<p>Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.</p>

<p>Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.</p>

<p>Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=372638]</p>

<p>The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;</p>

<p>Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.</p>

<p>Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.</p>

<p>[smartcode_project:default project_id=112195 project_image_fid=3286]</p>

<p>Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.</p>

<p>"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.</p>

<p>"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."</p>

<p>The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.</p>

<p>[smartcode_project_cta:default project_id=112195]</p>


Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

<p>Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.</p>

<p>Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.</p>

<p>The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.</p>

<p><a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.</p>

<p>The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.</p>

<p><img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" /></p>

<p>Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.</p>

<p>"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.</p>

<p>The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.</p>

<p>The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.</p>

<p>Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.</p>

<p>Bakir said the project had been designed to respond to that shift in buyer expectations.</p>

<p>"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.</p>

<p>Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.</p>

<p>Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.</p>

<p>Early site works are underway, with construction expected to commence later this year.</p>


Homecorp approved for Budds Beach apartment tower, Lýon Residences

<p>New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.</p>

<p>Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.</p>

<p>Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3823]</p>

<p>Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.</p>

<p>The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.</p>

<p>"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.</p>

<p>"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=3826]</p>

<p>The rarity of the development hasn't been lost on prospective buyers, McSweeney says.</p>

<p>For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.</p>

<p>"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."</p>

<p>The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe></p>

<p>A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.</p>

<p>The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.</p>

<p>At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.</p>

<p>[smartcode_project:default project_id=28384 project_image_fid=372542]</p>

<p>The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.</p>

<p>Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.</p>

<p>Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.</p>

<p>"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."</p>

<p>Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.</p>

<p>[smartcode_project_cta:default project_id=28384]</p>


North-facing Swan River views drive demand at Rivière Residences in Applecross

<p>Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.</p>

<p>The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374768]</p>

<p>McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.</p>

<p>"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.</p>

<p>"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374767]</p>

<p>A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.</p>

<p>The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374760]</p>

<p>Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.</p>

<p>Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.</p>

<p>"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."</p>

<p>Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.</p>

<p>[smartcode_project:default project_id=143337 project_image_fid=374761]</p>

<p>Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.</p>

<p>"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.</p>

<p>She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.</p>

<p>Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.</p>

<p>Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.</p>

<p>Construction is underway, with completion expected in the second half of 2027.</p>

<p>[smartcode_project_cta:default project_id=143337]</p>


More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

<p>Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.</p>

<p>The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.</p>

<p>"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.</p>

<p>"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”</p>

<p>He said the declaration reflected the rapid progress achieved since acquiring control of the site.</p>

<p>"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."</p>

<p>When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.</p>

<p>"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.</p>

<p>"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."</p>

<p>The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a></em></p>

<p>The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.</p>

<p>Takada previously said the design was driven by a philosophy of integrating nature into the built environment.</p>

<p>"The concept for this development is born from our design approach to naturalising architecture," Takada said.</p>

<p>"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."</p>

<p>Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.</p>

<p>"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.</p>

<p>The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;</p>

<p>The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.</p>


Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Property News

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<p><span>Stockland property group released the Sustainability Report and Annual Review for 2015 which noted underlying profit grew by 9.4% to $608 million with statutory profit at $903 million, more than 70% higher than the previous year.</span></p>
<p><span>Stockland Chariman Graham Bradley said the results reflect solid increases in earnings across Commercial Property, Residential and Retirement Living.</span></p>
<p><span>Managing director Mark Steinert said commercial property remains a key driver of the group’s success.</span></p>
<p><a href="/images/2015/09/23/Screen%20Shot%202015-09-23%20at%2010.44.01%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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<p><span>"On a comparable basis we achieved operating profit growth of 4.3% across the portfolio, with 4.2% in Retail, 3.1% in Logistics and Business Parks and 6.4% in Office, reflecting our strong focus on property fundamentals," he said.</span></p>
<p><span>"Our residential business achieved a substantial 73.5% uplift in profit and ended the year with a record 3,742 contracts on hand, up 17% on last year. </span></p>
<p><span>"Our Retirement Living operating profit was up 19.9% on FY14 reflecting strong sales, active management and improved efficiency. The business is now two years into our five year plan to achieve a 7% cash return on assets, which is marked by taking a much more active approach to how we manage our village portfolio.</span></p>
<p><span>“These reports show we are intertwining our approaches to property development and sustainability. We are focussed on the development and delivery of sustainable communities… Every year, Stockland engages in an independently-reviewed process to record its achievements, review and update its sustainability strategy, and set new targets for the year ahead.”</span></p>
<p><a href="/images/2015/09/23/Screen%20Shot%202015-09-23%20at%2010.44.11%20AM.png" target="_blank">Click to enlarge</a></p>
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mick.cee-iDmgDDAmu8

Stockland underlying profit grew by 9.4%

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<p><span>Strong demand is being seen for riverside land in Brisbane’s south-western suburbs.</span></p>
<p><span>Unison Projects’ Arbour Reach residential subdivision on the Brisbane River at Sherwood and Metro Property Development’s Riverside Corinda project have enjoyed strong sales success, say selling agents Cameron Crouch and Sharon King of Ray White Sherwood.</span></p>
<p><span>Mr Crouch said the two developments had so far enjoyed combined sales of more than $30 million with only four lots remaining at Arbour Reach, while just six blocks are left for sale at Riverside Corinda.</span></p>
<p><span>Arbour Reach, a 29-lot project on a 2.5ha estate at 27 Magazine Street, Sherwood, is adjacent to the magnificent Sherwood Arboretum and is within walking distance of railway stations, the bus network, boutique stores, cafes, restaurants, schools and parklands.</span></p>
<p><span>“The response to Arbour Reach has been amazing with sales of more than $14 million to date,” Mr Crouch said.</span></p>
<p><span>“Given the project offers ready to build on, flat, vacant land in addition to its location and natural attributes, it is no surprise to see strong buyer demand for Arbour Reach.  Pricing of the vacant land on the 10 remaining blocks starts at $640,000 with six (of the 10) fronting the river and available from $995,000.”</span></p>
<p><span>Remaining lots at Arbour Reach range from 456 sqm to 1010 sqm. The level homes sites are elevated above the river and have street frontages of 13m to 29m.</span></p>
<p><span>Unison Projects’ Shannon Down said Arbour Reach was the first substantial residential project with immediate connection to the river in the area for decades and so the buyer demand was understandable.</span></p>
<p><span>Mr Down said despite its proximity to the river, all Arbour Reach lots have been designed above the January 2011 flood level and the site met stringent flood mitigation standards introduced by Brisbane City Council.</span></p>
<p><span>Ms King said the Riverside Corinda blocks on the former site of charity Montrose Access at Consort St, Corinda, were way above the Brisbane River and enjoyed spectacular river and city views.</span></p>
<p><span>Ten blocks with exclusive river views were sold at an on-site auction last month which attracted more than 200 people.</span></p>
<p><span>“Riverside land in Brisbane’s leafy south-western suburbs is in limited supply so it’s no wonder we have had such a strong response to these two projects,” Ms King said.</span></p>
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j.ballantyne1990-6AQqhLzZaK

Brisbane riverside estates generate sales of more than $30 million

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<p>There’s been a number of articles this week about the peak of the Sydney market. It does look as if the market is at or slightly past its peak however, it is important to thoroughly investigate how the market is tracking currently.</p>
<p><strong>Values</strong></p>
<p>Sydney home values have increased by 17.6% over the 12 months to August 2015 and by 14.0% over the first 8 months of 2015. Sydney home values have been trending higher since they reached a low point in May 2012 and since that time Sydney home values have increased by a total of 49.5%. To put that growth in perspective, a home worth $500,000 in May 2012 would now be worth $747,704. The data presented shows that home values have been trending higher at a fairly rapid pace however, more recent data may point to a slowing of the rate of growth. Home values rose by 1.1% over the month of August however, data for September is showing a much more sluggish rate of growth in home values with values -0.3% lower over the twenty eight days to 20 September.</p>
<p><strong>Sales transactions</strong></p>
<p>Unfortunately sales transactions are not a timely indicator of the market’s performance due to delays in receiving the full population of settled sales transactions.  Furthermore, off-the-plan sales are entered into sales counts at their contract date however, the record is not received until settlement which could be several years down the track for large projects. As a result, when you have heightened off-the-plan sales activity as we currently do, unit sales in particular are inclined to be undercounted.  The latest sales data to June 2015 shows that over the second quarter of the year there were 23,432 sales. Compared to the same quarter in 2014, house sales were -5.5% lower and unit sales were -16.5% lower.</p>
<p><strong>Time on market</strong></p>
<p>At the end of July 2015 the typical Sydney home was selling after just 25 days. At CoreLogic RP Data we’ve been tracking the time on market since the beginning of 2005 and this is the quickest rate of sale recorded over this period. The combination of strong value growth and a rapid rate of sale suggests that demand is still quite strong across the city.</p>
<p><strong>Auction clearance rates</strong></p>
<p>The preliminary auction clearance rate for Sydney last week was 73.2% which was virtually unchanged from the final auction clearance rate the previous week.  Importantly, in most instances the final auction clearance rates are revised lower. Auction clearance rates have shifted from their peak of almost 90% in April of this year to their current level.  At the same time a year ago clearance rates were recorded at a higher 78%. It is important to note that over recent weeks the number of properties being taken to auction has been significantly higher than the number taken to auction a year ago. Nevertheless it is clear that the auction market which represents slightly more than a quarter of all Sydney home sales has weakened over recent months and has not rebounded so far during the Spring Selling Season.</p>
<p><strong>Property listings</strong></p>
<p>The latest weekly listings data which tracks houses, units and vacant land for sale across Sydney shows that over the past 4 weeks there were 8,525 new listings and 20,121 total listings.  New listings are now at their highest level since the week ended 30/11/14 and total listings are at their highest level since the week ended 14/12/14. Comparing listings to levels at the same time a year ago shows that new listings are currently 19.0% higher and total listings are up 5.0%. In the early part of the Spring Selling Season there is much more stock available for sale in Sydney than there was at the same time a year ago. Heightened stock levels at a time when auction markets are softening and value growth has shown some early signs of slowing may contribute to a further slowdown in the rate of capital gain over the coming months.  This is due to the fact that active buyers are afforded more choice and may not have to pay such a price premium to secure a home.</p>
<p><strong>Mortgage Activity</strong></p>
<p>The CoreLogic RP Data Mortgage Index tracks pre-purchasing activity and has shown some clear weakness over recent weeks. While the Index remains at quite high levels it has fallen by -2.0% over the past couple of weeks at a time when, seasonally, the trend should typically be rising. At the same time last year the index had risen by 1.2% over the previous two weeks. With mortgages, particularly investment mortgages becoming more difficult to obtain, we are potentially seeing the first signs that this segment of the market it is starting to slow resulting in an easing of demand.</p>
<p><strong>Building approvals</strong></p>
<p>The latest building approvals data for July 2015 shows that there was a record high 5,159 dwelling approvals over the month. This was comprised of 1,655 house approvals and 3,504 unit approvals.  Over the 12 months to July 2015 there have been 15,213 house approvals and a record high 30,921 unit approvals. Sydney has consistently approved more units for construction than houses since early 1993. With a record pipeline of new housing stock it is going some way to alleviating housing shortages across the city. It also affords buyers much more choice when they are looking to purchase a new home</p>
<p><strong>Housing finance</strong></p>
<p>The latest housing finance data for New South Wales to July 2015 shows that demand from the owner occupier segment is starting to ramp-up while investor demand is starting to wane. Importantly, owner occupier demand includes refinances so if we look exclusively at new lending (excluding refinances) we also see owner occupier demand ramping up while investor demand seems to be waning. Investors still account for the greatest proportion of new lending (58.0%) however, two months ago investors accounted for a record-high 62.4% of all new mortgage lending in NSW.</p>
<p><strong>Rents and yields</strong></p>
<p>Over the 12 months to August 2015, rental rates across Sydney have increased by 2.3% which is the slowest annual rate of rental growth since May 2013. With rental growth sluggish and value growth remaining very strong, gross rental yields across Sydney have shifted to record low levels. Yields were recorded at 3.3% in August 2015 which is the softest yields on record. We’ve already mentioned that investor activity across NSW has recently hit record highs and remains elevated. It appears that many investors are having little regard for rental returns and are largely focussing on the future capital growth potential and the subsequent benefits from a negative gearing strategy.</p>
<p>Although the data is still generally undoubtedly strong, it appears there are signs that the market could be showing the first sign that growth rates are peaking. Record high new housing supply at a time when mortgage demand is seemingly slowing along with auction clearance rates and listings are rising points to potentially softer value growth conditions for the city. While we expect the rate of growth will likely start to slow, the significant stimulus of low mortgage rates is expected to ensure that home values continue to rise albeit at a more moderate pace.</p>
<p> </p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/author/cameron-kusher/" target="_blank">here</a>.</em></p>
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ckusher-ujnxiKuFQs

What is going on in the Sydney housing market? Cameron Kusher

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<p><span>One of New York's famous celebrity real estate agents, Fredrik Eklund is doing a series of live workshops across Australia next month, promising to share "the secrets of selling anything to anyone".</span></p>
<p><span>The broker has sold over US$2 billion in real estate in New York during the past decade, with a clientele that includes Leonardo DiCaprio, Justin Timberlake, Daniel Craig, Sarah Jessica Parker, Jennifer Lopez, and Cameron Diaz.</span></p>
<p><span>Spruiker Max Markson says <a href="https://www.fredrikeklundlive.com.au/" target="_blank"><span>he''ll teach his Sydney agents a thing or two</span></a>.</span></p>
<p><span>One of the stars of Million Dollar Listing New York, Fredrik Eklund has appeared on the Bravo TV reality series, seen in 110 countries worldwide. </span></p>
<p><span>Described as the energetic, high-kicking, top broker at Douglas Elliman has secured record sales in 28 buildings in Manhattan last year.</span></p>
<p><span>Originally from Stockholm, Sweden, Eklund’s new book is The Sell: The Secrets of Selling Anything to Anyone. </span></p>
<p><span>"I'm longing to see the stars of the Southern Cross at night and enjoy the sun drenched beaches during the day as well as meet my fans and check out some real estate. I'm keen to do some business down under," he said. </span></p>
<p><span>Last month he holidayed in Bali to celebrate making a $100 million in one month.</span></p>
<p><span>He also revealed his latest purchase was a multimillion-dollar Miami, Florida, holiday condo.</span></p>
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New York broker Fredrik Eklund to lecture Australian estate agents

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<p><span>Dexus Property Group has signed on Neil Perry for its $80 million retail development of the landmark Gateway tower at Sydney's Circular Quay.</span></p>
<p><span>Gateway's redevelopment, which is being undertaken by Dexus Wholesale Property Fund, will convert the existing three-storey retail podium into multiple dining precincts, doubling the retail space to 4385 square metres. </span></p>
<p><span>Perry's The Burger Project and Chat Thai will be included on the first level.</span></p>
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Neil Perry for Dexus Gateway Tower

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<p><span>A freestanding Victorian warehouse in Fitzroy has been listed with $2.6 million expectations for September 26. </span></p>
<p>The property at<a href="https://www.realestate.com.au/property-house-vic-fitzroy-120626069" target="_blank"> 4 Wood Street </a>has been an artist’s residence.</p>
<p><span>It comes with courtyard gallery/studio on the lower level with polished concrete floors.</span></p>
<p><span>There are four bedrooms, a large dining area and a balcony upstairs.</span></p>
<p><span>Nelson Alexander agent James Pilliner has the listing.</span></p>
<p>The median price for a house in <a href="/news">Fitzroy is $1,201,500</a>, according to CoreLogic RP Data.</p>
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Fitzroy residential warehouse offering

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<p>Sales of apartments around the Mt Gambier region have been stable over the last few years since a hefty fall in sales from 2009 to 2010, according to Herron Todd White.</p>
<p>Herron Todd White's September Month in Review found i<span style="line-height: 1.3em;">n 2009 there was a movement to introduce smaller, high density living but it didn’t appeal to locals.</span></p>
<p><span style="line-height: 1.3em;">The report noted a lot of apartment developments were</span><span style="line-height: 1.3em;"> aimed at out of town investors who had no intention of living in them.</span></p>
<p><span style="line-height: 1.3em;">"These higher density units have started to appear on the market for resale and after extended marketing periods and price discounts, they have not been very successful in achieving a sale which does show the lower demand for this property type," it read.</span></p>
<p><span style="line-height: 1.3em;">"The price range for units varies greatly from $50,000 to $325,000. Within the past 12 months most unit sales have occurred between either $76,000 and $125,000 and $176,000 and $250,000. In the past 12 months there have been very few </span><span style="line-height: 1.3em;">unit sales occurring above $250,000.</span></p>
<p><span style="line-height: 1.3em;">"The reason for few units selling above $250,000 is often due to the fact that for a similar price a family style home on a larger allotment<br>can be purchased. Higher valued units exceeding $350,000 have been constructed in the area. However, they do not sell often and when placed on the market often require extended marketing periods and discounting to achieve a sale."</span></p>
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Mt Gambier locals shun higher density living: Herron Todd White

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<div>A stunning research note from Cameron Kusher of <em>CoreLogic-RP Data</em> which revealed that while median vacant land prices continued to rise very strongly in Australian capital cities over the past year, regional land prices fell by -3.4% to $156,500.</div>
<div> </div>
<div>In particular land values in Sydney (+16.6%) and Melbourne (+14.5%) have exploded over the past year.<br><br>
</div>
<div>And while demand for housing is presently low in Western Australia, median land prices in Perth continued to escalate very significantly (+10.3%), which in turn will force up the cost of new housing. Today, Sydney and Perth have the most expensive land prices in Australia. </div>
<div> </div>
<div>Unlike in the capital cities regional lot sizes have actually expanded by +8.3% over the past year according to Kusher, making the decline in median land prices all the more notable.</div>
<div> </div>
<div>Driven by rapid expansion in household debt regional property prices had a relatively strong run in the lead up to the financial crisis, but this trend has evidently now slowed.<br><br>While a 750sqm lot in a capital city 25 years ago would have cost you $50,000 according to Kusher, today it would set you back $417,800...and rising.</div>
<div>
<br>Regional land values are therefore reportedly some 39% cheaper than in the capital cities, the largest such differential in since 1990.</div>
<div> </div>
<div>Interestingly over the long haul land prices have appreciated at a very similar percentage annual rate between capital cities and the regions.</div>
<div> </div>
<div>This implies in turn that the best performing property types have been those with a high percentage land value.</div>
<div> </div>
<div>More remote properties - where the land component comprises only a small part of the asset value - remain cheap precisely because the value is all in the <em>building, </em>and not the land.</div>
<div> </div>
<div>"Location, location, location" as the old mantra goes.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Why is this happening?</span></strong></div>
<div> </div>
<div>Why are regional prices not keeping pace? And particularly why has this become the case now?</div>
<div> </div>
<div>This is a complex question, but a major reason for the strength in capital city land values is likely to be the restricted supply of new land made available for development in the congested capital cities where population growth and therefore underlying demand is strong.</div>
<div> </div>
<div>Regional population growth has been considerably weaker ex-Queensland, and there is generally speaking more land available for development.</div>
<div> </div>
<div>Since the financial crisis there has been another key driver for the larger capitals: jobs growth. </div>
<div> </div>
<div>The ABS released its Detailed Labour Force figures for August 2015 today which underscored some important trends.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Cities creating jobs</span></strong></div>
<div> </div>
<div>While regional employment in the two most populous states was growing reasonably robustly until the financial crisis, regional employment growth has now slowed, with the mining capex cliff now adding to the drag in some regions.</div>
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<div><a href="/images/2015/09/18/LF3.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/18/LF3.jpg" alt=""></div>
<div> </div>
<div>
<div>Looking below at cumulative employment growth since Febuary 2007, we can see why both Sydney and Melbourne have been labelled by the Reserve Bank as "self-sustaining job magnets", creating +350,000 new jobs apiece.</div>
<div> </div>
<div>The combined cities and towns of regional New South Wales has created a fair level of new employment (+100,000), particularly in the Hunter, Newcastle and the Illawarra. </div>
<div> </div>
<div>However, over the same time period regional Victoria has by comparison created almost no additional employment (+10,000) on a net basis.</div>
<div> </div>
<div><a href="/images/2015/09/18/LF2.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/18/LF2.jpg" alt=""></div>
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<div>
<div class="separator">An unfortunate corrollary of this is while there was always a level of frictional unemployment in the lead up to 2007, there had at times been a job for almost everyone who wanted one.</div>
<div class="separator"> </div>
<div class="separator">Sadly this is no longer the case, and regional unemployment in particular has been pulsing higher. </div>
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<div class="separator"><strong><span style="text-decoration: underline;">Employment growth</span></strong></div>
<div class="separator"> </div>
<div class="separator">Not dissimilarly while Greater Brisbane has now added +23,000 jobs over the year to August 2015, regional Queensland employment has declined by -27,000, though there may be some debate over the "quality" of new jobs created. </div>
<div class="separator"> </div>
<div class="separator">While some revisions have been made to population assumptions relating to Western Australia, total employment in Perth has continued to rise modestly.</div>
<div class="separator"> </div>
<div class="separator">Unfortunately total employment in Adelaide has declined over the past <strong><span style="text-decoration: underline;">five</span></strong> years (-2,700), with more challenges in the pipeline in the manufacturing space and rising unemployment.</div>
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<div class="separator"><a href="/images/2015/09/18/LF4.jpg" target="_blank">Click to enlarge</a></div>
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<strong><span style="text-decoration: underline;">Unemployment rates</span></strong><br><br><div>Smoothing the volatile monthly unemployment readings below on a rolling annual basis we can see that Greater Sydney remains the best placed economy, the unusual labour market of Darwin aside.</div>
<div> </div>
<div>New South Wales also has the lowest level of mortgage delinquency rates according the latest figures from Moody's.</div>
<div> </div>
<div>Furthermore, unemployment rates are now trending down in Greater Brisbane, Melbourne and Hobart.</div>
<br><span>On the other hand, unemployment is clearly rising in Perth and Adelaide.</span>
</div>
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<div class="separator"><span>Adelaide is now recording an unemployment rate reading of 7.9 per cent which is dragging up the 12 month moving average.</span></div>
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<div class="separator">
<div>On the other hand Greater Brisbane has now recorded two surprisingly low readings of just 5.2 per cent over the last three months.</div>
<div> </div>
<div>Realistically the true unemployment rate in Greater Brisbane is higher than that, but nevertheless this is heartening to see for the Queensland capital. </div>
<div> </div>
<div><a href="/images/2015/09/18/LF6.jpg" target="_blank">Click to enlarge</a></div>
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<div><img src="/images/2015/09/18/LF6.jpg" alt=""></div>
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<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Regional land prices are falling: Pete Wargent

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<p><span>GUEST OBSERVER</span></p>
<p><span>The economy seems to be losing momentum as we move through 2015. In the first four months of 2015 the average growth rate of the Leading Index was 0.16% above trend.</span></p>
<p><span>That seemed to be a welcome lift in momentum from the second half of 2014 when the average growth rate was 0.67% below trend. However in the last four months the growth rate has slowed from 0.03% below trend to 1.14% below trend.</span></p>
<p><span>This emerging below trend growth profile for the economy is certainly in line with our own views. Note that the June quarter national accounts confirmed that Australia’s six month annualised growth slowed to a 2.1% pace in the first half of 2015 with our forecast for the second half of a still below trend 2.5%. Looking further out we expect growth in 2016 of 2.7% (recently revised down from 3.0%).</span></p>
<p><span>With trend growth in the economy now likely to be nearer 2.75% than 3% our forecast for GDP growth in 2016 of around trend growth looks a little vulnerable based on this recent print from the Leading Index. The Leading Index gives us a guide into the likely momentum in the economy through the second half of 2015 and into 2016. Today’s print points to a likely ‘below trend’ start to next year.</span></p>
<p><span>Key factors behind our current expectation of a modest lift in the growth pace in 2016 are: a lift in consumer spending growth from 2.5% in 2015 to 2.9% in 2016; a modest improvement in non-mining investment spend largely offsetting a sharper slowdown in mining investment and an increased contribution from net exports (adding 1.3ppts to GDP growth, up from 0.8ppts in 2015). These positive factors will be partly offset by a much smaller contribution to GDP growth from dwelling investment as the residential building boom reaches its peak.</span></p>
<p><span>Over the last six months the six month annualised growth rate has slowed from being 0.06% below trend to 1.14% below trend. Key drivers of this slowdown have been: S&amp;P/ASX 200 (–0.74ppts); dwelling approvals (–0.20ppts); aggregate monthly hours worked (–0.20ppts); the Westpac-MI Consumer Expectations Index (–0.17ppts); commodity prices in AUD terms (–0.17ppts); US industrial production (–0.08ppts); and the Westpac-MI Unemployment Expectations Index (–0.07ppts).</span></p>
<p><span>Partly offsetting these factor has been the yield curve which has added 0.53ppts.This effect has come about despite some recent flattening of the yield curve as the short end of the curve begins to doubt the need for a near term rate cut.</span></p>
<p><span>The recent sell off in the sharemarket has been particularly important in explaining the sharp fall in the growth rate between July and August. Of the 0.74ppt fall in the growth rate between July and August, 0.46ppts came from the sharply lower S&amp;P/ASX 200.</span></p>
<p><span>The Reserve Bank Board next meets on October 6. There is little chance that the Board will decide to change policy settings. Policy will now be focussed on the growth outlook for 2016. This print of the Leading Index is casting some early doubt around the Bank’s forecast of 3% growth for 2016. However the Bank is still expecting that the unemployment rate has stabilised despite growth in 2015 likely to be in the 2-2.5% range.</span></p>
<p><span>A particularly important point here is that the make-up of growth seems to be more ‘jobs intensive’ than we may have expected, with the lift from dwelling construction, household expenditure and net services exports being particularly important. </span></p>
<p><span>The Board is very likely to await more evidence around the labour market and specifically the beneficial impact on the jobs market resulting from the sharp fall in the Australian dollar before it moves again.</span></p>
<p><span>At Westpac we do not expect any further rate movements before 2017.</span></p>
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<p><span><em>Bill Evans </em></span><em>is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.</em></p>
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Leading Index slows well below trend: Westpac's Bill Evans

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<p><span style="line-height: 1.3em;">You’ve found what you think is a brilliant development site.  Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process.  Will the project be feasible?  What is feasible anyway?  </span></p>
<p>Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”</p>
<p>Some advice I can give you about property investing and anyone in property will also tell you, to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times and this is where it can all come undone.</p>
<p>Firstly, it’s important to determine your development strategy and your investing criteria prior to looking for a development site.  Your strategy may include:</p>
<ul>
<li>Land Subdivision</li>
<li>Renovate an existing dwelling</li>
<li>Dual occupancy or low density development</li>
<li>Renovate an existing dwelling and build new villas/units also on the land</li>
<li>Medium density development</li>
<li>All of the above</li>
</ul>
<p>Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development for instance. </p>
<p>As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development.   You may have heard about the ‘20% profit margin’ rule for developers?   Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin.  Personally, I don’t always work back from a certain profit margin as I find this restrictive.  </p>
<p>Most Property Bloom clients are looking to boost their portfolios, create some equity and hold the new properties long term, so we also need to meet other criteria such as rental returns and depreciation benefits on completion.  </p>
<p>To determine the feasibility of a site, you will need to:</p>
<ul>
<li>Talk to an accountant who specialises in property and one who preferably develops property themselves as they can advise you on the best structure or entity to purchase under and explain the tax implications when developing such as GST and CGT.  </li>
<li>Meet with a finance broker or a bank to determine your budget and the best loan structure for your development.  It’s important to choose a lender that offers construction loans for more than one dwelling and find out what their lending criteria is around this i.e. not all residential lenders will lend to you for a four unit site for instance.  Check interest rates on these loans.</li>
<li>Meet with solicitor to determine their costs. They will check for restrictive covenants or easements that may affect the land. They will also make sure services are available and connected especially if you are developing in a new area as well as finalising the deal for you.</li>
<li>Read the local Development Control Plan (DCP) and Local Environment Plan (LEP) and speak with your council’s town planner to find out DA and CC (Construction Certificate) fees and charges. </li>
<li>Meet with an architect and builder to determine what you can build on the site and estimated construction costs.  Some builders offer standard designs which will save you design fees.  If they do this, then they will be familiar with the local planning requirements.  If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.</li>
<li>A surveyor will give you advice on the subdivision process and estimate costs relating to the subdivision including sewer extension and service connection costs.  </li>
<li>If you are time poor and/or inexperienced, then factor in a cost to use a project manager. The cost can be taken up in the depreciation schedule and you will save a lot of time.</li>
<li>Talk to real estate agents to determine the value of your development and rental returns on completion and their management costs if you are holding as this will have huge impact on the success of the feasibility.  It's important to take current market conditions into account.</li>
<li>Research other costs such as Stamp Duty and if there are any government grants applicable that  may offset some of the stamp duty, insurance costs and interest/holding costs.</li>
</ul>
<p>The aim is to keep the above costs to a minimum so you will receive a higher profit margin. At Property Bloom we have negotiated discounts with all our suppliers, builders and consultants. Even our preferred property managers give our clients a discounted management fee, so if you can do the same, you'll make a good saving.  </p>
<p>Compile a spread sheet for the costs or there are software programs available to help you with this process.</p>
<p>The more development sites you assess, the quicker you'll understand which ones are feasible and which ones just don't stack up. Have fun and enjoy the ride!</p>
<p><span style="line-height: 1.3em;"><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a>.</em> </span></p>
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