<a href="https://www.apartments.com.au/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360965]

“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360966]

Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

&nbsp;

[smartcode_project:default project_id=149670 project_image_fid=360969]

Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

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

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

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</main>

Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

Housing Market

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The latest RBA minutes have noted recent data continued to suggest that there had been a build-up of risks associated with the housing market.
"In some markets, conditions had been strong and prices were rising briskly, although in other markets prices were declining.
"In the eastern capital cities, a considerable additional supply of apartments was scheduled to come on stream over the next few years.
"Growth in rents had been the slowest for two decades. Borrowing for housing by investors had picked up over recent months and growth in household debt had been faster than that in household income.
"Supervisory measures had contributed to some strengthening of lending standards."
The bank had recently announced its concerns for the apartment market, warning a flood of new apartments could come onto the market in certain areas could push down prices causing heavy losses for developers.
Last week bank research noted the rate of housing market turnover, or transactions, is on an “unusual decline” with a sharp rise in off-the-plan sales of apartments — which are difficult to measure in a timely manner — likely to be a factor.
According to the central bank, other potential reasons could be lower rates of home ownership, particularly for younger households, and migration trends.
A fall in housing market transactions directly affects the economy as it hurts tax revenue - which made up about 40 per cent of total state tax revenue in 2014/15, besides impacting the creation of more jobs and related occupations such as real estate agents, lawyers and the finance industry, the RBA noted last week.
The RBA’s latest bulletin says the decline in the national housing turnover rate in recent years has come despite “the strength in a number of housing market indicators such as national housing price growth, which has historically been positively correlated with the turnover rate”. 
It says part of the recent weakness could from measurement issues arising from the increased share of apartments in new housing construction. 
 
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jchancellor-FAypfDUnLy

RBA notes build-up of risks in housing market

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Back in 2011 Gladstone property was all the rage.
Unfortunately the predicted housing boom was based upon temporary factors, including a resources construction boom which finally an almighty peak in Queensland in the first quarter of 2013. 
As construction turned to production, the housing boom turned to dust, despite unfounded claims that the new residential development could never lead to oversupply.
Over the last three years alone asking rents for houses have collapsed by 46 percent. 
Units have fared even worse with asking rents down by 56 percent (for landlords lucky enough to find a tenant). 
<a href="https://www.propertyobserver.com.au/images/2017/03/21/ENG.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/21/ENG.jpg" alt=""> 
Source: SQM Research
Dwelling prices have followed a similar pattern, albeit in a marginally less painful trajectory, with unit prices down by 40 per cent over the past three years. 
It looks as though the market may finally be set to move into equilibrium as the glut of supply is absorbed and the LNG export boom ramps up. 
Vacancy rates in Gladstone have now been falling for 9 months, while rents and prices seem to be consolidating or forming some kind of bottom. 
<a href="https://www.propertyobserver.com.au/images/2017/03/21/G2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/21/G2.jpg" alt="">
Source: SQM Research
It's all too little and too late for those that bought off the plan at the heady market peak, but it looks likely that the worst is over for now. 
Even engineering construction activity began rising again in Queensland from the first quarter of calendar year 2016, but this time around resources projects have not been the driver, although the Adani project is still potentially lurking in the wings. 
<a href="https://www.propertyobserver.com.au/images/2017/03/21/G1.jpg" target="_blank">Click to enlarge</a>
<a href="https://www.propertyobserver.com.au/images/2017/03/21/G1.jpg" target="_blank"><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/2017/03/21/G1.jpg" alt=""></a>
 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>.
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pwargent-M4siyDbqQY

Gladstone nearing the property bottom

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The number of Australians who consider property as the best place to invest their savings has fallen to its lowest level in more than 40 years, according to the Melbourne Institute of Applied Economic and Social Research.
The latest survey found confidence has fallen since September 2015 to an all time low of 11.6 percent.
In a breakfast briefing this week Michelle Bullock from the Reserve Bank said the worry is what happened in the United States - a big downturn in housing prices and negative equity
"Hopefully what we've done with strengthening the resilience of the households and the banks means they can withstand that sort of thing if it happened," she said.
The Age reported Bill Evans, Westpac chief economist said the result showed a clear increase in risk aversion.
"Consumers are saying: yes we expect [real estate] prices to rise, but we are a little cautious," he said.
"There is no doubt there is nervousness about the sustainability of the prices."
 
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j.ballantyne1990-6AQqhLzZaK

Confidence in property investment falls to lowest level in 40 years

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It was only a matter of time before some property punters would cash in simply because property data is now pointing to a significant price correction.
The latest Reserve Bank of Australia (RBA) data has inflation adjusted wage growth sitting most uncomfortably around zero which spells disaster for households carrying excessively large mortgages. Time to cool the heels-cash in, and lock oneself into a lease for twenty-four months or so and watch what happens as there are some worrying signs out there, although some areas will see minimal change and others massive.
The RBA also announced this week that it was concerned how the financial system would handle a significant price correction in the apartment investment sector. Between now and June 30 there are a staggering 15,000 apartments settling so we are approximately 90 days away from knowing if the investment apartment sector is about to collapse.
With the clear majority of these sales to Chinese investors we will soon find out if they can raise the funds to settle without the assistance of the major banks who have walked away from overseas investors.
Li Ming, a co-director of Aussiehome, recently announced that “the off-the-plan apartment markets is now the worst I have seen in the last 10 years.” He then went on to say that almost 80 percent of Chinese buyers can’t settle on the Australian apartments they have purchased and now would prefer to walk away. In the clear majority of cases, these properties are now worth considerably less than when they were an artist’s impression on a glossy brochure.
Property is a confidence game so when we start reading negativity we also start seeing an immediate response in consumer sentiment. This would almost certainly explain why the RBA is now sounding clear warnings directed at the investment apartment markets. This usually only happens when their internal research is discovering anomalies in the markets so immediately they start sounding the fog-horns.
I well remember remarking back in December 2008 when Wayne “The World’s Best Treasurer” Swan strangely increased the off-the-plan ratio from 50 percent to 100 percent that this would not have a happy ending. Who knows I may well be wrong although I still stand by my predictions where nearly nine years on we are now starting to see the result.
This also coincides with Sydney house prices presently posting the highest annual growth in 14 years. We all know (well most anyway) that for property markets to change direction you need a trigger. Should Li Ming be correct about the apartment investment market this will have a significant impact on this newly created apartment investment market right across the eastern seaboard.
If this does happen our governments and banks need to play this intelligently by riding the storm out by becoming landlords. In the past, they have panicked (especially the banks) by engaging in massive sell offs which cause more problems. What should be happening now is the intelligent preparation of worst case scenarios where lenders should be looking at first home buyers to create lease and buy back packages.
Having said that the first problem with housing affordability is the rental markets despite governments going down the wrong track of building more homes. If rents are flat and even decreasing as was the case 15 years ago, then the pressure on tenants is removed as it then becomes cheaper to rent over owning. What we forget are the many solid arguments back then that clearly showed renting was a smarter option than buying – how quickly we forget.
Obviously with so many brand-new apartments set to hit the rental markets rents will fall – just imagine what would happen if the NSW government forced the 200,000 plus permanently vacant Sydney apartments onto the market?
The Victorian government has acted on this with the introduction of the Vacant Residential Property Tax (VRPT) which will address the permanently vacant properties across inner and middle suburbs of Melbourne. The VRPT will be levied at 1 percent, multiplied by the capital improved value of the taxable property. A property worth $650,000 would then be charged a VRPT of $6,500 which in my opinion is too low because the clear majority are wealthy which is why they are not interested in renting the property out in the first place.
The VRPT should be between 3 and 5 percent although the Victorian government knows only too well that a 1 percent VRPT won’t have a significant impact on overseas buyers which is why they introduced it.
On the flip side, the NSW government is looking to further increase stamp duty for foreign buyers which would be an absolute disaster – just ask the Canadian government who did precisely this and then managed to collapse their investment markets by upwards of 30 percent.
I don’t worry too much about the property markets, I worry more about how our elected politicians will respond to these challenges. Generation Rent should be watching these markets very closely.
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
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robertsimeon-hRNTwJyXkQ

The big property shift is fast heading to a sell recommendation: Robert Simeon

Australian housing market turnover - the RBA's nine chart insights

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GUEST OBSERVER
The Westpac Melbourne Institute Index of Consumer Sentiment rose by 0.1 percent in March from 99.6 in February to 99.7 in March. 
The Index appears to be stabilising around that point where optimists and pessimists are around equal in number. The encouraging 2.3 percent lift we saw in the Index in February has been sustained in March.
In this survey we ask respondents for information on the news items that have affected their views and whether the news has been well received. This gives us an assessment of what may be on the minds of respondents.
<a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2010.51.27%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2010.51.27%20AM.png" alt="">
As we saw in December the two dominant news categories were ‘economic conditions’ (27.9 percent of respondents recalled news on this topic) and ‘budget and taxation’ (25.2 percent). On both counts respondents saw the news as less unfavourable than had been the case in December. In particular ‘economic conditions’ showed a marked improvement.
It is also interesting to note that overall awareness of ‘budget and taxation’ news is down significantly from a year ago when 37.1 percent of respondents recalled news on this topic. That difference can be largely attributed to a fall from 17.6 percent to 3.7 percent in those respondents recalling news on taxation.
Other well-recalled news items covered: employment (15.7 percent,  up from 11.1 percent in December); interest rates (15.6 percent); and international conditions (12.0 percent). Despite no move by the Reserve Bank over the intervening period news on interest rates was much more positively received while the pessimism around international conditions eased. Respondents, who regularly assess the news on employment as unfavourable, were somewhat more concerned in this survey.
The Westpac Melbourne Institute Index of Unemployment Expectations fell by 3.1 percent in March pushing the Index back to around the levels in December. Recall that lower readings on the index mean more consumers expect unemployment to fall in the year ahead. Our take on the index is that respondents’ assessments of the unemployment outlook have stabilised around a level which is consistent with spare capacity consistently available in the labour market with little prospect of that spare capacity actually clearing.
There was one quite significant movement within the components of the Index: the ‘Family finances compared to a year ago’ sub-index fell by 5.3 percent. This component is now at its lowest level since June 2014 when respondents were shaken by the May Budget announcement.
However on that occasion the overall Index was much lower than we see today, indicating that, currently respondents are particularly concerned about their own finances. News from the December quarter national accounts that wage incomes had fallen by 0.5 percent is indicative of the source of these concerns. That news, of course, complemented other recent reports that wages growth had fallen to a record low of 1.9 percent.
Other components of the Index are less newsworthy. The ‘family finances, next 12 months’ sub-index fell 0.2 percent, the ‘economic conditions, next 12 months’ sub-index rose 1.6 percent; the ‘economic conditions, next 5 years’ sub-index rose 3.9 percent and the ‘time to buy a major household item’ sub-index dipped 0.1%.
Housing sentiment lifted in March. The ‘time to buy a dwelling’ index rose by 7.0 percent. However that increase only recovered the 7.8 percent fall in February. The recovery was mainly attributed to a sharp turnaround in Victoria where the state government has recently announced a range of new measures including abolishing stamp duty for first home buyers.
Despite this, the national index still seems to be drifting lower having fallen by 4.9 percent over the last year. That compares with the 13 percent fall we saw over the previous year. The Index is still around 25 percent higher than the deep lows we saw in the 2007/08 period.
<a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2010.52.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2010.52.35%20AM.png" alt="">
House price expectations continue to rise. The Westpac Melbourne Institute Index of House Price Expectations rose by 2.2 percent to be 26.7 percent above the level of a year ago.
Every quarter we also ask respondents for their preference for their savings. This can provide us with any evidence that consumers are becoming more or less risk averse. There was a notable shift in March with the proportion nominating ‘pay down debt’ jumping from 20.5 percent in December to 25.7 percent, and the proportion favouring real estate dropping to just 11.6 percent, a record low since we first started asking this question back in 1974. The moves indicate a clear increase in risk aversion.
The Reserve Bank Board next meets on April 4. The Bank will decide to keep rates on hold. Even though income growth and inflation are too low and there remains ample spare capacity in the labour market (unemployment rate of 5.7 percent compared to a ‘full employment‘ rate of around 5 percent) the Bank has no flexibility to cut rates. The evidence is clear that the rate cuts the Bank embraced last year in the face of low inflation fuelled house  prices and household leverage. The Bank is concerned about possible excesses in the housing market.
Markets accept the view that rates will remain on hold in 2017 but are pricing in at least two hikes from the Bank next year. We expect that growth in the economy will slow in 2018 as the residential construction boom unwinds. As we saw in today’s report households are concerned about their finances, largely because of weak income growth. This concern is unlikely to fade in 2018 appropriately constraining household spending and discouraging investment. That is no environment for higher rates. Accordingly, we expect rates will remain on hold throughout 2018 as well. 
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BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>. Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.
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Time to buy dwelling index rises 7 percent: Westpac's Bill Evans

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GUEST OBSERVER
The weekly ANZ/Roy Morgan consumer confidence rating fell by 4.4 percent in the past week from six-week highs.
The Performance of Construction index rose by 5.4 points to 53.1 in February. 
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<div class="column">To say that consumer confidence is somewhat fluky at present is probably an under-statement. In late February, consumer confidence was at six-week highs and up 7 percent over the year. A week later and confidence is back down, and almost 1 per cent lower than a year ago.</div>
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 Domestic politics, Donald Trump, petrol prices, interest rate expectations and a lower Australian dollar are all influencing consumer sentiment. It is a little surprising given that economic data and company earnings results have been very good, but confidence has presumably softened in the past week. It is hard to read much into it. Expect the sideways trend for confidence to continue. The construction gauge can be volatile. And that is understandable given that engineering and housing activity have tended to move in opposite directions in recent times. And clearly construction activity varies markedly from state to state. Still, it is encouraging that manufacturing and construction gauges are both above 50, signifying expansion.
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Screen%20Shot%202017-03-07%20at%2011.55.33%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/07/Screen%20Shot%202017-03-07%20at%2011.55.33%20AM.png" alt="">
What do the figures show?
Consumer sentiment
The weekly ANZ/Roy Morgan consumer confidence rating fell by 5.2 points (4.4 percent) to 113.9 in the week to March 5. Confidence is down 0.8 percent over the year but above the average of 113.3 since 2014. </div>
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 Only one component of the index rose in the latest week: <ul>
<li> The estimate of family finances compared with a year ago was down from +11 to +1;</li>
<li> The estimate of family finances over the next year was down from +34 to +26;</li>
<li> Economic conditions over the next 12 months was up from +5 to +6;</li>
<li> Economic conditions over the next 5 years was down from +7 to +6;</li>
<li> The measure of whether it was a good time to buy a major household item was down from +40 to +31:</li>
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  The reading of inflation expectations two years ahead fell from 4.7 per cent to 4.4 per cent. But inflation expectations have now held above 4 per cent for the past 12 weeks.
Performance of Construction
Following four months of decline, the Ai Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) lifted by 5.4 points to 53.1 in February. It was the highest Australian PCI® reading since mid-2016 (readings below 50 indicate contraction in activity, with the distance from 50 indicating the strength of the decrease).</div>
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 While apartment building activity contracted for a sixth consecutive month (down 0.4 points to 46.1), house building recorded a strong resurgence (up 10.7 points to 60.9 – its highest rate since June 2016).</div>
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 Stronger conditions were also evident in commercial (up 6.1 points to 53.6) and engineering construction (up 11.1 points to 53.9), with both sub-sectors lifting into positive territory after declines of five and four months respectively. Pressure from rising wages (up 2.8 points to 63.0) and input prices (up 10.5 points to 76.1) is partially being passed on, with the selling prices sub-index increasing slightly by 0.7 points to 56.0, but profit margins remain under pressure amid a highly competitive tender pricing environment. “
What is the importance of the economic data?
The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank. The Australian Industry Group and Housing Industry Association release the Performance of Construction Index (PCI) each month. The PCI is useful not just in showing how the construction sector is performing but in providing some sense about where it is heading. The key ‘forward looking’ components are orders and employment.
What are the implications for interest rates and investors?
The Reserve Bank monitors consumer confidence but it is unlikely that it is taking away much of consequence at present. But the construction data was positive, adding to similar trends for other indicators on the economy.</div>
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 The Reserve Bank will maintain a “neutral stance”. It is still too early to talk of rate hikes.</div>
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<div class="column">Watch the inflationary trends in construction – especially home building. </div>
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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Fluky winds for Aussie consumers: Craig James

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Houses in Canberra are on the decline with homes in Mackay, Townsville and Gladstone at the bottom of the market according to the March property clock from Herron Todd White.
Houses in Coffs Harbour, Newcastle and the NSW Central Coast are top the market. 
Apartments in Canberra are currently at the bottom of the market.
<a href="https://www.propertyobserver.com.au/images/2017/03/5/Screen%20Shot%202017-03-05%20at%201.26.51%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/5/Screen%20Shot%202017-03-05%20at%201.26.51%20pm.jpg" alt="">
Property Observer found this four bedroom home,<a href="https://www.realestate.com.au/property-house-act-amaroo-124752410" target="_blank"> 90 Burdekin Avenue, Amaroo</a>, (above) on the market with a price guide of $598,000.
Another four bedroom home, <a href="https://www.realestate.com.au/property-house-act-nicholls-124631274" target="_blank">6 Waine Place Nicholls</a>, (below) is on the market expecting offers over $769,000.
<img src="https://www.urban.com.au/images/2017/03/07/Screen%20Shot%202017-03-07%20at%209.35.02%20AM.png" alt="">
 
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Canberra house market in decline: HTW's March 2017 property clock

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The Victorian government has come out with a package that encourages potential first home buyers to get into the market.
It has come up with a "HomesVic”, a pilot programme in which 400 people will get a chance to co-purchase a home with the government, which will take an equity share of up to 25 percent and get its money back (plus price growth) when the property is eventually sold. 
The programme is aimed at couples earning up to $95,000 a year and singles earning up to $75,000. 
The changes are likely to be welcomed given the growing number of people who are finding it more hard than ever to get into the housing market.
Treasurer Tim Pallas said that the changes are an "important step towards ensuring today's families and future generations will be able to afford somewhere to live".
The state government will also contribute $5 million to Buy Assist, a community-sector based shared equity scheme.
This is modelled, according to reports, on a scheme recommended to prime minister John Howard in 2003 but never adopted.
The $50 million pilot scheme, HomesVic, will target first home buyers who are able to meet regular mortgage repayments, but because of rising rental costs, haven’t been able to save a big enough deposit.
Under the scheme, to be introduced in January 2018, HomesVic will co-purchase up to 400 homes, taking an equity share of up to 25 percent in these properties.
It will be available for both new and existing homes.
By allowing homebuyers to purchase less than 100 percent of the property, they will require a smaller deposit and are able to enter the market sooner. 
Eligible applicants will include couples earning up to $95,000, and singles earning up to $75,000.  
Buyers will need to have a 5 percent deposit.
The pilot will be tested across the state, and when the properties are sold, HomesVic will recover its share of the equity.
To further improve buyers’ chances of owning their own home, the Labor Government will also contribute $5 million to a national, community sector, shared equity scheme, Buy Assist.
With similar goals to HomesVic, Buy Assist will help deliver an additional 100 shared equity homes and help low to medium income households get a foothold in the property market.
The Government is also set to give first home buyers priority in government-led urban renewal developments, with at least 10 percent of all properties allocated to first time buyers.
This approach will be used for the first time at the Arden development.
The plan to develop the 56 hectare site Arden, (pictured above) announced by the Labor Government last year, could be home to around 15,000 people. Under this policy 1,500 of those could be first home buyers.
The Government will also consult with first home buyers, industry and the community about the design and implementation of measures to support first home buyers in private developments, especially those close to jobs and transport.
Artist’s impression of Arden central above.
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Victoria government to co-own with first time home buyers in pilot project

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Quite surprising that nothing has been said when last Friday, the Australian government debt ticked just over $475 billion.
For the last twelve months, the government on average has been borrowing $6.35 billion each month, so what happens when they hit the debt ceiling of $500 billion? Will that then bring an end to Australia’s prized membership of the AAA – rated club?
Standard &amp; Poor’s, Moody’s and Fitch have just 9 countries in the AAA club – Australia, Canada, Denmark, Germany, Luxembourg, Norway, Singapore, Sweden and Switzerland. Should our membership be revoked that would mean that borrowing costs would increase overnight, which is not a good sign for the Australian economy. The Australian Taxation Office (ATO) currently estimates that Australian small businesses currently owe $13 billion in unpaid tax debts. Obviously, there is no impact on existing debt although when it comes time to refinance then that would be an entirely different story.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.03.18%20AM.png" target="_blank">Click to enlarge</a>
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With the federal government recently weighing into the housing affordability debacle there are two things that I would immediately implement to critique our housing markets.
The ATO has taken over responsibility for being Australia’s biggest property manager so land banking must be the first point of call. It is estimated that Sydney now has well over 100,000 permanently vacant apartments so they should be rented out to ease the rental crisis. Look at the lost revenues the ATO is missing out on with these land banked properties, where the clear majority are owned by overseas investors. Land banking in Australia must be outlawed.
Reverse the ridiculous off-the-plan ratio back to 50 percent from 100 percent to overseas buyers. We are now going into the ninth year of 100 percent and the only clear impact we are seeing is that foreign investors have become a most dominant player. In 2016, Chinese developers acquired almost 40 percent of the Australian residential sites that were offered to the marketplace. All these properties are offered exclusively to Asia and these properties are not available for local buyers. Reducing the ratio back to 50 percent would have a big impact on housing affordability.
 
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.04.36%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.04.36%20AM.png" alt="">
A recent survey by Roy Morgan Research found that approximately 7 per cent of Australian mortgage holders have little or zero equity in their homes in the twelve months to October 2016. That would equate to approximately 300,000 properties across Australia. Western Australia has the highest number with 54,000, followed by South Australia with 27,000, Queensland with 63,000, Melbourne has 50,000, Victoria has 65,000, NSW has 73,000 and Sydney has 33,000. Tasmania came in with 5,000 – these are concerning numbers when you consider the east coast has enjoyed unprecedented capital appreciation.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.05.32%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/20/Screen%20Shot%202017-02-20%20at%209.05.32%20AM.png" alt="">
Since 2009, Sydney home values have doubled and Melbourne have climbed 85 percent. In 2011, less than 10 percent of investors held multiple investment properties, according to Digital Finance Analytics. This has now grown to 16 percent nationally, and on the east coast multiple investment properties is now approximately 18 percent.
Really makes one wonder, just what data our elected politicians and policy makers are actually looking at or quite possibly, they don’t even understand this data?
The most recent data from CoreLogic shows that the rental yields in Sydney and Melbourne are on the decline. For Sydney, houses yield is 2.8 percent and units are 3.8 percent. In Melbourne, houses are 2.7 percent and units are 4.0 percent. It will be most interesting to see just how low these yields will go with all the new developments entering the market. It is quite clear that investors have been enjoying the unprecedented capital growth over rental yields in Sydney and Melbourne, although this is about to change.
With very few alternate investment opportunities, we don’t at this particular point in time expect to see investors retreating out of the market, although we do expect to see carnage in the CBD markets. This should not come as a great surprise as these markets have introduced thousands and thousands of new apartments, and many suburbs have constructed less than one hundred new apartments.
Whatever the case, if you like watching real estate machinations 2017 will keep you highly entertained.
To add to this, the Commonwealth Bank advised mortgage brokers this week, that from February 13, it will cease accepting refinancing applications for investment home loans. Will the other major lenders then follow suit?
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
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