There are few property developers nationally that can boast a workbook like the ASX-listed developer Cedar Woods. With eight apartment buildings under construction across four states, Cedar Woods is well positioned to take advantage of what Managing Director Nathan Blackburne says is a “national shortage of apartments.”

Cedar Woods purposefully has a diversified portfolio of apartments, townhouses, commercial, and residential communities across the country, enabling the business to remain resilient through market cycles and respond to shifting buyer demand.

Blackburne says there is a great shortfall of housing of all typologies, none more so for apartments. He says that is the case particularly in Perth, where the lack of new apartment projects has been particularly acute.

“Perth has been more affected than Melbourne,” Blackburne explains, noting that over the past five years, “very few new apartment projects” have been launched in either city. Historically, apartments made up around 20 per cent of new housing nationally. Cedar Woods estimates that figure has fallen to around 10 per cent today, a gap they believe must close.

<h2>Apartment appeal rebounding as supply shrinks</h2>

There are signs the tide is turning however. Blackburne says buyer apartment sentiment really picked up in mid 2025. “In October we saw our strongest sales month for apartments in Perth.” The buyer demand has driven their Subiaco apartment development, Incontro, to nearly 70 per cent sold. The increased buyer sentiment has strengthened Cedar Woods’ confidence in bringing forward the next apartment project in Western Australia, a three tower development planned for the prime site on Upham Street in Subiaco, adjacent to Incontro.

Demand is being driven by several factors; the lack of new apartments coming to the market, the increased demand with migration far outstripping the aforementioned supply, and the appetite to live closer to the city.

“Over the past three years, Perth’s population has grown by around 250,000 people, while only around 50,000 dwellings have been delivered,” Blackburne says, adding that more than twice that number would be needed just to keep up.&nbsp;

He said that many buyers are being forced to the urban fringe because of the greater supply of land product, but that, Blackburne argues, is pushing the fringe further out and motivating a re-evaluation of the value of inner- and middle-suburb apartments.

Demographic shifts are helping drive this rethink. Cedar Woods is seeing more boomers downsizing, young professionals entering the market, and a rising number of single-person households. There’s also a growing trend of parents buying apartments for teenage children, motivated by fears that housing prices will become out of reach. “It’s not only a strong investment now, but it can serve as a first home when their children move out.”

<h2>National diversification strategy</h2>

Cedar Woods’ strategy is not limited to Perth. Blackburne outlines their aim to diversify by price point, product type, and geography, which “gives us a broad customer base and smoother earnings profile.” Throughout their markets, they’re combining apartments, townhouses, and masterplanned communities, allowing flexibility to pivot toward undersupplied segments as demand evolves.

In Victoria, Cedar Woods is pressing ahead with a major site in Fairfield, just northeast of Melbourne’s CBD, a site which Blackburne says the company has had its sights on for many years. They are planning to deliver three towers with over 300 apartments, with the plans likely to be submitted in early 2026.

Blackburne also expresses optimism about broader inner-Melbourne supply dynamics. 
 
“While Melbourne’s apartment market is better supplied than Perth’s, and population growth remains strong, Cedar Woods believes the current stock will be absorbed quickly,” Blackburne says, however he warns that policy disincentives remain. “In Victoria … there are quite a lot of obstacles for apartment buyers,” he says, adding that the industry is working with the state government to “remove those barriers” and avert prolonged undersupply.

Cedar Woods has plans on the desks of the VIC Government to develop a 20-storey tower in Southbank, in the heart of Melbourne’s arts precinct. Designed by Rothelowman, the proposed tower will deliver 180 apartments, ranging from studios to three-bedrooms, along with creative amenity space devoted to arts and digital industries, a food and drink tenancy at street level, and a 700sqm recreation deck with indoor lounge space will provide a resident amenity hub.

Blackburne frames the project as a response to Melbourne’s growing undersupply of signature inner-city living. “We saw a thematic: a looming undersupply in inner-Melbourne, particularly in high-quality apartments, and wanted to capitalise on that,” he says. The site’s proximity to the Melbourne Arts Precinct, key tram lines, and Southbank’s cultural fabric makes it especially appealing, Blackburne says.

<h2>Charting the course forward</h2>

On top of the apartment developments underway and planned in Perth and Melbourne, Cedar Woods has a multi-stage apartment development in Brisbane’s Woolloowin, and several years remaining on their masterplanned communities in Williams Landing in Melbourne and Glenside in Adelaide, both of which offer a mix of apartments and townhouses.

Blackburne says the developer has been able to mitigate some of the macro risks currently at play in the new development space, particularly in the construction sector.

“Cedar Woods has been able to make many apartment projects work because of good buying of the raw land in the first place, as well as its strong pipeline of apartment projects, enabling the company to attract builders to build deep, multi-year relationships.”&nbsp;

For Cedar Woods, 2026 is set to be significant, with anticipated approvals and submissions laying the groundwork for fresh apartment supply and multiple launches in 2027.

&nbsp;

Joel Robinson

Cedar Woods ramps up apartment development amid Australia’s deepening housing shortfall

Rockdale has long been characterized as a suburb on the cusp. Well-located, well-connected, but historically underserved by modern apartment offerings.

It has everything going for it: outstanding connectivity to the Sydney CBD, just four train stops to Central Station, strong local amenity anchored by Roc​kdale Plaza and a growing main-street dining scene, and enviable proximity to Brighton-Le-Sands. The six-kilometre beachfront is lined with bayside restaurants, cafés, and walking paths, giving residents a lifestyle typically associated with much more expensive coastal suburbs.

What Rock​dale has lacked is high-quality contemporary apartments. Most existing developments date back several decades, with floorplans that no longer support modern living needs, and buildings constructed long before today’s standards in engineering, efficiency, and sustainability.

Lender, fund manager and apartment developer Princeton identified the gap early. Seeing all the right ingredients in Rockd​ale, transport, lifestyle, retail, and affordability, they set out to deliver what the suburb was missing. Their answer is <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, a collection of 58 one-, two-, and three-bedroom apartments now nearing completion just a short walk from Ro​ckdale Plaza, home to over 50 specialist retailers and anchored by&nbsp;Woolworths, Big W and Aldi.

[smartcode_project:default project_id=136442 project_image_fid=355216]

Understanding they would be resetting the benchmark for the area, Princeton focused on ensuring buyers received best-in-class quality, longevity, and protection.

A major step was securing the sought-after Latent Defects Insurance policy from Resilience Insurance. This policy protects apartment buyers from structural or waterproofing defects for the first 10 years of the building’s lifecycle. Crucially, it is first-response insurance, meaning that if an issue arises, the insurer pays immediately for remediation—rather than waiting for lengthy investigations to determine fault before work can begin. For purchasers, it offers an unprecedented layer of security rarely seen in Sydney apartment projects.

During construction, independent building inspection firm SDSS has been providing Technical Inspection Services, bringing highly specialised construction experts on-site at key stages to ensure workmanship meets the highest standards. The project is being built by Coplex, an iCIRT-rated construction company, and throughout the build SDSS has frequently referred to <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a> as one of the best projects currently on their books.

Princeton also doubled down on comfort, acoustics, and livability.&nbsp;As well as being the only building along Princes Highway with a landscaped buffer between the building and the road, Princeton has purposefully included double-glazed windows in all apartments to reduce noise.

Apartments feature double-glazed, noise-reducing windows and ducted air conditioning in every residence.&nbsp;In addition to the project’s transport convenience, Princeton has partnered with GoGet Car Share to provide a dedicated GoGet vehicle housed permanently within the building. Residents will receive a free annual GoGet membership, paying only usage fees, offering a flexible alternative to owning a second car and enhancing the project’s sustainability credentials.

[smartcode_project:default project_id=136442 project_image_fid=277075]

Residents will enjoy an exclusive rooftop oasis, purpose-designed as an extension of their living space. The communal rooftop includes BBQ facilities and outdoor entertaining areas, a&nbsp;pergola-shaded dining zone, a dedicated children’s play space, and a landscaped herb garden.

Princeton and Coplex is approaching completion of <a href="https://www.apartments.com.au/new-apartments/marque-rockdale-602-608-princes-highway-rockdale-nsw-2216">Marque Rockdale</a>, and are expecting residents to move in early in the new year. The mix of apartment configurations and price points have been a hit with young professionals, those who need to commute to the CBD, and families who appreciate doorstep amenity.

“Marque is a place where residents will be proud to call it home," Princeton Head of Development George Young says.

"We’ve worked really hard with Coplex and our design team to deliver an incredible building for the future home owners to make their own. The homes are all designed to allow the residents to make it their own, a place to belong and live a stylish urban life."

[smartcode_project_cta:default project_id=136442]

Marque Rockdale sets a new standard of apartment living in Sydney's south

Plans to revitalize the&nbsp;long-established Benowa Gardens Shopping Centre into a mixed-use community combining living, shopping, dining, health and wellbeing facilities, have been proposed to the Gold Coast City Council.

The Benowa Gardens Urban Village proposal by Benowa Gardens Holdings seeks to transform the 17,660 sqm site at <a href="https://www.apartments.com.au/new-apartments/203-ashmore-road-benowa-qld-4217">203 Ashmore Road</a> into a contemporary, sustainable destination that reflects global trends in modern community design while retaining the familiar local character residents value.

The site is bordered by Ashmore and Benowa Roads and Carrara, with ready access to Pindara private hospital, four schools, TAFE, sports fields and the nearby Botanic Gardens.

Benowa Gardens Holdings is seeking a preliminary Council approval only for its proposed masterplan and variations to the site’s Neighbourhood Centre zoning.&nbsp; 
Formal Public Exhibition commenced Friday and also marks the start of comprehensive community consultation with surroundings residents, schools, P&amp;Cs, existing retailers, nearby sporting clubs, arts groups and Botanic Gardens volunteers.

Designed by Neylan Architecture, the masterplan envisions around 413 new apartments, complemented by upgraded retail, dining, and wellness amenities as part of 10,000 sqm of retail, and 9,630 sqm of office space/medical suites.

The development will feature green open spaces, shaded promenades, landscaped terraces, pedestrian walkways, and expanded healthcare and lifestyle services in synergy with the neighbouring Pindara Private Hospital and local schools.

<img alt="Benowa" data-entity-type="file" data-entity-uuid="244f4d54-2e67-4141-92b8-78d5735f47c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2012.47.34%E2%80%AFPM.png?VersionId=FmF5lzhpwVZc7POsdB770TJ_Bf2c0od8" />

“This concept embraces the way people increasingly want to live - safely, conveniently, and within strong local communities,” said Patrick Lu, Director of Benowa Gardens Holding.

“Benowa Gardens will set a new benchmark for integrated living on the Gold Coast. It’s a thoughtful, community-minded evolution that brings global best practice in urban design to one of the city’s most established areas.”

Lu said this isn’t just a redevelopment, it’s a renewal with purpose.

“Benowa Gardens has served the community for decades. Our goal is to ensure it continues to do so for generations to come, as a lively, connected Urban Village where people can truly live, work and thrive. We’re already talking to school leaders and the community to seek their feedback on our proposal, and have taken on board their ideas to improve student safety with additional “traffic calming” measures on Carrara Street. We’re conducting meaningful and sincere consultations and want to play our role in preserving and enhancing the local community."

The proposed redevelopment aims to deliver tangible benefits across the Benowa and wider Gold Coast community, including:

<ul>
	<li>Improvement of retail amenity, to capture the under-served local market demand and keep the local business at their local shopping centre.</li>
	<li>Housing diversity; offering a range of apartment types for key workers, downsizers, and local families who wish to remain in the area.</li>
	<li>Enhanced shopping and dining; revitalised retail spaces designed to support local businesses and attract more visitors.</li>
	<li>Health and wellbeing access; additional medical and wellness amenities to complement existing local facilities.</li>
	<li>Improved traffic flow and access; two new access points, upgraded intersections, upgrade pedestrian pathway’s signal and proposed upgrade of pedestrian and cycle connections/space to improve safety and convenience, especially for school children.</li>
	<li>Environmental sustainability; energy-efficient design, green rooftops, and water-sensitive landscaping to reduce emissions and enhance comfort.</li>
	<li>Local jobs and investment; supporting hundreds of construction and long-term roles while stimulating local economic growth.</li>
</ul>

The group behind the project boasts extensive experience in the property development industry, both in Australia and international markets. Over the past 23 years, the group has been involved in the development and management of a diverse portfolio of assets including residential dwellings, shopping centres, bulky-goods stores, community and medical facilities, childcare centres, offices, hotels, and taverns, across Brisbane, Ipswich, and the Gold Coast.

Benowa Gardens to become new mixed-use urban village

Demand for townhouses in Melbourne’s inner west has surged as buyers seek the elusive combination of space, affordability, and location.&nbsp;

With family-first apartments increasingly rare and standalone homes often out of reach, townhouses have emerged as the new sweet spot, delivering generous living areas with lower maintenance needs within close proximity to the Melbourne CBD.&nbsp;

<a href="https://www.apartments.com.au/new-townhouses/kings-lane-south-kingsville-50-58-new-street-south-kingsville-vic-3015">Kings Lane</a>, the new under-construction townhouse development by the family-owned developer&nbsp;<a href="https://www.apartments.com.au/developers/blue-run">Blue Run</a>&nbsp;in South Kingsville, responds directly to this trend. Comprising just 25 residences designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project offers a compelling alternative to both apartment downsizers and family upsizers. With three-bedroom homes priced under $1 million, it presents one of the area’s rare attainable pathways to townhouse living less than eight kilometres from the CBD.

[smartcode_project:default project_id=145042 project_image_fid=355147]

<a href="https://www.apartments.com.au/developments/south-kingsville-vic-3015">South Kingsville</a> itself is quietly becoming one of Melbourne’s most dynamic pockets of urban renewal. Flanked by the established appeal of Yarraville, Newport and Williamstown, the suburb balances quiet, village-like streetscapes with major infrastructure upgrades and a growing slate of retail, dining and lifestyle amenity.&nbsp;

Kings Lane occupies a well-connected site at 50–58 New Street, just off Blackshaws Road and within walking distance of the emerging Union Quarter precinct, a major retail destination anchored by Woolworths, specialty food outlets and wellness services.

A 400-metre stroll brings residents to the Vernon Street shops, a local favourite known for its mix of independent grocers, cafes and family-run eateries. For broader shopping options, Altona Gate Shopping Centre and Yarraville Square are both within a short drive. Spotswood IGA and the Williamstown retail strip further broaden the convenience of daily essentials.

[smartcode_project:default project_id=145042 project_image_fid=355139]

Dining options in the area lean toward eclectic and community-driven, with standouts like Rocco’s Deli, Dad and Dave’s, and Pizza d’ASPORTO offering a range of casual and elevated menus. Cafés such as Hudson Road Wine &amp; Beer and Blacksheep Coffee add to the lively yet local feel of the neighbourhood.

Green space is another hallmark of life at Kings Lane. Edwards Reserve is close enough for morning walks or casual sport, while larger parks like Newport Lakes, Yarraville Gardens, and Cruickshank Park are all a few minutes’ drive away. More than half of the nine-hectares of new green space or parkland being created as part of the West Gate tunnel works is located just at the end of New Street, the same street as Kings Lane.

&nbsp;

For those with school-age children, South Kingsville is home to a range of quality childcare centres and schools, including Kingsville Primary, Spotswood Primary, and Williamstown North Primary. Community Children’s childcare and South Kingsville Preschool are nearby, making the suburb particularly attractive to young families.

Transport links continue to improve, with Spotswood Station and the West Gate Freeway both within a five-minute radius. Future upgrades, including the proposed sky rail for Newport and Spotswood, and the delivery of the West Gate Tunnel project, promise even better access to the CBD and Melbourne Airport in the years to come.

Kings Lane's 25 all-electric townhouses are currently under construction, and will complete in late 2026.

[smartcode_project_cta:default project_id=145042]

Staff Writer

Kings Lane townhouses offers rare value in Melbourne's thriving inner west

Developer-builder <a href="https://www.apartments.com.au/developers/billbergia">Billbergia</a> has set a new apartment price record for <a href="https://www.apartments.com.au/developments/rhodes-nsw-2138">Rhodes</a>, a suburb the company has been instrumental in transforming over the past two decades.

The milestone follows the delivery of thousands of apartments across the harbourside peninsula, culminating in the $4.5 million sale of a 220 sqm penthouse in the <a href="https://www.apartments.com.au/buildings/rhodes-central-oasis-39-marquet-street-rhodes-nsw-2138">Rhodes Central Oasis</a> building, which Billbergia completed earlier this year. It is the first apartment in Rhodes to surpass not only the $4 million mark for settled sales, but also the $3 million mark, eclipsing the previous $2.75 million record set in 2021.

The purchaser had originally secured several apartments in the 40-storey tower off the plan as investments. During settlement, she spent more time in the Rhodes area and was so impressed with the building that she decided to downsize from her Northbridge home into the four-bedroom plus MPR penthouse.

The sale underscores the long-term work Billbergia has undertaken in Rhodes since the early 2000s. The company, rated 4.5 Gold Stars under the NSW iCIRT system, identifying it as one of the state’s most trustworthy and financially secure developers, was a pioneer of the area’s urban renewal. What was once a heavily industrial waterfront has become one of Sydney’s most successful examples of transit-oriented development.

<img alt="Billbergia" data-entity-type="file" data-entity-uuid="56093d7f-db18-42f4-bf9b-115bdf76f5f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2011.10.06%E2%80%AFAM.png?VersionId=pca77Mr.H83nwXbJexmaLUAqBewtQ7d9" />

Billbergia is now driving the peninsula’s next major evolution: the most ambitious project in its nearly four-decade history. They are planning the Rhodes Bay Masterplan, an eight-tower, mixed-use precinct on Leeds Street. Currently with the NSW Government’s Housing Delivery Authority which is now championing large-scale projects across the state, the Rhodes Bay Masterplan lays the groundwork for a generational reshaping of this important pocket of Sydney’s Inner West.

The masterplan spans more than 31,000 sqm of amalgamated industrial land along the foreshore, land that has been privately held and inaccessible to the community for more than a century. According to Billbergia’s Development Director, Saul Moran, reclaiming this land for public use is central to the company’s vision. 
 
“What’s so exciting is that we have over 300 metres of privately-held industrialised waterfront, land that’s been locked away for more than 100 years, which we’re bringing back to the community,” he says. “It’s taken many years to assemble sites like these, and the goal now is to transform them into meaningful public space where new homes can be built in an integrated, amenity-rich setting.”

At full completion, the Rhodes Bay Masterplan is expected to deliver over 2000 apartments, with the first 1000 to be completed by 2029. Billbergia’s design focused on nine slender towers, so they could give back more to the ground plane. There will be more than 16,000sq m of new parkland and recreation space, including sports fields, a foreshore play area and waterfront green links. Around 14,600 sqm of retail is also proposed, extending the precinct’s role as a true mixed-use hub.

<img alt="Rhodes Bay" data-entity-type="file" data-entity-uuid="240ffc41-4f26-421a-9606-5c56f6fc2d93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-26%20at%2011.05.48%E2%80%AFAM.png?VersionId=BkBxZr7S8CAt1vgNa8AF3zjdc3YuVh0L" />

“Density only works when it’s paired with amenity, transport and open space, and that’s what’s made Rhodes such an amazing success story,” Moran says, adding that the demographic shift Billbergia has seen over the last two decades has informed their future development pipeline in the suburb.

“Rhodes has moved from being largely an investor market to a strong owner-occupier community,” Moran says. “There’s real demand for three-bedroom homes, flexible intergenerational layouts, and apartments people can grow into.”

&nbsp;“We’re designing taller, more slender towers to free up the ground level for sport, recreation and green space. High-density communities thrive when people have the best backyards in Australia, and that’s what we want to create here.”

Demand remains robust, evidenced by Billbergia’s recent results. “We achieved a record sale across the entirety of Rhodes Central just last week,” Moran says. “It shows the depth of confidence buyers have in what’s being built here.”

Billbergia’s vertically integrated model allows them to overcome the recent cost escalation and challenges in the build environment. “Having an in-house construction team lets us control feasibility, value management and quality from day one,” Moran says. “It’s critical in the current market, where construction escalation is at the forefront of every project’s viability.”

The company is also leveraging the NSW Government’s new Housing Delivery Authority process, which Moran describes as a more efficient pathway without compromising design standards. 
 
“We’re really applauding the NSW Government for its efforts to increase housing supply. There’s been a remarkable improvement in how they’re helping deliver more homes, more quickly.”

Billbergia has already commenced construction of Stage One of the Rhodes Bay masterplan. They will be lodging the State Significant Development Application before Christmas.

“We’re moving quickly, but with due care,” Moran says. “This is a generational precinct, and it needs to be done right.”

Billbergia smashes suburb record as Rhodes transformation continues

Property Bubble

&nbsp;Australia&rsquo;s housing market is experiencing a peak growth rate, but experts say the current boom won&rsquo;t last forever.&nbsp;

In this month&rsquo;s Finder RBA Cash Rate Survey&trade;, 40 experts and economists weighed in on future cash rate moves and other issues relating to the state of the economy.&nbsp;

While all experts surveyed predict the cash rate to hold, nearly half of those who weighed in on property prices (47%, 16/34) believe Australia&rsquo;s current house price growth is unsustainable.

Property market growth surged at its fastest rate in 33 years in March, with national dwelling values also increasing by 6.2% over the past year according to CoreLogic.&nbsp;

[smartcode_project:default project_id=6690 project_image_fid=27326]

Graham Cooke, head of consumer research at Finder, said that some experts are concerned a housing bubble is emerging.

&ldquo;Rock-bottom rates, government stimulus and a fear of missing out have really lit a fire under the belly of the market.&quot;

&ldquo;Listing numbers are unable to meet high buyer demand, keeping inventory levels low overall and adding to the sense of urgency among buyers. &quot;

&ldquo;We&rsquo;ve seen more borrowed for housing over the last six months than during any similar period in history &ndash; and economists have tipped us to borrow more over the next six.&quot;

&ldquo;It&rsquo;s unlikely we&#39;ll see any regulatory intervention from policymakers yet, but this might be a possibility down the track,&rdquo; Cooke said.&nbsp;

According to Mala Raghavan of the University of Tasmania, buyers may put themselves at risk by acting too hastily.&nbsp;

&ldquo;The recent uptick in buying behaviour largely appears to be due to the fear of missing out, and many buyers are rushing into the market without clear foresight of the impending risks.&quot;

&ldquo;When mortgage rates start rising, many households will risk being unable to service their loans, and could be vulnerable to foreclosures,&rdquo; she said.&nbsp;

Graham Cooke, head of consumer research at Finder, said that some experts are concerned a housing bubble is emerging

jordan_55689

1 in 2 experts say recent house price growth is “unsustainable”: Finder

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Generalisations about property markets are a major source of misleading information for investors.
The worst examples usually emanate from economists who speak about “the Australian property market” as a single homogenous entity. 
A statement such as “Australian house prices rose 7 percent last year” implies there was 7 percent growth across the nation, when it reality there were a few locations with double-digit growth, some with minor movement, many where prices hardly moved at all and others where prices went backwards, in some cases a lot.
We’ve had three years of empty rhetoric about property prices “soaring” and bubbles emerging, all based on a long-overdue revival of the Sydney market and action in some parts of Melbourne.
Even speaking about what happened or will happen to prices in a single major city is too much generalization to be of any use to buyers and sellers.
The entity described as “the Sydney property market” is a place with over 700 suburbs, with markets ranging from $370,000 units in Liverpool to $900,000 houses in Rouse Hill to top-end locations like Mosman where the median house price is $3 million.
Distilling all of that and more into a statement such as “Sydney property prices rose 3.6 percent in May” is the hallmark of lazy, incompetent analysts whose primary interest is publicity rather than being useful to consumers.
A study of the latest Market Monitor from the Real Estate Institute of Queensland provides plenty of evidence that generalised single-figure numbers to describe a large city are both pointless and misleading.
The report finds that the median house price in the Brisbane City LGA rose 6.1 percent in the past year. That’s the figure that 99% of media would report, indicating that Brisbane has a solid market but one that isn’t booming the way Sydney did until recently.
But Market Monitor delves deeper and provides figures for individual suburbs, revealing there are plenty of places which did a lot better than the generalised figure and a few where median prices were in reverse.
Middle ring areas in the Brisbane Southside precinct did well in the past year, including Coorparoo (up 11 percent), Holland Park West (up 12 percent), Macgregor (up 17 percent), Sunnybank Hills (up 12 percent), Eight Mile Plains (up 10 percent), Mansfield (up 11 percent), Wishart (up 15 percent) and Robertson (up almost 20 percent).
Similar areas on Brisbane City’s Northside have also out-performed, including Banyo (up 17 percent), Grange (up 16 percent), Hendra (up 13 percent), Wooloowin (up 16 percent), Sandgate (up 17%) and Mitchelton (up 11 percent).
In contrast, there is evidence of falling values in upmarket areas like Hamilton, Ascot, St Lucia, Teneriffe and Hawthorne, all suburbs with median house prices above $1 million. But the median price for New Farm (median house price $1.5 million) is up 15 percent.
The report also shows the impact of over-building of inner-city apartments, with the median unit price down 1.4 percent in the CBD, down 4.5 percent in Fortitude Valley and down 1.7 percent in West End. Median weekly rents have fallen in the past year in several of the inner-city unit markets, according to the REIQ data.
Heading south to the Logan City part of Greater Brisbane, the generalised figure indicates the median house price has risen only 4 percent in 12 months. But suburbs with annual growth above 8 percent include Browns Plains, Heritage Park, Loganlea, Waterford and Waterford West. Logan Central, Forestdale and Woodridge all had annual growth in the 13-15% range.
Logan City’s opposite number in Brisbane’s far north is the Moreton Bay Region, which has emerged recently as the No.1 rising market in the metropolitan area. Most suburbs in this LGA have median house prices in the $300,000s and $400,000s – and affordability is a major driver here. 
The generalised figure says house prices have risen 5% in 12 months, but many suburbs have done better, including Albany Creek, Banksia Beach, Bongaree, Burpengary East, Caboolture, Clontarf, Ferny Hills, Narangba, Toorbul, Warner and Woody Point - all of which recorded annual growth between 8 percent and 12 percent. Upmarket Newport on the Redcliffe Peninsula also grew 12 percent.
On the Gold Coast, house prices rose 5.8 percent on average, but there are 20 residential suburbs with growth between 10 percent and 20 percent.
By contrast, the apartment market is under-performing, with the median unit price in Surfers Paradise largely unchanged, while the medians for Broadbeach, Labrador and Mermaid Beach all dropped 5 percent in the past 12 months.
Surfers Paradise, Broadbeach and Mermaid Beach all have median unit prices considerably lower than five years ago, while Labrador and Southport are unchanged.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
</body></html>

terryryder-YECXbqmri2

Three years of empty rhetoric about property prices “soaring": Terry Ryder

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Harry Dent, one of the world’s most controversial economic futurists, will be touring Australia again in February.
He will be in Australia from February 24 to March 2 to discuss his latest research findings on the future of the economy.
His pitch will be how to build and protect your wealth during uncertain times which he describes as the greatest social, economic, and political upheaval since the American Revolution.
“I’m convinced that the combination of cheap money, inflated debt, declining demographics and politics will ultimately lead to a (stock) market crash worse than any we’ve ever seen.
"But that doesn’t mean you can’t still make some money in stocks right now. You see, the same forces that will ultimately lead to the next (stock) market crash are also the same forces that continue to drive this bull market “ says Harry.
He suggests Australia is a relative "safe haven."
But he will presumably offer his advice on exiting Australian property markets to a potentially understandably sceptical audience.
Last time he toured in 2014 Harry Dent's worst case scenario was for a post-China bubble burst impacting on Sydney with property prices possibly set to collapse by as much as 60 percent or so.
His controversial forecasts were labelled as "scaremongering" by commentator Chris Joye.
As he did on Harry Dent's earlier 2011 crash forecast, the founder of listed wealth manager Yellow Brick Road Mark Bouris also countered the claims. 
Bouris always maintained that Australia was well-positioned to navigate international turbulence.
In 2011 remarks on David Koch’s Sunrise program, Dent begged viewers to sell their homes before the 50 percent crash in prices arrived at their doorsteps.
Dent’s claim was that Australian dwelling values were “9.5 times family incomes”, and should, in his view, be about “half” that level.
Dwelling prices in Sydney now have an $895,000 median, up from $610,000 in early 2014, according to CoreLogic, who have noted a 2 percent fall over the past quarter.
It represents a 46 percent rise since Dent's 2014 warning. Sydney's median dwelling price was around $500,000 in 2011.
Blogger Pete Wargent noted in 2014 Dent's "track record has been wildly inaccurate."
<a href="https://harrydentlive.com" target="_blank">Next month</a> Harry Dent starts in Perth on Saturday 24th February, then Melbourne Monday 26th February, Sydney Tuesday 27thFebruary, Brisbane Wednesday 28th February and even Newcastle on Friday 2ndMarch. 
All attendees get copy of Dent’s new best seller Zero Hour.
The early bird pricing is $47.
Ofcourse Dent's most noted tip was that Japan, then on top of the economic world, would suffer a slowdown lasting more than a decade.
It is still pretty much in a coma, he notes, some two decades after the 1991 peak.
Last time he toured he told his audience: "You can't keep bubbles from bursting for ever."
Dent made headlines when he remarked that the Australian property market was like popcorn popping - different markets bursting at different times, noting the high risk of the expansionary China collapse in hurting Australian property prices.
"There is no way there will be a soft landing in China." he suggests even if the government seeks it. 
"China's blow will really hit Australia," he said.
Asked on his hit and miss success rate, Dent was forthright.
"I am likely to get 30 or 40% of forecasts wrong in the timing," he said.
His US critics point to his 2005 forecast that the Dow would hit 40,000 by the end of the decade. His local critics point to his 2011 call that property in Australia was set to crash.
Saying it often can be just one piece of information that can provide the clue, his late 1980s Japanese forecast was based on his premise that people slow in spending way ahead of retirement, from 46 years onwards.
Asked how much understanding the pysche of the population of a city or country was helpful in understanding market movement, and he agreed.
"You are right, yes markets do go up and down together, but to different degrees.
"But the bubble will be here and there, say Melbourne and Brisbane."
Harry is the founder and senior editor at Dent Research, where he seeks to identify and study demographic, technological, consumer spending and geopolitical trends to forecast economic booms and busts well ahead of the mainstream.
His latest publicity blurb put out by Max Markson seeks to address his many critics.
"Mainstream media pundits are calling me crazy, an idiot, and a quack.
"But that’s nothing new…
"After all, I’ve been making predictions that people are sceptical of for decades… but one after another keeps coming true anyway!"
{mijopolls 149}  
 
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jchancellor-FAypfDUnLy

With a 46 percent property price rise, will anyone believe futurist Harry Dent on his Australian tour next month 

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The changing market conditions and the growing speculation about the end of the property boom is just that, speculation.
The market is not about to crash, but a slowdown may have begun, according to property expert John McGrath.
“This sort of chatter happens at the end of every boom. I have seen it time and time again over 30 years and the ‘doom and gloom’ predictions simply haven’t eventuated,” said McGrath in his recent Switzer column.
Booms don’t end in a crash, they take a gradual course, and this might be the start of a slowdown in Sydney and Melbourne, says McGrath. 
“Or we might not be – no one knows.”
But there’s a few small signs that the market is slowing and that’s the headlines and predictions of price falls. The key is not to panic, he advises.
“I’d actually encourage you to welcome a slowdown in growth. After a long period of price rises – about 75 percent in Sydney alone, we need a period of consolidation that will put a floor under these new price levels and provide stable ground for home values to rise strongly again in the next boom. 
“Of course, no home owner likes to see prices go down. But it’s important to remember that if we do see some price reductions, they’ll be small and short term.”
He dwells on the fact that good quality properties double in value every decade but growth is never in a straight line. More often than not, we have a few years of strong growth, a few years of little growth and round in circles we go.
“I’d advise you to ignore all suggestions of a market crash. It’s not going to happen. Yes, we’ve had phenomenal growth over the past five years. That doesn’t mean we’re due to have phenomenal declines.”
Property is now analysed, or should I say over-analysed, as closely as the stock market but property is not an asset class that changes overnight. 
“We have too much population growth fuelling demand and too much of an undersupply to experience a crash.
“Overseas commentators, in particular, do not understand this. They also don’t appreciate how ingrained it is in our culture to pursue property ownership. 
“We have entirely different dynamics to overseas markets that will continue to keep our property values strong well into the future.”
Sydney and Melbourne
To the question on whether the Sydney and Melbourne markets are turning, he says  no one can identify the exact time of a turn – it will only become clear several months after it has happened because once again, the property market changes at a very slow pace.
The supply of established housing stock available for sale in Sydney and Melbourne is at its highest level for this time of year since 2012, CoreLogic figures show. 
Does this indicate slowing demand? Yes. Is it a sign that the market is actually slowing or just a blip? We don’t know yet, he says.
Saturday auction clearance rates remain very high. About 60% represents a normal market. About 80% represents a boom. For the past couple of months, Sydney has been in the 70 percent - 75 percent range. Does this indicate a slight drop in demand? Yes. Is demand still strong? Absolutely.
Again, when the property market slows down after a boom, it does so very, very gradually. In my opinion, I do think the Sydney and Melbourne markets are at, or near, their peak for this growth cycle. What’s going to happen next? The two most likely eventualities are as follows:
1. The pace of growth in property prices will slow down but not stop. Property prices will keep growing but at a lesser rate per year.
2. We have a minor correction, where the market will do as it has done before and give back about half of the prior year’s growth, so that would be around 5%.
 “Neither scenario is cause for panic. If the boom is indeed over, then here’s my advice to people in the market.
<ul>
<li>If you are a recent buyer, don’t panic. Yes, you’ve purchased at what is probably the peak of the cycle but if you plan to hold long term (which is what you should always do) then it won’t matter if we experience a small correction. You’ve purchased a sound investment during a time of record low interest rates. Think about what your property will be worth in 10 years’ time – probably double! </li>
<li>If you are in the market to buy, don’t put it off because you think prices will plunge – it never happens that way. Take a sensible measured approach, set a budget and buy the right property for you.</li>
<li>If you are thinking of selling, now’s the time. It feels to me like we’re at, or close, to the peak of this cycle, so if you want to fully capitalise on this boom, now is the time to sell.</li>
</ul>
 “Property is a fantastic vehicle for wealth creation if you can hold it long term,” he says, concluding that it means riding out market slowdowns without panicking and staying focused on the goal of debt-free ownership down the road.
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jonathanchancellor-7SQnKwU6yx

The property boom will end slowly, with no cause for panic: John McGrath

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<img src="https://counter.theconversation.edu.au/content/76505/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
There’s been quite a bit of speculation over whether Australia has a property market bubble - where house prices are over-inflated compared to a benchmark - and when it might burst.
According to housing experts, there’s at least four scenarios where this could happen.
Australia could see a property bubble burst due to:
<ul class="ul1">
<li class="li2">Lending tightening, interest rate hikes and mortgage stress</li>
<li class="li2">Underemployment and unemployment creating a slow deflation</li>
<li class="li2">Government intervention failure and market repair</li>
<li class="li2">Global crisis</li>
</ul>
These four scenarios focus on different tension points in Australia’s and the global economy. One scenario focuses on the balance of actions between regulators like APRA and the Reserve Bank, combined with household mortgage stress. Another envisions the affect that unemployment might have in certain areas.
Some of the factors we may see play out, such as the federal and state government trying to intervene to “fix” problems in the market, as happens in one scenario. But other factors may be out of the government’s control, for example, where a global crisis pushes up risk premiums.
All of these scenarios highlight just how complicated and interrelated the steps that lead to a property bubble burst could be.
Lending tightening, interest rate hikes and mortgage stress
Associate Professor Harry Scheule, UTS Business School
<a href="https://www.propertyobserver.com.au/images/2017/05/01/file-20170424-25594-sr2cd9.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-25594-sr2cd9.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Following concerns of the housing bubble, bank regulator APRA increases bank lending standards, it also increases the risk weight on Australian mortgages resulting in lower loan supply and higher loan costs. Banks are encouraged to reduce interest-only loans, hold a greater amount of costly capital (making home loans more expensive) and reduce the loan amounts offered to applicants due to higher future interest scenarios.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12655-nn7let.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Following increases in interest rates in the US and Europe, as those markets recover, the Australian dollar begins to decline – forcing the Reserve Bank of Australia (RBA) to increase interest rates.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12640-1lrrxft.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
Higher interest rates lead to higher monthly repayments, as most of Australia’s home loans are adjustable. Interest only loans are the most exposed. Higher interest rates also lead to more mortgage delinquencies.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170428-15097-i6a8cl.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
The banks tighten bank lending standards in response to the increase in delinquencies. This further constrains interest-only borrowers seeking to refinance after the end of the interest-only terms. This means more mortgage stress, as many had expected to roll over the interest-only period indefinitely, but now they are forced to make principal repayments next to interest payments.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12627-djg6hq.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The cycle between delinquencies and tightening bank lending standards continues and as a result there’s a noticeable drop in loan supply and a fall in house prices. 
Underemployment and unemployment create a slow deflation
Danika Wright, Lecturer in Finance, University of Sydney
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12658-14s147l.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Unemployment and underemployment - workers who want to work more but can’t - increase. As the apartment development boom dies down, and without a mining boom to replace it, construction industry workers are at high risk.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12629-1g17gp1.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Households with a lot of mortgage debt are forced to limit their spending, particularly on discretionary items. This in turn affects companies that employ retail workers, reducing hours and employment.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12645-1thbkt5.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Employment opportunities are a major component of house price amenity, in part because demand for housing is pushed higher by inbound work-related migration. So, as there are less jobs nearby, the amenity value of some areas decreases.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170428-15121-1a3mn50.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The amount of people at risk of defaulting on their mortgage increases in areas where there is a loss of employment or reduced income. In 2008, arguably the last time Sydney house prices went through a correction, the incidence of mortgage defaults and property price declines was geographically localised.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170428-15086-1qrzafm.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Borrowers who have the least amount of equity in their homes (typically the least wealthy, younger and newer entrants to housing market) are the hardest hit by falling property values. They are more likely to end up “underwater” – that is, owing more than the property is now worth – and face the prospect of a distressed sale. This in turn contributes to the downward spiral in house prices.
Australia has tighter lending criteria than regulators enforced before the global financial crisis in the United States. But concerns by regulators, including APRA, over current lending practices and potentially fraudulent activities raise questions over the real quality of mortgages and the ability of borrowers to repay them.
Government intervention failure and market repair
Professors of Economics, Jason Potts and Sinclair Davidson, RMIT
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-22270-1wxliec.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
A combination of low interest rates and low growth in new housing stock drive up Australian housing prices, a situation compounded by poor policy choices by state and federal governments and high demand from foreign residential property investors.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12658-1w2f933.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
As a result housing is misallocated in the Australian market, across demographic and especially age groups. This produces demographic pressures, as millennials delay leaving home, delay starting families. This leads to political pressure on governments – increases the urge to intervene.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170421-12669-19vk1qg.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The federal government intervenes, blaming the secondary drivers (particularly the non-voting group: foreign investors). They increase restrictions on foreign investment in residential housing stock.
The federal government also lobbies APRA to increase rules on financial products, while promoting a scheme to subsidise and promote first home ownership.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-23807-i1c8wi.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Because none of these previous measures from the federal government affect the primary drivers of the misallocation of housing, domestic interest rates don’t change, and state governments do not act to release new stock. As a result housing prices continue to grow.
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-27254-4qwo2z.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Increasingly alarmed that house prices continue to rise, the federal government starts to panic, threatening ever further regulation and starts to blame the financial system. This triggers the RBA to finally act, raising interest rates.
As interest rates rise, this causes mortgage stress, resulting in default among investors with high amounts of debt, pushing these properties onto the market. These distressed sales finally cause prices to fall.
Global crisis
Timo Henckel, Research Associate, Centre for Applied Macroeconomic Analysis, ANU
 <img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12629-1juog2j.png" alt="">
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
International crisis (whether it be political, military, economic) leads to an increase in global risk premiums.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12645-qj07.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
Borrowing costs for Australian banks rise because of this and supply of global capital falls, pushing up mortgage rates in Australia.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12658-z8xdgo.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
The most vulnerable mortgagees can no longer afford their mortgages and are forced to sell their homes.
<img src="https://www.urban.com.au/images/2017/05/01/file-20170424-12658-1fhdu2b.png" alt=""> 
The Conversation, <a href="https://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a>
House prices fall which, coupled with rising interest rates, adds further distress to households’ balance sheets, leading to more selling of houses and so on.
Jenni Henderson is editor, Business and Economy, The Conversation and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here</a>.
Wes Mountain is<a href="https://theconversation.com/au/team#wes-mountain"> </a>deputy multimedia editor, The Conversation and can be contacted <a href="https://theconversation.com/au/team#jenni-henderson" target="_blank">here.</a>
 
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Four ways an Australian housing bubble could burst

<html><body><div class="entry-content">
<div class="pf-content">
Melbourne has no bubble and its apartment market was not even close to reaching an oversupply, according to Charter Keck Cramer research director, Robert Papaleo.
He says there has been misinformation surrounding the issue.
“The structural tailwinds supporting Melbourne apartment market outweigh the cyclical headwinds,” Papaleo told attendees at the recent Australian Property Institute and REIV’s State of the Market 2017 State of Market conference.
“There is no apartment supply bubble and oversupply is not imminent.
"Melbourne is experiencing unprecedented supply but it not oversupplied,”
Papaleo said Melbourne’s housing market is performing strongly because it is at a 30% discount to Sydney, compared to 15% cheaper in 2011.
“This will drive more migration to Melbourne," said Papaleo who added that Melbourne remains attractive to international students.
He said that one year ago, 24,000 apartments were expected to be completed in 2017 across metropolitan Melbourne, but the latest figures suggest 16,000 apartments are now expected to completed.
“We are heading towards a situation where 16,000 apartments a year will be completed over the new few years to 2020."
It comes off the supply peak of 19,000 apartments in 2016, he said.
“Oversupply is not evident in the market.
"Two years ago, in 2015, 9,000 apartments were sold across Melbourne’s Central City Region.
"In 2016, 6,000 apartments were sold; despite the fall it was still a good result.
"And developers are holding back supply,” he said.
“Obviously, if interest rates move, there will be an impact on that price growth.
"What we are seeing at the moment, though, is the Melbourne housing market is truly reflecting its attractiveness to local investors, local owner occupiers, as well as, in particular segments – such as the apartment sector as well as the greenfield market – international investors as well as interstate investors continue to see relative value in Melbourne prices compared to the places that capital is coming from, whether that be Sydney, or whether that be Singapore,” he said, as reported by Australian Property Journal.
 
</div>
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At 30 percent cheaper than Sydney, Melbourne has apartment advantage without oversupply or bubble: Charter Keck

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Chinese billionaire Wang Jianlin has issued a warning on the Chinese property market.
It's the "biggest bubble in history," he told CNNMoney.
<div id="ie_column">The problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.</div>
"I don't see a good solution to this problem," he said.
"The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
"The problem is the economy hasn't bottomed out," Wang said.
"If we remove leverage too fast, the economy may suffer further. So we'll have to wait until the economy is back on the track of rebounding -- that's when we gradually reduce leverage and debts."
He says he's not worried about the prospect of a "hard landing".
Wang has been warning of trouble in the Chinese property market for a while with his Dalian Wanda Group, which has developed huge malls and office complexes across China, has been gradually cutting back on its real estate business.
His business has key property assets overlooking Sydney Harbour at Circular Quay and on the Queensland Gold Coast.
Wang is the richest man in China, according to Forbes and Hurun Report data from 2015.
<a href="https://money.cnn.com/2016/09/28/investing/china-wang-jianlin-real-estate-bubble/" target="_blank">Click here to see his full video interview.</a>
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Chinese billionaire Wang Jianlin issues biggest housing bubble warning

<html><body><div id="story-description">
There was definitely no risk of a national housing bubble, Alan Kohler, the Australian columnist and publisher of The Constant Investor, has suggested in his latest column.
Is there one in Sydney?
"Perhaps," he wrote in The Australian.
"Sydney just happens to be where people want to live and invest and, at the moment, there’s a lack of supply. 
"Maybe there’ll be a crash if supply catches up and interest rates rise.
"Big ifs," he suggested.
He noted the surge in Sydney’s auction clearance rate over the weekend to 86.4 per cent should lay to rest the myth that the housing market has stopped responding to lower interest rates and, secondly, that government decentralisation policies are worthwhile.
The weekend's preliminary clearance rate in Sydney was 10 percentage points higher than a year ago, and also 10 percentage points higher than the next highest result the 76 percent in Melbourne.
 
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Alan Kohler says perhaps there's a Sydney housing bubble

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Harry Dent, the boldly bearish US economist, is in Sydney this Thursday some two years after last peddling his contrarian forecasts.
His insights alway capture the headlines.
His last seminars advising that Australia’s ‘property bubble’ would burst with a 50 percent price decline actually mimiced his prior forecast from 2011.
The doomsday US commentator sees the world - and most of Australia's multi-dimensional property market - through the prism of his 2011 book, The Great Crash Ahead. There is now a new book to sell.
His 2011 remarks on David Koch’s Sunrise program, saw Dent implore major capital city viewers to sell their homes before the 50% crash in prices arrived on our doorsteps.
Dent’s argument appeared based mostly on the claim that Australian dwelling values were 9.5 times family incomes, and ought in his view, be about half this level. 
Not long after a chart released by the RBA showed the Australian house price-to-income ratio was actually around four or five times, ie half Dent’s claims.
Dent refined the 2011 outlook with his colourful analogy that the Australian property market would be like popcorn popping - different markets would be bursting at different times.
Last time Dent was here I asked him on his hit and miss success rate.
"I am likely to get 30 or 40% of forecasts wrong in the timing," he advised.
Dent says he studies bubbles.
"When everyone is in a bubble, most can't see it, when the markets are at their lows, they can't see the recovery...and that's when there is money to be made," he said.
Harry is the founder and senior editor at Dent Research, where he seeks to identify and study demographic, technological, consumer spending and geopolitical trends to forecast economic booms and busts well ahead of the mainstream.
The forecast he his most proud of was when Dent tipped that Japan, then on top of the economic world, would suffer a slowdown lasting more than a decade.
Japan is still pretty much in a coma, he says after its 1991 peak when most economists envisaged Japan overtaking the US in world economic dominance.
Saying it often can be just one piece of information that provides the clue, his late 1980s Japanese forecast was based on his premise that people slow in spending way ahead of retirement, from 46 years onwards.
I asked how much understanding the pysche of the population of a city or country was helpful in understanding property market movement, and he agreed with the concept.
"You are right, yes markets do go up and down together, but to different degrees."
As with many economist naysayers, Dent may get Sydney right sooner or later, but it is best to take the forecasts with a certain level of cynicism or else cop the cost of lost opportunity.
Afterall Sydney's house price median was at $560,000 and Sydney’s unit median at $458,500 around the time of his 2011 forecast.
By 2014 it was $765,000 for Sydney houses and $550,500 for units.
It now sits at $890,000 for houses and $680,000 for units, according to CoreLogic.
It's not to say Sydney won't be spooked sometime, but for most of us it will be a question of holding one's nerve in the face of the herd mentality.
That's more her-like panic likely to come from investors, rather than home owners.
<div> </div>
<div>This article was first published in the Saturday Daily Telegraph.</div>
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