Builder-developer ALAND has drawn back the curtain on its first city-focused new apartment development.

The North Sydney development, <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-173-179-walker-street-north-sydney-nsw-2060">The Walden</a>, is the first time the company has ventured this close to the city, having previously completed thousands of apartments predominantly in Sydney's west, and more recently in Gosford.

<a href="https://www.apartments.com.au/developers/aland">ALAND</a> acquired the prime North Sydney site, spanning Walker and Hampden Streets just down the road from the Victoria Cross Metro station, for $240 million in June.

Now they've unveiled the new project, a mix of one-, two-, three- and four-bedroom apartments across a 30-level building designed by Rothelowman.

[smartcode_project:default project_id=134323 project_image_fid=6384]

The Walden will capitalise on the site’s front-row position on the eastern fringe of the <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> CBD, which offers uninterrupted Sydney Harbour views stretching from the Sydney Harbour Bridge all the way to Sydney Heads.

The main tower will be flanked by a small four-level amenity building known as The Pavilion, offering exclusive resident-only amenities including a dedicated concierge service, a sauna and private wellness studio, a gymnasium and fitness studio, a resort-style rooftop pool and sundeck.

There will also be a&nbsp;residents’ lounge, private dining and a wine cellar, and co-working facilities with an on-site meeting room and boardroom.

&nbsp;

&nbsp;

[smartcode_project:default project_id=134323 project_image_fid=6382]

ALAND Founder Andrew Hrsto said the company knew they could create something "iconic" with The Walden when they saw the site.

&nbsp;

“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic – being the last development with a view offering this exceptional.

“We identified the attributes and quality of the site as being perfectly aligned for ALAND – and we feel that this off-market acquisition is a perfect opportunity to showcase our craftmanship and expertise through a truly unique offering."

[smartcode_project:default project_id=134323 project_image_fid=6399]

Hrsto pointed to ALAND’s longstanding development expertise as a significant benefit in delivering a positive outcome for The Walden.

“Being a fully integrated development and construction business with a highly experienced team, we have the benefit of in-house experts across the development spectrum, from acquisitions, design, planning, and construction, to sales, marketing, property management, through to building management.

“As one of Australia’s largest private development and construction groups, we’ve been in operation for 23 years, with a Gold Star iCIRT rating and a 100 per cent delivery success rate across numerous masterplanned and mixed-use projects – and we’re very much looking forward to bringing this expertise to The Walden and contributing to the ongoing revitalisation of North Sydney."

The Walden is the latest development in Sydney to have the 10-year Latent Defects Insurance policy by Resilience Insurance, protecting buyers from any structural or waterproofing-related issues for 10 years post-completion.&nbsp;

Demolition of existing structures on The Walden site has already commenced through specialist civil contractor Moits, with the aim of completing preparatory ground works by the end of 2025, ahead of construction commencement in early 2026.

[smartcode_project_cta:default project_id=134323]

Joel Robinson

ALAND unveils The Walden, North Sydney's latest luxury apartment development

<a href="https://www.apartments.com.au/developers/toga-group">TOGA</a> has opened sales for the final building in Macquarie Rise, its latest mixed-use development in Macquarie Park.

Since launching its <a href="https://www.apartments.com.au/new-apartments/macquarie-rise-122-herring-road-macquarie-park-nsw-2113">Macquarie Rise</a> in late 2023, TOGA has secured over 125 sales in the Herring Road development, to a range of purchasers, from first home buyers to investors and downsizers. Around 65 per cent of purchasers have been owner-occupiers.

TOGA has now launched a new release of one-, two-, and three-bedroom apartments in the final building, Saunders Rise. Many of the apartments feature multi-purpose rooms and offer views of the surrounding greenery. Also part of the release is a series of&nbsp;sub penthouses housed on the upper floors.

[smartcode_project:default project_id=89243 project_image_fid=242696]

&nbsp;

“We’re delighted with the ongoing strong interest in our Macquarie Rise development, which is testament to the need for premium housing in this much-loved Sydney suburb,"&nbsp;Allan Vidor AM, Managing Director at TOGA, said.

"We’re proud to be able to offer buyers a unique product that includes luxury amenities, spacious living areas and flexible layouts, designed to suit all kinds of buyers, from young professionals to families and investors.

“We have long been advocates of Macquarie Park, and once Macquarie Rise is complete, TOGA will have built 1,000 apartments in the area, delivering much needed homes within a thriving precinct. It’s great to see the area become renowned for high-quality apartments, proximity to amenities and green spaces."

TOGA, one of Australia’s few Gold Star iCIRT rated developers, is also handling construction of Macquarie Rise. They are on track to complete the building in 2027.

[smartcode_project:default project_id=89243 project_image_fid=310789]

Macquarie Rise boasts a prime location, placing residents within immediate reach of Macquarie Centre, Macquarie University, and the newly completed Macquarie University Metro, connecting to the Sydney CBD is just over 20 minutes.

&nbsp;

Macquarie Rise residents also have access to Club Rise, an exclusive, residents only lounge designed by luxury hotel designers Stack Studio, offering an abundance of work and break-out areas, a Pilates studio, a gym, and a karaoke room. As well as these premium amenities Macquarie Rise will also feature an impressive podium top 20m lap pool.

[smartcode_project:default project_id=89243 project_image_fid=242695]

“Offering luxury, spacious apartments in a vibrant and well-connected neighbourhood, it’s no surprise that Macquarie Rise remains popular with a range of buyers," said TOGA's General Manager of Sales, Anthony Falas.&nbsp;

"With interest rates tracking downwards, we expect the final apartments to continue to receive high levels of interest.”

Located at 122 Herring Road, Macquarie Park, the development will be delivered in partnership with Baptist Union NSW and Morling College with a value of over $400 million.

&nbsp;

[smartcode_project_cta:default project_id=89243]

TOGA launches final stage apartments in Macquarie Rise

Southern Cross Station anchors the western end of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a>’s CBD, connecting metropolitan and regional rail with tram and bus interchanges in one of the city’s busiest transport corridors.&nbsp;

Just metres away, <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a>&nbsp;will place residents in the heart of the city, with immediate access to Spencer Street trams, a growing mix of retail, hospitality and cultural venues, and a neighbourhood evolving into a lively residential precinct.

Developed by <a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a>, the 68-level project integrates a sculptural glass tower with the heritage-listed Eliza Tinsley Building on a 2,765 sqm Bourke St site.&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335425]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the development replaces a previously approved scheme for 813 apartments with a refined offering of just over 600 larger-format residences, responding to a growing owner-occupier demand for spacious city living.

The location sits within a dynamic pocket undergoing significant transformation. Marvel Stadium and the Docklands waterfront are less than 10 minutes away on foot, offering both sports and leisure attractions.&nbsp;

Bourke Street Mall, Queen Victoria Market, and the State Library are all within walking distance, while Flagstaff Gardens, Melbourne’s oldest park, provides a green escape just to the north.

&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335422]

Proximity to some of the city’s largest employers and education hubs, including the courts precinct, legal chambers, RMIT, and major hospitals, makes 640 Bourke Street an appealing residential address for professionals, families and students alike.

Education opportunities span all levels. Nearby, Haileybury City Campus offers private schooling just a short walk from 640 Bourke Street. Just beyond the CBD fringe, Carlton Gardens Primary School, one of Melbourne’s oldest state primary schools, and Docklands Primary School provide convenient government schooling options.

Higher education is equally accessible. RMIT University’s city campus spans multiple buildings just a few blocks away, while the University of Melbourne’s Parkville campus is easily reached via tram along Swanston or Elizabeth Streets.

Victoria University’s City Queen campus, focused on law and business, is also close by, positioning 640 Bourke Street within walking distance of three of Melbourne’s major tertiary institutions.

[smartcode_project:default project_id=509 project_image_fid=335426]

The neighbourhood’s retail tapestry continues to evolve into something distinctly local and walkable. Just steps away, Woolworths Metro on Bourke Street ensures that everyday essentials are easily within reach.&nbsp;

For larger shopping trips, Spencer Outlet Centre on Spencer Street and QV Melbourne on the opposite side of the CBD broaden the offering with supermarkets, fashion, dining and specialty stores.

The lane-to-lane vibe unfolds beautifully in nearby arcades and alleys. Hardware Lane, with its European-style red-brick paving and alfresco dining, pulses with jazzy evenings and casual lunches.

A few minutes north, Howey Place and Centre Place offer leafy, boutique-lined lanes where hidden cafés and niche retailers congregate under historic glass-covered cloisters.

Completing this tapestry is the newly opened Mecca “beauty playground” on Bourke Street. Spanning 4,000 sqm over three levels, the flagship blends immersive retail within an art-deco heritage setting.

&nbsp;

[smartcode_project:default project_id=509 project_image_fid=335427]

This finely grained network of shops, eateries, arcades and service outlets defines the everyday lifestyle at 640 Bourke Street - further enriched by over 3,000 sqm of resident amenity including a Turkish-inspired pool, gym, co-working rooms and private cinemas.&nbsp;

Apartments are priced between&nbsp;$640,000 and $3.95 million. Off the plan stamp duty concessions available until October 2026. Prospective buyers can visit the on site display gallery which has&nbsp;fully built one, two, and three-bedroom apartments.

[smartcode_project_cta:default project_id=509]

640 Bourke Street: A heritage address at the heart of Melbourne

Lower North Shore development specialists&nbsp;<a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a>&nbsp;has topped out its new local apartment development,&nbsp;<a href="https://www.apartments.com.au/new-apartments/northcote-collective-naremburn-2-6-northcote-street-naremburn-nsw-2065">Northcote Collective</a>.&nbsp;

Located in the tightly held suburb of <a href="https://www.apartments.com.au/developments/naremburn-nsw-2065">Naremburn</a>, Northcote Collective is a collection of just 58 one-, two-, and three-bedroom apartments designed by award-winning architects Rothelowman.&nbsp;

The building is just a five to 10 minute walk from the heart of Crows Nest and the new&nbsp;St Leonards and Crows Nest Metro stations. Abadeen has also brought doorstep convenience, with a ground-floor retail offering on Northcote Street.

Northcote Collective is being delivered by&nbsp;<a href="https://www.apartments.com.au/builders/decode">Decode</a> — an iCIRT-rated construction company well regarded in the new development industry.

[smartcode_project:default project_id=114189 project_image_fid=272840]

“This is an important and exciting moment for Northcote Collective, and we’re proud to celebrate this milestone with our partners, consultants, and future residents,” said Justin Brown, Executive Chairman and Founder of Abadeen.&nbsp;

“From the outset, our vision was to create something truly special for Naremburn — homes that respect the character of the neighbourhood while elevating the standard of Lower North Shore living. With connectivity to transport, retail on the doorstep and a true village lifestyle, this milestone also comes at a perfect time when buyer confidence is returning to the market. I am incredibly proud of our team and of Decode for their dedication in helping us bring this vision to life.”

[smartcode_project:default project_id=114189 project_image_fid=272865]

The development is two-tiered, with two rooftops for residents. The taller building has an impressive rooftop pool, a rare inclusion in the new Sydney apartment market. The level, with panoramic views, also includes an entertaining terrace with barbecue facilities.

Local downsizers and young professionals are showing the strongest interest in the development, with recent improvements in the property market — supported by three rate cuts in 2025 — boosting borrowing power and buyer confidence.

Auction activity across Sydney surged by almost 30 per cent in recent weeks, with clearance rates above 70 per cent — signalling a renewed wave of buyer demand.

Northcote Collective will welcome buyers in 2026.

[smartcode_project_cta:default project_id=114189]

Abadeen tops out Northcote Collective in Naremburn

Sunshine Coast-based <a href="https://www.apartments.com.au/developers/devcon-property-group">Devcon Property Group</a> has acquired one of Maroochydore’s most prominent development sites for $12 million unlocking the potentialfor a mixed-use project in the Cotton Tree precinct.

&nbsp;

The 4,178 sqm site at 41–43 Aerodrome Road—well known locally as the former home to one of Australia’s last Sizzler restaurants—was sold via an off-market expressions of interest campaign by Colliers agents Nick Dowling and Baydn Dodds. More than 70 targeted buyer groups were approached, resulting in multiple competitive offers for the property.

Devcon Property Group Managing Director Michael Kain said the acquisition was a strategic move in line with the company’s focus on delivering high-quality projects in prime coastal locations.&nbsp;

“We’re excited about the possibilities this site, in one of the Sunshine Coast’s most iconic beachside &nbsp;communities, offers for a broad range of development outcomes,” Kain said.

“Its location, ocean view potential, and proximity to the Maroochydore CBD and beach make it an &nbsp;outstanding development prospect. Our plans are to refurbish the existing building and then review &nbsp;development options for the remainder of the site.”&nbsp;

<img alt="Aerodrome Rd site overlooking Beach (Large)" data-entity-type="file" data-entity-uuid="a29dc4ed-68c1-4bec-a4fc-283063dcde1e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Aerodrome%20Rd%20site%20overlooking%20Beach%20%28Large%29.jpg?VersionId=b0WxJWevmLoAfCP4YvGImZpR3rSCJJ9L" />

Colliers Special Projects Manager Baydn Dodds said the sale reflected the ongoing strength of the &nbsp;Sunshine Coast’s development site market, particularly for projects capable of achieving water views. &nbsp;

“Sites of this scale, in walkable beachside locations with ocean views, are tightly held and continue to attract significant interest from both local and national developers,” Baydn Dodds said. &nbsp;

“Holding a prominent position as the former home to one of Australia’s last Sizzler restaurants and more recently occupied by Rashays, the prime site is located just 150 metres from Maroochydore Beach.&nbsp;

“With stunning ocean view potential, located in one of the Sunshine Coast’s best known iconic &nbsp;beachside communities, within steps of shops, cafes and the beach it is no surprise that there was strong interest in the site. The transaction highlights the ongoing depth of demand for well-located &nbsp;mixed-use sites across the Sunshine Coast.”&nbsp;

Colliers Sunshine Coast Managing Director Nick Dowling said the transaction reinforced the &nbsp;Sunshine Coast’s status as one of Australia’s most active development markets.&nbsp;

“The combination of strong population growth, lifestyle appeal, and infrastructure investment is &nbsp;driving demand for quality development opportunities,” Nick Dowling said. &nbsp;

“The Sunshine Coast is one of only three markets nationally to record an increase in crane numbers, &nbsp;reflecting the strength of the region’s construction pipeline.&nbsp;

“Opportunities like this are rare and continue to generate strong buyer interest in the region.”&nbsp;

The Sunshine Coast development market is booming, with several high-profile developers like Cube Developments, Gardner Vaughan Group, and RCQ, planning developments in the region.

Devcon buys Sunshine Coast’s former Sizzler site for new apartment development

Peter Chittenden

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Do off the plan apartment marketing agents have any responsibilities after the signed contract? And how accountable do they see themselves when things go awfully wrong?
I was wondering what role the selling agents at <a href="/news/otp-sugarcube-honeycomb-erskineville-buyers-locked-out-after-contaminants-fears">the potentially still toxic Erskineville projects, the 109 Sugarcane apartments and the 18 Honeycomb terraces</a> felt that they had three or four years after they secured the sale for the Chinese developer Golden Rain Developments.
It was front page news in Sydney on Friday, followed by extensive website coverage throughout the morning and then on the Friday night television news.
The poor OTP buyers are in limbo, locked out of the completed residences after a dispute between developer and Sydney City Council over the potential toxicity of the former industrial site. The issue appears to be related to contaminated water run off, especially to and from the public land, rather than the earlier feared gas vapour issues in the car park basement.
The developer engaged Ray White Projects and Colliers International to sell their project quite a few years ago. It was a sellout.
The earliest Colliers marketing advised an anticipated early 2017 completion, then it was subsequently advised as April 2018.
Some 15 months further along, not one intending owner occupier resident has moved in, nor investor able to rent the residence out.
This extended period of limbo sees their deposits sitting there, awaiting final settlements, with their lenders no doubt cautiously wondering what impact the toxin turmoil, even satisfactorily resolved, ought have on their valuations.
The strata plan awaits registration.
A truly dreadful situation for every buyer.
Ray White Erskineville Projects advised they had marketed the 18 off the plan terraces in Honeycomb development in good faith as per the vendor’s instructions.
"When Ray White Erskineville Projects became aware that technical compliance issues had arisen between council and the developer over occupancy, we communicated to all purchasers any information that had been provided to us," it said in a statement issued within 90 minutes of the request.
"Ray White Erskineville Projects empathises with the challenges this situation presents to both the developer and the purchasers of these properties and is keen to see the resolution of any outstanding matters so the properties are able to settle," Ray White advised.
Colliers, headed by Peter Chittenden, took another course altogether.
"As Colliers were engaged as project marketing agents for this development, all enquiries should be referred to Golden Rain Development," it advised News Ltd's Daily Telegraph much later in the day.
The Sydney Morning Herald reported Colliers directed inquiries to Ray White.
It was March 2015 when Colliers kicked off the marketing in Domain with studio prices from $550,000, and the advisory that the projects were due for completion early 2017.
In August 2015 Domain updated readers in an article on pet friendly projects with the same early 2017 completion date advisory, and Colliers pricing for the one-beds from $645,000, two-beds from $870,000 that remained for sale off the plan.
Chittenden's linked-in ranks Sugarcube among his "successful projects."
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Golden Rain Development has completed 30 projects across Asia with the Erskineville development promoted as its “flagship project” in Sydney. They boasted the residences are amongst the most desirable ever to grace Erskineville's leafy village streets.
Golden Rain Development sent a letter to buyers in April this year, acknowledging delays in the issuing of an occupation certificate.
"An unforseen planning issue is at the heart of the delay," said the letter.
It didn't mention the toxicity issues. Owners described it as "unbelievable" and "shocking" to learn of the contamination issue in the SMH, after desperately pressing for answers for over a year.
One buyer told the SMH they had left "countless messages" with Colliers.
"When I purchased they were saying this was a fantastic developer and well renowned. It's just a horrible scenario to be in."
 
 
 
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jchancellor-FAypfDUnLy

How OTP estate agents see their responsibilities after the signed contract?

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Sydney’s residential market currently reflects a trifecta of settings driven by lack of supply, population growth and low interest rates (cheap money).
In combination these factors are impacting affordability, partly because the current market is very competitive.
Then we see interest rates at lifetime lows and a very mixed picture concerning employment that I think extends beyond the headline numbers, and so each has a big influence on the make up of current demand.
When looking at affordability, I think we also need to look at the competition that exists in the market because of population growth and the impact that this has on demand. 
First let’s just recall the fact that there has been a big gap in the supply of new dwellings in the Sydney market since 2001-2002 with supply at their lowest levels in 2007-2008 and again in 2008-2009. Looking at net migration numbers during this same period there are some figures that further help to explain why demand for housing was so strong.
The last time the number of net migrants to Australia was below 100,000 plus per annum was in 1999 at 96,500 new arrivals, but since then there has been strong growth in numbers at a time when our own domestic birth rate has also been on the increase.
In 2006-2007 net migration increased by 58%, peaking at almost 300,000 new arrivals in 2008-2009, and at that time supply was in free-fall. Currently for 2015 we are looking at approximately 215,000 new arrivals and we also need to remember that the birth-rate is also increasing. The combination of falling supply and strong population growth was always going to impact affordability because of rising prices.
<ul>
<li>Age Profile Adds Pressure</li>
</ul>
Affordability is, I suggest, also tied into the fact that currently Australia’s age profile adds to the pressure of demand because, I think its reasonable to suggest that by 35-40 most potential buyers would already like, if they could, to be established in the housing market.
Australia’s median age currently stands at 37.3 years of age and when you look at the average age profile of the top four countries of origin we see that those arrivals from the UK are aged 54, from New Zealand 40, from China 35 and from India 33, and in each case for varied reasons these are prime ages in the housing market.
A report published late last year by website, realestateview.com.au showed that 60% of first home buyers were now married and having children before they could afford their first home, and the same report also found that 57% of first home buyers are now in their 30s or 40s. This all makes for a very crowded peak of demand in these various age brackets.
<ul>
<li>Affordability &amp; The Deposit Gap</li>
</ul>
Low interest rates look like they are going to be with us for sometime yet and this is good news for anyone with an existing loan, and there is no doubt that low rates are a key driver of demand. So much so that there are suggestions that investors might soon face some form of loan restriction, which would be a major shift in policy for a ‘free-market’ government.
However while low rates do continue to drive demand, affordability is a real hurdle more associated with buyers having to have their traditional 10% deposit, which would currently have to sit (in the Sydney market at least) around $80,000 – $100,000, plus an allowance for other costs, and while there is some limited stamp duty relief, a deposit at this level requires pretty good earnings and saving capacity, or a big helping hand from mum and dad.
Help from parents in helping to fund their kids into a home is now very common, and it’s a trend being experienced in many countries. However with parents dipping into their capital or savings this might impact retirement plans, and in the USA as one example this impact on retirement plans has raised the question, 'are your kids ruining your retirement’ – so it’s a more complex picture.
Weekend reports suggesting, yet again, that first time buyers should have access to their superannuation, does merit more thought, in particular if buyers are in the age brackets above. It seems overly simplistic to dismiss this suggestion, because really it simply moves money from one asset class, super, into another, housing and in doing so helps create many social benefits.
I think this also goes some way to clearly show how complex an issue affordability is across the housing market, and we have not even touched upon what might be done with the actual physical built product to help. Such as smaller homes and the idea of more use of pre-fabricated homes.
<ul>
<li>Employment &amp; Interest Rates</li>
</ul>
No matter what the state of the market is, stable secure employment is a vital element. Currently the economy is in a state of transition and last year we saw some very big job losses in manufacturing, and now falling commodity prices are also impacting some areas of mining.
If we have a combination of rising interest rates and higher unemployment then house prices would respond, but that combination looks unlikely. Currently the rate in January was 6.40% however there is a degree of debate going on about the ABS figures and some private sector polls, such as that conducted by Roy Morgan Research suggest the rate is much higher.
However for many years between the mid-1970’s to the early years of the 2000’s the rate was more commonly near 7.5%, if we returned to that sort of figure then the housing market would change dynamics. To prevent this we will continue to see the need for structural reform, which is a hot topic for government. We will continue to keep a very keen eye on these figures.
Alongside unemployment rates, we know that we have home loan rates that are now for variable loans well below 5%, and while loans will always vary between lenders, among the big banks we are looking at around 4.73%, but then if we look at five-year fixed rates, again dependant upon loan term rates as low as 4.29/4.39%, which seems to indicate we are locked into low rates for a while yet.
I think that the market is clearly very active. I do not need to tell anyone that fact, development in Sydney, Melbourne and Brisbane continues at a solid pace and we have many new players coming into the medium-density market.
Then if we look at all of the dynamics at play for buyers, for the economy generally and the seemingly difficult path of government policy reform, I think that the housing market is more complex than it has ever been, but the fact is demand remains. We have to work with the shifting demographics and ensure we deliver the best product where people wish to live, be they owner-occupier or investor.
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pchittenden-eLqUUC8TWW

The Sydney market trifecta - lack of supply, population growth and interest rates: Peter Chittenden

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Sydney’s residential market reflects a trifecta of settings, the seeds of which were sown back in 2002-03 when residential building approvals first started to fall.
Today we have a combination of dynamics characterised by a gap in supply, population growth and cheap money, not only here but also across the world.
There are few ways or policy settings for any of these key market drivers to change, and as a result prices will continue to respond by increasing, and while there are some wider concerns about the local economy that I will visit here, let’s for the time being stay on topic and look at the make up, some history and future trends associated with our trifecta.
Sydney Median House Prices
Sydney’s median house price is clearly heading towards an eye watering $1,000,000, and the rate of increase, although associated prices, have out-paced population growth. In 2011 the median prices was $634,700, and metro Sydney’s population stood around 4,391,674. By the end of 2014 the median price had increased to $873,786 (by some estimates it’s now $1,000,000) and the population 4,657,000.
What we can see is that while the population grew by some 6% over the period, prices increased by 37%.
Population Growth
Population growth continues and between 2006-11 according to the ABS the south-west fringe grew by an estimated 2.9%, and the Inner West by 2.7% – 3.2%.
By 2036 Sydney’s population is predicted to reach 6,140,000 adding some 1,500,000 or 32% over the next 25 years. This growth will see continued demand in the big growth regions in the south and north-west of the metro area but will also see a continued big increase in housing density.
The trend shows that in 2001 15.7% of housing was high-density, but by 2011 that figure had moved close to 21%, led by the City of Sydney at 70.2%.
For the City Of Sydney, as might be expected, that trend is only going to continue. Currently in 2015 its population is around 200,772, and by 2036 the population is expected to increase to 280,964 or an increase of 39.94%.
Sometimes I hear people express surprise that the city’s population is relatively small for a major city, however growth is assured and this is already leading to a demand for a diverse range of city apartments, with clear sub-markets emerging.
It can be expected that the continued emergence of these sub-markets will further drive higher prices as buyers demonstrate a willingness to pay higher prices for premium locations, such as the city’s north.
Supply of New Dwellings
However of the three factors in this discussion, it is the supply of new dwellings that goes a long way to explaining the current pressure on prices, so let’s look at some of the figures to see why.
In 1996-2001 there were 110,000 new dwellings built in Sydney, in 2001-2006 numbers fell to 93,000 and in 2006-2011 numbers continued to fall to just 72,000, and by way of comparison that figure was half of what was built in Melbourne. I think when you look at current prices the beginnings of our under-supply had already been cemented.
A gap in the supply of new dwellings has opened up in the Sydney market since 2001-2002, which was the last time that population growth and the supply of new dwellings was more or less even.
There was a huge gap in 2007-2008 and again in 2008-2009, in both periods population was well in excess of 82,000 and the supply of new dwellings was only at 18-19,000 and ever since supply has not kept pace with population growth.
In 2011-2012 the population grew by 62,500 while only 22,300 new dwellings were approved. And NSW is seeing its population grow again after some slower growth over the last five years, possibly associated with the mining boom in other states.
And while the supply of new dwellings is gaining pace a big gap still remains and to a large degree planning issues for new developments are also hindering a quicker recovery in supply.
Interest Rates
The third factor is cheap money, both here and offshore, only this weekend China’s central bank cut interest rates. The second cut in less than four months. And while domestically this is seen as an aggressive move aimed locally at lifting flagging economic growth, cheaper money in China may well drive more buyers into our local real estate market.
However when the lack of supply and continued strong demand across Sydney is combined with the steep decline in interest rates, the figures are revealing. In 2011, the standard variable home loan rates were near 7.79%. Today in 2015 it is sitting around 4.54% and may even go lower.
I think that the headline figures across the supply gap, the continued growth of our population and the big impact of cheap money all speak volumes about why prices continue to rise.
This then raises questions about the general level of affordability, the potential impact on the market when rates do start to rise again, the sustainability of employment numbers and the further need for tax and economic reform. Each has the potential to impact the market and if all combined the current market dynamics would clearly shift and so these areas will be my next rich source of discussion.
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The factors that will continue to drive Sydney's prices higher: Peter Chittenden

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We all take for granted that any new apartment project or housing estate will have the essential services of water, sewerage and electricity, the vast majority of buyers would not even question this fact.
But what about telecommunications infrastructure? Can we provide the same level of service guarantee?
I recently came across a quote that I recall went something like this: “ The availability of internet connection is as important as food and air in this era.”
With this declaration fresh in my mind I was recently walking through a shopping centre in the midst of one of the most densely developed areas of inner Sydney. All around me there were various cafes and casual seating areas full of people using mobile phones, tablets and computers.
Not just a few, but almost everyone, and a big number of people were also on Skype having long, almost like a face to face conversation as they had a coffee or simply sat in the public spaces to communicate with family and friends. Among all of this activity there were a large number of people on several mobile devices, they were clearly working in a very concentrated way, checking figures, placing orders, doing a great deal of productive work.
The café and mall now looks more and more like the workplace of today, these areas are always busy, always full of residents and visitors. In the 1700s the Industrial Revolution brought about a trend towards city living, which today is reaching its climax.
In the midst of the Communications Revolution, it has been predicted that by 2050 as many as 75% of us will live in cities, by contrast in 1900 the figure was only 10%. Alongside this mass movement of population, there will be pressure on housing, but alongside that there will be comprehensible pressure to deliver reliable communications, but more I suggest cutting edge communications will be needed if not demanded by everyone.
Good Enough is Not Good Enough and Who Pays
Generally today, most if not all new apartments are equipped with high-speed internet services, some older buildings may lag the trend and in some areas there may be a reliance on wireless technology.
However like the exchange of goods and services that was newly prevalent in the 1700s, today all communications and commerce, in fact our entire way of life and economy is connected 24/7. As urban density increases, the delivery of reliable telecommunications is vital, it is exactly just like the need for air and food.
But in the midst of such obvious need and demand are we doing a good job, is this vital infrastructure being delivered on-time, at a reasonable cost to developers and consumers. The role out of the NBN is an ongoing task for private enterprise and a key responsibility for government and for planners and it’s now a fundamental factor for the development industry.
Home buyers moving into a new estate or a new apartment building in any location across Australia, expect, and should have access to the best telecommunications. High-speed internet for example is no longer a novelty, not in 2015.
In a recent Property Council submission the Residential Development Council responding to the federal government’s release of its new developments policy made a number of very clear and what I think were worthwhile points. Key among which was the negative impacts on affordability that could flow from some of the policies outlined in the government’s policy.
The issue relates to the ‘fairness’ of asking home buyers, who already pay as much as $90,000 in Sydney and $80,000 in Melbourne and $60,000 in Brisbane, to pay still more money towards telecommunications infrastructure. Given how essential modern communications are today I agree with the Council when it says that critical communications infrastructure needs to be delivered in a timely, equitable and cost-effective way, avoiding extra charges and additional planning delays.
Personally I would think that the majority of people sitting in the cafes, I mentioned earlier would expect nothing less.
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Telecommunications infrastructure is an essential ingredient of any new development

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After several decades working in this industry, I often get asked for advice.
I am referring to the casual questions that family, friends and associates ask me, such as: ‘I am looking to buy an apartment, where should I buy and what should I pay?’ or ‘I have been watching prices increase, do you think they’re getting out of control and may soon fall?’ and another common question – ‘Should I buy off the plan or an established apartment?’
Now in today’s fast moving market, these sorts of simple questions are loaded with so many options, because circumstances will be very different for each person. But if I stop and think about these questions, which I do, then I think that we tend to pay a lot of attention, possibly too much so to the big picture issues.
Like reflecting on interest rates, which has now turned into an almost never-ending narrative, or if there is an oversupply or too little supply and the constant reporting of auction results. I think that we forget about the basics. Buyers start to concentrate on the big picture instead of simply concentrating on their own plans and needs, the whole buying process becomes hard work, and it needn’t be.
For almost anyone looking to buy, even in the current market I would always suggest starting with the basics. Not being driven by constant media headlines, but concentrate more on what you as a potential buyer want, what are you looking for in your purchase, what are your immediate needs and plans for the future?
I think the same rules and basic ideas apply if you’re a first time buyer, a second or third time buyer or seasoned investor.
Just what are the basics? Nothing surprising really, but I would suggest: finance (your budget), location, timing and a hard-nosed view on the ‘must-haves’ in your property search. I think in that exact and, I suggest, somewhat logical order. This short list will I think serve any buyer well no matter their individual circumstances, so let’s look at each individually.
<ul>
<li>Finance</li>
</ul>
This is a subject that none of us, except possibly a very lucky Lotto winner can ever escape, the available finance or budget for any purchase is the essential starting point. It’s a topic that any buyer very likely thinks about the most, but I feel it’s important to appreciate that there’s lots of help and options available. Plan your finances and always think well beyond today, take into account the ups and downs, which might happen, in your personal affairs.
But above all, get as much information as you can. From the feedback I get, this is something that every buyer does appear to do these days. Lenders are keener than ever for your business, and help to find the best loan is free.
Right now we have the lowest interest rates since 1959. So plan your finances to take the maximum advantage of competitive rates, but keep in mind that rates will almost certainly go up sometime in the future. So make the best of the prevailing conditions.
If you lock in a three year or five year term, make sure that you still have the ability to make additional repayments, now while rates are low, and always keep in mind add-on costs like stamp duty, legal fees, moving costs, the possible need for temporary accommodation and be aware of any fees that attach to your home loan. Look beyond the headline details and understand the fine detail of your finances, that’s my basic point here, don’t only concentrate on the interest rate.
<ul>
<li>Location</li>
</ul>
When it comes to location, above all I think it pays to be flexible because it can be easy to become fixated about a particular location, and if this happens early in your search, the location can become an unnecessary roadblock. Again, take time to explore options because the ideal option might just be in an area or suburb you have previously overlooked.
The key points of any location often revolve around access to transport and facilities, but there could well be options if you take a flexible approach. As different governments start to roll out new infrastructure many areas will change over the next few years. If for example you want to live close to rail connections, an option might be the drive and park facilities.
Schools and shopping can also be important, the right school can be a tough one, but with many larger shops in particular supermarkets virtually now open 24/7, can you be more flexible? And it pays to be aware of what future developments might be coming to an area that may well add future value.
For apartment buyers open space is also a key point of location. Today many new developments are very well planned and designed with very attractive indoor and outdoor spaces, so when considering location take a close look at what’s on offer with individual projects.
<ul>
<li>Timing</li>
</ul>
Now I think that timing might just be one of those areas that you end up with possibly having the least amount of control over. In the housing market the most common reason to move house is usually associated with family formation. Marriage, living together, having kids, a divorce or retirement, in reality a variety of circumstances will bring buyers into the market.
Sometimes these things might sneak up on some of us, but generally timing of a move should not be allowed to become that critical that it forces you to buy or sell with little time to plan. If you’re in a buyers market, there’s possibly less pressure but even if the market is a sellers market plan your move to suit your own timeline and avoid over commitment of your finances in order to try and beat the market, that might just create more problems in the future.
<ul>
<li>Must Haves</li>
</ul>
This area involves possibly the most heart-burn, the most emotion, where dreams and reality may at times hit a bump. Responding to a marketing headline of ‘Inspired Design’ might be great for us in the business, but for buyers it pays to make sure again that you do not limit your choices.
Any new apartment needs to fit your lifestyle, your aspirations, I understand that, but always aim to sign-off on the basics first, like the number of bedrooms, do you need parking, or is a secure storeroom more important. A good outdoor area, a balcony, terrace or courtyard will always be high on the list of must haves for many buyers. Driven in part out of the reality that in some markets apartments are more compact but I think are generally well-designed.
However today the open plan approach to apartment design really does work to accommodate the living arrangement of most buyers, this creates flexibility. And if you’re buying off the plan there’s often a choice of interiors, finishes and colour schemes.
Kitchens and bathrooms are now attractive spaces, kitchens are evolving into almost bespoke pieces of furniture in their own right – but if everything is not perfect, think about the options you might change. Balance a good location against possible interior changes or furniture options that you can make.
Also keep in mind things like privacy and natural light, and aspect and sunshine because in the rush for the designer-finish these simple things can be overlooked and they can make a great deal of difference to the appeal of an apartment in the long run.
<ul>
<li>It’s Your Home</li>
</ul>
When looking to buy I think it’s important to work to your own timetable, explore all of the options of finance and location and take charge of what should be an exciting time.
Try not to be distracted too much by the big-picture because the market is still full of different options. Your final choice might end up being different from what you had first thought of as your ideal home, it might just be better! My suggestion is concentrate on the basics.
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The five basics of the property search: Peter Chittenden

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Just when you thought affordability was becoming a word of the past, I’ve unearthed another hard to believe story on the Gold Coast, alongside further evidence of the appeal of the local market as local demographics continue to evolve.
Our Gold Coast Team have just launched a new residential project located in the heart of Robina, on the doorstep of the thriving $2.5 billion town centre.
Robina is a classic and now very successful masterplanned residential community that has gone from strength to strength over the last two decades.
Perhaps best known as the home of the Bond University, Robina is now delivering the dream of the planners, it’s a thriving desirable community. Yes, it has access to great beaches and much more.
As a potential place to buy into the Queensland real estate market it offers a range of opportunities that will appeal to both future residents and investors alike. I also think that the development mix adds to the area’s appeal.
The choices are dynamic and importantly aim to meet the needs of singles, families, retirees and students across a variety of prices. Variety is important with apartments, villas, townhouses and detached homes.
While the Robina Town Centre is the focus of the area, there’s a direct train link to Brisbane. While employment is diverse across the Bond University, Varsity Lakes IT hub and now a brand new football stadium will also create economic momentum.
Robina’s history doesn’t extend much past the late 1980s, which makes the rate and scale of development impressive as it has matured into a business, medical, commercial and residential centre.
Robina has certainly proved to be centrepiece of Gold Coast development and with a strong future.
Picture of Robina courtesy of <a href="https://commons.wikimedia.org/wiki/User:TravellerQLD" target="_blank" title="User:TravellerQLD">TravellerQLD</a>/<a class="mw-mmv-license" href="https://www.propertyobserver.com.au/https://creativecommons.org/licenses/by-sa/3.0" target="_blank" style="font-size: 12.1599998474121px; line-height: 1.3em;">CC BY-SA 3.0</a>.
 
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Robina has proved to be centrepiece of Gold Coast development: Peter Chittenden

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We tend to pay a lot of attention to the penthouse level of projects.  They attract our interest because they can be dreamlike and expensive, but we tend to pay far less attention to the ground floor, the street levels of projects.
They can be problematic spaces, and there’s nothing more 'depression' than a ground floor shop or office space with a faded for lease or for sale signs languishing in the window.
However this space is often the public face of a building, it’s the street cred, and the visual appeal of a building can be both adversely and positively impact by what happens at this level.
Ground floor space that is not used as residential accommodation needs to be carefully considered, and there are various options and I suggest opportunities to use this space. There are however particular hurdles that have to be taken into account when the ground space fronts a major retail street or commercial zone. Or it’s an even more important when new ground floor space is intended to create a new retail or commercial zone, often this is a key planning requirement of the local council. Even if there are times when this space has limited commercial value.
Some Quick Options
Most buildings will have the main entry foyer at ground level, the area can also house a building manager, mailroom or other community spaces. But these spaces rarely occupy the entire ground floor, so the space is shared with retail and commercial space.
Other options include the creation of a breezeway under the building, connected to either an internal private open space, or to public space. The use of this type of open access way does help to create a more immediate connection to the local neighbourhood, in particular in very dense areas. I have also seen a number of large buildings where a big part of the ground floor is given over to a gym and indoor pool.
However as the density of developments increases there is a greater tendency for this area to be assigned for retail and local services. Many councils retain this idea as a key planning goal. The main task is to make sure this space adds to the appeal of the building and that retail opportunities are in tune with the needs of the local community and residents so that the space both engaging and financially viable for any tenant or owner operator.
Parking Remains A Hurdle
High-density residential development is now very common in Australian cities and because of the very limited supply of greenfield locations, developments are now commonly located in old industrial areas, or in areas around public transport hubs such as railway stations.
Retail facilities in these areas might be limited or located along old strip-shopping streets, while major shopping centres may be some distance away. Island site remote from the new generation of high-density housing, and it is partly for this reason that councils look to have retail space at ground floor level. There is also an ideal that this space be designed more for the pedestrians than for easy car access, but this creates a problem, because without easy parking it is hard to attract enough customers to support the retail space.
The simple idea that high-density residential development alone will support retail services rarely happens because big numbers of apartments are required, and even in high density locations like Sydney’s Victoria Park, retail has to be supported by ample and easy to access parking. It’s not a readily available or commercially viable proposition.
Part of the solution is to aim to silo retail developments in specialist hybrids so that they can attract customers willing to travel, or with a tenancy mix that has rusted on appeal to the nearby apartment dwellers. However again this is not an easy task, and every retail level can not be a trendy coffee shop, although that’s an impression you often get walking around some new project areas.
A nearby by major regional shopping centre is always a plus for a new residential project, but this monopoly of retail and to some extent services dies make it hard for one of retail locations or even small clusters to trade profitably. For this to happen you need density like you find in mega cities like New York, plus very easy access to mass transit.
Still many development controls in our capital cities mandate the provision of retail space down at the street, this does not always reflect the reality of todays shopping habits. In planning projects there needs to be a strong reality check of how this space will be occupied, clever thinking can make the space more useful and appealing and so eliminate the need to tired to-let or for-sale signs.
Another hurdle is the fact that most of the shops along streets will be sold or leased separate strata units. This makes it almost impossible to have a co-ordinated retail mix strategy and the shops may take many years to mature and then add to the appeal of the neighbourhood.
Each building and project needs to be considered so that token retail space is not seen as the only alternate, there may well be other options including clever landscaping solutions.
Nevertheless, high land costs will always put pressure on the use of this space but detailed planning can lead to better outcomes, because an active ground level, will add value and brand appeal to any apartment project.
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Down at street level: Active ground levels can add value and appeal to a development

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Every year the Housing Industry Association (HIA) publishes a detailed summary of the key facts about the Australian housing and construction industry.
With some figures going back over a decade, the summary always makes for interesting reading. I'm going to take a look at some of the key differences between 2013 and 2014.
The key headline figures show that last year there were 167,947 new homes built, up from 151,508 in 2012, the total value of housing construction increased from $68.3 billion to $69.9 billion, there was a big jump in the number of people moving into new homes from up from 389,376 to 434,788. There was also a notable increase in the number of people employed in the industry from 1,000,949 in 2013 to 1,037,412 in 2014.
As construction was seen as taking up some of the fall in activity associated with the mining boom, it is interesting to note that the value of construction as a percentage of GDP in fact fell from 4.6% to 4.5% in 2014. Even as the industry expands it has yet to reach the previous high of 5.3% recorded in 2010.
Looking at the make-up of the total number of dwellings built, the number of new homes built in 2013 increased from 90,268 in 2012 to 95,543 in 2013, the highest level in three years. However units continue to out pace detached dwellings. In 2012 there were 61,176 units built, in 2013 there were 72,404, however this is a huge increase over 2009 when only 38,992 units were built. It may well be that in 2014 unit numbers will have increased by 100% in just five years, which is a clear indication of where the market is heading.
Renovations are still very popular and this market has been running at consistent levels for some years, peaking in 2010/2011 at $31.8 billion. In 2013 renovations accounted for $27.9 billion, but outpacing all other areas of new construction. The renovation market is clearly an extensive and somewhat overlooked area of the housing market, possibly because activity is so fragmented and wide spread.
The HIA also tracks the average size of detached homes and attached dwellings. The size of the average family home has been relatively static at around 240 square metres for some years, attached dwellings are however getting smaller, and fell by 5.4% between 2012 and 2013 to 134 square metres having peaked at 143 square metres in 2004. However when looking at size, the HIA figures show that it is the size of the median lot size of land that has fallen the most, that figure stood at 592 square metres in 2004, and in 2013 there was a drop of 12.1% since 2008, down to 480 square metres, although in the last 10 years lot sizes have shrunk by more than 20%.
The composition of new dwelling approvals continues to change and in 1992 the total volume of detached dwellings represented 73% of all new dwellings, in 2013 that has fallen to 56%. By contrast, in 1992 apartments accounted for only 9% of the volume, in 2013 that has increased to 30% and the trend has been constant since 1997. The total dwelling stock in Australia now stands at some 9,008,000, an increase of 7.6% in the last 12 months.
Capital city vacancy rates have shown some movement between 2013 and 2104, the most notable shifts were in Darwin with rates increasing from 1.0% to 2.2%, and in Hobart there was a drop from 2.6% to 1.6%. Sydney and Adelaide remained stable and the vacancy rates increased in Melbourne, Brisbane, and Perth.
The HIA also notes in its update that according to RP Data, after inflation house prices across all capital cities increased by 7% over the past 12 months, and 13% in the past 5 years and 27% over the decade. I suggest that next year’s figures will continue to make interesting reading where price movements are concerned.
One final point is the burden of stamp duty across all markets, the duty on a median-priced dwelling in Victoria at 5% or $24,100 and in NSW for a similar home at 3.6% the duty would be $19,200. Clearly if there is to be a tax review and a change to GST, this level of duty begs for adjustment.
While the industry has seen growth in most sectors, the total number of building approvals at 178,897 is the highest figure since 2010 and a big increase on 2013 when approvals totalled 154,604. There were 34,506 (owner-occupiers) loans for new homes and 64,638 loans for the construction of new homes, which shows that Australians are still very much in love with the idea of building their own homes. The ‘dream’ is still very much alive as the increased activity over recent years shows.
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Construction industry stats show the Australian dream is still very much alive

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Australia has always relied on overseas immigration to help sustain our population and wealth, however according to figures published by the OECD, our immigration rates have been remarkably stable.
In 1995 non-Australian born residents accounted for 23% of the population and in 2011 that figure had only increased to 26.7%, for comparison in Canada the figure was 20.1%, in the UK 12%, the USA 13% and in New Zealand 23.6%.
At the same time as immigration has been very stable, investment inflows from offshore have been growing but there does not appear to be any direct link with high house prices. According to the OECD real house prices increased by 9.7% in 2010 (the most recent peak in prices) but they went into reverse in 2011 &amp; 2012 by 5.0% and 3.3% to increase by 3.8% in 2013, and in many ways 2014 continues a period of catch up, not withstanding the activities of foreign buyers.
While prices have been increasing over the years 2013-14 and affordability has fallen mainly because of high prices, interest rates have been very low. But it appears many Australians may still be facing a struggle to afford a home. One indicator is that the national savings rate, the percentage of disposable income that is saved has according to the OECD been in a steady decline; in 2011 the figure stood at 11.8% and in 2015 it is expected to be 9.3%.
Outside of the rate of foreign investment into Australia, we do not have to look very far beyond the ever increasing number of free trade agreements, or indeed the very presence of the G20 Leaders meeting in Brisbane to realise that we are very much tied up in the world economy. It is in fact an understatement of the reality.
However to single out foreign investment, which is not a new trend, for special treatment in the current state of the housing market, looks to deny the reality. If Sydney and other centres are to be seen as major players, so called ‘international cities’, then we need to accept that offshore buyers will be attracted to our residential markets. The investment and growth should create a stronger economy and more employment opportunities.
Fears about inflated prices, absentee owners and the creation of ethnic clusters look out of place in today’s world. However this does not mean that offshore buyers should operate outside the law and to date there is little evidence to answer that question one way or the other.
There is little doubt that the report issued recently does make some concrete points, not the least of which is an urgent need to improve reporting and enforcement by the FIRB. The move to civil penalties and fines for third parties, and the sharing of data between the Immigration Department and FIRB may also be well overdue and sensible measures.
However this will remain an emotive topic, and it’s also one where the question of ‘fairness’ surrounding the current rules will continue to come into question for as long as there is an incomplete picture of the market. Why the FIRB should have fallen so far short of the mark, may reflect badly on how different areas of government are being and have been under-resourced. And it is not only the FIRB.
Recently the ABS has come under the same sort of scrutiny, has been found wanting and also in a related area. When releasing the most recent housing finance figures the ABS has drawn attention to the fact that FHB loans may be under reported because not all FHB loans are tied to buyer grants and so some lenders figures may be wrong. While the FIRB recent enforcement might be in the view of the committee and community ‘grossly inadequate’, such failures need to be addressed.
The $70 billion residential construction sector relies on a stable flow of investment. To retain that level of investment we should not mix emotional questions of ‘fairness’ without reliable figures.
In 2012-13 real estate was the biggest sector of foreign investment into Australia, at $51.9 billion however, the majority of that was commercial real estate. We should also keep in mind that while China was the biggest source of investment at $5.9 billion in 2012-13, Canada invested $4.9 billion and the USA $4.4 billion, figures that I think show that we are part of a vibrant international market.
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Foreign buyers: Don't mix emotional questions of ‘fairness’ without reliable figures

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We are all living longer and that fact alone is having a big impact on the housing market as the population grows and ages.
However, it is the baby boomers that right now are shaping many areas of the housing market. As life expectancy among the boomers continues to rise, a more complex housing market is evolving.
There has been a 100% increase in the numbers of people living beyond 55 plus and a 150% increase in the numbers of people aged 75 plus. At the same time as the baby boomers age, their health has improved, and a longer life span is leading to pressures on aged welfare payments and health care costs. There are also longer term pressures building on how superannuation savings are managed and invested and how public pensions are funded.
As a result the traditional idea of retirement and retirement housing has shifted and continues to do so with some very dramatic consequences for the housing market.
Where and how the baby boomers live in retirement looks nothing like the retirement plans and hopes of their parents. The idea of moving to a sleepy coastal town, or traditional retirement village is being replaced with an appetite for lifestyles as diverse as living on a luxury liner (for the lucky few) or the more accessible idea of moving to a lifestyle resort with apartments and villas clustered around a golf course and access to a cinema, resort style pool and other amenities.
A key idea driving retirement living is the desire to stay connected. As people live longer and stay in good health they want to stay connected to family, the kids, the grand kids and lifelong friends, the idea of moving away from all of these connections has no appeal. Those living in retirement, or soon to retire, are no longer heading towards accommodation in clusters, they are aging in place and that means possibly staying longer in the current family home in metro, regional and country locations.
Existing homes are being renovated in greater numbers to accommodate their needs, by for example improving access to bathroom facilities and by reorganising accommodation so that stairs are eliminated.
Of course some people do move house, either trading up or down the price ladder and many new homes now feature a ground floor bedroom and bathroom. There’s also a continued trend towards boomers moving into CBD apartments, or apartments that a very well connected to local facilities. Sydney’s Double Bay and Bondi Junction are just two areas where this trend is evident. It’s all a part of being connected to the community and people's health care is also better managed when they are close to established medical facilities, a point not wasted on federal and state Treasurers.
More Flexibility Requires More Income
Recent federal budgets have started to directly address retirement issues, the retirement age is being increased, yes we are living longer, but we are also working longer by choice and by necessity.
As part of the housing equation income planning is now a central concern, people want to have more control when they retire and this is leading to a greater trend towards semi-retirement, with more lifestyle flexibility. By moving into retirement slowly, people are able to retain the family home longer, or plan their move to say a new apartment project, in an orderly fashion and possibly over a number of years. This is often an appealing solution for those who are asset rich, but cash poor.
If people do not want to sell their homes and move to fund part of their retirement income, staying local looks to be a long-term trend. Staying connected also means more boomers are looking for flexibility in their housing options and moving to semi-retirement may well have the impact of delaying the possible turnover of some existing housing stock. However it appears that it is quality of life that will drive retirement housing options. It is interesting to note that it’s the more highly paid who work longer and those that retire early usually do so not for financial reasons, but for health reasons as their ability to work is diminished.
Somehow that retirement cottage on the beach has lost its appeal, while a CBD apartment gains appeal and boomers weigh up how best to fund their future lifestyle and housing needs.
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Peter Chittenden

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Peter Chittenden

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