<p>Leeka Group has gone down the path of bringing a heightened level of wellness to its recently unveiled Melbourne apartment development, Comme Prahran.</p>

<p>It isn't in the form of a suite of amenities, given the building is more boutique in nature with just 32 apartments, but with clever inclusions designed to uplift their residents lifestyle.</p>

<p><a href="https://www.apartments.com.au/new-apartments/comme-prahran-182-194-commercial-road-prahran-vic-3181">Comme</a>, directly opposition the iconic Prahran Market on Commercial Road, has been designed by renowned architecture studio <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> and&nbsp;will introduce the first-of-its-kind multi-dimensional wellness offering, where physical, mental, social, environmental, and cultural well-being are embedded throughout.</p>

<p>“Prahran has long been a destination for culture, community and quality of life, and Comme builds on that in a deeply intentional way,” says Leeka Director, Chek Ming Cheng.&nbsp;</p>

<p>“This project introduces a new kind of urban sanctuary, one that adapts to individual definitions of wellness, whether that’s through nutrition, rest, movement, design or connection. Every space has been thoughtfully shaped to support the diverse rhythms of modern life."</p>

<p>[smartcode_project:default project_id=108413 project_image_fid=353544]</p>

<p>There will be a rooftop with a&nbsp;Zen garden designed by <a href="https://www.apartments.com.au/landscape-architect/plume-studio">Plume Landscape Architects</a>, offering&nbsp;a sensory experience that activates all five senses, an edible herb wall to taste, calming botanicals to smell, reflexology paths to feel, lush plantings to see and the gentle sounds of water and birdsong to hear.</p>

<p>Inside each residence, wellness is deeply personal, and Comme embraces this individuality with a suite of customisation options designed to enhance both health and lifestyle. Residents can tailor their homes with circadian lighting automation, supported by research linking it to improved well-being, better rest, and even longevity.&nbsp;</p>

<p>[smartcode_project:default project_id=108413 project_image_fid=353546]</p>

<p>Other add-ons residents can opt for include real-time air monitoring and purification systems, ensuring a cleaner, healthier environment, while blackout blinds help optimise sleep quality. Additionally, the option to include integrated smart home technologies and security measures with multiple controlled access points offers ease, convenience, and peace of mind, supporting day-to-day living and contributing to overall mental well-being.</p>

<p>Kitchens can be fitted with healthy cooking appliances such as steam ovens and taps for instant filtered, sparkling or hot water, while ensuites can be transformed into spa-style sanctuaries complete with steam showers, heated floors, rain heads, smart toilets, and sensor night lights to support restful sleep cycles. In the penthouse residence, further options include an outdoor spa for enhanced recovery and indulgence.</p>

<p>“Comme isn’t just about design, it’s about how space can support your day-to-day life," Chek added.</p>

<p>"Whether you like a steam shower, checking your indoor air quality, simply enjoying a quiet moment in the rooftop garden, or reflecting on the artworks in the building, wellness is part of your everyday routine, not an afterthought."</p>

<p>[smartcode_project:default project_id=108413 project_image_fid=353543]</p>

<p>The residences will feature open-plan layouts compliant with Better Apartment Design Standards (BADS), with floor-to-ceiling windows that maximise ventilation, natural light and thermal comfort. Finishes such as natural stones, timber flooring and low-VOC paints are complemented by facade design that filters dappled light and aids in thermal comfort.</p>

<p>Cera Stribley, Co-Founder, Domenic Cerantonio, said the first thing you notice is the light.</p>

<p>"Natural light floods the living spaces, casting a soft glow that instantly lifts your spirits. It's as if the outside world melts away, and you're cocooned in a peaceful oasis."</p>

<p>The gallery-style residential lobby will feature circadian-inspired lighting and artwork, while the ground-floor will offer retail and hospitality spaces.</p>

<p>The building’s mixed-use design fosters connection, with ground-floor retail and hospitality creating a vibrant, welcoming destination. These spaces are thoughtfully designed to enhance the precinct and bring it to life.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=108413 project_image_fid=353545]</p>

<p>Sustainability and environmental responsibility are integral to Comme Prahran’s DNA. All homes are gas-free and designed to a 7-star energy average, with double glazing, WELS-rated plumbing, and EV charging capabilities available. A light-coloured exterior has been chosen to minimise heat absorption, supporting thermal efficiency and reducing reliance on artificial cooling.</p>

<p>Honouring the cultural richness of Prahran, the project reimagines an Edwardian-era landmark, integrating its historic character into a contemporary architectural form. Art experiences will activate the residential and retail lobbies, and a dedicated artwork on the external eastern facade will enrich the building’s street presence, embedding it into the creative fabric of the neighbourhood.</p>

<p>&nbsp;</p>

<p>[smartcode_project_cta:default project_id=108413]</p>


Joel Robinson

Comme Prahran launches opposite Prahran Market

<p>Apartment developer Third.i has seen "overwhelming interest" in its recently unveiled new harbourside apartment project, The Rushcutters.</p>

<p><a href="https://www.apartments.com.au/new-apartments/the-rushcutters-51-57-bayswater-road-rushcutters-bay-nsw-2011">The Rushcutters</a>, which is being delivered in partnership with James Packer's NPACT, will comprise just 13 luxury two- and three-bedroom apartments.&nbsp;</p>

<p>Demand is predominantly coming from local downsizers.</p>

<p>[smartcode_project:default project_id=144646 project_image_fid=351903]</p>

<p>“We’ve been absolutely blown away by the level of interest in The Rushcutters,” said Luke Berry, Director and Co-founder Third.i Group.</p>

<p>“It’s clear that buyers are seeking more than just a place to live, they’re looking for a lifestyle upgrade. The ability to amalgamate apartments into expansive, whole-floor homes is a game-changer for downsizers who want space without the maintenance of a traditional house.”</p>

<p>The Rubinstein Group is marketing the project alongside Hume Residential and JLL.</p>

<p>“It’s no surprise that if you’re downsizing from a five-bedroom house in Bellevue Hill, for example, you want to maintain that sense of space and luxury when looking for your next home, "&nbsp;Gavin Rubinstein, Founder of The Rubinstein Group, said.</p>

<p>“The Rushcutters is a great fit. Amalgamating apartments to create a bespoke, whole-floor home is a natural progression for buyers who aren’t willing to compromise on size and/or quality.”</p>

<p>[smartcode_project:default project_id=144646 project_image_fid=351901]</p>

<p>Amalgamating apartments has become a common theme among high-end buyers across Third.i's portfolio including Muse in Potts Point, and Elevate Hume Place in Crows Nest, which set a Lower North Shore apartment record with the $15.1 million sale of an amalgamation of a penthouse and sub-penthouse.</p>

<p>“We’re witnessing a clear shift towards more amalgamations in a number of our projects across Sydney,” said Jason Fraser, Principal at Woods Bagot.</p>

<p>[smartcode_project:default project_id=144646 project_image_fid=351899]</p>

<p>“The ability to combine apartments is enabling buyers to create truly unique, house-sized residences with high-end finishes, and proximity to vibrant urban precincts. The desire to amalgamate apartments to bespoke, house-sized residences is becoming a defining feature of Sydney’s evolving luxury apartment market."</p>

<p>Due to the City of Sydney’s no net dwelling loss policy, Thirdi is only able to offer one level for amalgamation at The Rushcutters, combining two apartments into a single, expansive residence.</p>

<p>[smartcode_project_cta:default project_id=144646]</p>


The Rushcutters a "great fit" for downsizers

<p>Lower North Shore developer <a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a> has secured development approval for its ultra-luxury residential project on the <a href="https://www.apartments.com.au/new-apartments/34-burran-avenue-mosman-nsw-2088">dress circle Burran Avenue</a>.</p>

<p>The project, just&nbsp;50 metres from Balmoral Beach within Mosman’s prestigious Golden Triangle, will commence construction in early 2026,&nbsp;following the successful completion of its nearby Hampden Mosman project.</p>

<p>Lodged in April 2025 and approved in September 2025, the development will comprise three whole-floor residences, each designed to capture panoramic harbour views through Sydney Heads.</p>

<p><img alt="34 Burran Avenue, Mosman" data-entity-type="file" data-entity-uuid="7f4c7816-0ac8-4ef7-be0a-8ef23b693b68" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/BURRAN%20EV01%20R04%20option%201%20%281%29.jpg?VersionId=gVzI8pT6_K59Nhzaz0FLEvY6Kj9Kc8Fg" /></p>

<p>Set on an elevated 550 sqm corner site at the junction of Burran Avenue and Stanton Road, the building has been designed to sit within Balmoral’s natural slope. The façade mixes stone and metal cladding with angular forms, while oversized terraces and full-height sliding doors create a connection between interior living spaces and outdoor entertaining areas.</p>

<p>The delivery team from Abadeen’s Hampden Mosman project, which includes construction company Reform Projects and interiors company Mathieson, has been retained to bring the same level of execution and craftsmanship to Burran Avenue.</p>

<p><a href="https://www.apartments.com.au/architects/platform-architects">Platform Architects</a> has been appointed project architect, bringing extensive experience from recent luxury residential projects in Manly, Fairlight and Freshwater.</p>

<p>&nbsp;</p>

<p>Justin Brown, Executive Chairman and Founder of Abadeen, said sites of this calibre, this close to Balmoral, are incredibly rare.</p>

<p>“Burran Avenue is an extraordinary site; its location, its scale and its outlook make it truly one of a kind. Receiving DA approval marks an exciting milestone for Abadeen."</p>

<p>"We’re proud to be moving forward with an exceptional team to deliver a project that will set a new standard for ultra-luxury living on Sydney’s Lower North Shore. Construction is planned to commence in early 2026, and interest is already strong from discerning local buyers who recognise the uniqueness of this address."</p>

<p>Brown anticipates prices will set new Mosman benchmarks above $20 million. Sales are expected to launch in March 2026.</p>


Abadeen approved for Mosman's priciest apartments

<p>Lifestyle developer <a href="https://www.apartments.com.au/developers/gurner">GURNER™ Group</a>, in partnership with Costa Property Group, has announced plans to reimagine Cunningham Pier in Geelong, one of Victoria's most recognisable heritage landmarks.</p>

<p>The announcement follows the City of Greater Geelong’s release of its Draft Geelong Waterfront Master Plan, which seeks to revitalise the waterfront with new energy, tourism, and investment. GURNER and Costa Property Group’s vision aligns with the Council’s ambitions to create a vibrant, connected, and economically powerful precinct for the community.&nbsp;</p>

<p>The future of Cunningham Pier will draw inspiration from Sydney Harbour’s luxury waterfront residences through to Dubai’s sculptural pier-edge towers, blending architectural excellence with &nbsp;resort-style living, hospitality, and public amenity.&nbsp;</p>

<p>The concept, described as “Saint Moritz on the Sea”, is envisioned to include:&nbsp;</p>

<ul>
	<li>Six-star hotel accommodation and services&nbsp;</li>
	<li>World-class restaurants, bars, and public spaces&nbsp;</li>
	<li>High-end residential offerings&nbsp;</li>
	<li>Entertainment and cultural venues&nbsp;</li>
	<li>Potential cruise ship port facilities, integrating Geelong into the global travel network&nbsp;</li>
</ul>

<p>The transformative project aims to become a magnet for tourism, investment, and innovation, while &nbsp;ensuring continued public access and connection to Corio Bay’s pristine waterfront.&nbsp;</p>

<p>Cunningham Pier has been operated by Costa Property Group for more than 15 years, with the City of Greater Geelong expressing strong support for strategic commercial partnerships that unlock &nbsp;tourism-led economic development for the region’s fast-growing population.&nbsp;</p>

<p>Tim Gurner, Founder &amp; Executive Chairman, GURNER™ Group, said the project is a "once-in-a-generation opportunity to put Geelong on the global map," adding that their version will be of what icons like the Opera House, Story Bridge or Empire State Building have done for other great cities.</p>

<p>“We’ll be working hand-in-hand with the Mayor, Council, the local community, and State Government to deliver something truly iconic that positions Geelong on the world stage. This project brings together everything we’ve built our brand on – world-class design, hospitality, &nbsp;lifestyle, and experience – all in one place. From six-star hotels and restaurants to the possibility of a &nbsp;new cruise ship terminal and luxury residences, the vision is extraordinary.”&nbsp;</p>

<p>City of Greater Geelong&nbsp;Mayor Stretch Kontelj said he welcomes the "bold and inspiring vision reimagining our beloved Cunnigham Pier as a global destination."</p>

<p>"This ambitious plan and the opening of Nyaal Banyul Geelong Convention and Event Centre next year have the potential to take our already world-class waterfront to even greater heights.”</p>


Sydney Harbour, Dubai pier towers, to influence Gurner's Cunningham Pier, Geelong development

<p><a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a> is one of Melbourne's longest standing architecture firms.</p>

<p data-end="421" data-start="0">Founded in Melbourne in 1853 by Joseph Reed, the firm began as Reed &amp; Barnes and has evolved through various partnerships before adopting the Bates Smart name in the 20th century. With a continuous presence spanning more than 170 years, the practice has played a pivotal role in shaping Melbourne’s architectural identity.</p>

<p data-end="826" data-start="423">In the 19th century, Bates Smart designed several of Melbourne’s enduring landmarks, including the Royal Exhibition Building (1880), a UNESCO World Heritage site, and the Melbourne Town Hall. The firm’s influence continued into the 20th century with notable works such as Ici House (1958), considered Melbourne’s first modern skyscraper and a milestone in post-war Australian architecture.</p>

<p data-end="1220" data-start="828">One of their landmark designs was&nbsp;The First Church of Christ, Scientist, at 336-340 St Kilda Road. The building, which is listed on the Victorian Heritage Register, was designed by Bates, Peeble and Smart with construction completed in 1922. Architecturally, the building is significant as a rare example of early twentieth century classicism applied to a religious building. Historically, the building is significant as the first church of the Christian Science movement.</p>

<p data-end="1220" data-start="828">Melbourne developer Time &amp; Place decided to bring Bates Smart back to the area to design their next residential apartment project, Park Modern.</p>

<p data-end="1220" data-start="828">[smartcode_project:default project_id=138453 project_image_fid=2138]</p>

<p data-end="1220" data-start="828"><a href="https://www.urban.com.au/new-apartments/park-modern-south-melbourne-1-middleton-lane-south-melbourne-vic-3205">Park Modern</a>, on one of the largest island sites on the Melbourne CBD fringe, bordered by Dorcas Street, Wells Street, and Middleton Lane, will comprise two sculptural towers. It is being positioned as a design-forward response to evolving owner-occupier preferences in the Domain precinct.</p>

<p data-end="1220" data-start="828">Tim Price, Director at <a href="https://www.apartments.com.au/developers/time-place">Time &amp; Place</a>, says&nbsp;Bates Smart have got a footprint on this city, probably like no other architect.</p>

<p>"It’s a really nice kind of next chapter story, that they created from a design perspective so long ago," Price told Apartments.com.au.</p>

<p>Park Modern will be the third time Time &amp; Place has worked with Bates Smart, having successfully designed and delivered Collins House and Opera on St Kilda Road together.</p>

<p>The brief focused on creating a built form that would feel contextually appropriate while offering a contemporary evolution of inner-city apartment living.</p>

<p>[smartcode_project:default project_id=138453 project_image_fid=2137]</p>

<p>The focus for Park Modern is squarely on owner-occupiers.</p>

<p>“It’s not always about downsizing," Price says.</p>

<p>"Sometimes it’s just about creating a space which is easily maintained, lock up and leave, reflecting people’s aspirations, whether they’re entertainers, big dining room spaces, big open terraces, they’re important parts of any design consideration.”</p>

<p>The building includes a mix of one, two and three-bedroom apartments, as well as penthouses, with layouts and floor plans designed to suit a broad demographic. The architecture has been shaped to capture&nbsp;view corridors to the Botanic Gardens, Port Phillip Bay and the CBD skyline.</p>

<p>Each apartment has been oriented to maximise natural light and provide a clear outlook, elements often cited by owner-occupiers as key criteria.</p>

<p>[smartcode_project:default project_id=138453 project_image_fid=351806]</p>

<p>Rather than defaulting to a generic luxury offering, the amenity strategy at Park Modern reflects specific insights into how residents want to live. The ground floor will include co-working areas, wellness facilities, and a concierge-led lobby that blends indoor and outdoor design cues.</p>

<p>“Wellness has become a more thoughtful consideration, not just gyms or lap pools, but things like magnesium plunge pools, saunas, daybeds, and studio spaces for Pilates and the regular cardio workout,” says Price.</p>

<p>One notable inclusion is a substantial porte-cochère, a covered vehicle drop-off zone integrated into the site plan. It’s a feature rarely seen in inner-urban developments and speaks to the team’s emphasis on ease of arrival and departure for residents and guests.</p>

<p>A display suite for Park Modern is now open by appointment, giving prospective buyers an early look at the project.</p>

<p>[smartcode_project_cta:default project_id=138453]</p>


100 years on, Bates Smart returns to South Melbourne's Domain Precinct to design Park Modern

Mining Areas

<html><body>
<div>Total construction work done declined by 0.7 percent in seasonally adjusted terms to $46.4 billion over the first quarter of the calendar year to be 7.2 percent lower over the year to March 2017. </div>
<div> </div>
<div>After weaker trade and retail figures, all of the signs appear to be pointing to a weak result for GDP growth in the first quarter. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/26/A1.jpg" alt=""></div>
<p> </p>
<div>First, here's the good news: having peaked all the way back in 2012, engineering construction activity is now rising again. </div>
<div> </div>
<div>There were still moderate ongoing declines in Western Australia and the Northern Territory as resources construction activity continues to wind down, but the rates of these declines is now tapering off.</div>
<div> </div>
<div>And indeed, at the national level engineering construction activity is rising again, partly driven by infrastructure projects in the three most populous states. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A2.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/26/A2.jpg" alt=""></div>
<p> </p>
<div><strong><span style="text-decoration: underline;">Dodgy weather...or peak resi?</span></strong></div>
<div> </div>
<div>Residential building work done dropped by 4.7 per cent in the quarter, which was the worst quarterly result for the sector since the introduction of the Goods and Sales Tax (GST) more than a decade and a half ago. </div>
<div> </div>
<div>Building activity slowed across new house building, apartments, and major renovations, suggesting that at least part of the reason for the decline was Cyclone Debbie towards the end of the quarter, while Sydney also had some shocking weather during the period. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A3.jpg" target="_blank">Click to enlarge</a></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/2017/05/26/A3.jpg" alt=""></p>
<p> </p>
<div>And looking at the building work done figures by state confirms as much, with a very sharp 10 per cent quarterly drop in Queensland, and a somewhat lesser 4 per cent decline in New South Wales. </div>
<div> </div>
<div>In Victoria building activity powered to a new record high in chain volume measures terms, with the industry going like the clappers in Melbourne and operating at close to full capacity. </div>
<p><a href="https://www.propertyobserver.com.au/images/2017/05/26/A4.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/26/A4.jpg" alt=""></div>
<p> </p>
<div>New detached house construction has been broadly flat since the end of 2014, with the growth in residential construction since that time driven by record activity levels in the apartments sector.</div>
<div> </div>
<div>Here too there was a sharp weather-related 22 per cent fall in Queensland, plus a relatively small decline in New South Wales.<br><br>But there was also a slowdown in evidence in Western Australia, South Australia, the Northern Territory, and Canberra. </div>
<div> </div>
<div>On this evidence, then, it's possible that the peak for apartment construction activity might have passed, although there is of course still a huge pipeline of work to be completed.  <br><br>
</div>
<div>Click to enlarge</div>
<div><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/2017/05/26/A5.jpg" alt=""></div>
<p><br><strong><span style="text-decoration: underline;">The wrap</span></strong></p>
<div> </div>
<div>Firstly, growth in the economy in the first quarter is going to be weak, and perhaps very weak. </div>
<div> </div>
<div>On the positive side there is light at the end of the tunnel for the resources states, as engineering construction activity finally looks to be bottoming out, after years of contraction. </div>
<div> </div>
<div>Strip out the impact of Cyclone Debbie and heavy rain in Sydney and the apparently sharp drop in residential construction in the first quarter of the year may prove to be less than dramatic. </div>
<div> </div>
<div>However, it's hard to escape the conclusion that building activity in the residential sector is about to fade away as the record pipeline of apartments is delivered to the market. </div>
<div> </div>
<div>It might reasonably be expected that dwelling starts fall by about a quarter over the next couple of years. </div>
<div> </div>
<div>Given the huge level of employment in the construction industry, this could prove to be a very significant drag on the economy going forward. </div>
<p> </p>
<p><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></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>
<p><em> </em></p>
<div> </div>
</body></html>

pwargent-M4siyDbqQY

Mining cliff over, what next for the residential market? Pete Wargent

<html><body>
<p>Bowen Basin, after several years of property price reductions, appear to have finally turned the corner.</p>
<p>Just two years ago Bowen Basin landlords were struggling with millions of dollars' worth of unpaid rates amid the mining downturn, forcing local councils to consider repossessing homes.</p>
<p>The Central Highlands Regional Council based at Emerald, west of Rockhampton, was looking to repossess more than a dozen homes to pay down debts.</p>
<p>But this year CoreLogic found that Bowen Basin dwelling values have grown the most of any mainland district - some 14% over the past 12 months.</p>
<p>This ranked the best property price growth of any SA3 mainland region.</p>
<p>Sales this year kicked off when $95,000 was paid for 23 Acacia Street, Blackwater.</p>
<p>It had previously sold for $90,000 in 2009, suggesting prices above their last sale price were possible.</p>
<p><img src="https://www.urban.com.au/images/2018/12/14/Bowen%201.JPG" alt=""></p>
<p>A clear example of Bowen Basin's changing fortune is 7 Luck Place, Emerald (pictured above).</p>
<p>The three bedroom one bathroom home sold earlier this month for $180,000.</p>
<p>It was a $70,000 increase on it's December 2017 mortgagee sale price of $110,000.</p>
<p>Set on a 751 sqm block, the house has yet to be reach it's 2005 sale price of $215,000.</p>
<p><img src="https://www.urban.com.au/images/2018/12/14/Bowen%202.JPG" alt=""></p>
<p>Also indicative of the dwelling price growth in Bowen Basin is 1/28 Saville Street, Emerald (pictured above).</p>
<p>The three bedroom two bathroom apartment saw a price increase of $77,000 from it's 2016 mortgagee sale when it sold for $190,000.</p>
<p>Sold most recently for $267,000, the property is still short of it's 2008 sale of <span>$342,500.</span></p>
<p><img src="https://www.urban.com.au/images/2018/12/13/Top%2050%20growers.JPG" alt=""></p>
</body></html>

jchancellor-FAypfDUnLy

Bowen Basin property prices finally recovering from mining downturn

<html><body>
<p>EXPERT OBSERVATION</p>
<p>The prelude to the mining boom in the years leading up to 2012 saw several Australian regions record spectacular capital gains.</p>
<p>Fueled by a surge in investment, bigger pay packets and generous corporate subsidies for housing costs; housing was scarce and demand from cashed-up workers and investors was strong. Then came the downside of the mining-related property boom in 2012/13 which was even more spectacular than the upswing.</p>
<p>However, recent analysis shows that values have now steadied and rents are rising, providing some of the highest rental yields across the country.</p>
<p>The Pilbara region of Western Australia was booming on the back of iron ore and the Bowen Basin of Queensland was thriving thanks to coal prices.</p>
<p>The Karratha council area (called Roebourne until 2014), which is a good benchmark for the Pilbara mining region, saw housing values rocket 87% higher over the five years preceding the market peak in 2012, while the Isaac Regional Council, which covers a broad swathe of Queensland’s Bowen Basin, saw house values climb 72% higher over the five years preceding the 2012 peak.</p>
<p>Since conditions peaked in line with commodity prices and a wind down in infrastructure spending, dwelling values in these regions have moved through a long and deep downturn. Some suburbs have seen the median value of a house fall by more than 80% (WA’s Newman is down 84.2% since peaking and Queensland’s Dysart is down 83.0% since peaking).</p>
<p>Although the recent trends can show some volatility due to low transaction numbers, many of the these mining regions have started to see housing conditions bottom out and commence what is likely to be a drawn out period of recovery.</p>
<p>Most regions are showing housing values that are well below levels recorded 10 years ago, which may be attractive to home buyers and investors. Rental vacancies have tightened substantially which is driving up rents, in fact some of the Bowen Basin towns have seen asking rents rise by more than 20% over the past 12 months.</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/10/12/mining%20town%201.jpg" target="_blank">Click here to enlarge:</a></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/2018/10/12/mining%20town%201.jpg" alt=""></p>
<p>Higher rents against low housing values is driving rental yields higher, with most of the towns likely to be providing a positive cash flow from the outset. Gross yields are typically above 6% in these regions.</p>
<p>Of course, a note of caution always needs to accompany anyone considering a property purchase in these regions. The economies of a mining region are inherently shallow; asset values are highly dependent on the price of the commodity that lies under the dirt and the willingness of the private sector to invest capital in extracting it.</p>
<p>Government policies can disrupt conditions, as can company policies around worker accommodation, fluctuations in the Australian dollar and appetite for trade with key trading partners.</p>
<p>Investing in these areas is high risk and investors should expect a high rental return to compensate for that risk.</p>
<p>The RBA, based on spot prices, reported bulk commodity prices are 16.5% higher over the year in Australian dollar terms. If coal and iron ore prices remain elevated against a lower Australian dollar, we could see mining infrastructure investment gather some pace.</p>
<p>Investment in minerals exploration has been consistently rising since mid-2016, rising to the highest level since December 2013, which bodes well for further infrastructure investment across the mining sector. If that does eventuate, there should be positive flow on effects for these mining regions.</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/10/12/mining%20town%202.jpg" target="_blank">Click here to enlarge:</a></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/2018/10/12/mining%20town%202.jpg" alt=""></p>
<p><em><strong>Tim Lawless</strong> is CoreLogic's head of research.</em></p>
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tlawless-5VLUrbAk9s

Mining town rents are delivering some of country's highest rental yields: CoreLogic's Tim Lawless

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<p>New research has found that property prices halved in many mining regions over the past decade.</p>
<p>Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos is currently reviewing research he undertook for a book that was published in 2008.</p>
<p>As part of the new research, however, Koulizos used CoreLogic data to calculate the best and worst performing areas over the past 10 years and found a clear front – runner for bottom of the pile – mining locations.</p>
<p><em><a href="https://www.propertyobserver.com.au/images/2018/9/11/mining%20property.jpg" target="_blank">Click here</a> to enlarge:</em></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/2018/9/11/mining%20property.jpg" alt=""></p>
<p><em>Souce: PIPA</em></p>
<p>“What this data shows us is that if you had bought property in one of these towns, not only did your property not increase in value over this 10-year period, but it is actually worth less,” Koulizos said.</p>
<p>“West Australia – which benefited the most from the mining boom – has also suffered the most from the mining bust.</p>
<p>“There is a very long list of underperforming mining towns in WA, but the worst is South Hedland, a suburb in Port Hedland, where house prices fell a whopping 74.8%.</p>
<p>“Newman came in a close second to South Hedland, where the median house price was $501,000 in 2008 and now it is only $147,000.”</p>
<p>Queensland mining towns and suburbs within those towns have also suffered, according to the data.</p>
<p>Gladstone was promoted by many property spruikers and it’s clear they have seriously come unstuck, Koulizos said.</p>
<p>“South Gladstone house prices fell by 31.7% and West Gladstone house prices fell by 47.6% over that time period,” he said.</p>
<p>“However, these two suburbs are not the worst performers. Property prices in the mining town of Dysart fell a whopping 77.4%, while at the same time Brisbane house prices increased by 24%.”</p>
<p>House prices in the mining town of Roxby Downs in South Australia fell by 36%, according to the data, plus sales have fallen from 140 in 2008 to just 51 in 2018.</p>
<p>“It’s important to understand that buying property outside of capital cities still makes financial sense. In fact, there are many regional and country areas that are deserving of your investment dollars,” Koulizos said.</p>
<p>“The moral of the story is that successful property investment is about long-term economic fundamentals, not supposed short-term financial gains.</p>
<p>“And that usually means investing in locations with diverse, multi-faceted economies, not areas that financially ebb and flow depending on the strength – or weakness – of a single industry.”</p>
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j.ballantyne1990-6AQqhLzZaK

Mining property prices have dramatically dropped over past decade: PIPA

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<p>Non-performing housing loans for lenders have edged up over recent years, though they are still low as a share of all housing loans, says the RBA.</p>
<p>The central bank’s Assistant Governor Christopher Kent made these remarks during a speech at Moody's Analytics Australia Conference 2017.</p>
<p>However, at around ¾ of one per cent as a share of all housing loans, non-performing loans remain low and below the levels reached following the global financial crisis, he said.</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig1.png" alt=""></p>
<p>The RBA official said that the Securitisation Dataset helps the central bank to assess how loans are performing across different parts of the country by examining arrears rates. </p>
<p>Like non-performing loans, the arrears rates have increased a little but remain low, he observed.</p>
<p>The rise has been more in regions experiencing weak economic conditions over recent years, in particular, Western Australia, South Australia and Queensland since late 2015.</p>
<p class="p1">Earlier this year, the central bank noted that conditions had generally improved for businesses in the resource-related sector.</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig2.png" alt=""></p>
<p>Using the Securitisation Dataset, the bank also found other relationships between arrears and other factors. </p>
<p>A key factor contributing to a borrower entering into arrears is a reduction in income, most obviously via a period of unemployment. </p>
<p>“We find that there is a positive relationship between arrears rates and the unemployment rate across regions (Graph 9).</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig3.png" alt=""></p>
<p>“However, the relationship is not especially strong, which suggests that other factors are at play.” </p>
<p>For example, arrears rates are higher in mining-exposed regions, which have generally experienced a sharp fall in demand in the wake of the end of the mining investment boom. This was indicated by the “pronounced fall in the demand for housing” in those parts of the country as indicated by a decline in housing prices (Graph 10).</p>
<p><img src="https://www.urban.com.au/images/2017/08/15/RBAfig4.png" alt=""></p>
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