<p>Sun Property Group (SPG) has taken a major step to reinforce its commitment to consumer trust by securing Latent Defects Insurance (LDI) from Resilience Insurance for its nearly completed Willoughby development on Sydney’s Lower North Shore.</p>

<p>The boutique project, Aurora, comprising 12 apartments and a ground-floor commercial space, is one of few in the region to adopt the forward-thinking insurance model—offering a point of difference in a competitive market.</p>

<p data-end="792" data-start="591">For Cameron Johnson, General Manager at Sun Property Group, the decision to adopt LDI was rooted in the company’s long-standing philosophy of maintaining a highly personalised relationship with its end users.</p>

<p data-end="792" data-start="591">“We’ve always taken ownership over our product,” Johnson said. “Introducing LDI is not just about peace of mind for the buyer—it’s about raising the internal bar. It becomes the baseline for how we do things going forward.”</p>

<p data-end="792" data-start="591">[smartcode_project:default project_id=109919 project_image_fid=205006]</p>

<p data-end="792" data-start="591">While hundreds of developers and builders have taken out an LDI policy from Resilience Insurance, the insurance is still relatively new to Australia. Johnson says he sees significant future potential with LDI nationwide, with both&nbsp;regulatory and market frameworks starting to evolve to support its wider use in class two buildings.</p>

<p data-end="792" data-start="591">“When we started the Willoughby project, LDI was still just a concept being floated by the Building Commissioner’s office," Johnson says.</p>

<p data-end="792" data-start="591">"Delays in the construction timeline gave us the unique opportunity to adopt it as the product became more available in late 2023."</p>

<p data-end="1804" data-start="1553">That timing aligned with a shift in construction contractors on the project, which opened the door for a more collaborative and considered implementation of the insurance. According to Johnson, Resilience Insurance was proactive and solution-oriented.</p>

<p data-end="1804" data-start="1553">“It wasn’t just about us buying a product off the shelf. It was a dialogue—how can we work together to deliver something that meets both of our needs?” he added.</p>

<p data-end="1804" data-start="1553">[smartcode_project:default project_id=109919 project_image_fid=5717]</p>

<p data-end="2270" data-start="1971">LDI covers major structural defects for up to 10 years post-completion and offers an alternative to the traditional developer bond held under the Department of Fair Trading’s scheme. SPG prudently factor in a two per cent cost profile for such measures into its feasibility, treating it as “business as usual.”</p>

<p data-end="2270" data-start="1971">“What LDI does is show the consumer that we’re front-ending our responsibilities—design, delivery, documentation, execution. That whole chain of custody is assessed and independently reviewed throughout construction. It’s a rubber stamp on quality,” Johnson said.</p>

<p data-end="2820" data-start="2539">In a region where no other nearby developments currently carry LDI, the move also creates a market differentiator. While some projects may carry an iCIRT rating, few offer the depth of protection and oversight that LDI provides, especially outside of publicly listed organisations.</p>

<p style="line-height:1.38; margin-top:16px; margin-bottom:16px">Aurora is being brought to market by Henry Burke of McGrath Projects. With the recent cut in interest rates Burke expects that many first home buyers and investors will jump at the chance to buy in Aurora due to its convenient location, fantastic retail amenity, picturesque parks with leafy walks, and excellent transport connections with only one stop to Sydney CBD. He expects a local owner-occupier to secure the standout penthouse which offers 175 sqm of internal space and further 200 sqm of outdoor space.</p>

<p data-end="2820" data-start="2539">[smartcode_project:default project_id=109919 project_image_fid=205010]</p>

<p data-end="2820" data-start="2539">Johnson says Aurora residents will not only benefit from the first right insurance policy, which means action is taken immediately rather than often long and complicated battles as developers and builders point fingers at each other as to who created the issue, but from how it can benefit the strata communities of the building.</p>

<p data-end="2820" data-start="2539">Many buyers, especially first-time apartment owners, have limited understanding of shared infrastructure or the responsibilities of Owners Corporations. LDI adds an important layer of education, structure, and protection.</p>

<p data-end="3105" data-start="2822">“People want to move in and enjoy what they’ve bought. But when things go wrong, that’s when emotions and stress levels rise. The insurance policy gives owners a clearer path to resolution—an assured, regulated compensation process. It also helps equip owners and managers with the knowledge they need to maintain the building properly.”</p>

<p style="line-height:1.38; margin-top:16px; margin-bottom:16px">The insurance includes tools such as service penetration matrices and access documentation—going far beyond standard build drawings. Johnson says it’s about delivering not just a home, but a sustainable, manageable asset.</p>

<p data-end="3699" data-start="3448">[smartcode_project:default project_id=109919 project_image_fid=343670]</p>

<p data-end="3850" data-start="3701">Sun Property Group continues to build on its strong track record across Sydney’s Lower North Shore, with an upcoming major development of its Bowen Street, Chatswood landholdings and additional projects underway in Melbourne. The team recently completed its debut Melbourne apartment project, The Brookville in Toorak, showcasing their commitment to delivering high-quality, design-led communities.</p>


In a region where no other nearby developments currently carry LDI, the move also creates a market differentiator

Joel Robinson

Sun Property Group approaches completion of Willoughby's first apartment development with 10-year Latent Defects Insurance

<p>Renowned developer-builder DASCO has unveiled its much-anticipated new development in the heart of Epping.</p>

<p>The architectural brief for Turner Studio was to “create a community where residents are completely immersed in a paradise for the senses.”</p>

<p>The result is <a href="https://www.apartments.com.au/new-apartments/senso-epping-242-244-beecroft-road-epping-nsw-2121">Senso</a>, a series of buildings that have been oriented around an unrepeatable 10,000 sqm-plus site to create a facility-laden, landscape-first precinct, something of which Epping and its surrounds have not seen before.</p>

<p>There are 479 apartments available in a variety of floorplans across the five buildings, a mix of one-, two-, and three-bedroom apartments in addition to a curated penthouse collection.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4553]</p>

<p>The apartments have been designed to appeal to the owner-occupier market, with generous floorplans, premium materials, and optional upgrades including integrated refrigeration, bespoke joinery, and motorised blinds.</p>

<p><a href="https://www.apartments.com.au/developers/dasco-australia">DASCO</a>, who builds its own developments, is once again bringing peace of mind to its clients by taking the 10-year Latent Defects Insurance policy offered by Resilience Insurance, which protects buyers against any structural or waterproofing issues for 10 years post completion of the building. This insurance can only be taken out by the builder or developer and not by individual apartment owners.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4552]</p>

<p>DASCO is known for creating more than just apartments — they create places where people connect. Senso will have over 4,000 sqm of resort-inspired communal amenity in the form of two rooftop pools, a celestial outdoor cinema, wellness club, sensory walk, and an observation deck, in addition to multiple BBQ and outdoor communal areas on multiple levels, intended to deliver a complete lifestyle offering within the residential environment.</p>

<p>There will be over 800 sqm of retail space on street level, which will likely be run as hospitality venues.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4396]</p>

<p>Located adjacent to the new Epping Town Centre masterplan, and just a five-minute walk from Epping Metro Station, Senso offers seamless access to Macquarie Park, Chatswood and the Sydney CBD. Families who are interested in the large two- and three-bedroom apartments are within proximity to several regarded educational institutions including Macquarie University, James Ruse Agricultural High, and Cheltenham Girls School.</p>

<p>The project also leverages Epping’s growing dining and retail precinct, proximity to Macquarie Centre, and access to natural assets including Terrys Creek walking trails and Boronia Park.</p>

<p>[smartcode_project:default project_id=134954 project_image_fid=4399]</p>

<p>With a 33-year track record and over 7,000 dwellings delivered, DASCO continues to develop and build; a business model that enables integrated delivery and peace of mind, especially when Senso is backed by Latent Defects Insurance (LDI), providing 10 years of protection for buyers at no additional cost.</p>

<p>The launch of Senso Epping reinforces DASCO’s active pipeline of Sydney-based developments at a time when the market is increasingly focused on owner-occupier appeal, delivery confidence, and long-term quality.</p>

<p>DASCO is partnering on Senso Epping with leading Australian alternative asset management firm Metrics, which has more than $30 billion in assets under management.</p>

<p>[smartcode_project_cta:default project_id=134954]</p>


DASCO reveals Senso, Epping’s first resort-style apartment development

<p>Preliminary data by research giant Charter Keck Cramer reveals a 54 per cent decline in Build to Sell apartments across Australia's capital cities, while the Build to Rent boom continues with a 378 per cent increase over the last five years.</p>

<p>Charter Keck Cramer's upcoming National State of the Market Report - Key Metropolitan Areas, scheduled for release in September, will reveal&nbsp;a dramatic transformation in apartment supply patterns across Australia's capital cities between FY2016-2020 and FY2021-2025.</p>

<p>The Build to Sell (BTS) apartment sector has experienced a substantial contraction, with total supply falling by 54 per cent compared to the previous five-year period. The decline represents a reduction of <strong>149,200 apartments</strong> across all capital cities.</p>

<p><img alt="BTS Charter Keck Cramer" data-entity-type="file" data-entity-uuid="3db2ddf3-e7c0-481f-b8b9-63efb365cb80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.26.34%E2%80%AFAM.png?VersionId=bsQl8inhZA7FeiPamnGvw1tse0obBdSd" /></p>

<p>Sydney led the downturn with a decrease of 73,600 apartments, followed by Melbourne (-42,800) and Brisbane (-26,800). Perth and Adelaide also recorded significant declines of 6,400 and 2,400 apartments respectively. Only Gold Coast and Canberra bucked the trend, with modest increases of 500 and 2,300 apartments.</p>

<p>In stark contrast, the Build to Rent (BTR) sector has emerged as a major force in the apartment market, recording a remarkable 378% increase in supply. This growth added 8,590 apartments across the capital cities during FY2021-2025. Melbourne dominated BTR growth with 6,160 additional apartments, while Sydney contributed 2,100 units. Brisbane and Canberra also recorded growth of 800 and 330 apartments respectively. Gold Coast and Perth recorded minor declines, while Adelaide maintained steady levels.</p>

<p><img alt="BTR CKC" data-entity-type="file" data-entity-uuid="ca13ffd4-ab93-4828-afd2-4c3dccbd2b51" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.28.54%E2%80%AFAM.png?VersionId=SXNnpcJuFD36ViWOwF6izBBqcQc3NWao" /></p>

<p>“These preliminary findings indicate a fundamental shift in Australia's apartment development landscape, with traditional Build to Sell models giving way to institutional Build to Rent developments,” said Richard Temlett, Charter Keck Cramer’s National Executive Director of Research.</p>

<p>"This transition reflects changing investor preferences, regulatory environments and housing affordability challenges across major metropolitan areas.”</p>

<p>The complete Charter Keck Cramer National State of the Market Report – Key Metropolitan Areas will provide comprehensive analysis of these trends, their underlying drivers and implications for developers, investors and policymakers when released in September.</p>


Build to Sell apartment supply drops 54% in five years across Australian capital cities

<p>Verso Development Group is seeking to bring over 1,100 apartments to the heart of Brisbane's Toowong, with plans filed for a $1 billion, triple tower development known as Toowong Central.</p>

<p>The landmark urban regeneration project "aims to reshape the core of Brisbane’s inner-west riverside suburb."</p>

<p>Covering over 1.4-hectares across&nbsp;Sherwood Road, High Street, and Jephson Street, Toowong Central has been designed by KHA and will comprise three towers rising 49, 55, and 58 levels.</p>

<p><img alt="Toowong Central" data-entity-type="file" data-entity-uuid="48611e3d-7123-4b99-b2cb-bfa4bc98024f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenities.png?VersionId=yKBexB.BgCkq4OET8fHDkWs0d3DjxOKJ" /></p>

<p>According to the Urban Context Report prepared by Urbis, Toowong Central is positioned as a “city-defining precinct reclaiming Toowong as ‘the best destination in the west’,” with a vision to deliver density differently, strengthen Toowong’s identity, and lead subtropical urban design.</p>

<p>There will be a wide range of apartment configurations, from one-bedrooms to five-bedroom penthouses, as well as short-term accomodation offerings. The design prioritises pedestrian permeability, with an activated public realm featuring a central civic plaza, laneways, and street-level retail and dining.</p>

<p>“The central square’s structure, programming, scale and location creates a social anchor - shaped by its edges, flexible for use, and animated by a diversity of experiences throughout the day and into the evening,” the Urban Context Report noted, reinforcing the project's ambition to become a vibrant community destination.</p>

<p>Design excellence was pursued through an international design competition, attracting entries from renowned practices such as UNStudio and BIG. KHA’s winning design distinguished itself with a ceremonial approach to the public realm, integrating terraces, tiered seating, and green infrastructure to promote social interaction and resilience.</p>

<p>The development builds upon two existing approvals: the 25- and 20-storey towers of the Aviary Toowong proposal, and a separate 25- and 24-storey approval at 88 Jephson Street. Consolidation of these fragmented landholdings under a precinct-wide approach allows for increased community value and cohesive urban integration.</p>

<p>Urbis Director Nicholas Stevenson said Toowong Central will bridge the gap in Toowong's current experience, unlocking the potential of the wider precinct.</p>

<p>"Overcoming experiential constraints and leveraging contextual advantages – Toowong Central will redefine Brisbane's inner west.”</p>

<p><img alt="Toowong Central" data-entity-type="file" data-entity-uuid="73f7a702-625d-452d-9df2-30a0863ac1e8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/master.png?VersionId=TZdh6wxGC_8IIroXpdkZfuhlS8mFZnea" /></p>

<p>Toowong Central’s ambition extends beyond residential and commercial outcomes. Uses under consideration include a world-class hotel, university facilities, a museum, and health and wellness services, reflecting its role as a western gateway to Brisbane’s growing innovation corridor between the CBD and the University of Queensland.</p>

<p>Urbis Managing Partner James Tuma said Brisbane has no greater opportunity to showcase the future of urban living than Toowong – a sustainable, economically vibrant, and people-centric place that embodies the best of Brisbane.</p>

<p>[The plans] gives us a glimpse into our future as a globally relevant, youthful, entrepreneurial, and distinctly subtropical city.”</p>


$1 billion Toowong Central to deliver 1,100 apartments to undersupplied Brisbane market

<p>In <a href="https://www.apartments.com.au/developments/runaway-bay-qld-4216">Runaway Bay</a>, new townhouse-scale waterfront residences are rare - but ones built to the standards found on Sovereign Island are almost unheard of.</p>

<p><a href="https://www.apartments.com.au/new-townhouses/ocean-suites-on-jennifer-10-12-jennifer-avenue-runaway-bay-qld-4216">Ocean Suites on Jennifer</a>&nbsp;changes that, delivering a calibre of construction and detailing that places its seven villas well above the typical market offering in this northern Gold Coast pocket.</p>

<p>Ocean Suites on Jennifer will be move-in ready before Christmas this year, giving buyers the chance to spend the summer on the water in one of Runaway Bay’s rare new waterfront residences.&nbsp;</p>

<p>[smartcode_project:default project_id=138718 project_image_fid=214444]</p>

<p>The development is a collaboration between <a href="https://www.apartments.com.au/architects/stuart-osman">Stuart Osman Design</a> and <a href="https://www.apartments.com.au/developers/sand-side-developments">Sand Side Developments</a>, with construction by <a href="https://www.apartments.com.au/builders/alroe-constructions">Alroe Constructions</a>.</p>

<p>Architect Stuart Osman says the intent from the outset was to create a home people would be drawn to. “When you build anything, the design is to make you want to go hang out in this house,” he says.&nbsp;</p>

<p>Ocean Suites on Jennifer’s design features a front façade softened with planter boxes, rear pool areas, and rooftop decks looking over the water.&nbsp;</p>

<p>Inside, voids and high skylights bring daylight deep into the centre of each home, while ceiling heights of 2.85 metres maintain a strong sense of volume.</p>

<p>Each four-level residence spans 345 to 388 sqm, with layouts accommodating multi-generational living - a ground-floor bedroom suite for older family members and upper levels for the rest of the household. A lift connects all floors.</p>

<p>[smartcode_project:default project_id=138718 project_image_fid=214435]</p>

<p>For Andrew Erwin, Director at NPA, the project’s appeal lies in both its location and the detail in execution.&nbsp;</p>

<p>"At Ocean Suites, you’ve got a canal-front setting with direct Broadwater access and a level of finish you’d normally only see in the city’s most prestigious addresses. The four-level layouts, the glass-framed living areas, the private pools, even the extended kitchens, every part of it has been designed with the buyer in mind,” he says.</p>

<p>Those buyers have so far been a mix of Gold Coast locals and interstate purchasers, many seeking a lock-up-and-leave holiday home or a downsized residence without sacrificing space for visiting family.&nbsp;</p>

<p>Older households with teenage children are a recurring profile, drawn to layouts that support multi-generational living and the ability to host extended stays.</p>

<p>[smartcode_project:default project_id=138718 project_image_fid=214432]</p>

<p>Material selection reinforces the project’s quality-first ethos, with every home appointed to a premium standard. Kitchens and ensuites feature engineered stone surfaces, complemented by prestige oak engineered timber floors, Victorian ash hardwood staircases, and soft loop-pile carpet.</p>

<p>Premium lighting, statement pendants, ceiling fans, and Fujitsu ducted air conditioning elevate both comfort and design. Each residence also includes a suite of high-end appliances as standard - Fisher &amp; Paykel integrated fridges, Bosch ovens, induction cooktops and dishwashers, Vintec wine fridges, and Franke sinks.</p>

<p>Beyond the interiors, residents enjoy an enviable lifestyle with rooftop terraces, private plunge pools, fire pit areas, outdoor showers, smart home automation, laundry chutes, and private pontoons.</p>

<p>[smartcode_project:default project_id=138718 project_image_fid=214452]</p>

<p>With no additional upgrade costs, Sand Side Developments underscores its no-shortcuts approach, delivering homes where luxury and amenity come as standard.</p>

<p>Osman adds that the kitchen has been designed as “the main hub of the house” with six metres high skylights above a galley-style layout that “makes it feel bigger, brighter, whiter” and “brings light into the centre of the home.”</p>

<p>Both architect and builder emphasise a shared commitment to delivering the intended design without compromise. “Working with Alroe’s structural team and their construction team, it’s been great to make sure that the look and feel that was originally intended is the result achieved at the end of the project,” Osman says.&nbsp;</p>

<p>[smartcode_project:default project_id=138718 project_image_fid=214453]</p>

<p>Outdoor living has been given equal consideration, with rooftop terraces designed for entertaining with a fire pit and bar, and spacious undercover patios featuring private plunge pools.</p>

<p>The marine access is as carefully executed as the homes themselves. An eight-metre gangway leads to a six-metre private pontoon capable of mooring vessels up to 30 feet, just 300 metres by water from the Broadwater.&nbsp;</p>

<p>Even the orientation of each villa has been optimised to capture long views down the canal, across the Broadwater, and south to Main Beach.</p>

<p>With construction in its final stages, just three of the seven villas remain, priced from $3.365 million to $3.695 million.</p>

<p>[smartcode_project_cta:default project_id=138718]</p>


Sovereign Island standards come to Runaway Bay with Ocean Suites on Jennifer

House Prices

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<p><span>New dwelling prices are rising again in China, just about..</span></p>
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<p><span><img src="/images/2015/09/21/3tr-chinapm-small.gif" alt=""></span></p>
<p> </p>
<div>The Chinese economy - and industrial production in particular - has clearly been slowing, with "official" GDP growth set to fall below 7 per cent.</div>
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<div>There is some sign of an upturn in credit growth. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

New dwelling prices rising in China: Pete Wargent

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<div>The ABS will soon release its latest dwelling prices data for Q2 2015, which is always an interesting series to analyse.</div>
<div> </div>
<div>Market forecasts are calling for a +2.4% gain on a national basis, with Sydney driving most of the gains.</div>
<div> </div>
<div>Westpac is looking for an even more bullish +4% which would take annual price growth all the way up to +9.1%.</div>
<div> </div>
<div>The data series also provides some interesting data on dwelling supply. </div>
<div> </div>
<div>Of course, the ABS series lags somewhat, but it is worth noting that CoreLogic RP Data's Daily Home Value Index is no longer a sea of green, with prices now down for the quarter and for the year in both Adelaide and Perth.</div>
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<div><span>Home values are also declining in Darwin.</span></div>
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<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Dwelling prices update due: Pete Wargent

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<div>Sydney house prices rose by a more sedate +3.2% in the September quarter to be up by +21.7% over the year to a median price of $1,032,422 reported <em>Domain</em>.</div>
<div> </div>
<div>This followed on from a much faster +8.4% boom in Sydney house prices over the June quarter. </div>
<div> </div>
<div>Sydney's median unit price increased by a little over $10,000 to $673,182 over the September quarter. </div>
<div> </div>
<div>Meanwhile, Brisbane's median house price increased from $493,227 to $497,143 over the three months to September.</div>
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Sydney boom slows in Q3: Pete Wargent

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<div>
<span style="line-height: 1.3em;"> </span><span style="line-height: 1.3em;">South Australia has headaches, not least in the form of Whyalla where the town's major employer is suspended from trading on the securities exchange having failed to guide its steelworks back to break even over recent years, despite continually cutting costs and capex, and having unveiled a recapitalisation proposal back in February that has now been rejected.  </span>
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<div> </div>
<div>Steel company Arrium Limited (ASX: ARI), which employees thousands of workers and has an export port facility at Whyalla, has been stuck in a trading halt and has been suspended from official quotation, with the company staring down a possible bankruptcy or a likely voluntary administration and its last traded share price at only 2.2 cents.<br><br><div class="separator"><a href="/images/2016/04/8/ARI.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><em><span style="text-decoration: underline;">Source: ASX</span></em></div>
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<div>It was announced to the ASX this week, in the euphemistically graceful way of these things, that the Chief Financial Officer of the company has resigned "to pursue other interests", while the company attempts to refinance its massive and unsecured $2.8 billion debt burden.<br><br>
</div>
<div>Whyalla already felt the pain of OneSteel shedding jobs last year and further cuts were made by OneSteel this week, with approximately 1,000 jobs lost in Whyalla since the beginning of last year as South Australian unemployment spiked to a 14 year high. </div>
<div> </div>
<div>Given that Arrium employs about 10 per cent of Whyalla's working population, the potential closure of the steelworks could rip the local community apart, having a more devastating impact than the closure of Holden upon South Australia, potentially resulting in related job losses variously estimated at between 3,000 and 4,000 (Arrium has about 10,000 employees in total, and the possible closure of the steelworks itself would directly account for 1,100 jobs). </div>
<div> </div>
<div>These are desperate numbers for a town with a population of only 22,000, and any such closure would inevitably result in an exodus or population outflow from the region. Let's sincerely hope that doesn't happen, though at present the outlook seems bleak.<br><br><strong><span style="text-decoration: underline;">Property market decimated</span></strong>
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<div>Median house prices have reportedly fallen sharply in Whyalla, while there have been few takers for attached dwellings, resulting in a crushing of unit prices.<br><br>
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<div>It was reported this week that more than a billion dollars has been wiped off the value of Whyalla's property market in recent years - from $2.7 billion to $1.5 billion - as homeowners flood the market with for sale boards (though quite how those figures are derived given that so few dwellings have actually transacted is open to question). </div>
<div> </div>
<div>This may sound like catastrophising, but vacancy rates are threatening to go through the roof, with scores of properties listed for rent in Whyalla and hundreds more in surrounding suburbs.<br><br>
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<div class="separator"><img src="/images/2016/04/8/SQM3.jpg" alt=""></div>
<div class="separator"> </div>
</div>
<div><em><span style="text-decoration: underline;">SQM Research</span></em></div>
<div> </div>
<div>Note that the dynamics described above have transpired while Whyalla's official unemployment rate is still relatively speaking quite low, at 7.2 per cent  as at December 2015.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Slow house sales</span></strong></div>
<div> </div>
<div>In truth it is very challenging to get an accurate read on housing market prices, since although there are now hundreds of properties listed for sale, comparatively very few of them have been selling. </div>
<div> </div>
<div>Looking at some specific examples suggests that if outright panic isn't on the cards yet, it may not be that far off if Arrium does shut up shop. As noted above, hopefully this proves not to be the case. </div>
<div> </div>
<div>By way of one example, following a few false starts and 372 days - more than a year - on the market, this house finally sold for $140,000, 36.4 per cent less than it was originally listed for. </div>
<div> </div>
<div class="separator"><a href="/images/2016/04/8/Whyalla1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/04/8/Whyalla1.jpg" alt=""></div>
<p> </p>
<div class="separator"><a href="https://3.bp.blogspot.com/-4kOFesTsRMM/VwTu2Y5IziI/AAAAAAAAcRo/6n9VAIURjoYWNIwL4t2itTiVV4TXNfNXg/s1600/WHyalla2.jpg"><img src="https://3.bp.blogspot.com/-4kOFesTsRMM/VwTu2Y5IziI/AAAAAAAAcRo/6n9VAIURjoYWNIwL4t2itTiVV4TXNfNXg/s640/WHyalla2.jpg" width="640" height="66"></a></div>
<p> </p>
<div class="separator"><a href="https://1.bp.blogspot.com/-fKMid6N-oPE/VwTu2YeCZuI/AAAAAAAAcRw/atIfr41-xY4Ra78ibngGtjrLeb-mtfN6g/s1600/WHyalla3.jpg"><img src="https://1.bp.blogspot.com/-fKMid6N-oPE/VwTu2YeCZuI/AAAAAAAAcRw/atIfr41-xY4Ra78ibngGtjrLeb-mtfN6g/s640/WHyalla3.jpg" width="640" height="82"></a></div>
<p> </p>
<div>Other examples suggest that prices may now be down by about a quarter over the last couple of years, but this statistic is essentially useless to individual prospective sellers, since it really all comes down to the asset in question and whether a willing buyer can be found.</div>
<div> </div>
<div>While Arrium's steelworks fate is not yet decided, unfortunately this is becoming an all too familar story with regards to these small towns and cities that are so heavily reliant on a small number of employers.</div>
<div> </div>
<div>No doubt it's great if you can buy at the beginning of a resources boom and nimbly sell before the peak, but if you miss the precise turning points these markets have the potential to become frightfully thin and illiquid, and there may be nobody to even rent your property to, let alone sell it.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Share indices</span></strong></div>
<div> </div>
<div>Another related graphic from the RBA Chart Pack worth looking at is the Australian share price indices chart. Note that the y axis here is presented on a log scale - the swan dive in the resources index since its peak has been nothing short of breathtaking.</div>
<div> </div>
<div><a href="/images/2016/04/8/australian-share-price-indices-small.gif" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/04/8/australian-share-price-indices-small.gif" alt=""></div>
<div> </div>
<div>To a certain extent the resources index has been reflected the fortunes of property markets in resources heavy regions, albeit not coterminously.<br><br>Sure, if you got in to the resources penny dreadfuls in 2000 and sold out in 2007 then you'd say that the resources minnows and micro-caps are the best thing since sliced bread, but over the longer term the self-sustaining industrials and financials triumph.<br><br>Yes, I get the counter-arguments, if you bought a house in Whyalla for $150,000 in 2000 today it "could" be worth double what you paid for it, assuming you can find a willing buyer (i.e. a "when to" investment rather than a "how to" investment).<br><br>That said, looking at actual resales of like-for-like properties shows that price performance has not been as smart as suggested by median prices (which are distorted by development).<br><br>Unfortunately many property investors hopped on to the mining boom bandwagon around 2012 egged on by seminar groups and promoters, and are somewhat more precariously placed as voluntary administration looms large for Arrium.<br><br>Don't get me wrong, I hailed from a depressed steel city myself, and the last thing anyone with a heart wants to see is a single job lost. But the steelworks is not viable, and it appears likely to close without government handouts, and as such the housing market is wobbly to say the least.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Whyalla wipeout on the brink (redux): Pete Wargent

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<p>EXPERT OBSERVATION</p>
<p>All capital cities recorded a rise in residential prices in the March 2020 quarter, led by Sydney (+1.9 per cent) and Melbourne (+2.1 per cent). </p>
<p>The two largest cities both recorded gains of more than +10 per cent over the year, taking the weighted average capital city price +7.4 per cent higher over the year to March.</p>
<p>Most of the COVID restrictions were rolled out in March, so there was little impact on the price charts by capital city. </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/17/PW2.jpg" alt=""></p>
<p>Sydney houses and attached dwellings both recorded quarterly gains.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/17/PW3.jpg" alt=""></p>
<p>The mean dwelling price rose to a record high at an estimated $690,200.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/17/PW4.jpg" alt=""></p>
<p>The number of dwellings was an estimated 10,485,700.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/17/PW5.jpg" alt=""></p>
<p>The value of Australia's dwelling stock hit a record high, with a preliminary estimate of $7.23 trillion.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/17/PW6.jpg" alt=""></p>
<p>The ratio of dwelling stock to GDP increased to 3.79x, but was still just below 2017 levels.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/17/PW7.jpg" alt=""></p>
<p>This is a high figure in global terms, but plenty lower than, say, Hong Kong.</p>
<p><em><strong>Pete Wargent</strong> is the co-founder of AllenWargent property buyers and a best-selling author and blogger<strong style="font-size: 12.16px;"> </strong></em></p>
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Average capital city dwelling prices hit record high: Pete Wargent

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-1066008787003995613" class="post-body entry-content">
<div>
<span style="line-height: 1.3em;">In the United Kingdom, Rightmove released it August 2015 House Price Index, which showed an average asking price for UK homes of <strong>£292,484</strong> and for London homes of </span><span style="line-height: 1.3em;"><strong>£606,826.</strong></span>
</div>
<div> </div>
<div>The result translated to the usual fall in August asking prices, with the index not being seasonally adjusted.</div>
<div> </div>
<div>However, Rightmove reported that the August decline of -0.8% was the smallest decline for the month of August in the eight years since before the credit crunch in 2007.</div>
<div> </div>
<div>Since 2007 the average August decline has been as great as -1.5%, with the decline having been more than 2% on three occasions in 2008, 2009 and 2014.</div>
<div> </div>
<div>A major driver of the supply-demand imbalance was identified as a significant 8% year-on-year fall in the number of sellers, which has become something of a vicious circle for UK property markets. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Transaction costs</span></strong></div>
<div> </div>
<div>According to data reported by Lloyds Bank only 151,000 many Britons moved house in the first half of 2015 compared to some 327,000 in the first half of 2009. </div>
<div> </div>
<div>Buyers reportedly have been concerned about the costs of moving as well as being unable to find somewhere which they want to buy.</div>
<div> </div>
<div>Stamp duty in the UK is levied on transactions above <span>£125,000 and therefore rising prices naturally leads to bracket creep and more buyers on the lower rungs of the ladder being captured in the taxable bracket.</span>
</div>
<div>
<span><br>The stamp duty on UK purchases above </span><span>£575,000 is an absolutely ridiculous 10%. Properties bought for more than</span><span> </span><span>£1.5 million are whacked with an even more ridiculous top rate of 12%, though of course even this has not stopped the campaigning for ever more punitive taxes.</span>
</div>
<div><span> </span></div>
<div><span>If you do somehow decide to stay in Britain, the inheritance tax takes care of most of the rest at 40% rate, another ingenious tax, death duties having accounted for the demolition of an estimated one sixth of Britain's country homes in the 20th century. </span></div>
<div><span> </span></div>
<div>
<span>Unsurprisingly the prevailing crazy rates of stamp duty act as a particular disincentive to relocate within the South East of England where most transactions (69%) fall in to the 5% bracket for sales greater than </span><span>£</span><span>250,000. </span><span>In London the equivalent figure is even higher at 89%.</span>
</div>
<div> </div>
<div>We have heard similar reasonings given by buyers and vendors in Australia, whereby stamp duties have acted as a disincentive for homeowners to move, and have in turn also led towards more investors adopting a trusty "long term buy and hold" mentality.</div>
<div>
<br><strong><span style="text-decoration: underline;">Asking prices</span></strong>
</div>
<div> </div>
<div>The Rightmove House Price Index data from May 2003 to August 2015 is charted below for the United Kingdom and for London.</div>
<div> </div>
<div>UK average asking prices were up by +6.4% over the past year, while London prices were +9.7% higher.</div>
<div> </div>
<div><a href="/images/2015/08/18/RM1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/18/RM1.jpg" alt=""></div>
<div> </div>
<div><span>Given that the data is not seasonally adjusted, below is the same data for UK asking prices with a 12mMA trendline. </span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/18/RM3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/08/18/RM3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<span>Below is the data charted for London where asking prices appear to have consolidated above </span><span>£600,000 having come in above that threshold for the past three months.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2015/08/18/RM2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/08/18/RM2.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>The strongest performing London Boroughs have included Greenwich where average asking prices have surged by 18% over the past year, spurred on the back of Crossrail activity. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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<div> </div>
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Strongest UK August market since 2007: Pete Wargent

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<div>Data from the Urban Development Institurte of Australia (UDIA) revaled that median lot prices in Sydney have increased by +49.4 percent in only the past three years. </div>
<div> </div>
<div>The increase in 2015 alone was $100,975 or +22.9 percent. to $440,725.</div>
<div> </div>
<div><a href="/images/2016/03/9/UDIA.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2016/03/9/UDIA.jpg" alt=""></div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Sydney land prices up 50 percent in 3 years: Pete Wargent

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<p><span>The list of the most exclusive suburbs in each state reiterates just how much more expensive real estate is in Sydney relative to the rest of the country.</span></p>
<p><span>Sydney is by far and away the nation’s most expensive housing market. To put this into some perspective we have looked at the top decile of selling prices over the three months to January 2016. A decile simply divides a group into ten equal parts. What this means is if there were 20 sales over the three months and we lined the sales up from lowest to highest we would take the 18th price as a representation of the most expensive segment of the market.</span></p>
<p><span>Over the three months to January 2016, the 90th percentile price of a house in the city was $1.5 million and the 90th percentile unit price was $980,000.  Over the same period, the two capital cities with the next highest 90th percentile house price was Melbourne at a still high but much lower $1,050,000.  This highlights just how much more expensive housing is in Sydney and to a lesser degree Melbourne is relative to other capital cities.  As an example the next highest 90th percentile price is Perth at $870,000.</span></p>
<div>
<h3>90th percentile price of houses and units 3 months to January 2016</h3>
<p><a href="/images/2016/04/15/2016-03-21--img1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/2016-03-21--img1.jpg" alt=""></p>
<p>There is also a large difference between the cost of premium housing in capital cities and non-capital cities.  The 90th percentile house price across the combined capital cities is $1,010,000 compared to $675,000 in combined regional markets.  Similarly, 90th percentile unit prices are $830,000 in the combined capital cities compared to $600,000 outside of the capitals.  This data points to the fact that non-capital city areas are the great un-tapped resource for more affordable housing.  Of course employment opportunities in these areas are the main factor holding back the regional areas of the country.</p>
<p>The table below highlights the five most expensive suburbs for both houses and units in each state.  The data is based on median values and we have only included suburbs that had at least 10 sales over the 12 months to January 2016.<br><br></p>
<h3>Suburbs with most expensive median values, January 2016</h3>
<p><a href="/images/2016/04/15/2016-03-21--img2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/04/15/2016-03-21--img2.jpg" alt=""></p>
<p>The Sydney premium becomes very evident when we look at the most expensive suburbs in each state based on median values.  The data shows the 5 most expensive suburbs for houses in NSW (all of which are in Sydney) all have a median value of more than $4 million.  In comparison, the most expensive suburbs for houses in Vic and WA are more than $3 million, in SA it is more than $2 million, in Qld, NT and ACT it is more than $1 million and in Tas it is less than $850,000.</p>
<p>Similarly for units, all of the 5 most expensive suburbs in NSW (Sydney) have a median values of more than $1 million.  Tennyson in Brisbane is the only other suburb outside of Sydney with a median unit value of more than $1 million.</p>
<p>There is a large premium for housing in our largest city.  Of course the city also has an abundance of waterfront homes which contributes to the higher overall cost of housing.  While employment opportunities remain significant in Sydney and employers limit the opportunities for workers to work remotely we would expect that a substantial Sydney premium will remain.  Elsewhere housing is generally much more affordable but of course not everyone has a choice when it comes to potentially leaving Sydney and heading to another area of the country where housing is cheaper.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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ckusher-ujnxiKuFQs

Sydney’s premium suburbs are much more expensive than anywhere else: Cameron Kusher

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<p>I'm not yet clear whether there has been a revision to the Residex house price index methodology.</p>
<div>But, for what it's worth, here are the latest median prices, which have now been disclosed.</div>
<p>The Sydney median house price hit a new high of $1,117,500 in December 2016.<br><br>The Sydney median unit price increased to a new high of $725,500.</p>
<p>Click to enlarge</p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/10/RESI1.jpg" alt=""></div>
<p><br>The median unit price rose by 7.4 percent in 2016, while the median house price increased by 7.1 percent.</p>
<div>One of the metrics I've been tracking has been the change in Sydney unit prices when priced in Chinese yuan terms. </div>
<div> </div>
<div>As you can see in the chart below, Sydney unit prices have increased by only 15 percent since this cycle began for offshore Chinese buyers. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/10/RESI2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/10/RESI2.jpg" alt=""></div>
<p> </p>
<div>Rising prices have therefore not been much of a deterrent for Chinese buyers.</div>
<div> </div>
<div>However, regulatory measures have been.</div>
<div> </div>
<div>Upon discussion this week with developers in Brisbane, it's clear that activity from China has, if not halted, slowed up dramatically since last year. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Rates on hold</span></strong></div>
<div> </div>
<div>In other news, there were few surprises in the Reserve Bank's Monetary Policy Decision, whereby the official cash rate was left in hold at 1.50 per cent.</div>
<div> </div>
<div>The RBA expects reasonable growth in the economy in the December quarter, and expects growth to remain at around 3 per cent over the next couple of years. </div>
<div> </div>
<div>The real cash rate now sits just below zero.</div>
<div> </div>
<div class="separator"><a href="https://www.propertyobserver.com.au/images/2017/02/10/REAL%20CASH%20RATE.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/10/REAL%20CASH%20RATE.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator">
<em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em>
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Sydney median prices rose in 2016: Pete Wargent

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<p><span>It has been interesting to track economic data over the past few years, watching the Sydney economy outperform across most metrics.</span></p>
<p><span>Small wonder that the Sydney housing market has also forged ahead so strongly since 2008.</span></p>
<p><span>The New South Wales economy is powering Australia's economic growth, with ANZ's stateometer now showing the Premier State both above trend and accelerating across a range of economic indicators, from labour market conditions to house prices.</span></p>
<p><a href="/images/2015/10/22/NSW.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/10/22/NSW.jpg" alt=""></span></p>
<p> </p>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</body></html>

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