Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Demographics

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GUEST OBSERVATION
When should a young person start getting paid as an adult?
It depends on where the money is coming from, according to current government policy - policy that is sending conflicting messages about the true value of young people to Australia’s economy.
In March, the Fair Work Commission (FWC) decided to alter the General Retail Industry Award so that 20 year olds would receive the “adult” rate of pay instead of the current rate of 90%. They will now be eligible for the full adult rate once they have been in the job for six months. This means that 20-year-olds will be treated virtually the same as those aged 21.
And yet in May, the federal budget proposed that unemployed people under the age of 25 would no longer qualify for the Newstart allowance of $510 a fortnight, currently available to people after they turn 22. People under 25 will have to apply for the lower Youth Allowance of $414 a fortnight at the full rate.
Currently, the Australian Chamber of Commerce and Industry (ACCI) is <a href="https://www.theaustralian.com.au/national-affairs/policy/business-push-on-sunday-penalties/story-fn59noo3-1226940798835#mm-premium" target="_blank">leading a campaign</a> to lower Sunday penalty rates, arguing that it will create jobs for young people.
These measures send contradictory messages about when young people officially join the mainstream “adult” workforce. Let’s look at each in turn.
First the FWC decision. The Australian Retailers Association has argued that changes to the system of junior rates could discourage employers from appointing young people. But as Damian Oliver from the University of Sydney has <a href="https://theconversation.com/adults-in-all-but-pay-the-case-for-increasing-youth-wages-16030" target="_blank">pointed out</a>, some employers already pay young people in this age group at the adult rate.
Parts of the manufacturing and construction industries - significant employers of young males - have already removed junior rates for many categories of workers aged 18 to 20. Coles and Woolworths, the two largest employers of young people in the retail sector, have already removed junior rates for 20 year olds from their enterprise agreements.
Casual work is on the rise
At the same time, young people face an increasingly casualised workforce, with access to full-time secure work happening later in life. The steady decline of full-time job opportunities over the last 20 years has meant that many teenagers must make do with part-time and casual work, in which associated entitlements such as access to flexible holidays are not available. Combine this with the ever-increasing challenges of entering the housing market and young people find that the secure markers of “adulthood” enjoyed by previous generations are often out of reach. Recognition of a fair level of pay commensurate with “adults” is one of the few concessions available in a fluid job market.
Recent surveys of business show concern that young people lack loyalty to their employers. Loyalty is a two-way street. Recognition of the value of young people’s labour through wage levels, with the expectation that in return young people will stay with employers, is one way of addressing this concern, so the FWC decision is potentially positive in this regard.
The Australian Industry Group has suggested: “The emphasis should be on preserving employment in the industry, not on imposing higher costs,“ but a more sophisticated response is required that both ensures fairness as well as providing youth employment and training opportunities. Arguably, wage rates could be traded off against traineeships with a qualification at the end or other benefits.
A less sophisticated approach is to lower penalty rates. ACCI Chief executive, Kate Carnell, <a href="https://www.smh.com.au/small-business/trends/acci-prioritises-youth-unemployment-20140521-38naz#ixzz33XBhZTkq" target="_blank">recently suggested</a> that “With youth unemployment rates going up, and the policies announced in the budget… you could get more jobs, especially with the young market, very quickly with movement on weekend penalty rates”.
With major employers of young people such as retailers joining the campaign, there is some justification to potentially opening up job opportunities. But again, the value of young people’s work (and rest) is ambivalent. While it may create jobs, it may also inadvertently contribute to the broader lack of security that permeates the youth labour force. And the argument that these jobs will lead to secure employment becomes problematic given that teenagers in part-time work are only <a href="https://www.fya.org.au/wp-content/uploads/2011/11/FYA_HYPAF_Full_Report_PDF.pdf" target="_blank">slightly more likely</a> to move into full-time employment than those who are unemployed.
Earning or learning
Under the government’s new earning or learning regime, jobseekers under the age of 30 will have to wait six months before receiving unemployment benefits, depending on their work history. In one stroke, this policy effectively extends the age of transition from school to work by five years. It does this by treating young people under 30 as one category, consisting of those who apparently need economically punitive motivation to seek work. Advocates of this policy may characterise this as an “incentive”, but the outcome is the same: if you’re young and not earning or learning, you will not be supported by government support derived from societal taxation.
What this does is to extend the economic definition of unemployed youth to the age of 30. It stands in contrast to the FWC’s implied judgement that 20 year-olds should be treated the same as those aged 21. The latter decision affords entitlements to a fair wage to younger Australians, the former denies entitlements to later in life. One step forward, two steps back.
At the heart of the FWR decision is that “the discounted rate for all 20-year-old retail employees is not a fair and relevant minimum safety net”.
Beneath these decisions is a social question: “When does a young person become an adult?” Prior to this decision, 18 year-olds working in retail are paid 70% of the full adult rate (i.e. the wage applied to those over the age of 21). 19-year-olds are paid at 80% of the wage, and so on until at age 21 they are recognised as “adults”.
What changes between the ages of 20 and 21? Based on the evidence, the Commission found there to be “little difference in the duties and responsibilities assigned to 20 and 21-year-old retail employees”. And what changes between the age of 21 and the age of 30?
A consistent message needs to be sent to young people about their economic status as “adults”. Recognising their work through providing the adult wage level is one small way of doing this, while addressing the discrimination evident in the way young people are paid.
The FWC described the decision to change the retail award as a special case and that this would not necessarily lead to similar findings for other awards. The federal government’s policy to alter conditions for receiving Newstart Allowance has yet to make its way through the Senate.
When viewed in combination, these approaches to youth employment suggest we are some way off from sending a consistent message to young people about the value of their work to the economy.
Lucas Walsh is associate professor and associate dean (Berwick), faculty of education at Monash University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. 
Photo courtesy of Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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jake-cSmGT7VXVf

Earning, learning or confused: Mixed signals on jobs for young

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While it's an interesting exercise to draw property market charts back to the middle decades of the 1800s, it doesn't really help us to draw any logical conclusions about the future.
There is little comparison to be drawn from the slums in The Rocks of the 1900s where an outbreak of the <a href="https://makinghistoryatmacquarie.wordpress.com/2012/11/20/the-bubonic-plague-outbreak-in-sydney-1900-disease-as-a-political-tool/" target="_blank">bubonic plague</a> was killing residents and the modern housing of today.
That would be like comparing Ken Rosewall to Rafa Nadal and concluding that Rosewall was rubbish. He wasn't, of course, but the rules have changed.
Perhaps a more useful starting point for housing market data would be 1986, which is when lending markets in Australia were <a href="https://petewargent.blogspot.com.au/2014/05/interest-rates-more-important-than-they" target="_blank">deregulated</a> in a sweeping move which won't be reversed.
A few other things have changed since then too. 
I was reading a book on commercial property yesterday written in 2003, which anticipated that Australia's population could "swell" to 25 million by 2051. 
Well, we're <a href="https://www.abs.gov.au/ausstats/abs@.nsf/0/1647509ef7e25faaca2568a900154b63?OpenDocument" target="_blank">well past 23.5 million</a> already in 2014 and heading towards a projected 40 million or so by the middle of the century.
That's one major shift.
Another has been the huge change in borrowing rates. Today it's possible to borrow for housing a rate close to 4.50%, which is unfathomably low as compared to 25 years ago.
<div class="separator"><a href="https://3.bp.blogspot.com/-sIBAhQMwIM4/U4MkXg5x1JI/AAAAAAAANcM/d_Qc5mHo8ko/s1600/IRHAustralia.jpg"><img src="https://3.bp.blogspot.com/-sIBAhQMwIM4/U4MkXg5x1JI/AAAAAAAANcM/d_Qc5mHo8ko/s1600/IRHAustralia.jpg"></a></div>
Anyway, we've looked at the <a href="https://petewargent.blogspot.com.au/2014/05/interest-rates-more-important-than-they" target="_blank">role of lending deregulation</a> before.
Today let's consider...
Gender
Another major demographic shift in the last few decades has been the increasing role of females in the workforce.
<div>
The stats show that with total employment in the Australian workforce increasing to above 11.5 million, the percentage share of females has increased from around a third towards almost half at 46%.
</div>
<a href="https://2.bp.blogspot.com/-74IIj28MzKU/U4LxV0f8A8I/AAAAAAAANbs/6DyOHZk9FEQ/s1600/1Gender.jpg" style="line-height: 1.3em;"><img src="https://2.bp.blogspot.com/-74IIj28MzKU/U4LxV0f8A8I/AAAAAAAANbs/6DyOHZk9FEQ/s1600/1Gender.jpg"></a>
This impacts property markets because there has been a dramatic increase in the number of dual income households which boosts purchasing power and loads the dice in favour of the couple with two incomes and over the single income household. 
This is where it's important to consider some specifics if you are looking at buying a property. 
Phrases like "many young people want to live near the city" and "many young people look at apartments" may indeed be true, but they are so generic that they don't really tell you a lot.
Similarly, saying that "there are many more dual income households" may also be correct, but it doesn't really tell you much about the impact on property markets unless you drill down to a localised level.
Demographics by suburb
Let's say I'm looking at buying an investment property in a prestige leafy harbourside suburb in Sydney such as Neutral Bay, which is one of the locations I bought in last year. That's around 10 minutesto the Opera House and Circular Quay on the ferry.
First, I'd take a look at the demographics of the suburb. The data below is from RP Data, but you can use other sources if you prefer.
<div><a href="https://3.bp.blogspot.com/-XMzmD5RJm6A/U4ZplsNa7KI/AAAAAAAANeo/BELXw6FACrw/s1600/1NBaaa.jpg" style="line-height: 1.3em;"><img src="https://3.bp.blogspot.com/-XMzmD5RJm6A/U4ZplsNa7KI/AAAAAAAANeo/BELXw6FACrw/s1600/1NBaaa.jpg"></a></div>
<div>Source: RP Data.</div>
This gives me a good idea of my target tenant.
Intuition already tells me that it would most likely be a professional couple in a similar age bracket to myself, and the data says...yep, pretty much, 25-34 year olds are probably the go.
<div class="separator"><a href="https://3.bp.blogspot.com/-M7sjqjd5ATk/U4ZpxwvY51I/AAAAAAAANew/8IswNY32cbs/s1600/1NB.jpg"><img src="https://3.bp.blogspot.com/-M7sjqjd5ATk/U4ZpxwvY51I/AAAAAAAANew/8IswNY32cbs/s1600/1NB.jpg"></a></div>
<div class="separator"> </div>
Source: RP Data 
Note the impact of the dual income household in <a href="/news">Neutral Bay</a>, where the most households are in the $130,000-$180,000 household income bracket.
If you live in central Sydney, a lot of this is stuff is partly intuitive. In the type of inner suburb apartment blocks I've lived in over the years, the overwhelming majority are let to young two-income couples who work in or near the city. 
What the demographics of the suburb also tell me is that the target entry price for an apartment would likely be $650,000 to $750,000. 
That way, even couples with heavily geared 80% loans should still be able to service their mortgages in the unlikely event that standard variable borrowing rates return to 10% any time soon.
In that price bracket you'd likely be looking at a quality two bedroom apartment on a quiet street with parking, and ideally harbour or district views. 
Prolonged high levels of unemployment is a different issue for housing markets. 
The longer term data tells me that the population of Neutral Bay has not increased at all between Censuses  (it actually fell a little last time around) because the supply of new dwellings has been almost totally capped. 
The demand for housing in a glistening, prestige harbourside suburb will easily outstrip the available supply over the long term simply because there is very little new supply.
Median apartment prices have not done anything particularly spectacular, moreover they have simply tracked the growth in housheold incomes over the past decade, appreciating at around 4% per annum on average.
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There will certainly be downturns in a suburb like Neutral Bay as there are anywhere, but they are unlikely to be severe in the price range identified above. The replacement cost of apartments is high, and a downturn in prices would likely quickly be met by new demand.
Naturally, you could alternatively look at a house in the suburb but the entry point would likely be very high at $1.5 million plus. The long-term capital growth outcome would likely be great, but the ride would be more volatile and the holding costs more painful.
Clearly, we're looking at a prestige Sydney harbourside suburb scenario here. If you were looking at investing in a distant location somewhere west of <a href="/news">Narromine</a> rather than Neutral Bay, you would be looking at different demographics and income profiles, and therefore a necessarily lower entry price.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<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>' is out now.
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pwargent-M4siyDbqQY

The demographics of dual income couples

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I was asked this week if I could remember the last time we saw such a hostile response to a federal budget. I responded ‘no’ – as it would have been well before we had access to the internet.
When the world moved into the online space, the internet always appeared with a capital I, which has been replaced with a lower case 'i'. So what happened to the capital “I” one might ask? Well the “I” became you – the consumer, where through this very process (for better or worse) this online revolution has changed how we do business in the modern age.
When one looks at the problems facing the budget, it’s quite clear that Australia has a massive productivity problem. Wages have flat lined which has seen living standards rise just 2.6% over the last five years. The modern day terminology is “on hold”, which is exactly what the Reserve Bank of Australia is doing with the cash rate given our labour market is, best case scenario, neutral and employment growth won’t exceed population growth.
When you’re paying (an estimated) $1 billion just in interest each month, it’s time for any responsible government to say ‘enough is enough’. Just like our neighbours across the ditch did in recent years when they too had to re-calibrate their economy and today, are predicting a $370.5 million surplus with 4% growth.
Unfortunately in Australia’s modern day political arena, there is no room for compromise given the central influence is to play populist politics, not policy. We see differing opinions on how Australia will create a sustainable budget that successfully negotiates a path into the future. If Australia was to continue on the current path without significant change, the present budget would be seen as a soft – touch.
<img src="/images/2014/05/27/simeon%20may%2027%20one.png" alt="">
Source: <a href="https://www.treasury.gov.au/PublicationsAndMedia/Speeches/2014/Fiscal_sustainability" target="_blank">Department of the Treasury</a>
For arguments sake, this is the <a href="https://www.businessspectator.com.au/article/2014/5/22/politics/budget-graph-brought-stunned-silence-coalition" target="_blank" title="budget graph that brought a ‘stunned silence’ to the Coalition">budget graph that brought a ‘stunned silence’ to the Coalition</a> where Secretary of Treasury described it as “the most alarming single piece of information” he had seen about Australia’s future economic prospects, adding that it created a “stunned silence” when he presented it to both the state treasurers and cabinet. Again the significant point to be drawn from this graph is that with our declining terms of trade and an ageing population, our productivity needs a complete ‘about–turn’.
I wouldn’t hold your breath on that because, when one looks at <a href="https://www.ami.org.au/imis15/News_2013_May/Default/Australia_s_Top_100_Brands_2013__/News_2013_May/Australias_Top_100_Brands_2013.aspx?hkey=7621e19d-3bb4-4c3a-b08c-af2b0a18073d" target="_blank" title="Australia’s Top 20 Brands">Australia’s top 20 brands</a> not one is directly involved in technology. On the other hand when one looks at <a href="https://www.brandz100.com/site/reports/global/2014/report/download-report.pdf" target="_blank" title="2014 BrandZ Top 100">2014 BrandZ Top 100 </a>(this is a PDF file so takes a little while to download but well worth the read) we get a pretty good idea of how bad we are performing on a global stage.
Following three years at the top, Google has bumped Apple from the number one position when, in 2014, Google’s brand shot up 40% in a year to US$158.84 billion (A$171.86 billion). All up The BrandZ Top 100 Most Valuable Global Brands 2014 added $310 billion to reach $2.9 trillion in brand value. Prior to the BrandZ Global 2014 results, the Top 100 had increased an average of about 6%, $125 billion annually, since the global financial crisis of 2008 and 2009. This year, led by apparel, with a 29% overall increase, all categories rose in brand value. And 10 of 14 categories experienced double-digit growth, indicating that brands across the economy have moved beyond recovery into a period of new growth. In the meantime, Australia sits in a mental void trying to work out what to do following the mining downturn.
<blockquote>
The rise of China as a superpower could see it control as much as half the world’s financial assets by 2030.
</blockquote>
For those who recently raised concerns about China’s attraction to Australian property, Secretary of Treasury, Martin Parkinson, told a forum this week in Hong Kong that China’s foreign exchange reserves now approach $4 trillion. Today, China now accounts for around 11% of both world trade and global GDP but only accounts for 3% of gross holdings of overseas assets and liabilities. He went on to say that this figure, which includes foreign exchange reserves, could triple to $16 trillion. The rise of China as a superpower could see it control as much as half the world’s financial assets by 2030.
Puts the Australian budget into a different perspective, especially when you read how China is preparing for its ageing population – <a href="https://www.economist.com/news/china/21600160-pensions-crisis-looms-china-looks-raising-retirement-age-paying-grey" target="_blank" title="Paying for the grey.">paying for the grey.</a> Although Australia is a long way off telling families they have a limit of just one child.
For the second time in 2014 Mosman houses for sale managed to stay above the 100 mark which either tells us more people are selling or houses are not selling as fast. It will be interesting to see in coming weeks, what the correct reason is, although we should note that clearance rates have dropped significantly. Sceptics no doubt, will attribute that to the federal budget!
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robertsimeon-hRNTwJyXkQ

Australia has one almighty brand problem

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On Saturday arvo, in a small but significant landmark for Australia, with the population increasing by one person approximately every 77 seconds, the <a href="https://www.abs.gov.au/ausstats/abs@.nsf/0/1647509ef7e25faaca2568a900154b63?OpenDocument" target="_blank">Aussie population clock</a> will quietly tick past 23,500,000.
Property investors tend to keep an eye on this kind of stuff because population growth and demographic shifts are vitally important to how we are developing as a nation.
While there may be no direct link between the growth in a population and property prices per se, over the long run it is crucial to understand how demographics are shifting.
And, more than that, whether the population is growing or not makes all the difference to city housing markets. 
Where populations are static or falling, this comes with an inherent risk of protracted declines in price, such <a href="https://petewargent.blogspot.com.au/2014/03/population" target="_blank">as experienced in certain other parts</a> of the world. 
Australia is growing its population at a very sharp pace, so these little landmarks tend to sneak up on us, and it is important that the building of infrastructure and jobs growth keep pace with the net migration and natural population increase:
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Steady states?
As I tend to look at periodically, the population growth in Australia is a combination of natural increase and net migration, and, as you might expect, it does not occur evenly across the country.
Over the long run, in particular, four states have been growing their populations at quite a bounding pace.
<blockquote>
While there may be no direct link between the growth in a population and property prices per se, over the long run it is crucial to understand how demographics are shifting.
</blockquote>
Since 1981 for example, New South Wales has increased its population from 5.2 million to above 7.4 million - a colossal increase - while Victoria is not far behind, having raced from below 4 million to above 5.75 million.
Queensland and Western Australia have also shown very strong population growth as you can see in the chart below, which details the make-up of Australia's population by state over the long haul.
On the other hand, even over the very long term South Australia has added relatively few persons to its population, increasing from a bit above 1.3 million to less than 1.7 million, a total increase of only around 350,000.
The other states are minnows by comparison, although artificial and geographical supply constraints in Canberra and Darwin have seen dwelling prices rise sharply in some cases:
<div class="separator"><a href="https://1.bp.blogspot.com/-yXscaSymvI8/U30ynG7_5LI/AAAAAAAANUI/yDxe_Q8QA9Y/s1600/1ad.jpg"><img src="https://1.bp.blogspot.com/-yXscaSymvI8/U30ynG7_5LI/AAAAAAAANUI/yDxe_Q8QA9Y/s1600/1ad.jpg"></a></div>
It was interesting to read <a href="https://www.propertyinvesting.com/migrant-housing-boom/?inf_contact_key=75f31db15d3c07ca9061d559a6def26c35b22d8413be84f391a07f6ad4f2159f" target="_blank">in an article this week</a>, Steve McKnight offering the following advice:
"The generic growth gives investors a blueprint of where to target, namely Melbourne, Sydney, Perth and Brisbane in that order, and where not to, namely: Tasmania, NT, ACT and SA (in that order)." 
The total population growth figures released by the ABS tend to reveal similar trends each quarter:
<div class="separator"><a href="https://3.bp.blogspot.com/-jsqw07wUCLQ/U30u90eFUiI/AAAAAAAANTw/CLVk6o8GUic/s1600/1PGBS.jpg"><img src="https://3.bp.blogspot.com/-jsqw07wUCLQ/U30u90eFUiI/AAAAAAAANTw/CLVk6o8GUic/s1600/1PGBS.jpg"></a></div>
McKnight believes that because the state of Victoria has the highest total population growth Melbourne is the best city to invest in.
Property price movements are not only about demand of course, you have to consider supply too.
Personally, I prefer Sydney because of its geographical constraints; the city can't readily spread due to the respective surrounding mountains, national parks and the ocean.
As an obvious aside, while it's good to see a city with very strong population growth, we don't look for suburbs with the highest density of population.
Not at all in fact - we look for prime location suburbs where the population is all but fixed due to a necessary lack of new supply, where there are height restrictions on new building.
In Sydney, for example, we've recently been buying in some of the lower north shore suburbs where the population growth within the individual suburbs from Census to Census has been all but negligible. Fully built out and height restrictions on new development. 
There are other factors to consider too, of course, including relative affordability.
Trees surely don't grow to the sky, so at various points in the cycle investors will consider Brisbane and Perth too.
The other states have feeble population growth, and generally speaking, therefore might be considered riskier propositions.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<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>' is out now.
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Australia's population hits new high, but where is the growth occurring?

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Each year in Australia there are about 50,000 divorces, although the ABS figures were last published in 2012, the divorce rate had been in steady decline since peaking in 2001.
Divorce is one of those key social factors that does have a marked impact on the residential property market, and sometimes in surprising ways. I frequently come across mainly males who ‘unexpectedly’ find themselves in the housing market where finding a new home can have a material impact on diverse areas from location to design.
For both males and females granted a divorce in 2012, 60.3% were less than 45 years of age at divorce, while 51.0% of males were less than 45 years of age at divorce. The highest incidents of divorce is then in the age bracket of 40-44 years of age, and this fact alone is not worthy as this age bracket is also when people are at the peak of their earning and debit capacity.
We earn more in our 40s but also that’s when debt, including mortgage debt peaks, and so this along with the fact that many married couples in this age bracket will also have kids in their late teens, we are looking at a tricky situation. For some this can result in them having to enter or re-enter the housing market in a ‘gun to the head’ state of affairs.
A Mix of Family, Personal and Financial Needs
The impact of divorce on housing is far reaching and is underscored by the fact that in 2011, there were some 24,144 divorces involving children under 18 years of age. This represents 48.4% of all divorces granted.
The complexity of financial arrangements is further explained by the fact that the median length of marriage increased from 10.5 years in 1992 to a peak of 12.6 years in 2005. Since 2005 it has decreased slightly, with a median duration of marriage to divorce of 12.2 years recorded in 2012 and so over the intervening decade plus, many families would have purchased a home and be close to the mid-way point of their loan terms.
<blockquote>
Divorce is one of those key social factors that does have a marked impact on the residential property market, and sometimes in surprising ways.
</blockquote>
Another key reason why divorce for people in their mid 40s impacts their home living arrangements comes via the fact that over the last 20 years, the proportion of joint divorce applications has been on the rise, and the proportion of one party applications has been on a downward trend. Now joint applications remain the highest and they account for almost 40% of all applications.
There has also been another and possibly related demographic shift, and that is the number of children aged below four living with two parents has been on decline for some years, while the number of children in the same age group living with one parent has been on the increase. With more sole parents, housing demand has been shifting and this trend may well continue to grow.
The rate of divorce may well continue to decline if couples do not marry for the reason of looking after younger children. But when they stay married the entire family unit will be older and this will further impact housing outcomes when a divorce does happen.
Housing Post Divorce
It does appear that at times couples could well be putting off getting a divorce because they simply cannot afford all the costs involved in re-housing. However when in their mid 40s there is evidence of some degree of greater mobility, although at a cost.
One hurdle will be the costs associated with buying and selling two homes. Coinciding with a real estate slump during the GFC divorce rates declined, because couples without ample money to spare were forced to stay together because no one wanted to sell the family home at a loss. Possibly because in the past the individual who kept the family was in the end financially better off.
However we also see many couples leaving the family home with the female partner and the children with males moving on, which is helping to create demand for smaller apartments to both buy and lease. This demand is also causing some males to look for accommodation near the family home, and this would directly reflect the no fault trends that I detailed earlier.
However women in particular are becoming less attached to the old family home, wanting to begin a new life in a new home and this again is having an impact on the demand for smaller apartments.
However while some divorces do result in the forced sale of the family home, higher real estate prices might well be causing couples to work harder on the relationship to avoid the complications and costs of dealing with the family home.
We are seeing more flexibility in what type of new home divorcees are seeking and this helps create demand for new projects with a good mix of product for sale. After all, for both parties a new well-located apartment can now be an attractive option. But for now we will have to wait a few years to see if current high property prices keep a ‘lid’ on divorce rates.
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pchittenden-eLqUUC8TWW

How the demographics of divorce affect property

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I am not an economist and after the release of the federal government’s Commission of Audit report this is a fact for which I am somewhat grateful.
Having stated my position on the economics involved, some of the Commission of Audit’s 86 recommendations could, it appears, from all of the commentary potentially re-shape Australia. It could re-shape many aspects of society and many aspects of Federalism, which seems a shame really given that only last year, Canberra, the seat of Federalism, celebrated its 100th birthday – just as well it’s not this year.
Part of the intention of the report was to spark a conversation about what sort of society we want to be, in particular over the next 50 years or so. And it appears that conversation has got off to a flying start. When you search ‘Commission of Audit Australia’ on Google there are already some 280,000,000 references.
I have found myself asking the very specific question of how will the report impact the residential housing market? How will the report influence buyers and developers now and over the next few years?
It might be foolhardy to venture into this territory while the report is still so new, but I want to join the conversation, and because the report will reach into so many areas of our social structure I think the conversation is urgent.
A Shift in Demographics
Over the years the market has had to live and adjust to some big issues, like the introduction of universal superannuation guarantee levy (1992), the GST (July 2000), the 9/11 attack on New York and Washington (2001) and the GFC (2007/2008).
However even these big events did not have some of the potential impacts on the very structure of government and beyond that the wider demographic of the Australian population, and it is in the potential demographic changes that a much wider topic opens up for discussion relative to housing and the development market.
And while some changes are not due until mid century, I stop today and think how in just over two decades the arrival of the superannuation guarantee levy is now, thanks in part to the growth of SMSFs, central to many aspects of the residential housing market.
And some seven years later we are still in part dealing with the GFC and so it does not take a crystal ball to appreciate that change can be both long-term and to a degree painful.
Shifts in Demand Shifts in Confidence
Post the audit report in Sydney this weekend auction clearance rates were reported at some 77%, that’s down a little on some recent weekend results, but still slightly higher than the last few months. However after the delivery of the federal budget on 13 May the combined impact on consumer confidence will come into sharp focus over the next few months.
Consumer confidence in Australia increased to 99.73 in April of 2014 from 99.46 in March of 2014 but has been on a falling trend over the last six months.
While the level of consumer confidence is a closely watched measure of the economy, shifts in demographics are far more subtle and until now have been less in focus.
It’s somewhat remarkable how the impact of the baby boomer generation has now started to consume the government’s attention, despite the fact that this age bracket was always going to cause pressure points as it moves out of work and into retirement, and the property market has been feeling the presence of the ‘boomers’ for some years now.
Demographic Touch Points to Watch
The proposed change to the retirement age, has grabbed a lot of attention because it has the potential to impact the entire population. This change could have varied and possibly unexpected effects on the housing market; delayed retirement could impact the demand for downsize opportunities, it could also force more people to consider selling sooner to fund the gap between their retirement and ability to collect the pension and linking the family home to any sort of pension means this would be a big change.
The family home would move into a different light and how a future inheritance is impacted could change the housing ambitions of many younger people. While changes to the cost of education could re-shape the sometimes already fragile prospects of first time buyers, as they have to fund a degree well into their careers. This could also lead to a lowering of employment prospects and impact the earning power and relevance of the middle class in the housing market.
While the audit did not directly comment on tax issues, there is an ongoing debate about the GST – an increase could impact the market, but if there is also a change in the relationship between the Commonwealth and the States, then we could see greater mobility and demographic changes across state boundaries.
Infrastructure and Privatisation
One clear result of the audit will be greater pressure for all governments to venture into a wholesale period of privatisation. This may well deliver some greater opportunities for the property development industry, and the potential sale of the Defence Housing Authority would be a very competitive process.
However the real test will be an assurance that a real improvement in infrastructure must result, if it does not, or if projects are badly delivered this could impact the continued recovery in the housing market.
This is a conversation set to take a lot of time and effort, and so I wanted to remind myself of what an audit of this kind sets out to achieve; "A systematic check or assessement, especially of the efficiency or the effectiveness of an organization." 
While demographics: "The characterises of a human population, especially the size, growth, density, distribution and statistics regarding birth, marriage, disease and death." 
With the audit touching upon so many key social issues, the flow onto demographics is certain and the housing market may well be impacted, at first indirectly by a possible drop in confidence, but in the long term more directly as demographics, incomes and taxes change.
The audit looks like the first step in an extended agenda of economic reform, and while there may be some unpopular fiscal measures taken in next week’s budget, it does appear that interest rates are set to remain low. Because any increase would boost the dollar and possibly shake consumer sentiment so for the immediate future property will remain attractive due to the long run of low rates.
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How will the Commission of Audit affect the residential housing market?

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An interesting release <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/3401.0Main+Features1Mar%202014?OpenDocument" target="_blank">from the Australian Bureau of Statistics yesterday</a> which has been reported as Australia's immigration having peaked.
Is it true?
Perhaps yes, but it's also probably best not to get suckered into confirmation bias and to put the numbers into a bit of a wider context.
Mainly as a point of interest, short term visitors to Australia dipped a little in March to 561,000 having hitting a record high at end of last year.
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<div>All very interesting, but what we're far more interested in is long-term arrivals and net long-term migration into Australia.</div>
On a rolling 12 monthly basis, long term arrivals indeed dipped to 'only' 766,270.
<div>This remains simply miles above Australia's long term average figure. </div>
<div> </div>
<div>The "populate or perish" notion has been around since World War II but interestingly it was only in the mid 1990s that we really started to see the massive annualised increases in long-term arrivals. </div>
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Of course, some choose to depart these shores too, and the rolling 12 monthly long-term departures equivalent figure for March was 380,910.
Netting the two off against each other over the long-term and dropping the figures into a chart reveals the following trend:
<div class="separator"><img src="https://4.bp.blogspot.com/-fi_Do9-SAiY/U2sKoADxedI/AAAAAAAANCg/KXjUb-VePss/s1600/LTM.jpg"></div>
That is, net long term migration into Australia of 385,360 on a rolling annual basis. That's huge. 
It's true that figure is down a little on the peaks we saw in January 2013 (411,000) and September 2009 (409,000), but it's still a massive net long-term migration figure into Australia.
This is particularly so when it's considered that the immigration is focused so heavily on only four capital cities. 
Remember too that it's estimated that in Australia there is one birth every 1 minute and 42 seconds as compared to one death only every 3 minutes and 36 seconds.
For that reason when the full demographic statistics are released for 2013 next month it wouldn't be at all surprising to see that Australia's population increase across the year by 400,000+ people to a total of around 23.3 million.
As of 8 May 2014, the <a href="https://www.abs.gov.au/ausstats/abs%40.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e2" target="_blank">ABS population clock</a> estimates that the Aussie population is 23,481,800.
For what it's worth, I'd be unsurprised to see the net long-term migration into Australia fall a little back towards the 300,000 level over the next couple of years. 
It's still impossible to describe that as anything other than very strong growth, though.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<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>' is out now.
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Has immigration into Australia peaked?

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Over the next 40 years, Australians aged over 65 will make up over 25% of the population, according to the Treasury’s 2010 Intergenerational Report.
With baby boomers set to drive demand for retirement housing, specialist property developer Halcyon has launched two new Queensland developments aimed at the over 50s market.
Halcyon engaged Brisbane based design firm DC8Studio to help tailor Halcyon Glades at Caboolture and Vision by Halcyon at Hope Island to the needs of the retirees.
<img src="/images/2014/05/06/Riccardo%20Rizzali%20DC8Studio.jpg" alt="">
According to DC8Studio director Riccardo Rizzalli (pictured above), Halcyon’s target market are retirees who are looking to maintain an active lifestyle.
 “The people who come to live in Halcyon communities are forward thinking in their approach to retirement living,” he said.
“That is to say, they are very active people, who are looking forward to a happy and healthy life post working.
“There is a term that is used often, that these baby boomers aren't retiring they are ‘retreading’.
“This is really a beginning of a new journey for home owners and this was strongly reflected in our design brief.”
A report released in April by housing company Lifestyle Communities showed that although half of those surveyed were reliant on the sale of their family home to sustain their current lifestyle, there was a lack of suitable stock to facilitate post-retirement downsizing.
Halcyon joint managing director Bevan Geissmann said that maintaining a high quality of life post retirement was an important focus for the company.
“The downsizing process involves freeing up capital for retirees to spend on recreational pursuits or general living expenses,” said Geissmann.
“But today’s baby boomers have high expectations of their retirement lifestyle, so location and design of the home are both vitally important.
“As a developer of over 50s communities our focus weighs heavily on these aspects.
“It’s why we invest a lot of time into researching market trends, finding the right sites, developing masterplans and creating homes that respond to the needs of modern seniors.”
Glades at Caboolture (pictured below) is the company’s most affordable development to date. The 178 home community will include a variety of recreational facilities, including a swimming pool and gymnasium, a cinema, library, bowling green, tennis court and recreation centre. Prices range from $335,000 to $467,500.
<img src="/images/2014/05/06/Halcyon%20Galdes%20street%20scape.jpg" alt="">
At the opposite end of the price spectrum, Vision by Halcyon (pictured below) is being marketed as a luxury development, with 88 homes, a 52 berth marina and a lifestyle and aquatic precinct. Homes at Vision are priced from $559,000 with the most expensive property available at $1.25 million.
<img src="/images/2014/05/06/halcyon-may-6-breakout.jpg" alt="">
More on Halcyon: 
<a href="/expert-insights/building/gold-coasts-60-million-vision-by-halcyon-targeting-over-50-downsizers">Gold Coast's $60 million Vision by Halcyon targeting over-50 downsizers</a>
 
 
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jrichardson-uRX5hFdKfN

Halcyon launches two new developments for over 50s market

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Doubling the height of Sydney's skyscrapers by 2050 is a necessity to retain its position as Australia's number one city, according to the Urban Taskforce.
In fact, Melbourne, Brisbane and "even Parramatta" have plans for taller buildings than Sydney, said CEO of Urban Taskforce, Chris Johnson. He noted that this step is required if Sydney wants to stay on par with other Australian cities, and with Shanghai, Hong Kong and Singapore.
“Sydney needs to take a strong pro-growth position as recent data from a report by Price Waterhouse Coopers indicated that Sydney’s annual economic growth over the last 10 years was half that of Melbourne and Brisbane. Sydney grew economically each year at 2.2% while Brisbane grew at 4.4% and Melbourne at 4.7% each year," said Johnson.
He warned that Sydney is being held back by out of date planning rules, setting the underside of the 1970s-built Sydney Tower as the cap on heights for new buildings.
“The world now has dozens of high-rise towers planned or built that are double the height of Sydney Tower. Across Asia many cities are building towers that are symbols of the prosperity and the optimism of that city’s economic growth," he said.
The topic of how Sydney will cope by 2050 has seen many commentators weighing in. Observer <a href="/expert-insights/investing/our-politicians-are-ignoring-the-realities-of-population-growth">Robert Simeon previously warned that politicians are ignoring the realities of population growth</a>, which is expected to grow by 60% to 2050, that may leave the city in strife unless they plan now. Is this what Sydney will look like in 2050?
As part of this debate on pushing Sydney into the future it needs, Urban Taskforce called on three top architects to share their visions for what the city could look like in 2050.
<a href="https://www.urbantaskforce.com.au/urbanideas/may2014/Bates-Smart.pdf" target="_blank">Bates Smart's Philip Vivian: 'Sustainability, Economic Development, Amenity'</a>
<img src="/images/2014/05/02/sydney-2050-april-2-four.jpg" alt="">
<ul>
<li>A new metro system crossing the harbour. 
</li>
<li>Development of super tall towers around the new metro stations (which could fund this system).</li>
</ul>
<a href="https://www.urbantaskforce.com.au/urbanideas/may2014/FJMT.pdf" target="_blank">Richard Francis-Jones: A 'symbiotic' city</a>
<img src="/images/2014/05/02/sydney-2050-april-2-five.jpg" alt="">
<ul>
<li>New green parks crossing the Harbour Bridge. 
</li>
<li>High-rise developments with solar access planes (which could fund the parks). 
</li>
<li>East and West green blocks to be the focus. 
</li>
<li>Extension of Prince Alfred Park.</li>
</ul>
<a href="https://www.urbantaskforce.com.au/urbanideas/may2014/F-P.pdf" target="_blank">Fitzpatrick+Partners' James Fitzpatrick: 'Keeping, Restoring, Creating'</a>
<img src="/images/2014/05/02/sydney-2050-april-2-six.jpg" alt="">
<ul>
<li>A number of centres within itself, including North Sydney, Glebe Island, Central Station and Woolloomooloo, each with a different 'theme'. 
</li>
<li>These would be connected by a circular metro line. 
</li>
<li>Foot, ferry, bike and light rail linking the separate centres should all be considered.</li>
</ul>
Urban Taskforce:
<ul>
<li>Mixed-use metropolitan centre. 
</li>
<li>Workforce increasingly connected to world finance and consulting services. 
</li>
<li>Cafes, restraints, public spaces and culture facilities. 
</li>
<li>World class transport system based on a metro network.</li>
</ul>
What do you think the Sydney of 2050 needs the most?
You may also want to read:
<a href="/expert-insights/investing/big-australia-is-going-to-get-a-whole-lot-bigger">'Big Australia' is going to get a whole lot bigger</a> by Macquarie University associate professor Nick Parr
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jduke-EHk3XBmHkn

Is this what Sydney will look like in 2050?

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Several have claimed, in response to our recent posts, that Queensland’s rising population growth, fuelled by interstate inflows from both Sydney and Melbourne, will create a ‘mini-real estate boom’ in south-east Queensland.
Could they be right?
Well, sadly, the stats tell a very different story.
Just spend a few seconds looking at the three charts below.
<img src="/images/2014/04/14/matusik%20april%2014%20one.png" alt="">
<img src="/images/2014/04/14/matusik%20april%2014%20two.png" alt="">
 <img src="/images/2014/04/14/matusik%20april%2014%20three.png" alt="">
One would think that rising house prices would get more residents to start leaving both Sydney and Melbourne.  But maybe it is more than just this that matters.
Migrants, mostly – from interstate or overseas – need to work.  Unless more jobs are created in Queensland and wages start to accelerate, then Queensland’s population growth will continue to slow.  As we have been saying for some time, the key to a sustainable Queensland recovery is job and wage growth.
Amenity is higher in Sydney and Melbourne – it is and don’t bother trying to argue otherwise. There is nothing wrong with Brisbane; I have chosen to live here.  It just hasn’t got the 24/7 lifestyle that the southern capitals offer.  And that appears to be increasingly important to many.
Climate alone doesn’t cut it anymore.  In fact, it never did – jobs and lower taxes attracted most interstate migrants in the past.  Those attracted mainly because of Queensland’s weather were often the underemployed or unemployed.  Yet, increasingly these days, it would appear that even the down and out prefer to live somewhere else. 
So Queensland’s population growth - my recalcitrant correspondents – maybe isn’t doing what you think it is.  Fewer people are migrating to Queensland from interstate than ever before.  In contrast, population growth is increasing in NSW and Victoria.
Now, we do expect more to move north from Sydney and Melbourne as their housing markets peak.  But this ‘priced-out of home’ movement northwards looks like it has lost a lot of its previous oomph.
Queensland’s declining market share of interstate migration – as the third chart clearly shows – has been a long trend.  Something is amiss; a past connection broken.  Maybe it cannot be fixed.
In short, it looks like there is no magic influx coming to float Queensland’s real estate boat.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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