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.

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.

<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.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

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.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

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.

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.

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.

<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" />

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.

"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.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

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.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"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."

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.

"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.

"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."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"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."

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.

MAYD is targeting an early 2027 launch.

Joel Robinson

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

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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.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

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.

[smartcode_project:default project_id=152737 project_image_fid=377679]

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.

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.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

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.

"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.

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.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

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.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"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.

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.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

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.

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.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

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.

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.

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.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

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.

“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.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“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.”

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.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

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.

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.

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.

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.

<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" />

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.

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.

A significant component of The One will be its residential amenity.

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.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<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" />

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.

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.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“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.”

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.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

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

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

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

Dwelling Prices

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Despite the region having passed the peak of the market, Toowoomba’s fringe suburbs gained momentum throughout 2015.
These fringe suburbs are dominated by the owner-occupier sector with less investor activity than in Toowoomba, according to valuation firm Herron Todd White’s analysis of fringe suburbs in their April 2016 property clock.
<a href="/images/2016/04/15/Screen%20Shot%202016-04-15%20at%201.34.54%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/15/Screen%20Shot%202016-04-15%20at%201.34.54%20PM.png" alt="" width="1135" height="863">
For instance, localities such as Highfields and Kleinton to the north and Westbrook, Wyreema and Cambooya to the south-west have all shown considerable capital growth over the past decade, with all areas recording a steady increase in median house price. 
<a href="/images/2016/04/15/Screen%20Shot%202016-04-15%20at%2012.53.43%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/15/Screen%20Shot%202016-04-15%20at%2012.53.43%20PM.png" alt="">
The median house price for Highfields and Kleinton is $520,000 and $541,000 respectively, which sits considerably above Toowoomba’s affordable median of approximately $369,000 as at the second half of 2015. So, why are these outer suburbs proving so popular? Simply, it is because purchasers are getting more for their money. Although the median price is almost 30% above Toowoomba’s more central suburbs, Highfields and Kleinton provide a high quality, modern or large home option within a mere 14 to 20 kilometre commute to the Toowoomba CBD. 
To the south of the CBD, from 12 to 22 kilometres, Westbrook, Wyreema and Cambooya offer a slightly more affordable fringe dwelling option. The median price in Westbrook is still above Toowoomba’s at $460,000, however Wyreema and Cambooya are below at $310,000 and $320,000. Similar to the northern satellite suburbs, these localities provide predominantly modern dwellings, however on a more moderate scale and with a more basic fit out. 
Overall, Toowoomba’s fringe suburbs have shown that they typically trade off a central location for a superior quality and size dwelling. In terms of investment, all satellite localities have mirrored Toowoomba’s in that median values and volumes peaked in the second half of 2014 to the second half of 2015 and have begun to show signs of flattening. There are large land development projects to come on line in areas such as Highfields and Cotswold Hills, which may stymie some of the recent growth rates as supply increases. 
Property Observer found a few recently sold homes in the fringe suburbs of Highfields and Westbrook around their median prices of houses.
A five-bedroom house at <a href="https://www.realestate.com.au/property-house-qld-highfields-121581118" target="_blank">23 Flamingo Road Highfields Qld</a> (below) 4352 recently sold for $515,000, according to <a href="https://www.realestate.com.au">www.realestate.com.au</a>.
<img src="/images/2016/05/06/image2-1.jpg" alt="" width="641" height="481">
A four-bedroom house at <a href="https://www.realestate.com.au/property-house-qld-westbrook-121270970" target="_blank">133 Main Street Westbrook Qld</a> (below) 4350 was snapped up for $472,500 earlier this year.
<img src="/images/2016/05/06/main-3.jpg" alt="" width="501" height="376">
 
 
 
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prateek24-ezbwHMbNAk

Owner occupiers dominate the robust fringe market of Queensland’s Toowoomba: HTW

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GUEST OBSERVER
The number of loans (commitments) for people who are buying or building homes to live in (owner-occupiers) rose by 1.4 percent in February after sliding by 4.4 percent in January.
The average home loan across Australia fell for the third consecutive month down by $15,200 to $357,200 in February – the biggest monthly decline on record. And it was the biggest percentage decline for a February month.
Retail petrol: According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol rose 4.1 cents per litre, to 114.4 cents per litre in the week to April 10.
Capital cities: In Adelaide, the average petrol price is currently below $1 a litre. In Sydney and Brisbane, prices are near $1.25 - $1.29 a litre after lifting a much as 20 cents a litre in the past week.
Chinese inflation: Chinese consumer prices fell by 0.4 percent in March to be up 2.3 percent on the year (forecast 2.5 percent). Producer prices fell by 4.3 percent over the year (forecast -4.6 percent).
Food inflation: Over the year food prices are up 7.6 percent with non-food prices up just 1.0 percent.
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<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%203.02.41%20PM.png" alt="">
The housing finance data has implications for banks, building material suppliers and retailers. The petrol figures have implications for retailers, especially petrol marketing groups. The Chinese inflation data is of importance to exporters and importers.
What does it all mean?
The housing sector has shown signs of slowing, however Aussies are still taking out home loans to build homes or buy homes to live in, albeit at a more moderate pace. Overall it is an encouraging result suggesting that a soft landing is underway. The lift in loan activity in February is a sign of confidence in both the state of the job market and the outlook for interest rates.
<a href="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%203.04.05%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%203.04.05%20PM.png" alt="">
It’s no surprise the strength is in the owner occupied market with loans still up 15 percent on a year ago. In contrast, investor loans are down over 7 percent compared with this time last year. The cooling in the property market is a welcome sign given the ramp up in property over 2014/15.
In addition, a key guide to house price growth - the average loan size - has fallen for the third straight month, down by 4.1 percent or over $15,000 in February – the biggest monthly decline in dollar terms on record. The result was driven by the average loan for established dwellings (down 8 percent over the past three months) and new dwellings (average loan down by over 12 percent in the past three months).
It should be noted that the average home loan is influenced by home prices, composition of borrowers and the geographic location of home purchases.
Interestingly the value of owner occupier and investor loans to build new homes rose by a sizable 5.8 perccent in February and is holding just of record highs - partially a function of price growth.
The Chinese inflation data has clearly been affected by the seasonality in higher food prices (in particular pork prices – up 28 percent over the year to March). Outside food, inflation remains low at 1.0 percent. The timing of Chinese New Year can cause distortions in economic data as has already been apparent in the trade figures.
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<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%203.05.27%20PM.png" alt="">
The lift in petrol prices last week was more a function of the discounting cycle across capital cities rather than any major shifts in global oil markets.
Motorists would be well rewarded for keeping an eye on petrol signboards and filling up at the cheap end of the cycle. In Adelaide, petrol is below a $1 a litre, while In Sydney and Brisbane, prices are near $1.25 - $1.29 a litre after lifting a much as 20 cents a litre in the past week. Melbourne prices peaked 10 days ago and have so far eased to around $1.20 a litre.
What do the figures show?
Housing finance - number
The number  of new owner-occupier housing loans (commitments) rose by 1.4 percent in February after sliding by 4.4 percent in January. Excluding the refinancing of dwellings, the number of loans was up by 1.6 percent.
Loans by owner-occupiers for the construction of homes  fell by 1.9 percent in February; loans to buy newly erected dwellings  fell by 15.4 percent; and loans for the purchase of established dwellings  (excluding refinancing) rose by 5.5 percent. The number of refinancing transactions  fell by 0.4 percent.
Housing finance - value
The value of new housing commitments (owner occupier and investment) rose by 2.6 percent in February after a 3.7 percent increase in February. Owner-occupier loans rose by 1.7 percent while investment loans rose by 4.1 percent.
The value of loans by owner-occupiers and investors to build new homes rose by 5.8 percent in February after a fall of 1.6 percent in January. The value of loans to build new homes stood at a 14-month high of $2.95 billion, marginally weaker than the record high of $2.97 billion in December 2014.
 Housing finance – other statistics
The proportion of first-time buyers in the home loan market fell from 15.1 percent to 14.7 percent in February. (However the figures take into account refinancing loans and as such the figures may misrepresent the true situation).  
The proportion of fixed rate loans eased from 13.6 percent to 13.1 percent in February. And the average home loan across Australia stood at $357,200 in February, up 7.8 percent on a year ago, but down 4.1 percent in the month.
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<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%203.06.38%20PM.png" alt="">
Chinese inflation:
Consumer prices fell by 0.4 percent in March to be up 2.3 percent on the year. The annual result was below the forecast of 2.5 percent but in line with the February result.
Non-food prices fell by 0.1 percent in the month to be up 1.0 percent over the year. The February annual result was also +1.0 percent. Prices of consumer goods rose 2.5 percent over the year (February 2.6 percent) with services up 1.9 percent (February 1.8 percent).
Food prices fell by 1.8 percent in March after rising by 6.7 percent in February (reflecting Chinese New Year effects). Food prices are up 7.6 percent over the year, up from the 7.3 percent annual gain in February. Pork prices fell by 1.3 percent after rising by 6.3 per cent in February. Pork prices are up 28.4 per cent in the year to March, up from the 25.4 per cent annual increase to February.
Consumer good categories (year to March): Food, tobacco and alcohol 6.0 percent; Clothing 1.5 percent; Rent, fuel &amp; utilities 1.3 percent; Household goods 0.4 percent; Transport and communication -2.6 percent; Education, culture and recreation 1.2 percent ; Healthcare 3.1 percent; Other goods and services 1.7 percent.
Producer prices fell by 4.3 per cent in the year to March, firmer than the 4.9 per cent decline to February and below market forecasts centred on a 4.6 per cent decline. It was the smallest rate of decline since January 2015.
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<img src="/images/2016/04/11/Screen%20Shot%202016-04-11%20at%203.07.55%20PM.png" alt="">
Petrol prices
According to the Australian Institute of Petroleum, the  national average Australian price of unleaded petrol rose by 4.1 cents per litre to 114.4 cents per litre in the week to April 10. The metropolitan petrol price rose by 5.5 cents to 115.2 cents per litre while the regional price rose by 1.1 cents to 112.7 cents per litre.
The national average Australian price of diesel petrol rose by 0.7 cents to 112.3 cents per litre in the week to April 10. Last week the metropolitan price rose by 0.5 cents to 111.3 c/l, while the regional average price was up 0.9 cents to 113.2 c/l.
Average unleaded petrol prices across states and territories over the past week were: Sydney (up by 4.9 cents to 110.1 c/l), Melbourne (up by 12.3 cents to 124.9 c/l), Brisbane (up 7.2 cents to 116.9 c/l), Adelaide (down 6.0 cents to 100.5 c/l), Perth (down 0.5 cents to 111.5 c/l), Darwin (up by 0.2 cents to 115.6 c/l), Canberra (down 0.1 cents to 117.0 c/l) and Hobart (up by 0.2 cents to 117.4 c/l).
Today the national average wholesale (terminal gate) unleaded petrol price stands at 101.4 cents per litre, down 2.8 cents per litre on a week ago but still up 5.6 cents a litre on than the lows set in mid-February. The terminal gate diesel price stands today at 94.50 cents a litre, down 2.2 cents a litre over the week.
Last week the key Singapore gasoline price rose by US80c or 1.5 per cent to US$53 a barrel. In Australian dollar terms the Singapore gasoline price rose by $2.11 a barrel (3.1 per cent) to $70.34 a barrel or 44.24 cents a litre.
MotorMouth records the following retail prices for capital cities today: Sydney 125.9c; Melbourne 119.7c; Brisbane 128.7c; Adelaide 99.5c; Perth 100.8c; Canberra 111.3c; Darwin 114.4c; Hobart 117.7c.
What is the importance of the economic data?
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.
Weekly figures on petrol prices are compiled by ORIMA Research on behalf of the Australian Institute of Petroleum (AIP). National average retail prices are calculated as the weighted average of each State/Territory's metropolitan and non-metropolitan retail petrol prices, with the weights based on the number of registered petrol vehicles in each of these regions. AIP data for retail petrol prices is based on available market data supplied by MotorMouth.
China’s National Bureau of Statistics releases its monthly economic statistics around mid-month. Quarterly GDP data is released around the 19th of January, April, July and October. China’s Customs Office releases trade data, and the People’s Bank of China releases financial statistics, around the 10th of each month. China is Australia’s largest trading partner and changes in the Chinese economic have major implications for the Aussie economy.
What are the implications for interest rates and investors?
Petrol prices look set to bounce around current levels although capital city motorists must still contend with the vagaries of the discounting cycle.
While it is hard to read too much into it, Chinese consumer prices have lifted in recent months largely due to the seasonality in food inflation. If inflation was a result of stronger demand, it would be seen as positive in the current environment by investors.
The Reserve Bank will be comforted by the more stable conditions in the investor housing market.
CommSec expects no change to interest rate settings for the foreseeable future.
Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>
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jchancellor-FAypfDUnLy

Record drop in average home loan: CommSec's Savanth Sebastian

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Brisbane house prices are predicted to increase by 5 percent over the next 12 months according to JLL, who believe the change in unit prices will remain flat over the 12 months.
The Brisbane Residential Market Report to December 2015 found the median house price is up 4.4% on the year and the median apartment price down 0.3% on the year and down 0.34% on the quarter.   
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The report noted listings are selling, with total house listings down 10.2%, new house listings down 1.1% on last year with total apartment listings down 1.7%. It found the Inner Brisbane region has shown the strongest price growth for houses, up 11.3% on last year to $938,000
"Southeast Inner Brisbane was up 5.3% to $733,000. Growth levels have been lowest for Caboolture, Ipswich City, Pine Rivers and Logan City, up between 2.2% and 5.0%. Ipswich City offers the cheapest median price at $327,000," the report found.
"For apartments, growth levels have been much lower, with Inner Brisbane unchanged over last year at $496,000. The strongest growth rates on substantial turnover have been in Southeast Inner Brisbane and Caboolture, at 4.7% and 6.0% respectively. 
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"The inner suburbs are most in demand, with median house prices above $800,000. This falls rapidly with distance from the CBD to around $550,000 10km or more from the city and $400,000 20km or more from the city."
Median Brisbane house prices showed the strongest quarterly growth to December 2015 nationwide with an increase of 4.4% according to new figures released by JLL.
  
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The median house price is up 4.4% on the year and the median apartment price down 0.3% on the year and down 0.34% on the quarter.
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Brisbane house prices forecast to increase by 5 percent, but no growth for apartments: JLL

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<div class="column">Australian residential property price growth has continued to surpass expectations in recent quarters, suggesting more limited scope for further gains.</div>
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<div class="column">Consequently, NAB Economics has reduced its forecasts for detatched house price growth in 2016. Nationally, prices are now forecast to increase 2% in 2016 (from 3%), largely reflecting a slower pace of growth in Sydney and Melbourne.</div>
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 While price growth will slow, a sharp correction in prices is still not expected given supportive market fundamentals and continued foreign demand for new dwellings. Risks have increased, however, especially in the apartment market which has seen a sharp increase in construction activity.
House price strength not expected to continue.
In last week’s NAB Residential Property Survey, we cut our forecasts for house price growth in 2016. This was a reflection of both the stronger than expected growth seen in house prices to date, which appears increasingly unsustainable, and some tightening in financing conditions observed in the mortgage market (largely brought about by macroprudential changes and major banks’ reactions to higher capital requirements). 
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For 2015, NAB Economics is expecting average national house price growth of 9.9%, which is much higher than expected earlier in the year. The rapid pace of house price growth has not been experienced uniformly across the market. Capital growth has been led by Sydney and Melbourne, with house price growth forecast to be 14.9% and 15.7% respectively over 2015.
 Modest gains in 2015 are also forecast for Brisbane (3.6%), while Adelaide will be up modestly. In Perth, house prices are expected to fall (-6.7%), with the slowdown in the mining sector and associated softening in population growth playing a negative role in the local market.
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In an environment where income growth continues to be modest, alongside lower population growth, the rates of house price growth seen in Sydney and Melbourne are unlikely to continue, suggesting more modest price gains in 2016. The ratio of median house prices to household disposable income has lifted considerably in these markets since the RBA commenced easing monetary policy in 2011, cutting the cash rate from 4.75% to 2% currently (Chart 2).
Additionally, regulatory changes to address risks in housing credit (particularly investor credit) have tightened conditions in the mortgage market, which is likely to have at least some impact on housing demand (even if only at the margin). However, the response from some corners claiming that these factors point to a sharp correction in house prices in the medium term, are extreme in our view. 
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One major reason for this is because housing affordability has not deteriorated as much as price to income ratios would suggest. A major drawback of these simple ratios is that they do not capture the offsetting (positive) impact from lower interest rates (smaller mortgage repayments) on housing affordability.
To capture the effects of lower interest rates, it is more informative to compare median house prices to the hypothetical borrowing capacity of the average household (in each respective state). This comparison suggests much less cause for concern, although continues to point to a somewhat overheated market in both Sydney and to a lesser extent Melbourne. 
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This result is broadly consistent with estimates of market (over)valuation produced by the IMF in their latest ‘Australia – Selected Issues’ report (published in September).
It is important to note that all property market valuation techniques have their shortfalls – such as being highly sensitive to the assumptions made – but can be a useful guide to market risk. The IMF concluded from their analysis that house prices in Australia were moderately higher than fundamentals, but less overvalued than ‘a comparison to historical or international averages would suggest.’ We would concur with this finding. 
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In addition to record low interest rates, a number of years of sluggish growth in housing supply (relative to demand), has helped to allay fears of a severe market correction – at least in certain markets. While measures of pent-up demand are highly sensitive to the assumptions used, simple measures such as rental vacancy rates suggest that pent-up demand is still supportive in some markets, especially Brisbane and Sydney. While new supply through apartments has come on line, new detached housing supply has not increased greatly for most markets relative to population (see below).
Having said that, population growth in Australia has been slowing in line with the winding down of the mining boom, although growth in the major eastern states has remained robust, supported by interstate flows. Foreign student arrivals are also expected to be strong, especially in these states, assisted by a more favourable AUD – which should be particularly beneficial for apartment demand. Overall, these trends suggest that slower population growth will imply weaker house price gains, but that the major eastern states should prove to be somewhat more resilient.
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In light of pent up demand and an environment of low interest rates , it would most likely require a substantial shock to the labour market and/or for interest rates to increase sharply to trigger significant declines in house prices – while there are risks, neither of these are anticipated in our forecasts. Rather, the most likely outcome would be a prolonged period of very subdued capital growth. A period of subdued capital growth would also be consistent with our expectation of a period of subdued rental growth. 
 
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Nevertheless, there are signs that elevated prices are discouraging home buyers and cooling the housing market. The Westpac-Melbourne Institute survey of consumer sentiment, for example, shows that households consider it to be a pretty poor time to buy a property. This sentiment has been reflected in market indicators, with the national clearance rate holding below 70% in the week ending 18 October (Sydney was at 66.6%). 
The forecast for average national house price growth in 2016 has been lowered to 2.3%, previously 3.0%, following an expected 9.9% for 2015. A strong supply response in the apartment sector (Chart 8), however, suggests a weaker outlook for this market, and greater reliance on foreign buyers and domestic investors adds a degree of unpredictability to the outlook. In 2016, the slowdown in average national house price growth to 2.3% is largely driven by a moderation in both Sydney and Melbourne prices growth (see Chart 2). NAB Economics expects house price growth to decelerate in Sydney to 1.2%, while price growth in Melbourne will ease to 3%. Brisbane is tipped to see the fastest house price growth (4.5%), and the Adelaide market is expected to improve (2.4%). Perth will remain weak, although price declines are forecast to ease (-1.2%). 
 
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Overall, our assessment is that the possibility of a sharp correction in the Australian housing market is remote, although continued rapid price growth in Sydney and Melbourne over the past 6 months suggests the risks have risen. While it would take a sharp deterioration in the labour market and/or a large increase in interest rates to trigger a severe decline in house prices, worsening affordability will most likely cap price growth going forward. 
Supply is also responding to higher prices - this may exert downward pressure on some segments of the market, although measures of pent-up demand (under-supply) vary across markets (e.g. still quite supportive for Sydney housing) and do not capture foreign demand. However, approvals for new apartments have been large in some areas (e.g. Melbourne CBD), which poses a risk in these segments. 
 
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Alan Oster is group chief economist, National Australia Bank, and can be contacted <a href="https://business.nab.com.au/author/alan-oster/" target="_blank">here</a>.
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Residential property price growth surpasses expectations: NAB's Alan Oster

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GUEST OBSERVER 
Australian dwelling price growth has moderated over October. The latest CoreLogic RP Data figures show that dwelling prices rose by a small 0.2% over the month.  House prices were up by 0.1% and units rose by 0.4%.  Cooling house price growth fits in with other indicators of the housing market which show that the pace of activity is moderating.
A sizeable fall in dwelling prices in Perth over October was offset by rises across the other capital cities. Perth property prices are reflecting the combination of rising supply and vacancy rates at the same time as economic growth is slowing and population growth rate is falling.  
Dwelling price growth looks to be cooling in Sydney while property price growth has remained buoyant in Melbourne despite plenty of additions to the stock of housing. For Melbourne, it’s all been about the lift in house prices as opposed to unit prices.  House prices are running at 15.1%pa in Melbourne compared with 5.5% for apartments. The divergence is unusual and reflects the big lift in high‑rise construction over the past few years which has seen the available stock of apartments lift considerably against the stock of houses.  This trend looks likely to continue given the pipeline of high‑rise construction to come.
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There is nothing in today’s dwelling price data that looks surprising. Recent moves by the ‘big banks’ to lift mortgage rates were always going to have a cooling influence on the housing market. And they have come at a time when vacancy rates and rental yields are both falling and housing supply is lifting. The combination of the aforementioned means that dwelling price growth was always going to slow. 
The question is really a matter of how much price growth will slow and the short answer is that we simply don’t know.  In our view, running models to project dwelling price growth is too fanciful because there are too many moving parts that impact on dwelling prices. 
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One of the more accurate leading indicators of dwelling prices is auction clearance rates. These have been on a downward trend since record high levels mid‑year.  So we expect to see some further moderation in dwelling prices over coming months, particularly given the small lift in mortgage rates which will ease the pace of credit growth, especially to investors.  
One thing which could potentially reignite the housing market over the short run is a near term RBA interest rate cut, possibly as early as tomorrow. Market pricing is putting the odds of a Melbourne Cup day rate cut at around 40% and that looks about right to us.  We have the RBA on hold at 2.0% tomorrow. 
 
We don’t think that policymakers will be too perturbed by the easing in house price growth.  Indeed, they will most likely welcome it.  As recently as two weeks ago the RBA aired concerns around parts of the housing market in its semi‑annual Financial Stability Review.  Last week’s private sector credit data showed a marked lift in business credit growth and an easing in housing credit growth which is exactly what policymakers have been looking for – a lift in business credit growth is a precursor to capital investment.  So it looks like the different parts of the credit space are moving in the directions that policymaker’s desire. 
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Gareth Aird is economist at Commonwealth Bank and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/gareth-aird/14/790/905" target="_blank">here</a>.
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Property prices cool over October: Gareth Aird

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The Australian Bureau of Statistics (ABS) released quarterly Consumer Price Index data for September 2015. The data showed that headline inflation was recorded at 0.5% for the quarter and was 1.5% higher over the year.
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As the above chart shows, at 1.5%, headline inflation is below the Reserve Bank’s target range of between 2.0% and 3.0% per annum.  While the headline figure is important, the RBA also likes to look at measures of underlying inflation which exclude some of the more volatile items.  Both measures of underlying inflation; the trimmed mean and the weighted median were recorded at a lower 0.3% over the quarter and have increased by 2.1% and 2.2% respectively over the past year.  These annual increases place underlying inflation within the lower band of the RBA’s target range, it would also indicate that if the RBA felt it necessary they have scope to reduce official interest rates.
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The effects of inflation are also an important factor to consider for housing markets.  Although we generally talk about home value growth in nominal terms, real or inflation-adjusted home value changes are also important to consider.  Over the 12 months to September 2015, combined capital city home values have increased by a nominal rate of 11.0% however, in real terms that figure drops to 9.4%.  The above chart shows the annual rate of value change across the individual capital cities in both nominal and real terms.  It highlights once again the significant difference in value growth conditions in Sydney and Melbourne relative to the other capital cities.
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In real terms home values have only increased over the past five years in Sydney and Melbourne.  On a compound annual basis, falls have been recorded at -1.7%pa in Brisbane, -2.0%pa in Adelaide, -1.5%pa in Perth, -3.5%pa in Hobart, -3.9%pa in Darwin and -1.4%pa in Canberra.  Real home values have increased at a rate of 4.9%pa over the past five years in Sydney and 1.7%pa in Melbourne.  Over the past decade, real home values have fallen in Hobart and have risen at a rate of less than 2%pa in Brisbane, Adelaide and Canberra.
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To further highlight the differences across the cities it is valuable to have a look at nominal and real value growth across the capital cities since 2008.  Between March and December of 2008 combined capital city home values fell by a nominal -6.1% or a real -8.3%.  On the back of aggressive interest rate cuts and stimulus in the form of the Boost to the First Home Owners Grant, values began to rise from that point.  Although combined capital city home values have increased since 2008, this is largely by virtue of strong value growth in Sydney and Melbourne.  In fact, real home values are currently lower in Brisbane (-5.2%), Adelaide (-5.4%), Perth (-3.0%) and Hobart (-16.1%) than they were at the end of 2008, almost eight years of no real value growth in these cities.  Real value rises have been moderate since 2008 in Darwin (5.0%) and Canberra (4.1%) and substantially greater in Sydney (51.4%) and Melbourne (41.9%).
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The above chart looks at the change in real home values on a quarterly basis since their previous peak.  What is immediately noticeable is that Sydney (+24.3%) and Melbourne (+8.9%) are the only cities in which values are now higher than their previous peaks.  The journey to get back above their peaks was somewhat different, Sydney took 41 quarters to eclipse its March 2004 peak while Melbourne took 19 quarters to eclipse its September 2010 peak.  Across each remaining capital city, real home values are below their previous peaks, the figures for each city are: -11.8% in Brisbane, -10.0% in Adelaide, -13.0% in Perth, -21.3% in Hobart, -17.9% in Darwin and -8.1% in Canberra.  For Brisbane, Perth and Hobart in particular the journey back to the previous peak has proven to be long with these markets previously peaking in March 2008, September 2007 and December 2007 respectively.
As values continue to rise in Sydney and Melbourne and show falls or moderate nominal growth in other capital cities, the affordability gap will continue to widen.  At some point these other capital city markets will once again become attractive to buyers.  Importantly this won’t be driven by affordability factors alone; employment opportunities, amenity and local infrastructure, amongst other factors, will be important factors.  The data also highlights that long periods of value falls do happen in the Australian housing market and clearly housing is not a one-way bet.  The broader statistics do tend to be overshadowed by the impact of the Sydney and Melbourne housing markets who are substantially bigger than all other capital cities.
 
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.
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Real home values remain below previous peak: Cameron Kusher

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A seven-fold increase in infrastructure spend around Hobart is creating affordable real estate hotspots for investors and owner-occupiers, according to PRDnationwide Research. 
Especially houses and apartments in areas such as Howrah, Rokeby and Glenorchy, PRD's latest Hotspots report shows.
"With great affordability and major support in the form of large upcoming infrastructure spend, Hobart will become a hotspot for first time home buyers and investors alike," PRDnationwide national research manager Asti Mardiasmo anticipates.
Hobart is often considered the perennial under-performer of the Australian property market.
"In Hobart and its surrounding metro area, positive median price growth is evident for both house (5.2%) and units (2.7%)," Asti Mardiasmo said.
The median price of Hobart CBD and its immediate areas range between $500,000 - $800,000, with most expensive suburbs to be found south of the CBD and on the eastern shore.
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Earlier this month SQM Research director Louis Christopher said Hobart would be one of Australia's best-performing property markets in 2016.  
Price growth of houses in Howrah, a suburb across Derwent River and 12km from the CBD, was achieving annualised 2.8% growth in the year to September, up from just 0.5% six months earlier, the PRD report shows. 
Neighbouring Rokeby has had a 5.6% annualised boost to prices. Just six months ago, they were falling 5.3% a year.
"Historically an overlooked suburb, Rokeby is looking to gain future benefit from $13.6M of developments completed over the past financial year, and an additional $6.8M of projects in the next 12 months. Investors will do well in Rokeby with an average rental yield of 6.5%," the report said.
Claremont growth has pushed ahead to $253,750 median, up 6.4%. "Home of the Cadbury chocolate factory and located north of the Hobart CBD, Claremont affords a more quiet lifestyle alternative to inner city living at an affordable entry price. With a 10.1% growth in median price over the past 12 months and 6.3% rental yield, it is a highly desirable area," the report says.
In Glenorchy in the city's north unit prices, which were falling at an annual pace of 7.1% six months ago, have turned around and are now gaining at an annualised 5.1%. The median unit price in Glenorchy is $205,000. 
Bridgewater on Greater Hobart's northern edge, where units that six months earlier were growing at a pace of 0.5%, are rising at 9.9% rate with the median unit price at $155,000, the PRD report shows as one of the strongest market segments. 
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"Bridgewater offers an affordable alternative to the inner city markets, yet also recording high growth of 15.7% over the past 12 months.
"There is a wide range of dwelling types within the area suiting both investors and first home buyers.
"Investors do well in Bridgewater with an average yield of 7.5%."
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Is Hobart the next hotspot? PRD think so

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Some 5.7% of sales across Melbourne over the June 2015 quarter were at a price lower than the previous purchase price.
This was down from 6.6% a year earlier and 6.4% at the end of the previous quarter, according to the recent CoreLogic RP Data Pain &amp; Gain report.
The Macedon Ranges, Mitchell and Murrindindi council areas were the only regions across the city to record no resales at a loss over the quarter.
The regions with the highest proportion of loss-making resales were Melbourne (20.0%), Stonnington (12.0%) and Moonee Valley (10.3%). 
Melbourne CBD vendors lost $7 million in their sales that went backwards.
 
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Melbourne CBD vendors lose $7 million in resales: CoreLogic RP Data Pain & Gain

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GUEST OBSERVER
A recent application for an eight-room boarding house in the leafy north Sydney suburb of Cromer attracted over 800 objections from residents and the school community.
Proponents of the project, including governments, may be tempted to dismiss these residents as NIMBYs – members of the not-in-my-backyard brigade.
Our research, however, found that ignoring residents' concerns and failing to allay their fears helps nobody – least of all those in dire need of affordable housing options.
Misconceptions and stereotypes
We investigated what makes opponents tick and how proponents – including planners, developers, councils and other levels of government – can allay the fears of residents who opposed affordable housing development in their suburbs.
We looked at four council areas where residents had opposed affordable housing developments – Parramatta in NSW, Port Phillip in Victoria, and the Queensland cities of Brisbane and Cairns. We interviewed opponents and affordable housing residents and read submissions from residents who fought the developments.
We found that many objectors had misconceptions about prospective affordable housing tenants, assuming they were mostly deviants and undesirables. While this generalised portrayal of boarding house tenants has probably never been fair, it is particularly untrue of the new generation of boarding houses. They are very different products and they target different sections of the community.
New names for new designs
Most people are more familiar with traditional boarding houses that offer short-term lodgings with shared bathrooms and informal agreements, like a bed in a backpackers’ dorm.
But new boarding house developments, like those proposed in Cromer and throughout NSW following new planning controls and registration requirements, are a very different product.
The rooms are typically self-contained with kitchenette and en-suite, more akin to studios or “micro-apartments”. They are now also subject to formal occupancy agreements that offer tenants (and landlords) more security and certainty.
With these improvements, however, new boarding houses come at a higher rent and so are often out of reach of the most down-trodden, historically catered for by this form of cheaper accommodation.
As it happens, the new boarding house rules were launched in Sydney around the same time as “micro-apartments” in New York. The two have a lot in common, in both physical form and social purpose, but the difference in reception is stark. New Yorkers have largely hailed them as an innovative response to unaffordable housing; the Sydney case got us to the Cromer and Parramatta protests.
It shows what a difference a name can make.
New designs for new households
New boarding houses have these different features because they target a very different market.
A growing section of Australia’s population don’t live in nuclear families, and the housing stock is shifting alongside this. High-density built forms are part of this shift. But there is need for more diverse choices for people who want to continue to enjoy the amenity of suburban neighbourhoods, and keep their existing social networks there.
It’s too early to know for the Cromer case specifically, but in the cases we studied the boarding rooms were intended to meet demand within the local community. These people aren’t looking for family houses and often can’t afford them. However, they are seeking the same “local character” that we found opponents often fear will be lost by the development. It is not in the interests of the landlord or tenant to see the neighbourhood’s character tarnished, nor to have a business model that relies on a diminishing pool of prospective tenants.
Our research also found that opposition often stemmed from the perceived impacts of boarding houses, like additional noise or traffic. However, these impacts come with the people, not housing stock. In many instances, a purposely designed and managed boarding house will be better equipped to minimise, for example, the impacts of noisy students than if those same students were renting a family home.
Neighbourhoods will accommodate their changing community more painlessly if the housing stock is designed to mitigate any impacts. And if residents are informed that affordable housing is intended to ensure their adult children or parents or divorced friends can continue to live locally, they’re less likely to imagine the worst.
Information is the best defence
Housing diversity need not threaten established neighbourhood character or social values.
When change occurs, people often fear the worst. There are no guarantees that better engagement measures will allay everyone’s fears but we found that when affordable housing developers don’t engage well with communities, residents let their imaginations run wild.
Engaging with the most vocal opponents instead of dismissing them as members of the NIMBY crowd will make a difference. At best, affordable housing proponents can get them onside and make them vocal supporters. At the very least, proponents can limit the extent to which fear is spread.
 
Edgar Liu is research fellow at City Futures Research Centre, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/edgar-liu-32200" target="_blank">here</a>. Ryan Van den Nouwelant is senior research officer and can be contacted <a href="https://theconversation.com/profiles/ryan-van-den-nouwelant-199969" target="_blank">here</a>. Both are authors for The Conversation.
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Don’t fear boarding houses: they’re probably not what you think

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Owning a home in Australia has become more affordable since 2011, while renting has become more expensive, a recent report reveals, making a case for young people to consider buying a home rather than renting to boost their wealth, says Amanda Watt, the head of banking business act.
act. is a newly established banking service that redirects profits back into social projects.
Watts noted home owners with a mortgage paid an average of $453 per week on housing costs in 2013-14. In real terms, this was largely unchanged from 2011–12, according to the Australian Bureau of Statistics’s (ABS) Housing Occupancy and Costs 2013-14 report released recently. Combined with rising incomes, in real terms, or after inflation, buying a house has become more affordable.
The ABS said an increase in average household incomes has seen owners with a mortgage spending 16% of their income on housing costs in 2013-14, down from 18% in 2011-12. 
In contrast, households renting from private landlords paid an average of $376 per week in 2013-14, a rise of $12 from the 2011–12 average in real terms, the report said.
Lower income households renting from a private landlord paid on average $313 per week, which represented 34% of their gross weekly income. In comparison, lower income households with a mortgage paid $326 a week on average, or 27% of their gross weekly income, on housing costs. With interest rates at historically low levels, home ownership and paying off home loans has become more affordable when combined with an increase in income levels, act.’s Amanda Watt said. In addition, low unemployment would support young home buyers taking out a mortgage.
But home buyers needed a strategy to position themselves for a purchase.
“Save a bigger deposit. Time is money, so the more you borrow, the more you will repay in interest. If you are saving for your first home, start making the sacrifices now and save as much as you can before you buy. Claim the first home owner's grant and any other subsidies your state government offers," she said. 
“Once you get a loan, use an offset account. Offset accounts are a great way to cut interest costs. Offset accounts link your home loan to a savings or transaction account. The balance in the savings account is then used to offset the home loan balance, reducing interest costs. There are tax benefits also as tax isn’t paid on the interest credited to your savings account because the interest is not actually being earned as it offsets the home loan interest,” Watt said. Despite the increase in housing affordability, the report says that since 1994-95, the proportion of households that own their home outright has dropped to 31% from 42%. Households with a mortgage has increased to 36% from 30%, while the proportion of households renting privately has gone up to 26% from 18% between 1994-95 and 2013-14.    For each product act. has, including home loans, act. allocates ‘impact dollars’ – real dollars taken from the profit it earns – and gives them back to its customers, who can then donate to a project of their choice listed on <a href="https://letsact.com.au/" target="_blank">letsact.com.au</a>
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