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


Joel Robinson

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

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


Raptis secures prime Surf Parade site for next Broadbeach apartment development

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


Gardner Vaughan Group tops out Bask Bokarina apartments

<p>Prolific Melbourne developer <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> has launched its fourth new Gold Coast development in as many years.</p>

<p><a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a>, led by Daniel Faigen and backed by Eddie Hirsch, co-founder of United Petroleum, has unveiled The Eveleigh, on a prime 1,100 sqm site at 7-9 Surf Parade in the heart of Broadbeach.</p>

<p><a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a> will deliver 100 apartments across 31 levels, making it the company’s largest Gold Coast project to date. It builds on the success of its three earlier developments, <a href="https://www.apartments.com.au/buildings/hemingway-1267-1273-gold-coast-highway-palm-beach">The Hemingway in Palm Beach</a> and <a href="https://www.apartments.com.au/buildings/emerson-kirra-100-musgrave-street-coolangatta">The Emerson at Kirra</a>, both completed, and <a href="https://www.apartments.com.au/new-apartments/yves-mermaid-beach-7-9-mermaid-avenue-mermaid-beach">Yves Mermaid Beach</a>, which is nearing completion.</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360966]</p>

<p>The announcement of The Eveleigh affirms the company’s sustained confidence in the Gold Coast market which continues to remain undersupplied. It also increases the value of Hirsch &amp; Fa​igen’s Gold Coast development portfolio to more than $700 million since the company first entered the market in 2021 with Hemingway.</p>

<p>The company has enlisted its preferred architecture firm Rothelowman to design The Eveleigh, which will offer a thoughtfully curated lifestyle, including a substantial wellness precinct, communal recreation areas, children’s play spaces, work-from-home facilities, and shared lounge and dining areas.</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360965]</p>

<p>Designed for the prime market demographic of downsizers and interstate lifestyle investors in mind, The Eveleigh has been crafted to offer an increasingly rare blend of affordable luxury in a tightly held market. Uniquely positioned in the heart of the Gold Coast’s most sought-after lifestyle suburb of Broadbeach, the project will also boast uninterrupted beach and hinterland views.</p>

<p>The Surf Parade site is just a short walk to the bustling Broadbeach dining and retail precinct, Pacific Fair, The Star Gold Coast and convention centre, and an easy stroll to Kurrawa Beach and the recreational amenity of Pratten Park on the Broadbeach foreshore.</p>

<p>[smartcode_project:default project_id=149670 project_image_fid=360975]</p>

<p>“We’re excited to be proceeding with our fourth project on the Gold Coast in what is certain to become the new luxury precinct in Broadbeach,” says Anthony Bueti, the CFO of Hirsch &amp;a​mp; Faigen and a shareholder of the group.</p>

<p>“With the likes of Mosa​ic and Abedian &amp;a​mp; Co also launching quality projects in the area, the transformation will cement Broadbeach as the premier lifestyle and amenity suburb on the Gold Coast.</p>

<p>"After four years in the Gold Coast market, and with three successful projects completed, The Eveleigh is the product of everything we have learned to love about the Gold Coast and it will be an incredible addition to our growing portfolio in one of the most vibrant property markets in the country. We continue to remain very confident in the high-end Gold Coast property market.”</p>

<p>Urban Activation Director Matt George is handling sales for The Eveleigh, having sold out The Emerson, The Hemingway, and Yves, all before construction was completed.</p>

<p>Melbourne builder MAXCON has already commenced construction on The Eveleigh. They are forecasting a mid-2028 completion.</p>

<p>[smartcode_project_cta:default project_id=149670]</p>


Hirsch & Faigen unveils The Eveleigh in Broadbeach

<p data-end="303" data-start="0">Two years after securing development approval for the final stage of its award-winning Thornton Precinct on the doorstep of Penrith Station, Urban Property Group is set to launch <a href="https://www.apartments.com.au/new-apartments/mayfair-on-penrith-172-lord-sheffield-circuit-penrith-nsw-2750">Mayfair on Penrith</a>, around 400 apartments designed to reflect two of Sydney’s most iconic structures.</p>

<p data-end="556" data-start="305">The builder-developer has continued refining the design plans for the two-building development on a significant 8,280 sqm site on Sheffield Circuit, recognising the importance of the prime parcel as one of the closest developable sites to the station.</p>

<p data-end="926" data-start="558">UPG enlisted architecture firm SJB to design the project. The team said they drew inspiration from both the General Post Office in Martin Place and East Circular Quay to help shape the design. The two-level colonnade, in particular, reflects the famous GPO building, which dates back to the 1860s.</p>

<p data-end="998" data-start="928">[smartcode_project:default project_id=136726 project_image_fid=362014]</p>

<p data-end="1361" data-start="1000">There will be one-, two-, and three-bedroom apartments on offer, with interiors by Cox Architecture. Residences will sit above a retail podium featuring hospitality and lifestyle operators such as One Playground and Volcano’s Steakhouse, contributing to an activated ground plane within the broader Thornton precinct.</p>

<p data-end="1787" data-start="1363">A communal rooftop with a pool and views towards the Blue Mountains will provide shared open space for residents. The development is positioned between Ron Mulock Oval and Westfield Penrith, with the Nepean River and Great River Walk also nearby, placing daily amenity and green space within walking distance.</p>

<p data-end="1859" data-start="1789">&nbsp;</p>

<p data-end="1859" data-start="1789">[smartcode_project:default project_id=136726 project_image_fid=362015]</p>

<p data-end="2229" data-start="1861">Mayfair is being delivered by Urban Property Group, a family-owned developer and builder with nearly 40 years’ experience across Sydney. The project will be the first in Penrith to be offered with Resilience Insurance’s 10-year Latent Defects Insurance (LDI) policy, which Urban Property Group has adopted across a number of its recent developments. The developer also has a 4.5-star iCIRT rating, one of the best ratings in market providing further confidence to buyers.</p>

<p data-end="2389" data-start="2231">Urban Property Group CEO Patrick Elias said providing additional assurance to off-the-plan buyers has become increasingly important.</p>

<p data-end="2510" data-start="2391">“Anything we can do to give confidence in our product is a plus,” Elias told Apartments.com.au.</p>

<p data-end="2750" data-start="2512">“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. They’re making their single large investment, which is their home, and providing confidence is something that we feel is paramount.”</p>

<p data-end="2822" data-start="2752">[smartcode_project:default project_id=136726 project_image_fid=362020]</p>

<p data-end="3016" data-start="2824">The LDI policy provides a 10-year warranty covering structural defects, with independent inspections carried out during construction and protection for owners if defects arise post-completion.</p>

<p data-end="3178" data-start="3018">Mayfair represents Urban Property Group’s sixth and final development within Thornton, consolidating the masterplanned precinct immediately east of the station.</p>

<p data-end="3333" data-start="3180">The developer, which builds its own projects, has already commenced construction. SRM Residential is handling the sales campaign.</p>

<p data-end="3384" data-is-last-node="" data-is-only-node="" data-start="3335">[smartcode_project_cta:default project_id=136726]</p>


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

Housing Price

<html><body>
<h3 class="post-title entry-title"><a href="https://petewargent.blogspot.com.au/2015/09/house-prices-rise-in-august"></a></h3>
<div>The Reserve Bank released its latest Chart Packs to 27 August, which showed that on a national basis house price growth has steepened.</div>
<h3 class="post-title entry-title"><a href="https://petewargent.blogspot.com.au/2015/09/house-prices-rise-in-august"></a></h3>
<div>This data is now presented on a log scale, which is just as well since Sydney prices were heading up almost vertically when presented on a linear scale.</div>
<h3 class="post-title entry-title"><a href="https://petewargent.blogspot.com.au/2015/09/house-prices-rise-in-august"></a></h3>
<div>Brisbane is finally now joining Sydney and Melbourne by shaping in an upwards trajectory.</div>
<div> </div>
<div><a href="/images/2015/09/04/6bl-houspri-small.gif" target="_blank">Click to enlarge</a></div>
<p><img src="/images/2015/09/04/6bl-houspri-small.gif" alt=""></p>
<p><em>CoreLogic-RP Data</em><span> also </span>released<span> its price indices for August 2015 over the last week.</span></p>
<div>Over the past quarter house prices have soared in Sydney (+7.4 per cent), Melbourne (+8.0 per cent) and Brisbane (+2.2 per cent).</div>
<div> </div>
<div>On the other hand, on a quarterly basis house prices declined in Adelaide, Perth, Canberra and Darwin.<br><br>Regional house prices in aggregate also declined over the past quarter.</div>
<div> </div>
<div><a href="/images/2015/09/04/RPD3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/09/04/RPD3.jpg" alt=""></div>
<div> </div>
<div>
<div>On Twitter, Cameron Kusher of the same company updated his chart of home values since December 2008, which underscores the importance of capital growth to investors.</div>
<div> </div>
<div>While it was possible for investors to find a positive cash flow in Hobart back in 2008, since that time home values have been stone dead flat in the Tasmanian capital, while Sydney prices have burned up by 76.4 per cent.</div>
<div> </div>
<div>Brisbane appears most likely to be the next to go over just 9 per cent growth in home values since 2008.</div>
<div> </div>
<div>Click to enlarge</div>
<div><img src="/images/2015/09/04/RPD1.png" alt=""></div>
<div> </div>
<div><span>Looking at the split between house and unit price growth we can see that Sydney unit values exploded 9.2 per cent higher over the last 3 months (this had been evident for quite some time at auctions, and the index probably lags) as affordability constraints related to detached houses bites.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/09/04/RPD2.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
<div><span><img src="/images/2015/09/04/RPD2.jpg" alt=""></span></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>
</div>
<div> </div>
</body></html>

pwargent-M4siyDbqQY

House prices rise in August: Pete Wargent

<html><body>
<p>Realestateview.com.au is now offering a new tool to home owners and seekers that can, they claim, provide an accurate dollar value on their home </p>
<p>By partnering with CoreLogic, Australia’s leading property data provider, <a href="https://realestateview.com.au/" target="_blank">realestateview.com.au</a> has further developed its first-to-market 'Price Estimator' which provides property owners and property seekers with instant price value ranges.</p>
<p>Every address searched has a range of property data and demographic information relevant to the suburb where that property is located. G</p>
<p>“Over 40 percent of people visiting our site every month engage with a Price Estimator page. It’s extremely popular, and now with the experience being powered by CoreLogic, there’s even more reasons for consumers to rely on our site for address-level property insights and data,” said Toby Balazs, realestateview.com.au CEO.</p>
<p>“Being the number three property portal in Australia, realestateview.com.au is focused on delivering new and value adding experiences to keep our property-obsessed audience engaged with the site."</p>
<p>“The great thing about CoreLogic is that people know and trust the data, it’s referenced everywhere and in our industry, it has a reputation for quality and accuracy,” he went on to say.</p>
</body></html>

j.ballantyne1990-6AQqhLzZaK

RealEstateView partners with CoreLogic to release new property price estimator

<html><body>
<div>House prices across Australia are tipped to grow in the next three years, with the exception of Sydney and Melbourne where they will continue falling in 2019, according to QBE’s Australian Housing Outlook 2018-2021.</div>
<div> </div>
<div>It reveals that over the next three years house prices are set to rise in Adelaide by 12.4 per cent, in Brisbane by 11.3 per cent, Canberra by 10.4 per cent, Hobart by 7.9 per cent, Darwin by 6 per cent and Perth 5 per cent after several years of stagnant conditions. </div>
<div> </div>
<div>Providing a 12-month window for first home buyers to pursue the Great Australian Dream, the primary drivers for a strengthening property market in these capital cities are affordability, increased demand and improving economic conditions. </div>
<div> </div>
<div>The report has been quickly labelled "<span>delusional reading."</span>
</div>
<div> </div>
<div>QBE Lenders’ Mortgage Insurance (LMI) CEO, Phil White, said the surge in first home owner lending proved the Great Australian Dream of home ownership was alive.</div>
<div> </div>
<div>“We haven’t seen the first home buyer market this strong since the Australian Government’s 2008 stimulus plan following the Global Financial Crisis, which saw $1.5 billion allocated to first home buyers,” Mr White said. </div>
<div> </div>
<div>“The increases in the volume of first home buyers has been supported by improvements in affordability and first home buyer incentives. </div>
<div> </div>
<div>“Record low interest rates in recent years had seen a surge in investor lending, but this year’s report shows investor lending scaling back, which should also provide further room for first home buyers over the next couple of years.</div>
<div> </div>
<div>“Lenders’ responses to regulatory restrictions have contributed to the softening of the market.  State government incentives have encouraged first home buyers to enter the market after several years of being pushed out by domestic and foreign investors.”</div>
<div> </div>
<div> </div>
<div>Adelaide is forecast to see the strongest growth of any capital city in the country, continuing its steady growth trajectory, but outpacing all other capital cities over the next three years.</div>
<div> </div>
<div>The outlook is less rosy for apartment owners, with unit prices set to fall in Brisbane by 5.1 per cent, Darwin by 4.5 per cent, Sydney by 3.1 per cent and Melbourne by 2.1 per cent. </div>
<div> </div>
<div>This is due to weaker demand from investors and an increase in supply of apartments. </div>
<div> </div>
<div>“We anticipate foreign investment will further dampen in coming years owing to a number of factors such as increased approval fees, stamp duty and land tax surcharges, as well as tighter capital controls from foreign governments, most notably China, which have impacted how much money they can take out of their country,” Mr White said.</div>
<div> </div>
<div>Over the next three years, the overall housing market will be supported by strong population growth, with net overseas migration forecast to remain high in the long-term, averaging 220,000 per annum over three years to 2020-2021, significantly higher than the prior 20-year average of 183,000 per annum. </div>
<div> </div>
<div>This growth will underpin demand for new dwellings and help meet the high level of new supply coming online in some markets. </div>
<div> </div>
<div><a href="https://www.qbe.com.au/lmi/news/reports/housing-outlook"> </a></div>
<div><span class="qbe-sub-heading">State-by-state highlights of the QBE Housing Outlook 2018-2021</span></div>
<p><span class="qbe-section-heading">Sydney</span></p>
<ul>
<li>Sydney’s house prices are expected to fall in the beginning forecast period and end up 1.2% lower to be at $1,090,000. </li>
<li>The unit market is expected to fall even further for Sydney with a forecast drop of 3.1% to 2021 to reach $745,000. </li>
<li>Affordability and first home buyer incentives are expected to continue to underpin first home buyer activity</li>
<li>After seeing the strongest price growth in the 12 months prior, Sydney’s inner and middle ring suburbs have seen the largest fall in prices over 2017/18 (falling by 8.1% and 10.6% respectively).</li>
<li>Outer Sydney saw a more moderate decline of 2.8% over the same period, which was likely supported by its relative affordability appealing to first home buyers.</li>
</ul>
<p><span class="qbe-section-heading">Melbourne</span></p>
<ul>
<li>Housing market prices to fall in Melbourne, with house prices expected to drop by 2.5% to $835,000 by June 2021. By means of comparison, Sydney house prices are expected to fall by 1.2% to June 2021.</li>
<li>Unit prices are also expected to decline 2.1% to $545,000 in Melbourne.</li>
<li>Continued population growth is expected to absorb some of the excess supply of units.</li>
</ul>
<div><span class="qbe-section-heading">Brisbane</span></div>
<ul>
<li>House price growth will continue and be 11.3% higher to $615,000 by June 2021. This is more growth than Canberra (10.4%), Hobart (7.9%), Darwin (6.0%) and Perth (5.0%). Only Adelaide (12.4%) is expected to outperform Brisbane house prices. </li>
<li>Oversupply of units will continue to put downward pressure on rents and prices of units to decline by 5.1% to $405,000. This is the greatest expected decline of all capital cities. </li>
<li>Greater competition for tenants of inner-city apartments is forecast to cause investors to lower rents to try to draw tenants from houses and more affordable city fringe locations. </li>
</ul>
<p><span class="qbe-section-heading">Perth</span></p>
<ul>
<li>Overall, the Perth market is expected to be at or near the bottom with houses and units expected to experience some growth in price to June 2021. House price growth in Perth will beat Sydney and Melbourne but underperform compared to Adelaide, Brisbane, Canberra, Hobart and Darwin. </li>
<li>Dwelling surplus in Perth looks set to remain in place for some time. </li>
<li>The forecast median house price of $550,000 at June 2021 will represent cumulative growth of 5% over the next three years, with unit price forecast to rise 3.7% to $405,000.</li>
</ul>
<p><span class="qbe-section-heading">Adelaide</span></p>
<ul>
<li>Adelaide is expected to record similar house price growth as the last three years and is forecast to grow by 12.4 per cent over the next three years, the highest of any Australian capital city. </li>
<li>Median unit prices are projected to rise by a slightly lower 6.3 per cent, making Adelaide the second strongest unit market after Hobart’s 9.3 per cent. </li>
<li>These positive forecasts can be attributed to Adelaide’s ongoing market affordability, coupled with low interest rates, despite South Australia’s generally depressed conditions. </li>
</ul>
<p><span class="qbe-section-heading">Canberra</span></p>
<ul>
<li>Growth in house prices forecast with median house price to increase 10.4% to reach $745,000. This is more than growth forecast for Sydney, Melbourne, Hobart, Darwin and Perth. </li>
<li>Unit price is forecast to reach $465,000, a cumulative rise of 5.9% to 2021. </li>
<li>Conditions in the house market in Canberra are expected to remain largely positive, driven by population growth, an undersupply of houses and strong employment prospects. </li>
</ul>
<p><span class="qbe-section-heading">Hobart</span></p>
<ul>
<li>Hobart’s median house price forecast to rise to $520,000, reflecting growth of 7.9% to 2021.</li>
<li>Median unit price in Hobart forecast to reach $420,000 at June 2021; a cumulative rise of 9.3%. </li>
<li>An undersupply of housing and better affordability relative to other capital cities is expected to continue to influence the property market</li>
<li>While all other states across the country saw declines in the value of investment loans, Tasmania’s strong capital gains in recent years meant it was the only state to see increased investor lending, of 9.7 per cent. </li>
</ul>
<p><span class="qbe-section-heading">Darwin</span></p>
<ul>
<li>This trend is expected to recover with house prices forecast to grow 6.0 per cent over the next three years.  </li>
<li>Unit prices are expected to fall 4.5 per cent over the same period. </li>
</ul>
<p><span class="qbe-sub-heading">State-by-state house price forecasts</span></p>
<p><span class="qbe-sub-heading"><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/2018/10/25/QBE%20HOUSE%20.jpg" alt=""></span></p>
<p><span class="qbe-sub-heading"><span>State by-state unit price forecasts</span></span></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/25/QBE%20UNITS.jpg" alt=""> </p>
<p><span class="qbe-section-heading"> </span></p>
</body></html>

Great Australian dream once again within first home buyer reach: QBE suggest

<html><body>
<p>GUEST OBSERVER</p>
<p>The Sydney and Melbourne property markets have hotted up again and high house prices and household debt leave Australia vulnerable. But a property crash remains unlikely.</p>
<p>Expect average home prices to fall 5-10% once an interest rate tightening cycle gets underway in 2018-19. Sydney and Melbourne unit prices are most at risk.</p>
<p>More macro prudential measures to slow property demand are likely on the way. Alleviating poor affordability over the long term is best addressed by boosting supply. </p>
<p>The cooling in the Sydney and Melbourne property markets evident in late 2015 in response to macro prudential tightening deployed by APRA has proved ephemeral. Price gains have reaccelerated and auction clearance rates &amp; lending to property investors have rebounded. Over the last five years Sydney dwelling prices have risen a ridiculous 73 percent and Melbourne prices are up 47%. As a result the Australian housing market continues to cause much angst around poor affordability and high household debt. This note looks at the main issues. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2012.57.38%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2012.57.38%20PM.png" alt=""></p>
<p>Is Australian housing overvalued?</p>
<p>On most measures Australian housing is overvalued:</p>
<p>On the basis of the ratio of house prices to rents adjusted for inflation relative to its long term average Australian houses are 39% overvalued and units 13% overvalued.</p>
<p>According to the 2017 Demographia Housing Affordability Survey the median multiple of house prices in cities over 1 million people to household income is 6.6 times in Australia versus 3.9 in the US and 4.5 in the UK. In Sydney it’s 12.2 times and Melbourne is 9.5 times.</p>
<p>The ratios of house prices to incomes and rents are at the high end of OECD countries. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2012.58.38%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2012.58.38%20PM.png" alt=""></p>
<p>Why is it so expensive and household debt so high?</p>
<p>There are two main drivers of the surge in Australian home prices over the last two decades. First, the shift from high to low interest rates has boosted borrowing and hence buying power. This has taken Australia’s household debt to income ratio from the low end of OECD countries 25 years ago to the top end. Second, there has been an inadequate supply response to demand. The following chart shows a cumulative shortfall relative to underlying demand had built up by 2014 and is still yet to be worked off despite record construction lately. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2012.59.35%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%2012.59.35%20PM.png" alt=""></p>
<p>Consistent with this, while vacancy rates have increased they have only increased to around average long term levels. In Sydney vacancy rates are below average.</p>
<p>What about investors and foreign buyers?</p>
<p>A range of additional factors may be playing a role in accentuating demand beyond that implied by population growth. These include negative gearing and the capital gains tax discount, foreign buying and SMSF buying. Negative gearing is just part of the normal operation of the Australian tax system.</p>
<p>However, the interaction with the capital gains tax discount by enhancing the after tax return available to property investment may be resulting in higher investment activity than would otherwise be the case. This may particularly be the case when past property price gains have been strong encouraging investors to think future gains will be too. While commitments to lend to property investors slowed in 2015 after APRA tightened macro prudential controls, this has since worn off. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%201.00.29%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%201.00.29%20PM.png" alt=""></p>
<p>Foreign buying is likely also impacting – with indications that it is around 10-15 percent of demand – but it is also concentrated in particular areas and SMSF buying appears to be relatively small. But like lower interest rates, all of these should have a less lasting impact if the supply response was stronger.</p>
<p>Is a crash likely?</p>
<p>The surge in prices and debt has led many to conclude a crash is imminent. But we have heard that lots of times over the last 10-15 years. In 2004, The Economist magazine described Australia as “America’s ugly sister” thanks in part to a “borrowing binge” and soaring property prices. Most recently the OECD has warned of the risks of a property crash. However, the situation is not so simple:</p>
<p>Firstly, we have not seen a generalised oversupply and at the current rate we won’t go into oversupply until 2018 and in any case approvals suggest supply will peak this year.</p>
<p>Secondly, mortgage stress is relatively low and debt interest payments relative to income are around 2003-04 levels.</p>
<p>Thirdly, lending standards have not deteriorated like they did in other countries prior to the GFC. In recent years there has been a reduction in loans with high loan to valuation ratios and interest only loans are down from their peak.</p>
<p>Finally, generalising is dangerous. While prices have surged in Sydney and Melbourne, they have fallen in Perth to 2007 levels and seen only moderate growth in other capitals.</p>
<p>To see a general property crash – say a 20 percent plus average price fall - we need to see one or more of the following: a recession - which looks unlikely; a surge in interest rates - but rate hikes are unlikely until 2018 and the RBA will take account of the greater sensitivity of households to higher rates; and property oversupply – this would require the current construction boom to continue for several years. However, the risks on the supply front are high in relation to apartments.</p>
<p>What can be done to fix it?</p>
<p>Recent RBA commentary strongly hints that more macro prudential measures to tighten lending standards are on the way. These could include a further lowering in the 10% growth cap on the stock of lending to investors and tougher debt serviceability tests. This is in part about reducing the risks to financial stability when it’s too early to consider raising rates.</p>
<p>More fundamentally, policies to help address poor housing affordability should focus on boosting new supply, particularly of standalone homes which have lagged. This includes relaxing land use restrictions, releasing land faster, speeding up approval processes and encouraging greater decentralisation. This is largely a state issue. Policies designed to make better use of the existing housing stock (eg, by relaxing constraints on empty nesters downsizing) could also help. </p>
<p>Policies that are unlikely to be successful include increased first home owner grants (as in periods of high demand they just result in higher prices) and allowing first home buyers to access to their super (again this will just result in even higher prices unless supply is fixed before and will mean less in retirement).</p>
<p>Tax reform should ideally be part of the package and include replacing stamp duty with land tax (again a state issue), removing the capital gains tax discount that is a distortion in the tax system and lower income tax rates to discourage use of negative gearing as a tax avoidance strategy. Piecemeal cuts to stamp duty targeted at FHBs will just result in higher home prices. Abolishing negative gearing would just inject another distortion in the tax system and could adversely affect supply (although I can see a case to cap excessive benefits).</p>
<p>What is the outlook?</p>
<p>Generalised price falls are unlikely until the RBA starts to raise interest rates again and this is unlikely until later in 2018, which after a few hikes will likely trigger a 5-10% pullback in property prices as was seen in the 2009 &amp; 2011 cycles:</p>
<p>Sydney &amp; Melbourne having seen big gains are most at risk.</p>
<p>Prices are likely to fall further in Perth and Darwin this year, but they are close to bottoming and should rise next year.</p>
<p>The other capitals are likely to see continued moderate growth this year and a less severe down cycle around 2019.</p>
<p>But units are at much greater risk given surging supply and this could see unit prices in parts of Sydney &amp; Melbourne fall by 15-20 percent as investor interest fades as rents falls.</p>
<p>What are the risks to the economy?</p>
<p>Slowing momentum in building approvals points to a slowdown in the dwelling construction cycle ahead. This combined with a slowing wealth affect from rising home prices means that the contribution to growth from the housing will slow. However, as this is likely to coincide with a fading in the detraction from growth due to falling mining investment and higher commodity prices it’s unlikely to drive a slowing in the economy. However, a likely decline in rents (as the supply of units hits) will constraint inflation helping keep interest rates low for longer. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%201.01.58%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/03/15/Screen%20Shot%202017-03-15%20at%201.01.58%20PM.png" alt=""></p>
<p>A property crash would have bigger impact given the exposure of banks, but as noted above such a development is unlikely.</p>
<p>Implications for investors</p>
<p>While there is a strong long term role for residential property in investors’ portfolios at present their remains a case for caution. It is expensive on all metrics and offers very low net income (rental) yields of 2 percent or less. This leaves investors highly dependent on capital growth.</p>
<p>But it is dangerous to generalise. Apartments in parts of Sydney and Melbourne are probably least attractive. Best to focus on areas that have lagged behind.</p>
<p>Finally, investors need to allow for the fact that they likely already have a high exposure to Australian housing. As a share of household wealth it’s nearly 60%.</p>
<p class="p1"><span class="s1"><a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author"><em>SHANE OLIVER</em></a></span><span class="s2"><em> is head of investment strategy and economics and chief economist at </em><a href="https://www.ampcapital.com.au/home"><span class="s1"><em>AMP Capital</em></span></a><em> and is responsible for AMP Capital's diversified investment funds.</em></span></p>
</body></html>

soliver-smf6LQXgW9

Sydney, Melbourne property market hot, property crash unlikely: Shane Oliver

<html><body><div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Chief executive of McGrath estate agents John McGrath has said the Australian market is in different stages of recovery related to price ranges, with many metropolitan markets in the very early stages of their growth cycle - at best.</span></p>
<p><span>In the McGrath 2015 Report he noted the </span><span style="line-height: 1.3em;">Sydney and Melbourne have been the star performers with 62% and 32% growth respectively, since the GFC (2009-2015). </span></p>
<p><span style="line-height: 1.3em;">"However, if you look beyond the last few years and review growth </span><span style="line-height: 1.3em;">in both cities over the last decade, </span><span style="line-height: 1.3em;">it’s fair to say that longer term growth rates have not been as extraordinary. In fact, Australia’s two biggest cities both underperformed against their usual 10- year growth rates," he said.</span></p>
<p>"Looking around the country it’s just as clear that many other metropolitan markets are in the very early stages of their growth cycle at best – and in some instances as flat as the proverbial pancake. </p>
<p>"So if we drill down on Sydney, what seems to be driving this demand? It’s pretty straightforward"</p>
<p>There are five key drivers: </p>
<ol>
<li>
<p>Record low interest rates </p>
</li>
<li>
<p>Increased demand from small investors and SMSFs </p>
</li>
<li>
<p>An underlying shortage of property coupled with continued immigration </p>
</li>
<li>
<p>High demand from Chinese buyers </p>
</li>
<li>
<p>A stable economy (apart from a few recent economic tremors). </p>
</li>
</ol>
</div>
</div>
</div>
</div></body></html>

Housing Price

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Housing Price

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News