<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>


Joel Robinson

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

<main data-perf-region="main">
<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>
</main>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p>Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.</p>

<p>While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;</p>

<p>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>.</p>


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

Rental market

<html><body>
<div>A bit of early disclosure: I'll admit here straight away that I had a few gripes with the Grattan Institute during the recent election campaign when I felt they were twisting 'facts' to suit their arguments. For example:</div>
<p><a href="/images/2016/10/24/Grattan.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/Grattan.jpg" alt=""></p>
<p> </p>
<div>Over years of experience in housing markets, I've literally never heard of anyone paying a huge lump of stamp duty only to sell their investment property because the rents had become too high (before buying another loss-making investment property, and incurring yet more stamp duty).<br><br>Would never happen in a month of Sundays.</div>
<div> </div>
<div>Anyway, I generally don't bear grudges, so we can let bygones be just that!<br><br>Let's move on from that to today's op-ed from Grattan, which recommended that other states follow the Australian Capital Territory (ACT) lead in phasing out stamp duties for a broad based property tax.<br><br>
</div>
<div><strong><span style="text-decoration: underline;">Land tax in the ACT</span></strong></div>
<div> </div>
<div>In theory, phasing out stamp duty - a pro-cyclical levy which discourages labour force mobility (if, for some unknown reason, not landlord churn!) - in favour of higher recurrent property taxes is a sound economic principle.</div>
<div> </div>
<div>Of course, one always fears that new and additional taxes raised will be frittered away on infrastructure white elephants, while those of us that have already paid their stamp duties are naturally inclined to be grouchy (in the same way that I'm bound to think that Chartered Accountants shouldn't have open book exams, because we didn't 'back in my day'). </div>
<div> </div>
<div>Overall, I tend to agree with most of Grattan's points, with stamp duties being an inefficient if extraordinarily lucrative levy. </div>
<div> </div>
<div>In fact, I wrote a piece myself for <em>Property Observer</em> back in 2013 which discussed precisely the potential benefits of introducing a progressive and recurrent property tax (i.e. not necessarily a straight land tax). </div>
<div> </div>
<div><a href="/images/2016/10/24/ACT4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/10/24/ACT4.jpg" alt=""></div>
<div>
<strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Canberra housing</span></strong>
</div>
<div> </div>
<div>That said, five years in to the experiment, there was no analysis provided by Grattan of the impact of the tax reforms to date on the housing market in the nation's capital itself. </div>
<div> </div>
<div>As always, of course, it's impossible to isolate the impact of shifts in property taxes.<br><br>We can't after all run a parallel universe wherein another version of Canberra sticks with the old regime as a control experiment (Lord knows, just the one Canberra existing in our own Universe is plenty!).</div>
<div> </div>
<div>In any event, here's a quick look at what's been going down.</div>
<div> </div>
<div>The ABS Residential Property Price Indexes to 30 June 2016 showed established house prices rising by +8.0 per cent, and a +6.0 per cent increase for all dwellings - rates of price growth which in a healthy market should be resulting in a strong supply response.<br><br>Anecdotal evidence suggests that house prices have been going a bit silly in parts of Canberra, though I do worry about the outlook for the new apartment market in the city.</div>
<div> </div>
<div>Investor loans have understandably declined due to the inevitable uncertainty of change. This may in part be due to tighter lending restrictions introduced by APRA in 2015, and in any case many would argue that lower investor loan activity is on balance a good thing.  </div>
<p><a href="/images/2016/10/24/ACT1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/ACT1.jpg" alt=""></p>
<p><br><span>Less thrillingly, detached house approvals have tanked.</span></p>
<p><a href="/images/2016/10/24/ACT1-1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/ACT1-1.jpg" alt=""></p>
<div>The trend in monthly new house commencements has basically crashed in the ACT, down by more than 50 per cent since the beginning of 2011.<br><br>Attached dwelling commencements, on the other hand, have held up much better, perhaps reflective of record low interest rates, a structural shift towards attached dwellings, as well as strong pre-sales to offshore investors.<br><br><strong><span style="text-decoration: underline;">Long lead times</span></strong><br><br>Whatever the causes, with the long lead times for apartments there are presently more than 5,000 dwellings under construction in the ACT, of which only 600 or so are detached houses. </div>
<div> </div>
<div>As a result of the above dynamics, vacancy rates in the capital have nosedived from 2.5 per cent in 2014 to just 1.1 per cent, even though population growth in the entire territory is tracking at just 5,000 per annum.</div>
<p><a href="/images/2016/10/24/VR.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/10/24/VR.jpg" alt=""></p>
<p> </p>
<div>According to SQM Research, after a lag asking rents have soared lately, up by +12.3 per cent over the past year for houses, while even apartment asking rents have ripped +9.3 per cent higher. And this through a period when nationally rental growth is tracking at two decade lows.</div>
<div> </div>
<div>Granted this vast increase in asking rents is yet to be reflected in the ABS consumer price indexes, which lag significantly. The figures for Q3 2016 will be released next week.<br><br>But in any case, when the 5,000 dwellings under construction eventually hit the market, rents for apartments at least should eventually return to flat or falling in real terms.<br><br><div class="separator"><a href="/images/2016/10/24/Z1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/10/24/Z1.jpg" alt=""></div>
</div>
<p><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div>No strong conclusion either way here.<br><br>As noted, we can't readily know the counter-factual, while some of the prevailing housing market dynamics in Canberra may be related to restricted land release, in particular the lack of responsive detached housing supply. </div>
<div> </div>
<div>On taxes, my view is that homeowners shouldn't have to pay twice, and that will no doubt be the view of most other homeowners too.<br><br>Therefore in the real world the most populous states would find it extremely difficult to phase in such a tax with the required long exemption period for existing homeowners, due to the initial revenue shortfall (look at the unprecedented stamp duty windfalls being delivered in New South Wales, for example).</div>
<div> </div>
<div>I'd also be very wary of declaring the ACT experiment an unqualified success while even in a low density market such as Canberra with moderate population growth asking rents for houses are rising at more than twelve times the rate of inflation!</div>
<div> </div>
<div>Nevertheless, it looks to me as though the rental market will probably correct itself in time with a flood of new apartment stock in the supply pipeline.</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>
</div>
</body></html>

pwargent-M4siyDbqQY

Asking rents soaring in Canberra, but why? Pete Wargent

<html><body>
<p>The growing number of available apartments for-lease in Sydney; should send shivers down the spines of newbie investors that bought off-the-plan.</p>
<p>Not to mention, the investors that bought due to, fears of missing out (FOMO) and being pressured from so called financial-advisors (so called experts), the spruikers.</p>
<p>Unfortunately, this problem of oversupply and the lack of tenants won’t go away over the next few years, if not longer. Not even if you drank a few strong coffees and all to quell your fears.</p>
<p>Recent mainstream reports, are already talking about 200,000 new dwellings yet to be built and all coming to completion within the next 24 months.</p>
<p>Below is a preview of the growing local Sydney vacant-apartment market, in some of our suburbs. (Data sourced from leading property portal adds)</p>
<p><strong>Tips on how to get your apartment tenanted, in a market of growing apartment-rental oversupply.</strong></p>
<p>If you are one of the unfortunate investors, in any one of these apartment blocks or areas where there is a vast amount of vacancies; take these simple steps to have your property leased quicker than the others:</p>
<ul>
<li>Insist on obtaining access to your unit prior to settlement: to take internal photos for advertising and to show the property to prospective tenants.</li>
<li>If you bought through an agency or marketing-company, note that this same company sold to a lot of other investors: therefore, list your property with a local property management agent (PM), they will focus more on your property.</li>
<li>Find out from the selling agents/marketing company, how many apartments are available for lease in your block. This information will give you a clear idea of the rental price offering: therefore, don’t be scared to be the first to drop the asking price in the block, if required.</li>
<li>Make sure your agent is aggressive. When you have 11-15 property managers on a building site and all waiting for potential tenants at the open: you need an agent that can move fast and one that is not shy.</li>
</ul>
<p><strong>Signs of the times</strong></p>
<p><em>Our greater audience and readers, will no doubt have more tips on what to do. The four tips shared above, have worked well for our team, in the past and lately.</em> <em>Feel free to share.</em></p>
<p>The sooner your PM team has access to the unit, the better chance you have of renting your property and at a good price.</p>
<p><strong>Recent experience</strong></p>
<p>Our team has just leased a unit in a complex of 270 apartments. The team found out that there are approximately 256 available for rent; sold to investors that is. Our PM spoke to the landlord and he quickly put in place the tips shared above.</p>
<p>The leading selling agency and other PM agencies advertised at $620+/week on like units, for-lease. Our PM advertised the unit for $620 and on the day of the open: he scheduled for an early morning open, but he still had 10 other PM agents alongside offering their landlord's apartments.</p>
<p>When a tenant approached the group and walked around the building; our PM walked up to him, asked if he was after a rental. After discussions with the Landlord and further ongoing checks and balances from our team; they signed the tenant on a 12 month lease and for $600/week.</p>
<p>Two weeks on, and you will now see on the property portals and in the same building, adds for like apartments at $520-$580/week.</p>
<p>I dare say, there is probably another 150-220 apartments still available for lease in that complex.</p>
<p><em><span> </span></em></p>
<p><em><span>EDWIN ALMEIDA</span> is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"><br></a></em></p>
<p><em>He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.</em></p>
<p><em> </em></p>
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The rise and rise of Sydney rental apartments: Edwin Almeida's warning to landlords

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<div>Delving into the detail behind the Consumer Price Index figures for the third quarter reveals that annual rental price growth in Australia is now tracking at its lowest level since June 1995, with rents up nationally by just +1.5% over the year to September 2015.</div>
<div> </div>
<div>The data series captured at the capital city level shows the cylical nature of property prices and rents.</div>
<div> </div>
<div>The national level figures show the marked contrast beteween rental price inflation in periods when investors and housing starts were knocked out of the market (1985-1987) and those where investors have flooded the market with rentals and construction has boomed (2012-date).</div>
<div> </div>
<div><a href="/images/2015/10/30/Rents1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents1.jpg" alt=""></div>
<div> </div>
<div>
<span>Naturally significant variances are evident across the capital cities.</span><br><br><div>Annual rental growth remained steady in Sydney (+2.5 per cent), but was softer in Melbourne (+2.2 per cent) and Brisbane (+1.1 per cent), while Perth has now slipped into negative territory on this series (-1.6 per cent) after a big run-up through the resources boom. </div>
<div> </div>
<div><a href="/images/2015/10/30/Rents4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents4.jpg" alt=""></div>
<div> </div>
<div><span>Looking at the annualised data reveals the softening trend, particularly in Perth.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/30/Rents2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/30/Rents2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>In the smaller capital cities, Hobart appears likely to play host to a level of rental growth over the year ahead with </span>vacancy rates in the Tasmanian capital having tightened sharply<span>.</span><br><br><span>On the other hand Darwin has the </span>opposite problem<span> and has now sunk into negative territory, joining Canberra where annual rents have been negative since the first quarter of calendar year 2014.</span>
</div>
<div><span> </span></div>
<div><span>Click to enlarge</span></div>
<div><span><img src="/images/2015/10/30/Rents3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div><span>Finally, a look at rental growth across 5 and 10 year time periods by capital city shows how the resources capitals enjoyed the bulk of rental growth until the end of the resources boom.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/10/30/Rents5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/10/30/Rents5.jpg" alt=""></span></div>
<div> </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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Rental inflation soft: Pete Wargent

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<div>
<em>SQM Research</em> found that listings fell slightly by 0.4% in November, with monthly falls being seen in Sydney, Brisbane and Perth.</div>
<div> </div>
<div>This is fairly unusual to see as the spring selling season typically reaches its peak, although the decline did follow on from a surge in October. </div>
<div> </div>
<div><a href="/images/2015/12/8/SQM1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/8/SQM1.jpg" alt=""></div>
<div> </div>
<div>
<div>Over the past year listings are up in Sydney (+11.8%) and Darwin (+11.4%).</div>
<div> </div>
<div>On the other hand Melbourne (-7.0%) and Hobart (-9.1%) listings have declined sharply over the year.</div>
<div> </div>
<div><a href="/images/2015/12/8/SQM2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/8/SQM2.jpg" alt=""></div>
<div> </div>
<div>
<div>Despite the increased vendor activity in Sydney over the past 12 months, the harbour city still only had 28,597 listings as at November 2015 compared to more than 44,000 in Melbourne.</div>
<div> </div>
<div>A market slowdown is to be expected in Sydney given that house prices have increased by +59.4 per cent since July 2012, or nearly $400,000.</div>
<div> </div>
<div><a href="/images/2015/12/8/Residex.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/12/8/Residex.jpg" alt=""></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>
</div>
</div>
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Slight listings decline in November: Pete Wargent

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<p>There was a time when a big infrastructure project was an economic gold mine for the local community.</p>
<p>The proponents hired local people and bought services from local businesses. Expert personnel brought in from outside rented local houses.</p>
<p>How quaint were those days. How very last century. </p>
<p>Today you fly everyone in from a distance and build a temporary camp to accommodate them. A town can have a $2 billion project happening 5km down the road without any change in the local unemployment rate or the residential vacancy rate.<span style="line-height: 1.3em;"> </span></p>
<p>In fact, the vacancy rate may well rise if developers build new dwellings in anticipation of increased demand. Gladstone’s influx of tens of thousands of new jobs coincided with its vacancy rate rising from near zero to 10%. Most of the worker stayed in camps on an offshore island.</p>
<p>If you live locally and want a job on the big new project that comes to town, you may need to migrate interstate because big companies prefer to fly their workers in from outside.</p>
<p>Most companies planning big mining projects put out press releases promising to hire local workers and services, but in most cases they’re lying.</p>
<p>And it’s not just resources projects using the modern-day scourge of FIFO workforces and temporary accommodation camps. Now, everyone’s doing it.</p>
<p>In Bundaberg in Queensland, a business that grows strawberries has received council approval for a nine-stage short-term accommodation development to house seasonal workers. The losers will be local landlords and owners of backpackers accommodation.<span style="line-height: 1.3em;"> </span></p>
<p>In Toowoomba, a 500-room workers camp was proposed by one of the companies hoping to become the preferred tenderer for the $1.3 billion Toowoomba bypass, also known as the Toowoomba Second Range Crossing. </p>
<p>As it happens the Rangelink consortium didn’t win the tender. But it demonstrates how the concept of mobile workforces and temporary workers camps is taking hold.</p>
<p>The PR for projects like this always put the number of jobs created up in lights. That used to mean local jobs and politicians would gush about the local benefits. Today it’s likely very few of those jobs will be people living locally.<span style="line-height: 1.3em;"> </span></p>
<p>It’s changed the way property investors need to assess locations worthy of their attention. A big infrastructure development may create some economic ripples in the local community but these events no longer create the property booms of the past.</p>
<p>Today, the big infrastructure projects are more likely to create ghost towns than boom towns. Regional Australia is littered with towns that once thrived from the presence of big industrial developments or mining projects – places where investors enjoyed double-digit rental yields.</p>
<p>Now the vacancy rates read like this: Mackay 7%, Port Hedland 8%, Emerald 8%, Newman 9%, Chinchilla 17%, Miles 24%.</p>
<p>Many would speculate that this is evidence of the end of the resources boom. It’s not. In most cases, it’s evidence of the proponents of major mining or infrastructure projects bypassing the local town and putting up their workers in temporary camps. <span style="line-height: 1.3em;"> </span></p>
<p>The property market in the WA town of Newman has crashed during the construction phase of the $9 billion Roy Hill iron ore mine. Seven thousand people are working on this project but Newman’s median price has dropped 24% in the past year and rents are about a quarter of their peak levels.</p>
<p>And the core message is that  this phenomenon is no longer just a resources sector scenario. It’s spread to other enterprises.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

FIFO accommodation and the rental debacle: Terry Ryder

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<p>An idea seemingly out of left field given record dwelling completions in Sydney, but stick with it. </p>
<p>Despite record apartment construction in 2016, the rental market is ultimately governed by the supply of rental properties on the market and the demand from tenants, not the absolute number of properties built.</p>
<p>Sydney is a city with an unusually high demand for rentals, for a few reasons.</p>
<p>Firstly, because it's an expensive city to buy a home to live in, and in an era where job stability is far less common most inhabitants will be a part of the rental market at one time or another (if nothing else the high rates of stamp duty ensure this). </p>
<p>Sydney can also be a transient type of place - the harbour city attracts the most migrants from overseas, but also loses the most incumbent residents interstate or to the regions of New South Wales. </p>
<p>This is a dynamic which leads to a high rate of churn and lots of tenancies. </p>
<p>As home to the strongest economy in the nation in recent years, the annual rate of net overseas migration into New South Wales has been accelerating again, from 50,000 in 2010 back up to to more than 76,500 at the last count in September 2016. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/06/22/A1new.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A1new.jpg" alt=""></p>
<div id="post-body-2812967251055994400" class="post-body entry-content">
<br>And then there is the unprecedented boom in the number of international students.<br><br><div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/06/22/A2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/A2.jpg" alt=""></div>
<br><div>At the same time, a significant crackdown in lending to investors is underway, with a credit squeeze and rates being hiked on investor loans, while investors increasingly starved of credit are beginning to turn their interest to cheaper markets upstate or interstate. </div>
<div> </div>
<div><span>Changes announced in the state budget were designed to bring more first homebuyers into the market in their stead. </span></div>
<div><span> </span></div>
<div><span>Domain Group reported this week that apartment rents have increased by 17.4 per cent in Sydney over the last five years, with the growth in apartment rents topping 20 per cent in half a dozen sub-regions. </span></div>
<div><span> </span></div>
<div><a href="https://www.propertyobserver.com.au/images/2017/06/22/DOMAIN.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/DOMAIN.jpg" alt=""></div>
<br><div>Sydney may not be at full employment just yet, but with an unemployment rate of just 4.4 per cent it's been getting pretty close, and we know from historical experience that this tends to bring a high demand for rental properties. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/06/22/B1.jpg" target="_blank">Click to enlarge</a></div>
<br><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/22/B1.jpg" alt=""><br><br><div>Sydney also has a track record of seeing rental prices spike when demand for investment properties falls sharply, such as from 1985 to 1988 (negative gearing ban), and in 2008 (financial crisis). </div>
<div> </div>
<div>A post to bookmark and watch over the next year. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p3"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
</div>
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Is Sydney heading for a rental crisis?

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<p>EXPERT OBSERVER</p>
<p>CoreLogic November home value indices showed a second consecutive month of property value increases following a COVID-19- induced dip.</p>
<p>For the first time since January, every capital city recorded a rise in dwelling values. This was off the back of accommodative monetary policy and fiscal policy, converging with a strong increase in consumer sentiment and the beginning of a recovery in economic conditions. But as property prices move into a broad-based upswing, rents remain a mixed bag.</p>
<p>A range of factors have created different results between regions and property types. </p>
<p>The top performing rental market of the capital cities was Perth, where dwelling rents increased by a remarkable 8.2% in the year to November. This was led by an 8.6% rise in house rents. Unit rents were up 5.4% in the year, which was behind the rate of rent growth for units in Darwin.</p>
<p>While this may spell good news for landlords across Perth and Darwin, it is worth noting that the reason for such strong rental increases are the gradual withdrawal of investors from the market. Investors comprised only a small portion of market activity over the years following the mining downturn. As of November 2020, Perth rent values were still 11.7% lower than the peak in 2013, while Darwin rents were 21.6% lower than the 2014 high.</p>
<p>A time series of rolling annual growth in rents across Perth and Darwin, compared with the combined capital cities, contextualises the recent increase in rents. It shows extreme highs and lows in growth of rental incomes across these cities, and the downturn that rental markets are recovering from.</p>
<p>The rapid rebound in rents could see investment participation bottom out in the residential market through 2021, and start to climb. ABS housing finance data suggest the investor share of mortgage finance for the purchase of property through September was just 16.2% in WA, and 11.6% in the NT. These are the lowest rates of investor participation of the states and territories.</p>
<p>Meanwhile, Sydney unit rents have been pushed into a deep downswing, falling -5.4% in the year to November. This is partly attributable to a relatively high supply of unit stock in recent years, with unit completions across NSW peaking at 11,566 in the December 2018 quarter, against a 10-year average of 6,315 completions.</p>
<p>Demand-side factors have also pushed down unit rents. Through COVID-19, the closure of international borders was a shock to rental demand for Sydney and Melbourne, where around two thirds of net overseas migration to Australia has been concentrated for the past 3 years. This is because the vast majority of recent overseas arrivals are renters.</p>
<p>Sydney and Melbourne labour markets also had a relatively high portion of workers in hospitality, tourism and the arts, which have been subject to acute job loss through the pandemic, and are sectors where workers are more likely to rent than in other industries.</p>
<p>The median rent value for Sydney units fell to $480 per week, down from $500 in November 2019, and down from a pre-COVID high of $520. However, the monthly decline in Sydney unit rent values has eased to -0.8% in November, since bottoming out at - 1.1% through June.</p>
<p>The Melbourne rental market has been one of the most impacted through COVID-19, with unit rents down 7% over the year compared with a mild uplift in house rents.</p>
<p>Median unit rents have fallen to $400 per week, down from $430 In November 2019 and a pre-COVID high of $450. As with Sydney, the decline in Melbourne unit rents was driven by stalled overseas migration, and acute job loss across sectors where workers have a higher likelihood of renting.</p>
<p>Unlike Sydney, Melbourne rental demand was compounded by a second wave of restrictions through the September quarter, and an abnormally high next loss of people from Melbourne to other parts of Australia through the June quarter.</p>
<p>The monthly decline in Melbourne unit rents has also eased, from -1.3% in August to -1.1% in the month of November. The rate of decline in unit rents is easing as employment conditions gradually improve across accommodation, food, arts and recreational service industries.</p>
<p>Rental demand will be further boosted across Sydney and Melbourne when international travel is once again feasible, though this may not be for some time.</p>
<p>Brisbane is another city where rents have seen divergence between houses and units, though this is not as extreme as the divergence seen across Sydney and Melbourne.</p>
<p>Across the three cities, part of the difference between house and unit performance may not be about renters preferring houses over units during COVID-19, but rather location and stock availability.</p>
<p>Areas further from the CBD of Sydney, Melbourne and Brisbane have been more likely to see rental value increases. These areas further from the CBD happen to be in locations where rental stock is less concentrated, and is also more likely house than unit stock.</p>
<p>While smaller cities have generally seen an increase in rental values over the year, Hobart rents have fallen across both houses and units. This may be a relief to some tenants, where rents across Hobart had grown 34.3% in the 5 years prior to the onset of COVID19.</p>
<p>Declines in Hobart rents may partially have come from a lack of demand among workers in tourism and hospitality where, as with inner-city Sydney and Melbourne, Hobart had a relatively high concentration of workers.</p>
<p>However, another narrative around the decline in rents in Hobart has been the conversion of Airbnb to the long term rental market adding to supply, at a time when demand was falling. As interstate borders reopen, this may see the return of stock to short term rental accommodation, and see Hobart rental markets once again tighten.</p>
<p>Looking forward, COVID-19 will likely have a lasting impact in terms of varied dynamics between cities and property types. For weaker rental markets such as Sydney, Melbourne and Hobart, rents are likely to remain weak until international travel resumes.</p>
<p>Meanwhile, other capital cities, especially those with rapidly rising rents like Perth and Darwin, could see the gradual re-entry of property investors, which would lift rental supply and support an easing in rental value growth over time.</p>
<p><strong>ELIZA OWEN </strong><em>is the Head of Research Australia at CoreLogic</em></p>
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Melbourne rents continue to fall while Perth soared eight per-cent: CoreLogic's Eliza Owen

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<p>EXPERT OBSERVER</p>
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<p><span>The Real Estate Institute of New South Wales (REINSW) has blasted the NSW Government’s decision to extend its rental moratorium saying the timing, which coincides with the end of the banks’ loan repayment waiver, will create a perfect storm and send many mums, dads and retirees broke. </span></p>
<p><span>Contrary to the NSW Government’s obvious stereotyping, around 80 percent of landlords in New South Wales are mums and dads or self-funded retirees who are either paying off a single property investment, or depend on it for income. </span></p>
<p><span>Now they are facing an even longer period of no income, more uncertainty and for many, financial ruin, he says. </span></p>
<p><span>This is a case of logic being ignored, livelihoods being placed at unnecessary risk and, worryingly, a refusal to undertake the proper consultation. </span></p>
<p><span>How are these mum and dad investors, many who have lost their jobs, going to cope? The banks have already made clear that the cold hard reality for many landlords is that they are going to have to sell their property to retire debt. The nest egg people have worked so hard to achieve, and have sacrificed so much for, will be lost. </span></p>
<p><span>The Department of Fair Trading has informed the REINSW clearly that if even if a landlord has lost their job, if the hot water system breaks on their property, they have to find the money from somewhere to fix it. </span></p>
<p><span>For the Minister to assert that the extension of the rental moratorium is in support of both tenants and landlords is grossly insulting. To date, the Government has provided the Tenants Union $13.5 million to assist tenants. Not one cent has been provided to assist landlords. It undermines the absolutely critical role landlords play in society: providing choices for people to have a roof over their heads. </span></p>
<p><span>“n the end, tenants will suffer too. Fewer properties available for rent at this incredibly delicate economic time pushes more people onto the streets. </span></p>
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</div>
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<p><span>The REINSW calls for an urgent review of this decision, particularly in the absence of any research to suggest the extension of the moratorium is an appropriate, let alone necessary, move.</span></p>
<p><span>The NSW Government’s failure to explain the rationale for the extended rent-free period is a critical concern, especially given the current state of eased restrictions in New South Wales as well as the recent decrease in the national unemployment rate to 6.8 per cent. </span></p>
<p><span>The REINSW has repeatedly sought to consult with the Department of Fair Trading and the Minister to explain the impacts of this measure on the state’s landlords and tenants but our efforts, despite the promises made, have been met with a closed door. </span></p>
<p><span>Instead, the State’s largest real estate industry body, like the rest of the community, is left to process the recklessness of a decision made with no industry consultation, no basis in data and with clearly no understanding of the broader industry and market ramifications. </span></p>
<p><span>We expected better from the NSW Government.</span></p>
<p class="x_MsoNormal">Tim McKibbin is the chief executive officer at REINSW.<span class="Apple-converted-space"><br></span></p>
<p><span class="Apple-converted-space"> </span></p>
<p><span> </span></p>
</div>
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REINSW blast NSW government decision to extend rental moratorium

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<p>EXPERT OBSERVER</p>
<p>The onset of COVID-19 may be creating a two-speed rental market, with inner-city rents declining faster than those in the outer suburbs. CoreLogic data confirms that there is a positive correlation between changes in rent values and distance to the CBD. This means that the closer a region is to the CBD, the more likely it is that rent values have fallen.</p>
<p>CoreLogic rent values were analysed across SA3 regions of Brisbane, Sydney and Melbourne. For each region, the median property distance to the CBD was compared with the change in total rental market values from the end of March (which marked national, stage 2 restrictions) to the end of August.</p>
<p>The results are plotted below. Each graph shows the change in rent values for houses and units across the horizontal axis between March and August, and the distance to the CBD along the horizontal axis.</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_1_0.jpg" width="985" height="573"><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_2_0.jpg" width="986" height="561"></p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_3_0.jpg" width="1143" height="683"></p>
<p class="red-title"><strong>Why have inner city markets been more affected?</strong></p>
<p>As has been noted in previous research from CoreLogic, there are several distinct factors of the COVID-19 downturn that have made inner city rental markets particularly susceptible to a decline in rental values.</p>
<p>These include the relatively high exposure to overseas migration as a source of housing demand. A summary of average net overseas migration alongside distance to CBD is presented by SA3 region below. </p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2020-09/image_4.jpg" width="658" height="514"></p>
<p class="red-title"><strong>Where have rents increased?</strong></p>
<p>Of the 125 SA3 rental markets analysed, there were 63 regions where house rents increased, and 35 regions where unit rents increased, since the end of March to August. <br>Rental increases were most common across Sydney and Brisbane, where employment has been less affected by the pandemic, and social distancing measures have eased. The highest rental value increases were across Blue Mountains houses, rising 3.3%. </p>
<p>The reason for rental value increases in outer-suburban areas are less clear. On explanation may be that outer-city suburbs have been less exposed to the factors driving declines in demand, such as overseas migration. Anecdotal reports assert that a draw card for outer-city suburbs are relatively cheap rents, and low density along with remote working lessening the hurdle of travel times from areas located furhte form the largest employment nodes. This may have increased rental prices through higher demand. The analysed data set also revealed that rental value increases have occurred in cheaper rental markets. However, it is difficult to understand this trend without survey data, and internal migration data for the COVID period will likely not be available until April next year.</p>
<p>It may also be the case that added stimulus to low income households have added to rental demand in areas where rents are usually cheaper. The tapering of this fiscal support may lead to a more broad-based decline in rents over the next 6 months.</p>
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Properties closer to the city more likely to see rent decline: CoreLogic's Eliza Owen

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<p>EXPERT OBSERVER</p>
<p>Plenty of data suggests certain rental markets have deteriorated amid the COVID-19 pandemic.</p>
<p>CoreLogic data showed a 0.8% decline in national rent values from the end of March to the end of August, with more acute falls in the unit markets of Sydney and Melbourne, where rent values have fallen 4.2% and 4.4% respectively over the same period.</p>
<p>The closure of international borders has created a shock to rental demand, as most migrants rent when they initially come to Australia.</p>
<p>An estimated 21.1% of payroll jobs have been lost across food and accommodation services since the onset of the pandemic, an industry where people are more likely to rent.</p>
<p>The exposure of inner city areas to overseas migration, and inner-city workforces to accommodation and food services, has made these markets particularly susceptible to a rise in rental stock, and lower prices. But less data exists on the current dynamics between investors and landlords which is becoming increasingly important as we approach the expiry of a moratorium on evictions, which have already been extended in some states.</p>
<p>CoreLogic conducted a survey of property managers, and other real estate professionals using the RP Data Professional platform. The survey provides some insight into rental conditions across the rental properties overseen by these professions. </p>
<p>A majority of agencies noted stable tenancy conditions, but a sizeable number saw increases in arrears, rent reduction requests and postponed payments Each survey question had an average of 169 respondents.</p>
<p>Against the wider population of property professionals using the application, it suggests a margin of error in the responses of 7% at a 95% confidence interval. Respondents were surveyed over mid-to-late August. Of the respondents, the majority were located in the most populous states of Victoria, NSW and Queensland.</p>
<p>Nearly half (48.6%) were real estate principals, while a further 35.8% were property managers. Across the larger states and territories, respondents by role were fairly uniform.</p>
<p>Furthermore, respondents managed rental portfolios of varying sizes. The majority of respondents (60.3%) managed a large portfolio of 100 or more rental properties, while a further 14.4% managed between 50 and 99 properties.</p>
<p>Key findings from the survey are presented below About the survey While the majority of respondents noted they had not seen a deterioration in rental conditions over the last two weeks, there is a sizable portion of agencies that had.</p>
<p>Almost a third of real estate professionals had seen an increase in requests for rent reductions, over a quarter had seen an increase in rental delinquencies, and 8.8% had noted an increase in evictions.</p>
<p>Of the real estate professionals who had noted an increase in rental delinquencies, 56.8% were based in Victoria, suggesting renewed restrictions across the state has impacted tenants’ ability to service rent.</p>
<p><strong>Eliza Owen</strong><em>, Head of Research Australia at CoreLogic</em></p>
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