a one bedroom apartment, and up to around $550,000.</p>
<p>And for a two bedroom apartment in somewhere like St Kilda or St Kilda West, you’re looking to start around $600 to 650,000. Typically, at least $100,000 more than for a one bedroom in a similar area.</p>
<p>The north is a real mixture of property; full of warehouse conversions, cottages, shiny new apartments and old pre-war houses. However, it is still important to remember this concept of scarcity when examining your options in the North. <span style="line-height: 1.3em;"> </span></p>
<p>Consider suburbs such as Carlton North, Brunswick, Kensington, Flemington and Ascot Vale.</p>
<p>For a one bedroom apartment in the inner north, you’re looking to start around $400,000 in somewhere like Brunswick and going up the closer to the city you get.</p>
<p>If you’re looking for a two bedroom apartment, be prepared to invest $650,000 or more in the inner north in somewhere like Carlton North.</p>
<p>Those looking for a two bedroom house will need around $800,000 in the inner north for a quality property in somewhere like Ascot Vale or Kensington, to in excess of $1 million for A1 property in Carlton North.</p>
<p> <span style="line-height: 1.3em;">We’ll quickly examine some factors that may affect the market this coming spring and what the effects of these factors may have on prices.</span></p>
<p>Momentum of the Melbourne market has gathered a lot of media interest as of late with plenty of commentary discussing whether there is or isn’t a bubble and it’s hard not to get caught up. </p>
<p>But, if you keep in mind our concept of scarcity when purchasing property you shouldn’t have to worry.</p>
<p>Remember, they are the finite properties that will always build value if held for the long term.<span style="line-height: 1.3em;"> </span></p>
<p>Interest rates obviously affect the initial buying power and how much can be borrowed.</p>
<p>Currently, we have historically low rates and this is driving strong demand.</p>
<p>However, in recent weeks, we’ve observed the banks tightening the rules on lending for investors. The results has been higher interest rates for these borrowers and restrictions on how much they can borrow relative to an asset’s value.</p>
<p>It is evidence that rates won’t always be low and that one needs to factor in rates increases of 2 to 3%, so it is important to ensure that you are borrowing within your means.</p>
<p>Backing a winner this spring might be a bit of a fluke in the Melbourne Cup, but choosing the right investment property doesn’t have to be such a gamble if you follow our investment criteria.</p>
<p> </p>
<p><em>RICHARD WAKELIN is the director and founder of </em><a href="https://wakelin.com.au/" target="_blank"><span><em>Wakelin Property Advisory</em></span></a><em>.</em></p>
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 Exciting springtime market buzz hits Melbourne: Richard Wakelin

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<p>326 apartments in Crown Group's Infinity in Green Square will be released for sale this Saturday from 8am.</p>
<p>Infinity, located at 301-303 Botany Road is worth $575 million and designed by Koichi Takada Architects.</p>
<p>The sales launch will be held at the company’s head office at 1 Market St Sydney<strong> </strong>this Saturday, with apartments priced from $650 000.</p>
<p>Construction of Infinity by Crown Group is expected to be completed in 2019.</p>
<p>For more information, click <a href="https://infinitybycrowngroup.com.au" target="_blank">here</a>.</p>
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Green Square project to launch this weekend

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<p>Sydney’s property market is predicted to be healthy and stable this spring. </p>
<p><span style="line-height: 1.3em;">The market has been like a steam train the past 18 months with prices accelerating far too quickly and a lot of talk of a bubble, however it has now found its feet and is well on the road to a healthier, balanced position. </span></p>
<p><span style="line-height: 1.3em;">This spring, with the Australian economy still strong and consumer sentiment up, we’re hopefully set to see an increase in the number of first home buyers entering the market, as well as an increase in listings. </span></p>
<p>My top seven trends for Sydney’s property market this spring are:</p>
<ul>
<li>
<strong>Heightened stability.</strong> Over the past 18 months, Sydney’s market conditions were frantic and unpredictable, however, we’re now beginning to see a calming of the waters. The market is far less volatile - people know what they’re in for - and with this heightened sense of consumer confidence comes more action and more listings. </li>
</ul>
<ul>
<li>
<strong>More listings</strong>. With consumer sentiment up, expect to see more properties on the market this spring compared to last. This time last year, buyers were unsure of what would happen, adopting a ‘wait and see’ mentality. However, this year, the market is much more consistent and we should see more stock hit the market as a result.</li>
</ul>
<ul>
<li>
<strong>Slightly lower clearance rates.</strong> So far this year Sydney’s auction clearance rate has consistently hovered around the mid-80% mark, however, we are likely to see this drop slightly to around the mid-70s. This is still an exceptionally high clearance rate and a sign of a strong, healthy market – one that is stable and less fickle.   <span style="line-height: 1.3em;"> </span>
</li>
</ul>
<ul>
<li>
<strong>Less local investors.</strong> As banks become more prudent about responsible lending, we’ll see less local investors in the market this spring.As investors back off a bit, we are likely to see the number of first home buyers increase by as much as 3-5%. </li>
</ul>
<ul>
<li>
<strong>Apartments, apartments, apartments</strong>. Sydney is going apartment crazy. We’ll see more being built and more being sold. Although I’m pleased to see more dwellings being approved and constructed, my lingering concern is that a disproportionate amount are still being sold to overseas investors. This spring we’ll no doubt see more debate and discussion on this topic.</li>
</ul>
<ul>
<li>
<strong>Emerging growth suburbs.</strong> There will be a surge in buying activity in regional areas close to metropolitan cities, as buyers walk away from Sydney in favour of areas such as the Central Coast. Newcastle and Wollongong should also experience increased demand from buyers as Sydney properties become increasingly unobtainable. In Sydney, it’s Mascot, Botany, Riverstone and Leppington that are emerging as the next big growth areas. </li>
</ul>
<ul>
<li>
<strong>Prices to increase but at a balanced rate.</strong> Property prices will continue to rise, but at a healthier, less accelerated rate. Rather than the 1-1.5% per month increases we’ve been experiencing, I expect to see closer to half a percent increase in prices for the remainder of this year, making it more achievable for first home buyers to purchase their ideal home this spring. </li>
</ul>
<p> </p>
<p><em><span>DOUGLAS DRISCOLL</span> is CEO of real estate agency <a href="https://www.starrpartners.com.au/" target="_blank">Starr Partners</a>.</em></p>
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Top seven trends for Sydney’s property market: Douglas Driscoll

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<p>T<span style="line-height: 1.3em;">he Museum of Contemporary Art director, Liz Ann Macgregor, best know for her colourful tartan wardrobe, is swapping inner Sydney terrace living for the lower north shore.</span></p>

<p><span>With partner Peter, Liz Ann has quietly bought in Cremorne, a freestanding 1910 Federation Arts and Crafts two storey home costing a tad over $3 million. Four double bedrooms, three suitably with large built-ins.</span></p>

<p><span>Their combined 1890s Thompson Street Darlinghurst terraces have sold for $2.05 million through Ray White agent Gavin Rubinstein, a nice gain having been bought five years earlier for $1.64 million.</span></p>

<p><span>[smartcode_project:default project_id=5910]</span></p>

<p><em>This article was first published in the Daily Telegraph.</em></p>
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