Brisbane-based <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co Developments</a> has officially launched its $250million COMO apartment development in Varsity Lakes, while simultaneously commencing construction.&nbsp;

Building work is now underway at COMO following the appointment of <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a> as contractor to deliver the boutique development which will rise on a 2857 sqm site overlooking Lake Orr at 22 Lake Street.

When completed, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels located in the heart of Varsity Lakes.

[smartcode_project:default project_id=135546 project_image_fid=363515]

The project, which will sit alongside Bond University, will deliver a diverse array of apartment designs comprising one-, two- and three-bedroom residences that have already attracted interest from local and interstate investors as well as an array of owner occupiers looking to gain a foothold in the precinct.

Red &amp; Co, which has largely focused on the Brisbane market in recent years where it has delivered more than 500 apartments and townhouses across 26 projects, has designed COMO to combine tranquil, lakeside living with the vibrant urban convenience of the vibrant Varsity Lakes village.

“We’re thrilled to announce a start to construction of COMO in conjunction with the official launch of the project, our first for the Gold Coast,” said Red &amp; Co Director and Co-Founder David Laverty.

[smartcode_project:default project_id=135546 project_image_fid=363509]

“COMO is superbly positioned to capture the essence of the Varsity Lakes village lifestyle and its thriving café and dining precinct, while delivering a much-needed diverse supply of premium residences for the local market.

“Pre-launch inquiries have been strong among both local and interstate investors and owner-occupiers, including downsizers and upgraders who appreciate the value proposition that COMO represents.”

Prices at COMO start from $1,000,050.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the COMO development incorporates an extensive range of amenities for residents including a 25-metre rooftop lap pool, sundeck, barbecue and dining areas, as well as multiple rooftop pickleball and paddleball courts, a wellness and activity centre, gym, sauna, plunge baths and landscaped gardens.

“COMO presents a rare opportunity to secure a stylish, lifestyle-focused home in one of the Gold Coast’s most sought-after neighbourhoods,” added Laverty.

“The rooftop will be the epicentre of fun for residents with an array of amenities for residents that are quite unique for a boutique project such as this, all while offering spectacular vistas across the Gold Coast as far north as Southport and south to Burleigh.”

[smartcode_project:default project_id=135546 project_image_fid=363514]

&nbsp;

Red &amp; Co has chosen the Varsity Lakes site for its proximity to top-tier schools, major shopping hubs, such as Robina Town Centre and its CBD offering, as well as key Gold Coast transport links, including Varsity Lakes Train Station.

COMO will be located just a short walk to shops, cafes and restaurants in Varsity Lakes and just a 10-minute drive to the Burleigh Heads beachfront.

With construction currently underway, Red &amp; Co anticipates COMO will be completed in 2028.

[smartcode_project_cta:default project_id=135546]

Joel Robinson

Red & Co to launch debut Gold Coast development Como Varsity Lakes as construction commences

Longstanding Gold Coast developer Raptis has acquired a prime development site on Surf Parade for its next Broadbeach apartment project.

Progressing towards completion of <a href="https://www.apartments.com.au/new-apartments/the-sterling-broadbeach-6-8-george-avenue-broadbeach-qld-4218">The Sterling Broadbeach</a>, 90 apartments on nearby George Avenue, <a href="https://www.apartments.com.au/developers/raptis">Raptis</a>, led by second-generation family man Evan Raptis, has picked up a block on the corner of Surf Parade and First Avenue.

The site had been earmarked for a luxury apartment project with 33 full-floor apartments across a 37-storey tower. Raptis will go back to the drawing board and create a building more appropriate for the site. The development application will be lodged later this month.

Evan Raptis told Apartments.com.au the site ticks all the boxes.

"Broadbeach is a suburb we've developed several buildings over the years. Surf Parade ticks all the boxes for the type of apartment development we want to deliver."

Raptis had several pre-lodgement meetings with council to ensure they are aligned in the development.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="f0d58573-07a4-47a8-9f5e-fbf35fb03dc3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-05%20at%204.58.23%E2%80%AFPM.png?VersionId=iczZEd_4_o4UL0PHMPJGfy_q3tv96J5i" />

Surf Parade has emerged in recent years as one of the most popular streets in Broadbeach for development.

South East Queensland developer Mosaic Property Group kicked it off with Marella by Mosaic. Bassar Group sold out Infinity on the street, while for its&nbsp;first Gold Coast development, Polycell grabbed a Surf Parade site for <a href="https://www.apartments.com.au/new-apartments/the-rochester-broadbeach-143-surf-parade-broadbeach-qld-4218">The Rochester</a>, which is nearly sold out.

Melbourne-based developer Hirsch &amp; Faigen recently launched its fourth Gold Coast project on the exclusive strip. The Eveleigh Broadbeach will have 100 apartments across a 31-storey building designed by Rothelowman.

GV Property Group site development specialists Antonio Mercuri and Luke Reaby, who both amalgamate sites and sell shovel-ready sites to developers up and down the Gold Coast, sold Surf Parade to Raptis.

Raptis secures prime Surf Parade site for next Broadbeach apartment development

Less than two years after breaking ground, Gardner Vaughan Group is celebrating the topping out of Bask, its second development in the exclusive coastal enclave of Bokarina on Queensland’s Sunshine Coast.&nbsp;

Located only minutes from the beachfront, the two seven-storey luxury apartment towers, known individually as Mydas and Caretta, offer a selection of one-to-four-bedroom residences with views of Lake Kawana, the Glasshouse Mountains, and Bokarina Beach.&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=333359]

Gardner Vaughan Group Commercial Director Sam Gardner said the milestone marks the home stretch for construction, with first residents expected to be able to move in from Spring 2026.&nbsp;

“This is a significant milestone in bringing this development to life and represents our confidence in this region’s long-term growth and appeal,” Gardner said.&nbsp;

“With 85 per cent of apartments already sold, buyers are joining an established, coastal village that offers the very best of the Sunshine Coast – seasonally patrolled surf beaches, renowned restaurants, and links to established health and retail.&nbsp;

“The final collection of three- and four- bedroom apartments range in size from 127sqm to 300sqm, each with two or three secure car parks and storage, and with construction fast approaching completion we don’t expect the last few apartments to remain on the market for long.”&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=333362]

Local restaurateur Luke Stringer, who co-owns and manages the award-winning Bocca Italian and Playa Mexican restaurants in Bokarina, has lived in the beachside suburb for 18 months and worked there for more than three years, and said the beachside suburb was thriving.&nbsp;

“It’s fair to say Bokarina is finally stepping into the sun and there’s a lot to love about the place,"&nbsp;Stringer said.

"It’s such a great community, where you see the same smiling faces every morning and everything’s within easy reach – it’s the perfect hub in the middle of the Sunshine Coast.

“When we first opened Bocca Italian, we were the lone restaurant, but it’s been amazing to see how the area has grown. The more venues that open, the busier it gets for everyone. When Playa Mexican opened its first Saturday night, Bocca had a record night and Playa was packed too, which blew us away how everyone is thriving.&nbsp;

“There’s a great energy around the place now, and people are really embracing Bokarina as a food and lifestyle destination.”&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=363368]

Stringer joined other buyers at Bask Bokarina and the Gardner Vaughan Group team to celebrate the topping out at a special event in February.&nbsp;

Located in Kawana Waters, midway between Caloundra and Maroochydore, Bokarina locals enjoy scenic walking paths around Lake Kawana, playgrounds, beachfront boardwalk and parklands, alongside all the convenience of a masterplanned beachside community.&nbsp;

“You see people jogging or swimming in the morning, then grabbing coffee at the cafes, people are really embracing the area and all this growth is bringing more people to Bokarina,” Stringer added.&nbsp;

To take advantage of the vistas, each of the 135 apartments at Bask is designed with full size windows and high ceilings that provide an abundance of natural light.&nbsp;

Prices for the remaining three-bedroom apartments start at $1,599,000 and four-bedroom apartments start at $3,149,000.&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=363369]

The mixed-use development also features ground-level retail space for cafés, dining options and boutiques, including the soon-to-be-opened ‘Corner Shop’, by the team behind Noosa’s well known ‘Organika’.

Sam Gardner said Gardner Vaughan Group’s 37-year history building and developing across South East Queensland has contributed to the success of its second development in Bokarina, which follows the recently completed Zinc Apartments.&nbsp;

“We care how people live and this is reflected in the way we approach the design and delivery of every development,” he said. “Furthermore, as a builder-developer we have full control over the construction program and our 100 per cent completion rate is something people can draw confidence from.”&nbsp;

Founded by civil engineers Guy Gardner and Darryl Vaughan in 1989, the family-owned business has evolved from a consultancy firm to an award-winning builder-developer, with projects across the Sunshine Coast, Moreton Bay, Brisbane and the Gold Coast.

[smartcode_project_cta:default project_id=141609]

Gardner Vaughan Group tops out Bask Bokarina apartments

Prolific Melbourne developer <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> has launched its fourth new Gold Coast development in as many years.

<a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a>, led by Daniel Faigen and backed by Eddie Hirsch, co-founder of United Petroleum, has unveiled The Eveleigh, on a prime 1,100 sqm site at 7-9 Surf Parade in the heart of Broadbeach.

<a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a> will deliver 100 apartments across 31 levels, making it the company’s largest Gold Coast project to date. It builds on the success of its three earlier developments, <a href="https://www.apartments.com.au/buildings/hemingway-1267-1273-gold-coast-highway-palm-beach">The Hemingway in Palm Beach</a> and <a href="https://www.apartments.com.au/buildings/emerson-kirra-100-musgrave-street-coolangatta">The Emerson at Kirra</a>, both completed, and <a href="https://www.apartments.com.au/new-apartments/yves-mermaid-beach-7-9-mermaid-avenue-mermaid-beach">Yves Mermaid Beach</a>, which is nearing completion.

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The announcement of The Eveleigh affirms the company’s sustained confidence in the Gold Coast market which continues to remain undersupplied. It also increases the value of Hirsch &amp; Fa​igen’s Gold Coast development portfolio to more than $700 million since the company first entered the market in 2021 with Hemingway.

The company has enlisted its preferred architecture firm Rothelowman to design The Eveleigh, which will offer a thoughtfully curated lifestyle, including a substantial wellness precinct, communal recreation areas, children’s play spaces, work-from-home facilities, and shared lounge and dining areas.

[smartcode_project:default project_id=149670 project_image_fid=360965]

Designed for the prime market demographic of downsizers and interstate lifestyle investors in mind, The Eveleigh has been crafted to offer an increasingly rare blend of affordable luxury in a tightly held market. Uniquely positioned in the heart of the Gold Coast’s most sought-after lifestyle suburb of Broadbeach, the project will also boast uninterrupted beach and hinterland views.

The Surf Parade site is just a short walk to the bustling Broadbeach dining and retail precinct, Pacific Fair, The Star Gold Coast and convention centre, and an easy stroll to Kurrawa Beach and the recreational amenity of Pratten Park on the Broadbeach foreshore.

[smartcode_project:default project_id=149670 project_image_fid=360975]

“We’re excited to be proceeding with our fourth project on the Gold Coast in what is certain to become the new luxury precinct in Broadbeach,” says Anthony Bueti, the CFO of Hirsch &amp;a​mp; Faigen and a shareholder of the group.

“With the likes of Mosa​ic and Abedian &amp;a​mp; Co also launching quality projects in the area, the transformation will cement Broadbeach as the premier lifestyle and amenity suburb on the Gold Coast.

"After four years in the Gold Coast market, and with three successful projects completed, The Eveleigh is the product of everything we have learned to love about the Gold Coast and it will be an incredible addition to our growing portfolio in one of the most vibrant property markets in the country. We continue to remain very confident in the high-end Gold Coast property market.”

Urban Activation Director Matt George is handling sales for The Eveleigh, having sold out The Emerson, The Hemingway, and Yves, all before construction was completed.

Melbourne builder MAXCON has already commenced construction on The Eveleigh. They are forecasting a mid-2028 completion.

[smartcode_project_cta:default project_id=149670]

Hirsch & Faigen unveils The Eveleigh in Broadbeach

Two years after securing development approval for the final stage of its award-winning Thornton Precinct on the doorstep of Penrith Station, Urban Property Group is set to launch <a href="https://www.apartments.com.au/new-apartments/mayfair-on-penrith-172-lord-sheffield-circuit-penrith-nsw-2750">Mayfair on Penrith</a>, around 400 apartments designed to reflect two of Sydney’s most iconic structures.

The builder-developer has continued refining the design plans for the two-building development on a significant 8,280 sqm site on Sheffield Circuit, recognising the importance of the prime parcel as one of the closest developable sites to the station.

UPG enlisted architecture firm SJB to design the project. The team said they drew inspiration from both the General Post Office in Martin Place and East Circular Quay to help shape the design. The two-level colonnade, in particular, reflects the famous GPO building, which dates back to the 1860s.

[smartcode_project:default project_id=136726 project_image_fid=362014]

There will be one-, two-, and three-bedroom apartments on offer, with interiors by Cox Architecture. Residences will sit above a retail podium featuring hospitality and lifestyle operators such as One Playground and Volcano’s Steakhouse, contributing to an activated ground plane within the broader Thornton precinct.

A communal rooftop with a pool and views towards the Blue Mountains will provide shared open space for residents. The development is positioned between Ron Mulock Oval and Westfield Penrith, with the Nepean River and Great River Walk also nearby, placing daily amenity and green space within walking distance.

&nbsp;

[smartcode_project:default project_id=136726 project_image_fid=362015]

Mayfair is being delivered by Urban Property Group, a family-owned developer and builder with nearly 40 years’ experience across Sydney. The project will be the first in Penrith to be offered with Resilience Insurance’s 10-year Latent Defects Insurance (LDI) policy, which Urban Property Group has adopted across a number of its recent developments. The developer also has a 4.5-star iCIRT rating, one of the best ratings in market providing further confidence to buyers.

Urban Property Group CEO Patrick Elias said providing additional assurance to off-the-plan buyers has become increasingly important.

“Anything we can do to give confidence in our product is a plus,” Elias told Apartments.com.au.

“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. They’re making their single large investment, which is their home, and providing confidence is something that we feel is paramount.”

[smartcode_project:default project_id=136726 project_image_fid=362020]

The LDI policy provides a 10-year warranty covering structural defects, with independent inspections carried out during construction and protection for owners if defects arise post-completion.

Mayfair represents Urban Property Group’s sixth and final development within Thornton, consolidating the masterplanned precinct immediately east of the station.

The developer, which builds its own projects, has already commenced construction. SRM Residential is handling the sales campaign.

[smartcode_project_cta:default project_id=136726]

Urban Property Group to close the curtain on award-winning Thornton precinct with Mayfair on Penrith release

Growth Forecast

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After a stronger than expected housing turnaround, NAB are now forecasting dwelling values to rise by an average of eight per cent nationally across 2021, with a view that 2022 will also see strong gains.

The revision comes after the turnaround in the housing markets, pared with low interest rates, the government's HomeBuilder grants and stamp duty concessions on newly built properties.

"The housing market has fared significantly better than expected over the past year, despite significant headwinds from slower population growth and a weaker labour market," the NAB report read.

"Lower interest rates and household income support from the Federal Government have been a key support amidst the challenges of the pandemic.

"While the impact of lower rates is broad-based, there are some key dynamics underlying our forecast."

[smartcode_project:default project_id=90553]

NAB expect the smaller capitals to continue to outpace Sydney and Melbourne, but the two biggest capital city markets have closed the gap from NAB's previous forecasts.

In the Q2 update in mid-2019, NAB were forecasting a -4.3 per cent average decline across the country, with Melbourne (-7.3 per cent) and Sydney (-4.7 per cent), driving the losses.

In Q3, following a positive response to COVID-19, NAB flipped their forecast, predicting five per cent gains nationally over 2021 and Melbourne (+3.6 per cent) and Sydney (+4.4 per cent), going full circle.

Now NAB expect nearly eight per cent gains average, with Sydney and Melbourne not far behind other capital city markets.

<img alt="" height="791" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nab_q4_forecast.jpg" width="1200">

They expect the best performer to be Brisbane, where there are 10.1 per cent gains forecast for 2021 and 6.3 per cent for 2022.

Adelaide and Hobart are predicted to see the strongest gains over 2022, up 7.4 per cent after 8.9 per cent and 9.7 per cent gains over 2021.

Sentiment has been on the turn for a number of months and the NAB Residential Property Index ended 2020 at a survey high +45 points. Confidence levels returned to levels last seen before COVID in late-2019 as expectations lifted sharply for house price growth across the country.

<img alt="" height="905" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/nab_sentiment_q4.jpg" width="1200">

NAB economist Alan Astor says first home buyer demand remains very strong in new and established housing markets and is likely being supported by historically low interest rates and government support such as the First Home Loan Deposit Scheme and HomeBuilder.

"The brief pullback in house prices earlier in the year may have also helped sentiment among these buyers."
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The revision comes after a stronger than expected housing market, pared with the low interest rates, the government's HomeBuilder grants and stamp duty concessions on new properties.



NAB raises dwelling price forecast for 2021 and 2022

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There will be no huge spike in office market values in the post-COVID world.
That's the view of NAB's Q3 Commercial Property survey, which is forecasting declines to 2022.
There's only good news for Western Australia in the near term, whose values are forecast to decline -2.4 per cent in the next 12 months.
Then they expect the market to be flat to Q3 22.
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Nationally, NAB expect capital growth in the office market to contract -3 per cent in the next 12 months, driven by VIC (-3.6 per cent), QLD (-3.4 per cent) and NSW (-2.9 per cent).
The SA and NT office market are forecast to fair slightly better over the next year, with declines of -3.2 per cent forecast.
"Property professionals see Office markets remaining “somewhat” over-supplied over the next 1-5 years in all states bar NSW (“neutral” in 5 years)," the reported read.
"The 12-month confidence measure was weakest for Retail (-71) property, followed by Office (-63), with confidence levels in both sectors little changed from the record low levels reported in Q2."
"The 2-year measure was also broadly unchanged at near record lows in both sectors (Retail -47; Office -40)."
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The national office vacancy rate lifted to a two and a half year high of nine per cent in Q3, up from 8.5 per cent in Q2, primarily driven by an increase in QLD (11.8%). 
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Overall vacancy is expected to climb further to around 10% in the next 1-2 years, with increases in VIC (around 8.7%), NSW (around 8%) and QLD (around 131⁄2%).
<div class="page" title="Page 2">Unsurprisingly, with many commercial tenants still struggling in a challenging economic environment, the rental outlook remains weak for office property.</div>
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Over the next 12 months, rents are expected to fall -3% in office.
Rental growth is expected to continue falling in over the next 1-2 years, and in all states, with VIC (next 12 months at -4.9%) and QLD and SA/NT (in 2 years at -3.5%) under most pressure in office markets.
 
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jrobinson-rf4aSBido9

Slow return to normal for office values, with WA the best performer: NAB

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Brisbane dwelling prices will outperform those in Sydney and Melbourne in 2020, according to Westpac.
They believe the Queensland capital will see eight per cent increases next year, above the six forecasted for the two major capital city markets.
Westpac suggest the strong momentum in Sydney and Melbourne will fade as affordability issues re-emerge and population slows.
Brisbane is well positioned due to its affordability and population inflows.
 "Momentum heading into 2020 is clearly positive, albeit uneven across markets," Westpac advised.
They said in the near term, the main guidance comes from current price momentum, auction markets, listings and their buyer sentiment measures.
"Nationally, these are all showing positive prospects for early 2020 with price growth accelerating, auction clearance rates riding high in Sydney and Melbourne, listings showing a clear tightening and a positive pulse from buyer sentiment pointing to a further lift in demand.
"The cyclical momentum is strongest in Sydney and Melbourne but is also showing a notable pick up in Brisbane. Adelaide and Hobart are seeing a more muted lift with Perth yet to pull out of its multi year price decline.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/11/26/Westpac%20forecast.jpg" alt=""> 
They predict a number of factors to shape residential property over 2020.
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<div class="column">"The first is policy - we expect the RBA to cut rates by another 25bps at its February meeting and to turn to so-called unconventional policy measures to provide additional stimulus," Westpac advise.</div>
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<div class="column">The second factor is supply, both in the form of sellers returning to the market and the physical supply of new dwellings. New listings fell to extreme lows in 2019.</div>
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<div class="column">"Our analysis suggests the listing cycle tends to follow the sales cycle by about six months. A likely lift in new listings will test the depth of demand in the first half of 2020. The supply of newly built dwellings will also remain elevated. Completions eased back from a record 218k in 2018 to an estimated 205k in 2019.</div>
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<div class="column">"Our projections have this easing to around 175k in 2020, still well above average pre-boom levels with about 50k of that high rise dwellings. New supply could prove difficult to absorb and will weigh on prices and rents in some segments – Sydney’s rental vacancy rate and Melbourne’s stock of unsold units being key areas to watch.</div>
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<div class="column">Westpac believe would-be buyers in Sydney and Melbourne will be priced out of the markets and will seek more affordable markets if the current price resurgence continues, which will slow growth.</div>
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<div class="column">"As 2020 unfolds we expect another dynamic to come to the fore around affordability and population flows.</div>
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<div class="column">"Despite the price correction in 2017-18 and a further lowering in interest rates, affordability remains relatively stretched in Sydney and Melbourne.</div>
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<div class="column">"The resurgence in prices see these markets run into the same affordability constraints that emerged in 2016-17 as prices near previous peaks.</div>
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<div class="column">"Investor activity will lift as low deposit rates and equity volatility drive more interest in real estate but funding is likely to remain a constraint on investors."</div>
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Brisbane to outshine Sydney and Melbourne dwelling prices in 2020: Westpac

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EXPERT OBSERVER
In 2020, there will be several political and economic factors that will continue to impact Sydney’s property market. 
Douglas reveals his 12 property market forecasts for 2020:
1.       Property owners will continue to sit on their hands. Listings will continue to be at relatively low levels as a significant proportion of property owners will wait and ‘time the market’ until they are certain prices have peaked again. For this reason, Sydney property buyers might be rewarded with more stock at the end of 2020. Once this happens, prices will creep closer to their early 2017 levels – though won’t quite reach them.
2.       A stampede of first home buyers in January. The landscape in 2020 is set to change again for first home buyers: further financial stimulus will be introduced to assist them, with the Morrison Government’s First Home Loan Deposit Scheme commencing on 1 January. While I stand by my argument that this was a pre-election gimmick by the Coalition Government to win votes, it will undoubtedly lead to an immediate stampede of first home buyer numbers in the first few weeks of next year. This is a ‘first-in, best-dressed’ scenario, so I won’t be surprised to see first home buyer numbers slow once these spots are filled.
3.       Property prices to increase 5-10 per cent. With relatively low property stock continuing alongside increased buyer interest, house prices will rise between five and 10 per cent next year, depending on the suburb – if the political and economic environment remains stable. Only in August, CoreLogic reported that the number of properties listed for sale were at their lowest levels since 2010. Price rises might exceed 10 per cent if the Reserve Bank cuts interest rates again – as some are currently forecasting for the near future. Finally, as the banks now have their lending restrictions in place, I’m not expecting the bank regulator APRA to intervene in the short-to-medium term.
4.       Average days on market to fall. The imbalance between supply (low) and demand (high) will lead to shorter property marketing campaigns in 2020. Already in Sydney, the median days on market has shortened by seven days between August and September this year and will continue to fall. 
5.       Build quality to remain in the spotlight. Last year’s Opal Tower crisis and this year’s Mascot Towers event has heightened the spotlight on build quality. This will continue in 2020, as the State Government begins to implement the first tranche of its building reforms. But as these reforms will only apply to buildings yet to be constructed, the problem of build quality will continue to make headlines. The rush to get apartments built and sold in the housing boom meant shortcuts may have been taken. Although there are rogue developers who do cut corners, more often than not, the vast majority are reputable and are being compliant. The problem is we’re chastising them, when maybe we should be looking more closely at building regulations. There are significant changes ahead to increase compliance and enforcement in the building and construction industry and, I predict, even talks of a possible royal commission in 2020.
6.       Houses will continue shrinking. Australians used to have some of the biggest free-standing houses in the world, but now they are starting to shrink: the average size of a new house built in Australia was 228.8m² in 2018-19, down from 231.8m² in 2017-18 – which is the smallest since 2001-02. Sydney’s geographic limitations allow it to expand north-west and south-west only, meaning homes will become smaller in an effort to house more dwellings. Practicality has also crept in. As a nation, we’re not cooking as much as we once were, and so the sizes of our kitchens are also getting smaller. With apps like Deliveroo and UberEATS at our fingertips, the focus is much less on cooking than it is on convenience.   
7.       Developers will start to create homes suited to specific demographics, opposed to the cookie-cutter approach of the investor boom. With apartments accounting for roughly one-third of all new dwellings approved for construction in Australia from 2014 to 2018, it’s no surprise that developers mastered a ‘one-size-fits-all’ approach. It was easy for them to market off-the-plan properties months before building work commenced and keep them as fuss-free as possible; mainly 2-bedroom, 1-bathroom, ‘no frills’ units.With many more millennials and downsizers entering the market, however, more developers have realised that they must adopt new configurations to suit the needs of a changing demographic. Downsizers, for example, are seeking terrace houses or single-story villas that offer low-maintenance lifestyles.
8.       Australians re-mortgaging in record numbers. Many Sydney mortgagees will take advantage of the low interest rate environment in 2020. With the lending environment becoming more competitive, and borrowers more open to smaller lenders, we’ll also see more mortgagees shopping around and switching lenders to secure a better rate. Even a quarter of a percent saving on a mortgage rate can equate to thousands of dollars over the life cycle of a loan. As always, I recommend mortgage holders speak to an independent broker, as they have full access to the market and are impartial.
9.       Exurbs will grow around Sydney. Exurbs are prosperous areas outside, or on the fringe of, a city’s metropolitan area. They are fairly self-sufficient population ecosystems in their own right and have good infrastructure and amenities. In Greater Western Sydney, these are areas such as Box Hill in the north west and Oran Park and Menangle in the south west. I’m expecting a greater number of exurbs around Sydney, and existing exurbs to enjoy continued growth.
10.   More landlords considering multiple occupation. A house in multiple occupation (HMO), or a house of multiple occupancy, is a UK-coined term that describes residential properties where ‘common areas’ exist and are shared by more than three people not from the one household (for example, a family) – and it’s an emerging trend here in Australia. In areas of Sydney, particularly around its universities, more young people are choosing to live in such a manner and I’m seeing landlords looking to adapt their properties for this purpose. This requires them to comply with additional regulations for the management and health and safety of the property and its occupants.
11.   British and Hong Kong residents will look to invest here because of political volatility and the weak Australian dollar. In light of Brexit and Hong Kong’s political crisis and a weak Australian dollar, a proportion of anti-Brexiteers and Hong Kong residents will look to the Australian property market as a safehaven. However, China’s Supreme Court this year introduced strict penalties for its citizens transferring money out of the country to buy property overseas, so unless Hong Kong residents are incredibly ‘creative’ they will face barriers to investing in property here.
12.   Stamp duty to be reviewed. Stamp duty is a cash cow for the NSW Government: In the 2016-17 financial year, it generated them a whopping $8 billion. However, as a result of the recent property market slump, the NSW Treasury has since suffered a fall in stamp duty revenue – revenue was $7.4 billion in 2018-19 and $6.9 billion in 2019-20.[7] With property stock levels predicted to remain low next year, it’s in the interests of the State Government to conduct a full review of its stamp duty model, and I predict these conversations will play a key role in State politics in 2020.
Douglas Driscoll is CEO of real estate group Starr<a href="https://www.starrpartners.com.au/"> </a>Partners.
 
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Sydney property market predictions for 2020: Doug Driscoll

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Commonwealth Bank have updated their forecast for the 2020 dwelling markets on the back of the resurgence over the last few months.
They now expect national dwelling prices to grow six per cent in 2020.
CBA senior economist Gareth Aird has called the rebound in demand "phenomenal."
"Back in July we updated out dwelling price forecasts and extended the profile to end-2020," CBA senior economist Gareth Aird said.
He noted however that they only expect modest price rises over H2 2019 and 2020.
"We flagged that the risks to our forecast profile were to the upside, but a V-shaped recovery was not our central scenario," Aird added.
Commonwealth Bank expect Sydney and Melbourne to drive the national forecast, each to be up seven and eight per cent.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/11/15/CBA%20Forecasts.jpg" target="_blank">click here</a>.
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Brisbane and Canberra will follow with four per cent gains, with Adelaide and Hobart house prices to grow three per cent.
There's finally good news for Perth and Darwin.
After major losses, the two strong mining capitals aren't expected to see declines in 2020. Perth is forecast to see 2.5 per cent growth, while Darwin will remain flat.
National dwelling prices have risen 3.7 per cent since bottoming out in June, however they still remain seven per cent below the September 2017 peak.
Aird says there are two key downside risks to their view on property prices.
"First, the reintroduction of macro-prudential measures to slow the growth in lending," Aird stated.
"Measurers introduced a few years ago to slow both the rate of growth in lending to investors and rate of growth in interest-only lending were successful in slow dwelling price appreciation.
"Second, a lift in the national unemployment rate above 5.5 per cent would likely result in dwelling prices not lifting as much as we expect."
Aird also cited two key upside risks to CBA's forecasts, the first being if there is another cut in the official cash rate.
"We expect one further 25bp cut to the cast rate in Q1 2020 which should result in a further reduction in mortgage rates," Aird said.
"But any move to UMP (unconventional monetary policy) that results in mortgage rates moving lower than we expect would likely result in dwelling prices inflating by more than we anticipate.
Aird added that if there were to be any further policy changes to boost housing demand such as first home owner grants or lower stamp duty, to domestic or foreign buyers, then prices could go higher than the forecast.
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Rebound in property demand "phenomenal" as CBA forecast higher 2020 prices

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The quick turnaround in the housing market looks to be more prolonged than many forecast according to new research from SQM Research.
In the new 'Christopher's Housing Boom and Bust Report 2020', Melbourne house markets could climb up to 15 per cent.
The report offers four scenarios that could play out over 2020, with the base case the most likely.
Should the cash rate remain at 0.75 per cent and there be a recovery in the economy, as well as no intervention from APRA until late 2020, then house prices in Melbourne will return to the peaks of late 2017.
Sydney gains are likely to be slightly more modest, with <a href="/expert-insights/buying/sydney-house-prices-could-jump-14-per-cent-in-2020-sqm-research">gains forecast up to 14 per cent</a>.
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“The Sydney and Melbourne housing markets have recorded a sharp turnaround in the 2nd half of 2019 following on from the surprise result of the Federal Election, interest rate cuts, the loosening of credit restrictions and ongoing strong population growth rates," SQM Research boss Louis Christopher says.
"These factors are expected to drive the national housing market into 2020. In a close call, APRA is expected to not immediately intervene despite the strong price rises."
Christopher notes however he has some misgivings on the sustainability of the new recovery.
"Sydney and Melbourne are rising from an overvalued point. Long term, our two largest housing markets look vulnerable and forever reliant on cheap credit. Housing debt, while falling compared to GDP over 2019, is still very high.
"Better value can definitely found elsewhere such as Perth and Brisbane”, said Christopher.
Nationally SQM believe dwellings will rise between seven per cent and 11 per cent.
At the most unlikely end of the scale, scenario four, if rates were cut to 0 and quantitative easing begins, then house prices in Sydney and Melbourne could be flat, or see marginal gains.
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j.ballantyne1990-6AQqhLzZaK

Melbourne house prices tipped to rise by up to 15 per cent: SQM Research

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There seems to be no stopping the housing markets in Sydney and Melbourne, with strong growth forecasts for 2020 emerging off the back of the near two year downturn.
NAB have forecast house values in the two major capital city markets to rise 7.4 per cent in 2020.
"We have revised up our expectations for residential property prices," NAB chief economist Alan Oster advised.
"Prices have risen relatively sharply over the past 3 months after bottoming in April - led by gains in Sydney and Melbourne.
"Overall, we now expect the CoreLogic 8-Capital City house price index to be down around -0.6% in 2019, but to return to positive reads in Melbourne and Sydney.
"We expect prices to continue to rise at a moderate pace in 2020, lifting by 4.5% over the year.
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NAB said they changed their forecast given the "significant adjustment" in prices on the east coast since mid-2017 after 15 per cent and 11 per cent peak to trough declines in Melbourne and Sydney.
"Despite these declines being relatively large, the adjustment appears to have occurred in an orderly manner following earlier prudential tightening and waning of domestic and foreign investor demand," NAB said.
"These adjustments also followed a period of exceptional growth, with Sydney prices having increased by over 70% in the 5 years prior to the downturn, while Melbourne prices were up over 50%."
NAB believe market activity will remain weak despite the stabilisation in prices.
"Dwelling investment is expected to decline relatively sharply over the next few quarters - though from a high base.
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"While the pipeline of work to be done remains high, it is likely this will be quickly eroded with high rates of work done. 
"Building approvals have continued to trend down, suggesting little replenishment to the flow of new work."
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The NAB Residential Property Index <a href="/news/nab-residential-property-index-ticks-into-positive-for-first-time-since-mid-2018">has moved back into positive territory</a> for the first time since mid-2018, reflecting the uptick in market activity in recent months.
NAB has <a href="/news/melbourne-apartments-to-outperform-sydney-in-2020-nab">forecast stronger growth in Melbourne apartments in 2020</a> compared to Sydney.
 
 
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Sydney and Melbourne house values to rise over seven percent in 2020: NAB

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Australia is set to ride the global growth wave.
 We forecast above-trend (and above-consensus) growth of 3.2% in 2018.
An improving business sector and tightening labour market should lift wages growth, supporting household spending.
We expect the RBA to start lifting its cash rate around mid- 2018 and see the AUD rising to US84 cents in 2018.
Hangin’ ten on a global wave 
A wave of global growth is gaining momentum and should support Australia’s economy in a number of ways. First, commodity prices have lifted, boosting national incomes, corporate profitability, and tax revenues. Second, rising global demand is supporting demand for exports of energy commodities, high-quality food products, and tourism and education. Finally, the lift in global optimism is supporting a pick-up in business conditions, driving rising local investment and hiring. 
We expect GDP growth to pick up from 2.4% in 2017 to 3.2% in 2018 (consensus is 2.8%). This outlook is underpinned by HSBC’s above-consensus China growth forecast (6.7% versus 6.4%) and our view that the lift in local business conditions will continue to support hiring, which, as it tightens the labour market, should drive a pick-up in wage growth. The lift in wage and jobs growth is expected to support stronger growth in household incomes, consumer spending, and tax revenues. 
Although Australia’s housing construction boom is coming to its end, we expect the drag to be more than offset by a stabilisation in mining investment (after significant declines in previous years), a pick-up in investment in urban infrastructure, and by rising business investment. Overall, investment is set to rise solidly in 2018. 
We see house price growth slowing in 2018, after a five-year boom. However, we do not expect significant price falls, as the market is supported by strong population growth, some expected loosening of prudential settings, and mortgage rates that are still historically low (despite our view that they will edge higher in 2018). 
The clearest signs of improvement in the economy are in the labour market. Jobs growth has been strong and the timely indicators suggest continued solid momentum. We expect the unemployment rate to fall to a ‘full employment’ level in 2018, supporting a pick-up in wages growth. We also expect growth in 2018 to be the most broad-based across regions and industries in more than a decade, which should see increased demand for skills across a wide range of areas, supporting wages growth. 
We expect the RBA to lift its cash rate in 2018, with a first hike pencilled in for Q2. With hikes expected, we see the AUD rising to US84 cents in 2018. 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC.  
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Australia in 2018 : Surfs up! Cash rate too! Riding the global growth wave

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Australia’s housing market will likely record moderated dwelling price rises in 2018, with Melbourne again being the top mainland performer, according to SQM housing expert Louis Christopher in his end of year review.
In 2018, Mr Christopher expects national house prices to rise between four and eight percent.
It will be led on the mainland by Melbourne with a gain of seven to 12 per cent.
Hobart will be even stronger at eight to 13 per cent.
SQM tips Canberra will show five to nine per cent price growth.
 Sydney house prices are forecast to rise four to eight per cent. 
Perth will tick over into mildly positive territory, with small gains tipped in Adelaide and Brisbane.
His SQM tips are unamended from his full October annual report.
His tips of between 4 percent to 8 percent in 2018 represent a fall from a growth rate of what has been around 4.2 percent national growth over the past 12 months with a national median price of $549,000, well below the 5.8 percent rise in values in 2016 and 9.2 percent gain in 2015.
Melbourne’s property market will lose some momentum, according to predictions in Christopher’s Housing Boom and Bust Report. 
Offsetting a slowdown in Melbourne and Sydney will be first-year property market recoveries for Perth and Darwin and the ongoing boom in Hobart’s property market, which is set to record the highest level of price growth of any capital city at between 8 percent to 13 percent, Christopher said.
Click here <a href="https://www.propertyobserver.com.au/images/2017/10/18/Crash1.jpg" target="_blank">to enlarge</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/10/18/Crash1.jpg" alt="">
 
SQM Research tipped 2017 capital city house price growth to have been between six to 12 per cent - with Corelogic daily index showing a 4 percent rise across its five capital city index for 2017.
The SQM Research boss acknowledges his 2017 forecast for Sydney house prices to surge 11 to 16 per cent was an over-estimate, according to The Australian Financial Review, given APRA moved earlier that Christopher anticipated.
"The Sydney market was picking steam earlier this year. But APRA acted earlier than we forecasted. Our forecast assumed they would step in the market sometime in the third quarter," he said.
Christopher acknowledged the APRA move was "prudent."
"At the end of the year the market was flat with a number of areas recording some price falls," <a href="https://www.propertyobserver.com.au/https://vimeo.com/247084937" target="_blank">he told a Harris Partners Talking property vimeo</a>.
It was March when the Australian Prudential Regulation Authority announced all deposit-taking institutions were to cut back on origination of interest-only loans to a maximum 30 per cent of total lending.
"Sydney was an overvalued market to begin with so was more susceptible," Christopher advised as to why Sydney bore the brunt of the turndown.
SQM's 2017 Boom and Bust Report scenario forecasted an acceleration of dwelling price rises in Sydney and Melbourne with Sydney dwelling prices forecasted to rise 11 percent to 16 percent for the 2017 calendar year, while Melbourne was forecasted to rise by 10 percent to 15 percent.  
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<div><a href="https://www.propertyobserver.com.au/images/2016/11/11/Screen%20Shot%202016-11-11%20at%209.46.04%20AM.png" target="_blank">Click to enlarge</a></div>
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<div>The forecast assumed a stable interest rate environment, a stable exchange rate and no further home lending restrictions by APRA until late 2017. </div>
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<div>"I think the odds are reasonably high that APRA is going to remain relatively quiet over the course of 2018, and indeed we are aware the banks are now under the required threshold set by APRA for investor credit growth and interest only loans, so the banks actually have a buffer to expand their lending book next year," Christopher said last month.</div>
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<div>"We are a little bit more positive than perhaps some analysts for Sydney (in 2018)," Christopher affirmed.</div>
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