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


Joel Robinson

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

<p><strong>IN BRIEF</strong></p>

<ul>
	<li>
	<p>Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.</p>
	</li>
	<li>
	<p>Construction on The Waterline is complete, with the first residents expected to move in from mid-October.</p>
	</li>
	<li>
	<p>Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.</p>
	</li>
</ul>

<hr />
<p>Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.</p>

<p>Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.</p>

<p>[smartcode_project:default project_id=113271 project_image_fid=366708]</p>

<p>Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.</p>

<p>“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.</p>

<p>“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.</p>

<p>“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”</p>

<p>[smartcode_project:default project_id=113271 project_image_fid=366709]</p>

<p>The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.</p>

<p>The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.</p>

<p>Each residence also has three secure basement car spaces and additional storage.</p>

<p>“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.</p>

<p>“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”</p>

<p><img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" /></p>

<p>Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.</p>

<p>Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.</p>

<p>Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.</p>

<p>“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.</p>

<p>“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.</p>

<p>“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”</p>

<p>Sky Homes are priced from $3.65 million.</p>

<p>Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.</p>

<p>Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.</p>

<p>Harbour Shores is being marketed by Colliers International.</p>

<p data-end="555" data-start="341">[smartcode_project_cta:default project_id=113271]</p>


Lewis Land opens sky home display as The Waterline completes at Harbour Shores

<p data-end="387" data-start="97">St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.</p>

<p data-end="697" data-start="389">The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.</p>

<p data-end="925" data-start="699">Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.</p>

<p data-end="1217" data-start="927">It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.</p>

<p data-end="1217" data-start="927"><img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" /></p>

<p data-end="1538" data-start="1219">The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.</p>

<p data-end="1723" data-start="1540">The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.</p>

<p data-end="2063" data-start="1725">The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.</p>

<p data-end="2063" data-start="1725"><img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" /></p>

<p data-end="2205" data-start="2065">Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.</p>

<p data-end="4244" data-start="4087">The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.</p>

<p data-end="4598" data-start="4246">The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.</p>

<p data-end="4798" data-start="4600">Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.</p>

<p data-end="4798" data-start="4600">The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.</p>

<p data-end="5032" data-start="4800"><img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" /></p>

<p data-end="5486" data-start="5211">&nbsp;</p>

<p data-end="2205" data-start="2065">The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.</p>

<p data-end="2375" data-start="2207">Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.</p>

<p data-end="2712" data-start="2377">Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.</p>

<p data-end="2751" data-start="2714"><em><a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a></em></p>

<p data-end="2865" data-start="2753">Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.</p>

<p data-end="3067" data-start="2867">Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.</p>

<p data-end="3379" data-start="3069">Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.</p>

<p data-end="3379" data-start="3069"><a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station"><em>First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</em></a></p>

<p data-end="3883" data-start="3659">&nbsp;</p>


First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

<p data-end="540" data-start="324">When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East<br />
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.</p>

<p data-end="680" data-start="542">The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.</p>

<p data-end="909" data-start="682">The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.</p>

<p data-end="909" data-start="682">[smartcode_project:default project_id=6109 project_image_fid=376073]</p>

<p data-end="1076" data-start="911">Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.</p>

<p data-end="1166" data-start="1078">"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.</p>

<p data-end="1257" data-start="1168">"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."</p>

<p data-end="1257" data-start="1168">[smartcode_project:default project_id=6109 project_image_fid=376072]</p>

<p data-end="1406" data-start="1259">The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.</p>

<p data-end="1475" data-start="1408">For Palumbo, the project also marks a return to familiar territory.</p>

<p data-end="1671" data-start="1477">The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.</p>

<p data-end="1726" data-start="1673">"The opportunity emerged, and we moved to secure the site," Palumbo said.</p>

<p data-end="1874" data-start="1728">"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.</p>

<p data-end="2025" data-start="1876">"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.</p>

<p data-end="2111" data-start="2027">"Now we're on the market and those changes have really resonated with local buyers."</p>

<p data-end="2225" data-start="2113">That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.</p>

<p data-end="2383" data-start="2227">Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.</p>

<p data-end="2446" data-start="2385">"Local owner-occupiers have always been our market," he said.</p>

<p data-end="2602" data-start="2448">"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."</p>

<p data-end="2602" data-start="2448">[smartcode_project:default project_id=6109 project_image_fid=376068]</p>

<p data-end="2742" data-start="2604">The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.</p>

<p data-end="3013" data-start="2744">South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.</p>

<p data-end="3013" data-start="2744"></p>

<p data-end="3065" data-start="3015">Location has been a major part of the proposition for both buyer cohorts.</p>

<p data-end="3065" data-start="3015">[smartcode_project:default project_id=6109 project_image_fid=376075]</p>

<p data-end="3250" data-start="3067">Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.</p>

<p data-end="3376" data-start="3252">Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.</p>

<p data-end="3516" data-start="3378">Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.</p>

<p data-end="3592" data-start="3518">"There's very few allotments on that side that can be developed," he said.</p>

<p data-end="3714" data-start="3594">"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."</p>

<p data-end="3861" data-start="3716">Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.</p>

<p data-end="4004" data-start="3863">Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.</p>

<p data-end="4145" data-start="4006">Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.</p>

<p data-end="4145" data-start="4006">[smartcode_project:default project_id=6109 project_image_fid=376067]</p>

<p data-end="4273" data-start="4147">The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.</p>

<p data-end="4480" data-start="4275">A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.</p>

<p data-end="4650" data-start="4482">Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.</p>

<p data-end="4785" data-start="4652">The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.</p>

<p data-end="4889" data-start="4787">Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.</p>

<p data-end="5144" data-start="4891">Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.</p>

<p data-end="5305" data-start="5146">He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.</p>

<p data-end="5378" data-start="5307">"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.</p>

<p data-end="5495" data-start="5380">"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."</p>

<p data-end="5650" data-start="5497">Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.</p>

<p>[smartcode_project_cta:default project_id=6109]</p>

Palumbo's return to Kent Town strikes early chord with buyers

<p>Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.</p>

<p>The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.</p>

<p><a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.</p>

<p>The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.</p>

<p>The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.</p>

<p><img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" /></p>

<p>GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.</p>

<p>"St Lucia is one of those suburbs people do not want to leave," Gray said.</p>

<p>"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.</p>

<p>"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.</p>

<p>"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."</p>

<p>The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.</p>

<p>GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.</p>

<p>"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.</p>

<p>"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.</p>

<p>"The fundamentals here are as strong as anything we have assessed in Brisbane."</p>

<p><img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" /></p>

<p>Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.</p>

<p>GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.</p>

<p>The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.</p>

<p>Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.</p>

<p>The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.</p>

<p>Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.</p>

<p>Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.</p>

<hr />
<h2>SILK PROJECT FACTS</h2>

<p>Developer-builder: GRAYA</p>

<p>Project: Silk</p>

<p>Location: 16-18 Sandford Street, St Lucia</p>

<p>Apartments: 22</p>

<p>Built form: 15 levels</p>

<p>Site: 810 sqm riverfront holding</p>

<p>Mix: 16 split-floor and six full-floor residences</p>

<p>Status: Development approved</p>

<p>Next step: Construction planning underway</p>

<p>[smartcode_project_cta:default project_id=152168]</p>


GRAYA greenlit for riverfront St Lucia apartment development, Silk

House Prices

<html><body>
<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>
</div>
<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>
<div class="separator"><img src="/images/2016/04/8/ARI.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"><em><span style="text-decoration: underline;">Source: ASX</span></em></div>
</div>
<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>
</div>
<div> </div>
<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>
</div>
<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>
</div>
<div><a href="/images/2016/04/8/SQM.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/04/8/SQM.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/04/8/SQM2.jpg" target="_blank"> Click to enlarge</a></div>
<div>
<br><div class="separator"><img src="/images/2016/04/8/SQM2.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/04/8/SQM3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<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>
</div>
</body></html>

pwargent-M4siyDbqQY

Whyalla wipeout on the brink (redux): Pete Wargent

<html><body>
<p><span>yourtown are offering their first prize home since changing their name from BoysTown, a $2.18 million Sunshine Coast home.</span></p>
<p><span>Architecturally designed, the three-storey Alexandra Headland home has four bedrooms and three bathrooms.</span></p>
<p><span>The property has a sound proof media room, swimming pool, four car garage and a lift.</span></p>
<p><span>Winning the prize home also includes $155,285 of furniture and electrical and $1,500 travel voucher from Flight Centre.</span></p>
<p><span>yourtown CEO Tracy Adams says money raised from prize homes goes towards tackling the issues young people face, including unemployment, family and domestic violence and mental health.</span></p>
<p><span><a href="https://www.yourtown.com.au/lot">Tickets for the prize homes</a></span><span> cost $15 and are available until April 13 with the winner drawn April 15.</span></p>
<p><span>The first prize is the luxury home, second prize receives a $10,000 Flight Centre voucher, David Jones Gift Card or Harvey Norman gift card, and third receives $5,000 vouchers.</span></p>
</body></html>

jrobinson-rf4aSBido9

Three-storey Alexandra Headland home new yourtown prize

<html><body>
<div>The December 2015 Residential Property Price Indexes figures confirmed the expected slowing in the final quarter of last year, although more timely private sector indices suggest that nationally prices began to rise again in the first quarter of 2016, perhaps by around +1.5 percent. Let's look through the macro trends from the 2015 figures in three concise parts.<br><br><strong><span style="text-decoration: underline;">Part 1 - Market steadier in summer</span></strong><br><br>The total value  of dwelling stock increased only marginally to $5.9 trillion in the December quarter, rising by $482 billion or +8.9 per cent over the calendar year. This was broadly in line with capital city dwelling price growth of +8.7 per cent, plus a bit more reflecting the value of the new supply of new dwellings.<br><br>The total value of dwelling stock has increased by a third or $1.5 trillion since December 2011, now tallying 3.5 times the size of nominal GDP. </div>
<div> </div>
<div><a href="/images/2016/03/23/R4.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div> <img src="/images/2016/03/23/R4.jpg" alt="">
</div>
<div> </div>
<div>The weighted 8 capital city average indexes showed that both house and unit prices steadied in the last quarter of 2015, with house price growth (+9.3 per cent) outperforming the market attached dwellings (+6.7 per cent) over the course of the calendar year, a triumph for scarcity over affordability. </div>
<p><a href="/images/2016/03/23/R10.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/03/23/R10.jpg" alt=""></div>
<p> </p>
<div>
<strong><span style="text-decoration: underline;">Part 2 - City by city</span></strong><br><br>While Sydney showed the expected moderate final quarter correction and Darwin prices tumbled, Perth saw its prices increase by +0.5 per cent leading a number of commentators to call the bottom on Perth's market cycle and to project moderate gains for 2016.<br><br>Melbourne prices rose by +1.6 per cent to record strong growth of +9.6 per cent for the year, second only to another immense calendar year for Sydney at +13.9 per cent.<br><br>Canberra went on a tear with prices leaping by +2.8 per cent in the December quarter (for +6 per cent growth in 2015). while Hobart prices also spiked by +2.5 per cent for an annual result of +3.5 per cent, mirroring more timely reports from other private sector data providers.</div>
<div> </div>
<div>The most steadily consistent performer has been Brisbane, notching up another solid +1.6 per cent increase for its 14th consecutive quarterly gain and a +4.2 per cent annual increase. Since June 2012 dwelling prices have increased steadily by +17.1 per cent in Brisbane. Adelaide has followed a very similar trajectory with somewhat more suppressed nominal price growth. </div>
<p><a href="/images/2016/03/23/R6.jpg" target="_blank">Click to enlarge</a><br><img src="/images/2016/03/23/R6.jpg" alt=""><br><br></p>
<div>Over the past three years the total value of Australia's dwelling stock has increased by $1.33 trillion, with New South Wales (+$682 billion), Victoria (+$377 billion) and Queensland (+$143 billion) accounting for the bulk of the increase. </div>
<p><a href="/images/2016/03/23/R1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/03/23/R1.jpg" alt=""></div>
<div class="separator"> </div>
<div>Since December 2008 growth in property prices has been driven overwhelmingly by Sydney (+79.8 per cent) and Melbourne (+53.5 per cent), while Brisbane has recorded considerably less price growth (+22.1 per cent) over this timeframe. In fact since that time both Darwin and Canberra have fared better, although the Top End is now in correction mode.</div>
<p><a href="/images/2016/03/23/R2.jpg" target="_blank">Click to enlarge </a></p>
<div class="separator"><img src="/images/2016/03/23/R2.jpg" alt=""></div>
<div> </div>
<div>The ABS also now provides some interesting insights into the unstratified median price of established dwelling transfers, which also inferred a slowdown in Sydney house prices (in fact Sydney unit prices rose more than established house prices on this metric, jumping by +11.4 per cent to $685,000).<br><br>This data series is most instructive in depicting just how far Sydney and Melbourne house price growth has outpaced that of its respective regional market counterparts. </div>
<div> </div>
<div><a href="/images/2016/03/23/R3.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/03/23/R3.jpg" alt=""></div>
<p> </p>
<div>There are myriad ways to look at house price data, some of which involve inflation adjustments and carefully selected data points, while others use hedonic regression analysis, but the simple long run data from March 2002 shows the median transfer price of established houses to be as follows:</div>
<ul>
<li>Sydney up from $365,000 to $910,000</li>
</ul>
<ul>
<li>Melbourne up from $241,000 to $621,000 </li>
</ul>
<ul>
<li>Brisbane up from $185,000 to $499,800 </li>
</ul>
<div class="separator">At the state level the mean dwelling prices tell a broadly similar story to the capital city narrative for the past year, with New South Wales (+$76,300) and Victoria (+$56,100) once again recording the greatest gains in calendar year 2015, while the ACT (+$35,000) and Queensland (+$17,600) also saw notable increases.</div>
<p><a href="/images/2016/03/23/R7.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/23/R7.jpg" alt=""></p>
<p><br><strong><span style="text-decoration: underline;">Part 3 - Supply response mixed</span></strong><br><br></p>
<div>Finally, the data denoting the total number of dwellings at the state level shows how New South Wales added just +7,400 dwellings to its total stock in the December quarter. Nationally the total number of dwellings increased solidly by +162,900 or +1.7 per cent in 2015 to 9.62 million, having now increased by +578,600 or +6.4 per cent since December 2011. </div>
<div> </div>
<div>
<span>Over the past four years, while the less densely populated territories of the Northern Territory (+10.2 per cent) and the ACT have added substantially to their stock of dwellings in percentage terms, the same has not been true everywhere. </span><br><br>Of the most populous states Western Australia (+8.9 per cent) and Victoria (+7.8 per cent) have co-ordinated the most material supply response as a percentage of established dwellings. However, the percentage increases in Queensland (+6.8 per cent) and in particular New South Wales (+4.6 per cent) have been less marked, reflected in their respective shallower gradients in the below chart. </div>
<div> </div>
<div><a href="/images/2016/03/23/R8.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/03/23/R8.jpg" alt=""></div>
<div> </div>
<div>This seems likely to in part to reflect stock obsolescence and demolition in the larger capital cities, where older dwellings are often pulled down in order to make way for new apartment developments. However, in some locations there does remain an elevated volume of apartment construction in the pipeline, which you can doubtless see for yourself if you frequent the inner city hubs.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Overall this historical data reflected already known market trends with the restraints on investor lending propitious in tapering price growth towards the end of the calendar year. At the macro level we can expect price growth nationally in 2016 to be lower than the +8.7 per cent seen in 2015, with investor lending have been successfully curbed and more supply due to come online. </div>
<div> </div>
<div>House price growth has resumed in 2016 in parts of Brisbane and Melbourne, Sydney's market has become a <em>bona fide</em> dichotomy, with many of the inner ring suburbs firing, but the outer ring now recording funereal auction results. Naturally at the sub-regional level results are far more mixed and trends more nuanced.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</body></html>

Brisbane racks up 14th consecutive quarterly gain: Pete Wargent

<html><body><div class="cq-article-content-paras section">
<p><span style="line-height: 1.3em;">The RBA governor has welcomed moderation in house prices in some of the locations where they had been rising most rapidly.</span></p>
<p><span>In a speech, Stevens told an annual forum organised by ASIC, that bank balance sheets had been improving in recent years.</span></p>
<p><span>"On the topic of loan quality, the strengthening of lending standards for housing that resulted from the <span>actions of both APRA</span> and ASIC was timely," he advised. </span></p>
<p><span>"So often over the years, tighter standards tended to come too late and reinforced a downturn after it had begun."</span></p>
<p><span>Mr Stevens said the restraints on lending - primarily to investors - appeared to have come before a deterioration in measures of asset quality, such a default rates.</span></p>
<p><span>"Some moderation in house prices in some of the locations where they had been rising most rapidly, while not the direct objective of the supervisory measures, is also, in my judgement, helpful," he said.</span></p>
<p>To read the speech in full, click here.</p>
</div></body></html>

jchancellor-FAypfDUnLy

House price growth moderation helpful: RBA's Glenn Stevens

<html><body><div class="page" title="Page 4">
<div class="layoutArea">
<div class="column">
<p><span>The Westpac–Melbourne Institute Consumer Sentiment Index dipped 2.2 percent from 101.3 in Feb to 99.1 in March.</span></p>
<p><span>The softer read reflected weaker reads on ‘family finances vs a year ago’ and ‘time to buy a major item’ partially offset by improved expectations for the economy.</span></p>
<p><span>State divergences remain a strong theme across the survey detail with the ‘lukewarm’ national result reflecting a mix of much weaker reads across the ‘mining’ states and considerably stronger sentiment across the other major states.</span></p>
<p><span>Responses to additional questions on news recall showed lower recall on most topics compared to Dec – particularly news on ‘international conditions’ – with news assessed as less unfavourable as well though still predominantly negative overall.</span></p>
<p><span>Updates on the ‘wisest place for savings’ question show a sharp rise in risk aversion with a big drop in the proportion nominating ‘real estate’ and a corresponding rise in those favouring ‘deposits’ and ‘pay down debt’. The shift appears to stem from a combination of increased market volatility, unfavourable media coverage on property markets and potential changes to tax policy.</span></p>
<p><span>The mix resulted in a 20pt jump in the Westpac Risk Aversion Index to its highest level since Mar 2013.</span></p>
<p><span>CSI, our modified sentiment indicator that we favour as a guide to actual spending, posted a heavy 5.7 percent fall in Mar to be down 8 percent over Q1 as a whole. The Index suggests spending will lose momentum over the first half of 2016.</span></p>
<p><span>The sub-index on ‘time to buy a major item’ registered a sharp 6.6 percent fall in Mar to be 12pts below average. The Q4 national accounts suggest the pace of durables spending has already softened with the sub-index suggesting more subdued soft growth in early 2016.</span></p>
<p><span>The ‘time to buy a dwelling’ index increased 5.4 percent from 99.3 in Feb to 104.7 in Mar and continues to show signs of settling just above the 100 level. Assessments in NSW have improved from very weak levels.</span></p>
<p><span>The Westpac-Melbourne Institute Consumer House Price Expectations Index also rebounded 9.8 percent in Mar to be just 5pts below its 10yr average. </span></p>
<p><span>Expectations continue to show increased volatility likely reflecting mixed actual conditions and uncertainty around the outlook for key policies affecting housing markets.</span></p>
<p><span>The Westpac-Melbourne Institute Unemployment Expectations Index edged up 1.3 percent in Mar, indicating a slightly poorer outlook for unemployment. The Index still points to an improvement in job loss fears compared to 2014 and most of 2015. However the tentative signs of a renewed deterioration in recent months bears watching closely. </span></p>
<p><a href="/images/2016/03/18/Screen%20Shot%202016-03-18%20at%203.20.41%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/03/18/Screen%20Shot%202016-03-18%20at%203.20.41%20PM.png" alt=""></span></p>
<p><span>As is often the case, ‘the devil was in the detail’ with the March Westpac–Melbourne Institute Consumer Sentiment survey.</span></p>
<p><span>On the surface, the headline Index was just a touch lower in the month, essentially holding in line with average readings over the last 6mths. Likewise, the Westpac–Melbourne Institute Unemployment Expectations Index also deteriorated only slightly.</span></p>
<p><span>The detail however shows a much richer pattern of strength and weakness, and a more nuanced account of the factors currently influencing the consumer mood.</span></p>
<p><span>The dip in sentiment was driven by a sharp fall in assessments of ‘family finances vs a year ago’, and accompanied by a sharp rise in risk aversion indicated by responses to additional questions on the ‘wisest place for savings’.</span></p>
<p><span>Although both moves may prove to be temporary, these components have had a major bearing on consumers’ spending and savings decisions in the past. Indeed, this aspect of the survey points to a softer near term demand environment, particularly when compared to what now looks to have been a strong finish to 2015.</span></p>
<p><span>The detail around housing showed a more positive but still mixed situation.</span></p>
<p><span>Views on ‘time to buy a dwelling’ and house price expectations both look to have pulled out of last year’s abrupt slide at levels that are soft but not so soft as to suggest a ‘hard landing’ is on the way.</span></p>
<p><span>The main qualifier here is around investor housing with the survey showing a sharp drop in the proportion of consumers nominating real estate as the ‘wisest place for savings’. One of the main drivers appears to be uncertainty around potential changes to policies affecting residential investment – something that looks set to remain a factor through to the Federal election.</span></p>
<p><span>On the labour market, the main mystery still concerns the disconnect between consumer views and improvements now clearly being shown across a wide range of market metrics. While these have shown a marginal softening in recent months, consumers never really bought into 2015’s improvement.</span></p>
<p><span>We have several ideas as to why that may be but these are yet to be confirmed. In the meantime, the anxious consumer view on jobs remains a clear restraint on demand. </span></p>
<p><span><strong>The consumer mood: bogged down</strong></span></p>
<p><span>The Westpac-Melbourne Institute Index of Consumer Sentiment dipped 2.2 percent in Mar from 101.3 in Feb to 99.1. The Index is back to around its average reading over the last 6mths.</span></p>
<p><span>The index continues to hold on to most of the gains seen since last year’s leadership change – it surged 8.3 percent through Oct-Nov and has only slipped back 2.5 percent from that high although technically we are now slightly back in the region where pessimists outnumber optimists.</span></p>
<p><span>Financial markets have maintained significant volatility since the last survey while finishing the month on an encouraging high.</span></p>
<p><span>Responses to additional questions on ‘news recall’ indicate that consumers were generally less focussed on ‘international conditions’ than in Dec, recall on this topic falling from 20 percent to 15.5% in Mar, although perceptions remained highly unfavourable.</span></p>
<p><span>The highest levels of news recall were for items on ‘budget and taxation’ (37.1 percent) and ‘economic conditions’ (36.7 percent). Perceptions of both topics were less unfavourable in Mar than in Dec. Respondents registered low recall rates on news on ‘interest rates’, ‘employment’ and ‘inflation’ although again perceptions were significantly less unfavourable than in Dec. </span></p>
<p><a href="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.33.35%20PM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a></p>
</div>
<div class="column">
<div class="page" title="Page 6">
<div class="layoutArea">
<div class="column">
<p><img src="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.33.35%20PM.png" alt="" style="line-height: 1.3em;"></p>
<div class="page" title="Page 7">
<div class="layoutArea">
<div class="column">
<p><span>Three of the five component indexes fell in Mar. Notably, the sub-index on ‘finances vs a year ago’ fell 8.2 percent. The RBA has singled out this component as providing a useful guide to actual spending. As such, it would be of some concern that, having failed to lift following last year’s leadership change, the sub-index is down 5.9%yr. That said, the prudent approach to the sharp move in March is to assess the degree to which it is sustained in coming months.</span></p>
<p><span>The ‘finances, next 12mths’ sub-index edged up 0.2 percent. Views on the economy were more mixed, the ‘economy, next 12mths’ sub-index up 8.2 percent, the ‘economy, next 5yrs’ sub-index down 2.5 percent.</span></p>
<p><span>― The ‘time to buy a major item’ sub-index was on the weak side, falling 6.6 percent to be down 2.5 percent yr.</span></p>
<p><span>State divergences remain a strong theme across the survey detail. Indeed the ‘lukewarm’ results for sentiment overall are partly a matter of arithmetic: the ‘mining states’ account for 31% of consumers in Australia and while-ever sentiment across this group is stuck around 90 it’s difficult to generate a ‘strong’ national result. An index reading in the 110+ range, for example, would require sentiment reads in NSW and Vic to be pushing towards 120 or more. Viewed this way, middling consumer sentiment reads may be as good as it gets in 2016. </span></p>
<p style="line-height: 1.3em;"><a href="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.44.10%20PM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a></p>
</div>
<div class="column">
<p><span><img src="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.44.10%20PM.png" alt=""></span></p>
<p> </p>
<div class="page" title="Page 8">
<div class="layoutArea">
<div class="column">
<div class="page" title="Page 13">
<div class="layoutArea">
<div class="column">
<p><span>Sentiment indicators: housing</span></p>
<p><span style="line-height: 1.3em;">The ‘time to buy a dwelling’ index increased 5.4 percent from 99.3 in Feb to 104.7 in Mar. After </span><span style="line-height: 1.3em;">a sharp fall in 2015 H2, the national index continues to show signs of settling at a level just above 100. That puts it well below the long run average of 129 but above the lows seen during previous housing market corrections – these have seen sub-100 readings with sub-80 readings in major downturns.</span><span style="line-height: 1.3em;"> </span></p>
</div>
</div>
<div class="layoutArea">
<div class="column"><span style="line-height: 1.3em;">Notably, the state detail on ‘time to buy a dwelling’ shows buyer sentiment in NSW – the weakest state – is now 44 percent above its Sep low although it is still 19 percent below its level from a year ago.</span></div>
<div class="column"><span style="line-height: 1.3em;"> </span></div>
<div class="column"><span style="line-height: 1.3em;">Markets are now emerging from the summer hiatus. However, most data releases still relate to the Dec-Jan period and are hence less reliable guides to trends. The main exception is around auction market activity, which is reported weekly and provides more robust information, albeit heavily skewed to parts of the Syd &amp; Melb markets.</span></div>
<div class="column">
<p><span>Auction clearance rates continue to show a firm start to 2016 compared to what was a very weak finish to 2015. Although underlying volumes are low (down 20% on Sep levels and –2.3%yr), both Syd and Melb clearance rates have been around 67-68% level, allowing for seasonal fluctuations. </span></p>
</div>
</div>
</div>
</div>
</div>
<div class="layoutArea">
<div class="column">
<p> <a href="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.49.01%20PM.png" target="_blank">Click to enlarge</a></p>
<p><span><img src="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.49.01%20PM.png" alt="" width="777" height="753"></span></p>
<div class="page" title="Page 14">
<div class="layoutArea">
<div class="column">
<p><span>Sentiment indicators: house prices</span></p>
<p><span style="line-height: 1.3em;">The </span><span style="line-height: 1.3em;">Westpac-Melbourne Institute Consumer House Price Expectations Index </span><span style="line-height: 1.3em;">rebounded 9.8% in Mar to be 16.6% above its Dec low but still 18.4% below its year ago level. At 120.9, the index is less than 5pts shy of its 10yr average.</span></p>
</div>
</div>
<div class="layoutArea">
<div class="column">
<p><span>Just over 22 percent of consumers expect prices to decline in the year ahead, 33 percent expect no change, 38 percent expect gains of 0-10 percent and 6 percent expect 10%+ gains. State-wise, the main lift vs Feb was a more bullish view in NSW and a less pessimistic view in WA. That said, the state and sub-group detail continues to show volatile moves suggesting consumers may be struggling to get a firm handle on the price outlook. </span></p>
</div>
<div class="column">
<p><span>This volatility may derive from the uncertain outlook for policies affecting investor activity and the uneven picture presented by various price measures. The most timely price gauge – the CoreLogic RP Data series – has shown clear signs of stabilising after a weak Q4 with prices likely to finish up close to 2 percent in Q1. Other less timely measures are still reflecting last year’s weakness but get equal coverage in the media. </span></p>
<p><span>Viewing all the elements of housing sentiment by state – price expectations, buyer sentiment and investor sentiment – conditions overall appear weakest in Qld &amp; WA although by far the biggest deterioration vs a year ago is in NSW. </span></p>
<p><a href="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.51.02%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/03/21/Screen%20Shot%202016-03-18%20at%203.51.02%20PM.png" alt=""></span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

jonathanchancellor-7SQnKwU6yx

Volatility reflecting mixed conditions and uncertainty around policies affecting housing markets: Westpac-Melbourne Institute

<html><body>
<p>House prices in Australia have outperformed apartments by a significant margin for long-term capital gain but the growth gap is narrowing, reflecting the increasing social acceptance of apartment living as demographic trends shift, according to John McGrath in a recent Switzer blog.</p>
<p>The claim is well supported by facts. House prices in Sydney rose by 11.5% in 2015 with apartments trailing by just a touch at 11.3%, according to RP Data. Across the five prime capital cities (Sydney, Melbourne, Brisbane/Gold Coast, Adelaide and Perth), growth was exactly 8% for both property types.</p>
<p>Apartments are clearly not the poor cousin of houses when it comes to returns and part of the reason is that apartment living is becoming the preferred choice for a growing proportion of the population, he writes.</p>
<p>In fact, there’s a good chance apartments may replace the quarter-acre block as the new Australian dream because many are in localities that are close to work and social activities and come with perks such as gyms, pools and concierges, argues McGrath.</p>
<p>Changing demographics are also driving this trend. While the nuclear family is still dominant, an increasing number of Australians live in a couple relationship without children or by themselves – and neither need or want to live in a house.</p>
<p>By around 2030, childless couples (DINKS and Empty-Nesters) will become the most common family type in Australia – and lone person households (SINKS and older people) will become the fastest growing household type, according to the ABS.</p>
<p>Adding to this is increasing interest in apartments from investors due to affordability, as well as rising international demand. Foreign Investment Review Board (FIRB) restrictions mean overseas investors can only purchase new stock – typically apartments.</p>
<p>Apartment living is on the rise around the world – literally.  </p>
<p>In McGrath’s annual report, the tallest residential towers both in Australia and overseas were profiled. Many of them here at home are still in development with one of the highest, Australia 108 in Melbourne offering ‘cloud residences’ from Floor 71 up. The tallest residential tower in Sydney, Greenland Centre on Bathurst Street, is also currently under construction.</p>
<p>In conclusion, McGrath predicts that there will be larger apartments for young families, offering a home within a 20 minute radius of everything they need, such as schools, shops, jobs and transport.</p>
<p><strong>Tallest residential towers – Australia</strong></p>
<p><strong>235 metres</strong></p>
<p>Greenland Centre</p>
<p>115-119 Bathurst Street, Sydney</p>
<p><strong>249 metres</strong></p>
<p>Infinity Tower</p>
<p>43 Herschel Street, Brisbane</p>
<p><strong>254 metres</strong></p>
<p>Prima Pearl</p>
<p>35 Queensbridge Street, South Bank, Melbourne</p>
<p><strong>265 metres</strong></p>
<p>120 Collins Street, Melbourne</p>
<p><strong>297 metres</strong></p>
<p>Eureka Tower</p>
<p>Riverside Quay, South Bank, Melbourne</p>
<p><strong>319 metres</strong></p>
<p>Australia 108</p>
<p>70 Southbank Boulevard, Melbourne</p>
<p><strong>323 metres</strong></p>
<p>Q1, 9 Hamilton Avenue, Surfers Paradise, Gold Coast</p>
<p><strong>Tallest residential towers – International </strong></p>
<p><strong>339 metres</strong></p>
<p>Mercury City</p>
<p>1st Krasnogvardeysky Avenue, Moscow, Russia</p>
<p><strong>380 metres</strong></p>
<p>Elite Residence</p>
<p>Al Sofouh Road, Dubai, UAE</p>
<p><strong>382 metres</strong></p>
<p>Burj Mohammed Bin Rashid</p>
<p>Khalifa, Bin Zayed The 1st, Abu Dhabi, UAE</p>
<p><strong>393 metres</strong></p>
<p>23 Marina</p>
<p>568 Al Marsa, Dubai Marina, UAE</p>
<p><strong>414 metres</strong></p>
<p>Princess Tower</p>
<p>Al Marsa, Dubai Marina, UAE</p>
<p><strong>426 metres</strong></p>
<p>432 Park Avenue, New York, USA</p>
<p><strong>632 metres</strong></p>
<p>Shanghai Tower</p>
<p>Luijiazui Finance and Trade Zone, Pudong District, Shanghai, China</p>
<p><strong>828 metres</strong></p>
<p>Burj Khalifa</p>
<p>1 Sheikh Mohammed bin Rashid Blvd, Dubai, UAE</p>
<p><em>*Source: Household and Family Projections 2011 to 2036 (series II), released March 2015</em></p>
</body></html>

prateek24-ezbwHMbNAk

Apartments may usurp houses as growth gap narrows: McGrath

<html><body>
<p>The 2015 calendar year saw Sydney home values rise by a total of 11.5 percent, the latest NAB housing insights report has noted.</p>
<p>Strong economic conditions together with high rates of migration have driven the strength in the New South Wales housing market. </p>
<p>Sydney has recorded the highest rate of growth, with home values rising by a cumulative 42.1 percent over the past five years.</p>
<p><a href="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%201.19.19%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%201.19.19%20PM.png" alt=""></p>
<p>While growth in home values across Sydney has been substantial, the second half of 2015 has shown the first signs that Sydney’s strong run of capital gains is losing steam; the final quarter of 2015 saw auction clearance rates slip to the lowest levels since 2012 and home values were down by 2.3 percent over the quarter.</p>
<p><a href="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%201.17.55%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%201.17.55%20PM.png" alt=""></p>
<p>The Sydney housing market has been undersupplied for a number of years, leading to a substantial accumulation of pent up demand. While the undersupply of housing – in conjunction with other factors including strong foreign demand and low interest rates – have been highly supportive of prices, a significant deterioration in affordability is likely to pose more of a constraint on price gains going forward. </p>
<p>NAB has lowered its expectation for house price growth to just 0.6 percent in 2016 (from 11.5% in 2015) </p>
<p>Additionally, a record large pipeline of residential buildings approved for construction is now (and will continue to) help to alleviate the pent up demand for housing that has accumulated over time, reducing a key source of support for the market. Similar to elsewhere, more subdued population growth and tighter credit conditions from prudential regulatory changes will likely slow demand, and may have a particularly large impact on Sydney given the large contribution from investors. </p>
<p><a href="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%201.21.18%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/10/Screen%20Shot%202016-03-10%20at%201.21.18%20PM.png" alt=""></p>
<p>The NAB Property Survey showed that market sentiment weakened considerably in the last quarter of 2015, foreign demand eased off moderately, and participant’s expectations for price gains in the next 2 years were also heavily reduced. Consequently, NAB has lowered its expectation for house price growth to just 0.6 percent in 2016 (from 11.5 percent in 2015). Given the additional headwinds to the unit/apartment market, prices for this type of housing are expected to fall 0.6 percent in 2016.</p>
<p> </p>
</body></html>

po-LsXgBTHBmX

Sydney house values to increase by 0.6 percent, units to fall by 0.6 percent in 2016: NAB

<html><body>
<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>
</div>
</body></html>

Sydney land prices up 50 percent in 3 years: Pete Wargent

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>House prices have fallen considerably in Port Hedland, Derby and Karratha over the past year, according to JLL's Residential Market Review for February.</span></p>
<p><span>The report said </span><span style="line-height: 1.3em;">Port Hedland, once a rival to Sydney for prices; has seen the median house price fall by -29.0% over the past year to $576,000 and is expected to fall further. </span></p>
<p><span style="line-height: 1.3em;">"Prices in Derby have fallen -29.3% to $290,000. Prices in Karratha have fallen -21.7% to $428,000," it said.</span></p>
</div>
<div class="column">
<p><span>"Broome, not affected by mining, has nevertheless seen house prices fall -10.6% to $539,000."</span></p>
<p><a href="/images/2016/02/16/Screen%20Shot%202016-02-16%20at%2011.16.42%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/16/Screen%20Shot%202016-02-16%20at%2011.16.42%20AM.png" alt=""></span></p>
</div>
</div>
</div>
</div></body></html>

House prices fall in WA's Port Hedland, Derby and Karratha: JLL

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Melbourne median house prices are up by 11.7 percent to $675,000 year on year, nearly matching Sydney according to JLL's Residential Market Report for February.</span></p>
<p><span>Apartment prices, according to the report, have increased more slowly, up by 6.9 percent to $506,000 year on year with the p</span><span style="line-height: 1.3em;">rice growth percentage in Melbourne exceeded Sydney in Q3 and Q4.</span></p>
<p><span> The report said the median house price was down in December, 2.2 percent month on month, up 0.7 percent quarter on quarter.</span></p>
<p><span>"The auction clearance rate at 13/12 was 64.7 percent, while the number of actual sales under auction was up 6.9 percent on the same period last year. </span></p>
<p><span>"However, strong demand continues in Melbourne, in contrast to Sydney, with an expectation of 4% growth on median house prices.</span></p>
<p><span>"The apartment market is oversupplied, with slower price increases. The number of new listings is down 4.1 percent on last year, with total listings also down 3.5 percent."</span></p>
<p> </p>
<p><a href="/images/2016/02/16/Screen%20Shot%202016-02-16%20at%2011.24.13%20AM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a></p>
<p><span><img src="/images/2016/02/16/Screen%20Shot%202016-02-16%20at%2011.24.13%20AM.png" alt=""></span></p>
<p> </p>
<p><a href="/images/2016/02/16/Screen%20Shot%202016-02-16%20at%2011.25.18%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/16/Screen%20Shot%202016-02-16%20at%2011.25.18%20AM.png" alt=""></p>
</div>
</div>
</div>
</div></body></html>

House Prices

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

House Prices

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News