<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

<html><body>
<p>The herd mentality and the FOMO syndrome drive far too many investment decisions in Australian real estate.</p>
<p>It helps to explain why most Australians who attempt property investment have a bad experience. </p>
<p>When people are driven by an impulse to do what others are doing (the herd mentality) or to get in because they don’t want to miss all that lovely capital growth they keep hearing about (the FOMO – Fear Of Missing Out – syndrome), they’re buying well after the boom started.</p>
<p>Many investors buy real estate at the peak of the cycle. Worse, some buy after the peak.</p>
<p>People are still out there bidding up prices at Sydney auctions, driven by the FOMO syndrome, unaware that the peak has passed and Sydney’s boom is fading.</p>
<p>It means that fundamentally they are paying too much and destroying their chances of maximizing capital growth.</p>
<p>No one ever got rich following the herd. Some have succeeded by leading the herd but the truly successful people are those who run in the opposite direction to the herd.</p>
<p>People love the comfort of the pack. They would rather be part of a herd stampeding towards a cliff, than detach and run in the opposite direction, towards safety and potential prosperity.</p>
<p>Because of the power of the herd mentality and the FOMO syndrome, most people buy when prices are high.</p>
<p>When the market is down, they stay out of the market. They’ll get back in when they read that the herd is running again.</p>
<p>Crazy stuff. </p>
<p>Right now, the Perth market is down. I’ve been suggesting to people it’s a great time to consider buying there. The Perth market, which was strong in 2011 and 2012, peaked early in 2013.</p>
<p>The heat has long since evaporated from that market, there’s no competition from other buyers, prices have eased off and the buying is good.</p>
<p>You just have to believe that the Western Australian economy has a future and that the Perth property market will rise again.</p>
<p>Taking a long-term view, Perth is a strong market with a great track record. Its 10-year capital growth record is the strongest among the state and territory capital cities, much better than Sydney’s or Melbourne’s.</p>
<p>It has a history of strong population growth and a buoyant economy boosted by its links to the resources sector. It’s currently struggling but that won’t last. </p>
<p>Perth has also shown itself to be resilient during periods of downturn. I don’t expect any major price decline in the current phase, with the exception of oversupplied inner-city apartment markets which should be avoided.</p>
<p>While awaiting recovery in the Perth market, the best strategy to maximise capital growth prospects is to follow the infrastructure trail. Find a location primed to benefit from spending on new infrastructure, especially transport infrastructure, and well-linked to major jobs nodes.</p>
<p>Locations with those qualities include the precincts around Rockingham, Fremantle, Midland and Forrestfield.</p>
<p><em>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></em></p>
</body></html>

terryryder-YECXbqmri2

The Perth property market will rise again: Terry Ryder

<html><body><div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
<p><span style="line-height: 1.3em;">GUEST OBSERVER</span></p>
<p><span style="line-height: 1.3em;">The outer Sydney land market is now in a strong growth phase, after being in a downturn for the best part of a decade. Rising land development in Outer Sydney has been driven by improved affordability, improved land availability, and improved transport infrastructure provision.</span></p>
<p>We have <span style="line-height: 1.3em;">profiled the various indicators relating to demand, dwelling and lot supply, and prices, in the outer Sydney land market, with a focus on the north west and south west corridors, as well as the central coast. The regions are defined as follows:</span></p>
<span style="line-height: 1.3em;">North West </span><span style="line-height: 1.3em;">(The Hills Shire, Blacktown and Penrith LGAs)</span><br><span style="line-height: 1.3em;">South West </span><span style="line-height: 1.3em;">(Wollondilly, Camden, Campbelltown and Liverpool LGAs)</span>
</div>
<div class="column">
<span style="line-height: 1.3em;">Central Coast (Gosford and Wyong LGAs).</span>
<p style="line-height: 1.3em;">STOCK DEFICIENCY</p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">Very low new dwelling completions between 2006/07 and 2011/12 saw a sizeable dwelling deficiency emerge in the Sydney market by June 2012. The combination of dwelling deficiency and improved affordability via low interest rates has been the key driver of the upturn in Sydney residential prices and demand for new housing. Completions have grown from a low of 18,400 dwellings in 2011/12 to 35,200 dwellings in 2014/15. While significant growth has occurred in high density dwelling commencements  </span><span style="line-height: 1.3em;">which rose by 123% in this time, new separate house starts have also increased by a sizeable 57% from 8,000 houses to 12,500 houses in the same period. This has been met by strong population growth, as New South Wales benefits from a strong, albeit easing, net overseas migration inflow, and a record low net interstate migration outflow, which has sustained the dwelling deficiency in Sydney despite rising supply. </span></p>
<p style="line-height: 1.3em;"> </p>
<p style="line-height: 1.3em;"><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.12.22%20AM.png" target="_blank"><span style="line-height: 1.3em;">Click here</span></a></p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;"><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.12.22%20AM.png" alt=""></span></p>
<p style="line-height: 1.3em;"> </p>
<p style="line-height: 1.3em;"><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.13.58%20AM.png" target="_blank">Click to enlarge</a></p>
<p style="line-height: 1.3em;"><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.13.58%20AM.png" alt="" width="757" height="487"></p>
<div class="page" title="Page 2">
<div class="layoutArea">
<div class="column">
<p><span>DEMAND </span></p>
<p><span>Population Growth </span></p>
<p><span>Greater Sydney’s population growth slowed from 49,100 persons per annum over 1996–2001, to 30,700 persons per annum over 2001–2006 as a result of slowing net overseas migration and larger net interstate migration outflows. The impact was felt in Outer Sydney, with Inner and Middle Sydney population growth remaining largely unchanged. </span></p>
<p><span>Population growth recovered to 70,600 persons per annum over 2007–2011 as both net overseas migration boomed and net interstate outflows moderated, with Inner and Middle Sydney accounting for the majority of this increase. </span></p>
<p><span>Population growth has continued to strengthen over 2011 to 2015 to an estimated 79,200 persons per annum, with Outer Sydney now accounting for the larger share of the increase, are driving the emerging recovery in the broadhectare land market. </span></p>
<p><span>Greenfield development </span></p>
<p><span>Infill development of new houses can take place as knock downs, as well as new houses being built on infill or brownfield sites. The level of infill activity generally moves in line with the cycle, however it is significantly more stable than demand for greenfield houses being constrained by the more limited availability of sites. </span></p>
<p><span>As a result, any upturns in new house demand are accommodated by the more plentiful greenfield land. Over the 2001 to 2015 period, greenfield land is estimated to have accommodated around 44% of Sydney’s new house demand, being as low as 22% (in 2009) and as high as 70% (in 2001). Greenfield land is estimated to be accommodating around 55% of new houses in 2014/15. </span></p>
<p><span>House affordability </span></p>
<p><span>Housing affordability, as measured by mortgage repayments at the prevailing variable interest rate on 75% of a median priced home in Sydney as a percentage of average household disposable income for New South Wales, has averaged 33% over the twenty two years to 2014/15 (Chart 3). </span></p>
<p><span>The upturn in Sydney prices was initiated as interest </span><span style="line-height: 1.3em;">rates fell and the affordability ratio moved below the long term average. However, subsequent price rises drove further demand and price growth, with mortgage repayments on a median priced home of 37.7% of household disposable income at June 2015, currently worse than the long term average and approaching some of the worst levels recorded in 2004 and 2008. Further price rises will put house prices increasingly under pressure, particularly if interest rates also rise. </span></p>
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.15.56%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.15.56%20AM.png" alt=""></span></p>
<p> </p>
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.17.14%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.17.14%20AM.png" alt=""></p>
<p><span>Land affordability</span></p>
<p><span>The key to the upturn in the Sydney land market has been the improved affordability of new houses relative to the increasing median house price. Through the middle of the 2000s, the ratio of land prices to house prices, or alternatively the premium of buying a new house over an established house in Outer Sydney was at a worse level than in the 1990s and early 2000s.</span></p>
<p><span>However, the price of land relative to established housing in Outer Sydney has improved from 72% in 2005 to 52% in 2015—better than the late 1990s average. Conversely, the median new home cost is now slightly below established house median prices. </span></p>
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.19.07%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span style="line-height: 1.3em;"> </span><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.19.07%20AM.png" alt=""></span></p>
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
<p><span>SUPPLY</span></p>
<p><span>Land Production</span></p>
<p><span>Lot production was extremely low in the 2006 to 2010 period, with Outer Sydney producing just 1,900 lots on average over this timeframe.</span></p>
<p><span>Since the upturn, lot production in Outer Sydney has surged, reaching 6,000 lots in 2013/14 and is estimated 4,500 to have risen to 8,100 lots over 2014/15, which 4,000 represents a 35% increase.</span></p>
<p><span>Over the long term, North West Sydney (The Hills Shire, Blacktown, and Penrith LGAs) has generally accommodated 48% of lot production in Outer Sydney.<br> In comparison, South West Sydney (Liverpool, Camden and Campbelltown LGAs) has accommodated around 36%, and the Central Coast (Gosford and</span></p>
<p><span>Wyong LGAs) has accounted for 13% (Chart 5). More recently, the limited new lot supply elsewhere means that Outer Sydney lot production is now roughly evenly split between North West and South West Sydney. </span></p>
</div>
</div>
<div class="layoutArea">
<div class="column">
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.21.35%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.21.35%20AM.png" alt=""></span></p>
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
<p><span>Lot Size</span></p>
<p><span>The median size of new lots in Outer Sydney has been falling since 2000, from over 700 square metres to below 500 square metres for the first time in 2013/14. </span></p>
<p><span>While lot sizes remain low in a long term sense, there has been a small increase in lot sizes in 2014/15 as developers increasingly serve the upgrader market as price points move beyond the realm of first home buyers. </span></p>
<p><span>The strong demand for land in Sydney means that developers are producing more profitable larger lots to target the upgrader market. Meanwhile, the first home buyer market is increasingly being serviced by the established home and apartment market. In new estates, the most affordable housing is being provided in integrated developments rather than small lots.</span></p>
</div>
</div>
</div>
<div class="page" title="Page 3">
<div class="layoutArea">
<div class="column">
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.24.37%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.24.37%20AM.png" alt=""></span></p>
<div class="page" title="Page 4">
<div class="layoutArea">
<div class="column">
<p><span>PRICES</span></p>
<p><span>There was a correction in both land and house prices (as well as new house activity), through the latter half of the 2000s. Between 2005 and 2009, the Outer Sydney median land price fell by 10.5%, or a 20% decline in real terms. </span></p>
<p><span>With Outer Sydney median land prices over 2009 to 2013 remaining relatively flat (+4% increase in total), Outer Sydney house price growth returned (+25% in the same period), and land affordability improved back to 1990s levels. </span></p>
<p><span>Further strong growth in Outer Sydney median house prices in 2014 and 2015 (totalling +31%) has taken the median house price to an estimated $650,000 at June 2015. Growth in land prices has also returned although still remains below that of house prices (+21%) indicating a median of $335,000 by June 2015. This lower growth in land prices has allowed the cost of new houses to become more affordable relative to established houses and enabled upgraders to more easily sell their existing dwelling to upsize to a new home. </span></p>
<p><span> </span></p>
<p><a href="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.27.44%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/09/01/Screen%20Shot%202015-09-01%20at%208.27.44%20AM.png" alt=""></span></p>
<p> </p>
<p><em><span>Angie Zigomanis is senior manager, <span id="0.8280794406309724" class="highlight">BIS</span> <span id="0.5401298783253878" class="highlight">Shrapnel</span> and can be contacted <a href="mailto:azigomanis@bis.com.au" target="_blank">here</a>.</span></em></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div></body></html>

angiezigomanis-VT64gGbExQ

Strong growth for outer Sydney land market: Angie Zigomanis

<html><body>
<p>Channel Seven program chief Angus Ross has revealed that a new series of House Rules, already filmed and originally slated to screen in late 2015, won’t go to air this year.</p>
<p>The move comes as part of a major shake-up at the network, which will also see them dumping Million Dollar Minute from its afternoon time slot.</p>
<p>Its program chief Angus Ross acknowledged that the next House Rules would struggle competing against The Block in the planned 7.30pm timeslot.</p>
<p>"We've got a series [completed] but I don’t think the genre matching that has occurred this year has helped anyone," he told News Ltd.</p>
<p>"Do I think House Rules versus The Block is going to be a good outcome for us or for audiences? No. I don’t think it would be a win for anyone."</p>
<p>The Mumbrella website wrote o<span style="font-size: 12.1599998474121px; line-height: 1.3em;">ne of the issues that has </span><span style="font-size: 12.1599998474121px; line-height: 1.3em;">annoyed media buyers was the big networks putting similar shows up against each other.</span><span style="font-size: 12.1599998474121px; line-height: 1.3em;">  </span></p>
<p><span style="font-size: 12.1599998474121px; line-height: 1.3em;">In recent years Seven and Nine have faced off with The Voice vs X Factor, House Rules vs Reno Rumble and The Hotplate vs Restaurant Revolution.</span></p>
<p>Mumbrella advised at last week’s revenue announcement Nine’s sales boss Peter Wiltshire acknowledged this had hit the bottom line for the network.</p>
<p>“(In quarter four) Nine’s ratings were impacted by the two leading networks programming formats being in the same genre head to head.</p>
<p>"To some extent we were our own worst enemy as we competed aggressively,” said Wiltshire.</p>
<p>“This caused pressure on audiences on free-to-air TV and specifically Nine’s share of that audience.</p>
<p>"The size and magnitude of these changes coincided with advertisers moving to shorter term buying decisions and immediate ratings history to support their actions. </p>
<p>"This clearly worked against us as buyers worked to Q3 ratings in allocating Q4 revenues.”</p>
</body></html>

jchancellor-FAypfDUnLy

House Rules won't take on The Block Octagonal

<html><body><div class="domain-article-share-panel">
<div class="domain-article-share-link domain-article-share-tw">
<p><span>The warehouse residence at 21 Joy Street, South Yarra sold at weekend Marshall White auction.</span></p>
<p>It was a <a href="https://www.realestateview.com.au/Real-Estate/21-joy-street-south-yarra/Property-Details-buy-residential-9294720" target="_blank">one-bedroom warehouse-style </a>house once owned by abstract artist Yvonne Audette .</p>
<p><span>It fetched $1,303,000.</span></p>
<p><span style="line-height: 1.3em;">It last sold at $371,500 in 2008 and before than in 1992 at $223,000.</span></p>
</div>
</div></body></html>

South Yarra warehouse home sold at $1,303,000

<html><body>
<p><span>The fashion designer Natalie Coyle and her husband Scott Sheezel, who run Tilkah boutiques around Melbourne, have sold in McKinnon.</span></p>
<p>Their three-bedroom property at <a href="https://www.realestateview.com.au/Real-Estate/3-lysbeth-street-mckinnon/Property-Details-buy-residential-9288760" target="_blank">3 Lysbeth Street </a>sold ahead of its scheduled August 29 auction.</p>
<p><span>Buxton’s Simon Wood secured the $1,705,000 sale.</span></p>
<p><span>It last sold at $630,000 in 2006.</span></p>
</body></html>

Designer McKinnon cottage sells at $1,705,000

<html><body>
<p>A Chinese investor has paid $12 million for a four level, 930sqm Queen Street property in Melbourne’s CBD, sold as a vacant possession.</p>
<p>The property, 338 Queen Street, offers ground level retail and three upper floors of office space.  </p>
<p>Savills CBD sales director Clinton Baxter<span style="line-height: 1.3em;"> said the property had sold on a land rate of $41,379 sqm, adding the buyer</span><span style="line-height: 1.3em;"> had flown into Melbourne for one day to view the property. </span></p>
</body></html>

mick.cee-iDmgDDAmu8

$12 million paid for Queen Street, Melbourne CBD property

<html><body>
<p class="first-para">GUEST OBSERVER</p>
<p>The median house in Sydney surpassed the million dollar mark in July and is now valued at $1,017,500. In the quarter ending July, the Sydney median house value grew an astonishing 7.58%. The average quarterly growth rate of all other capital city house markets was just 0.92%.</p>
<p><a href="/images/2015/08/31/Graph_1_Capital_Growth_Summary.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Graph_1_Capital_Growth_Summary.jpg" alt="" width="723" height="464"></p>
<p>The annual rate of growth for Melbourne houses was 9.07 per cent, bringing the median house value to $683,000. Growth for the month was significantly lower, at just 0.13 per cent. </p>
<p>Brisbane houses performed steadily in the year to July, however performance was down in the unit market due to an overhang of stock. Commencement of the Queens Wharf development in the heart of the Brisbane CBD (a complex which will include 2,000 new apartments) is likely to place further downward pressure on the growth of Brisbane units. </p>
<p>The worst performing areas in the year to July were once again the resource states. Perth houses contracted 4.34 per cent while Darwin unit values dropped 6.41 per cent. </p>
<p>Table 1 presents the market performance summary for July.</p>
<p><a href="/images/2015/08/31/Table_1_July_Stats_Summary2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Table_1_July_Stats_Summary2.jpg" alt="" width="818" height="716"></p>
<p><span><strong>A Note on the Resource Markets</strong></span></p>
<p>A number of commodity prices have tumbled in the last year. The iron ore price averaged just AUD $69 per dry metric tonne over the month of July, which is a 13.88 per cent reduction from the previous month. </p>
<p>Australian Thermal Coal remained steady over the last month, averaging AUD $85.75 per pound. However, this is a significant reduction from the peak price in 2008 when coal averaged over AUD $200. </p>
<p>World Bank data shows that resources boomed in the early 2000’s, following a long period of low valuation between the 1970’s and the 1990’s. While it appears that commodities are in a correction period, values have not fallen so drastically that prices are below what they were a decade ago. </p>
<p>In response to the decline in commodity prices, many suppliers, including BHP Billiton and Rio Tinto, chose to increase efficiency and cost cutting as opposed to reducing supply. This is likely due to larger producers taking advantage of the fall in commodity values to pressure smaller suppliers out of the market. </p>
<p>In line with cost cutting, thousands of mining positions have been terminated across South Australia, the Northern Territory and Western Australia. This, coupled with the completion of mining construction projects, is exacerbating economic downturn in the resource states.</p>
<p>Deterioration may be slightly offset in the short term due to the devaluation of the Yuan, which will make Chinese steel exports more competitive and drive demand for Australian Iron Ore, an input in steel production.</p>
<p>Commodity prices have a strong lead lag effect on dwelling values in the resource state capitals. As commodity prices stabilise at significantly lower levels, the Darwin and Perth dwelling markets are also stabilising.</p>
<p>To put the current growth cycle in perspective, I have provided the historical House Price Index (HPI)<a href="https://blog.residex.com.au/2015/08/28/property-market-update-3/#footnote-1"><span>[1]</span></a>data for Darwin and Perth in Graphs 2 and 3.</p>
<p><a href="/images/2015/08/31/Graph_2_Perth_HPI.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Graph_2_Perth_HPI.jpg" alt="" width="816" height="523"></p>
<p> </p>
<p><a href="/images/2015/08/31/Graph_3_Darwin_HPI.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Graph_3_Darwin_HPI.jpg" alt=""></p>
<p> </p>
<p>The graphs show that, like commodity values, dwellings in the resource capitals are no longer in a stage of rapid growth as they were between 2000 and 2008. </p>
<p>The Perth and Darwin markets are currently in a correction period, which is indicated by the downward movement of the HPI. However, putting the dwelling positions into a larger historical context shows they have not drastically collapsed. </p>
<p>During the mining boom, the Perth market saw annualised growth rates as high as 40 per cent in 2006. However, these growth rates were met with corrections as large as 10 per cent in 2009. The end of the mining boom has restored growth cycles that are much more subdued than these levels. </p>
<p><span><strong>The New Normal – Ownership and Lifestyle in the Age of Population Convergence</strong></span></p>
<p>Growth in the Sydney and Melbourne markets have concerned lending institution regulators, and hopeful investors and homeowners.</p>
<p>As discussed in previous newsletters, there is little evidence attributing foreign investment and tax structures to the surge in property values. I have not found sufficient data to argue rigorously that these forces are driving up prices. </p>
<p>There is another force that I believe may be attributed to house and unit value increases – particularly in Sydney: the concept of population convergence. </p>
<p>In 2005, American urban studies theorist Richard Florida built a case for population convergence. Measuring economic production, levels of innovation and population, Florida found that population and economic activity were converging to a few large cities around the world. </p>
<p>Evidence suggests that Sydney could be one of these cities. This would account for the positive returns on Sydney property over the last three years, which according to Residex data has averaged a rapid 3.05 per cent per quarter. </p>
<p>At the time of Florida’s study in 2005, Sydney was one of just 60 cities around the world that had a population of approximately five million or more. Using World Intellectual Property Organization and U.S. Patent and Trademark data, Florida also found that Sydney was one of just 20 cities around the world to be fostering significant levels of innovation. </p>
<p>Population density in Sydney has increased approximately 16 per cent between 2000 and 2012, according to data from Charting Transport. Increased density and the presence of more investors in the property market has led to an increase in the supply of units over houses. From September 2012, unit commencements have regularly outperformed housing builds, which can be seen in Graph 4. This further implies that most development is occurring in urban, densely populated areas.</p>
<p><strong>Graph 4: Sydney Dwelling Commencements</strong></p>
<p><a href="/images/2015/08/31/Graph_4_Dwelling_Commencements_Sydney.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Graph_4_Dwelling_Commencements_Sydney.jpg" alt="" width="752" height="479"></p>
<p>Population convergence theory could explain the growth in the house and unit markets, and signal that such growth is likely to continue. This is not unprecedented. Values and rents have skyrocketed in cities around the world, including Singapore, New York, London and Tokyo over the last few decades.</p>
<p>High rates of property growth are not just reflected in a desire to be near amenities, culture and cosmopolitan environments. Density also brings productivity advantages through economies of scale. It increases connectivity and knowledge sharing. In turn, these things create more jobs and attract a higher population, reinforcing population convergence.</p>
<p>In response to higher density living, many people have begun to adjust their standards of living in Sydney. However, a level of development resistance could further increase prices, such as a court ruling earlier this year which will see the minimum approval unit size in Sydney increase by 30 per cent<a href="https://blog.residex.com.au/2015/08/28/property-market-update-3/#footnote-2"><span>[2]</span></a>.</p>
<p>The methods inhibiting development are wide and diverse and therefore difficult to fully quantify; the prevention of new development can come from environmental regulation and community resistance.</p>
<p>These forces prohibit development of popular space and undermine innovations used to adapt to higher density, such as the micro-apartment movement. Resistance to development can also preserve a higher standard of living in Sydney, which – for those who can afford it – is clearly in demand. </p>
<p>Assuming Florida was right in his theory of population convergence, Sydney could see strong house value increases over the next few quarters before stabilising at a level that even the most wealthy and mobile will find excessive. </p>
<p><em>Eliza Owen is market analyst for Onthehouse.com.au and can be contacted <a href="https://investors.onthehouse.com.au/" target="_blank">here</a>.</em><a href="https://investors.onthehouse.com.au/"><br></a></p>
</body></html>

Sydney house median passes $1 million mark: Onthehouse's Eliza Owen

<html><body>
<div><span style="line-height: 1.3em;">I'm in the midst of what will ultimately be my most comprehensive research project to date, and henceforth will aim to share a few high level viewpoints and findings on this blog page along the way.</span></div>
<div> </div>
<div>There are of course a multitide of factors which impact and drive housing markets ranging from macroeconomic drivers to monetary policy, and from consumption patterns to construction rates. </div>
<div> </div>
<div>But for today let's look briefly and specifically at Australia's demographics.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Population pyramid</span></strong></div>
<div> </div>
<div>Looking below at an Australian population pyramid - which for the purposes of this blog post I have flipped on its side - representing the estimated resident population as at 2014, we can immediately observe a couple of salient points.</div>
<div> </div>
<div>Firstly, although Australia does have an ageing population, in part thanks to our immigration program the demographic profile of Australia is markedly different to those found in some other developed countries, and considerably less "top heavy".<br><br>With skilled migration in particular often having favoured those in the 21-30 age bracket, there is presently a relative dearth of people in my age bracket, that being the 31 to 38 year old cohort (see Point A on the below chart).</div>
<div> </div>
<div><a href="/images/2015/08/31/PP1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP1.jpg" alt=""></div>
<div> </div>
<div>
<div>Depending upon your preferred information source the average or "typical" age of first homebuyers in Australia now ranges anywhere from 31 to 34 years of age, and that figure could potentially levitate further due to a combination of lifestyle factors and increasingly stretched deposit gaps in the two major capital cities.<br><br>Of course, an "average" covers a wide range of ages and strains of buyer, but recent data has suggested that a comfortable majority of first homebuyers are now in their 30s or 40s.<br><br><strong><span style="text-decoration: underline;">Investors in the ascendancy...for now</span></strong><br><br>
</div>
<div>The shape of the first chart above may therefore go some of the way to explaining the comparatively low volumes of homebuyers in the market through this cycle, with investors dominant to an an unprecedented degree, particularly in the largest capital city markets.<br><br>Naturally other factors have played a role here, particularly looser monetary policy which has encouraged those with existing equity generated through housing market ownership to redeploy it in a faithful manner.<br><br>Not only is there a relative paucity of 31 to 38 year olds where we might expect to find the bulk of first homebuyers, there is also an evident weak spot in the traditional "big spender" cohort.<br><br>Which is to say, there is a proportionate lull in the number of executives, senior managers and business owners commonly aged from around 45 to 55 (refer to Point B on the above chart).</div>
<br><div>While the wave of first homebuyers predominantly impacts dwelling prices at the entry level, it is those in these middle working years that are the heaviest spenders in the housing market, making their most material dwelling purchases at that stage in life.</div>
<div> </div>
<div>As you can see in the graphic above, the demographic pyramid does not present too kindly in respect of either cohort at the current time...and nor is it likely to do so for some years.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Looking swell (2021-2027)</span></strong></div>
<div> </div>
<div>In fact, rolling the chart packs forward by calendar year we find that it is not until around around 2021 that the number of potential first homebuyers reaches a critical mass which might be considered compelling, with the number of 31 to 38 year olds in particular mushrooming to a total of more than 3.1 million (from around only 2.6 million in 2014).<br><br>In the period through to 2027, that number is projected to have expanded further still to more than 3.3 million. </div>
<div>
<br>As this effective "spending wave" passes through 2021, therefore, the demographic factors for Australian housing market growth look to be particularly favourable from that year until around 2027 inclusive.<br><br>As you can see in the second chart below, not only will the total population of Australia have swelled significantly by 2021 to around 26.5 million, the clamour of potential purchasers in the 31 to 38 year old age bracket (Point A below) really begins to amplify.<br><br>Furthermore there will be a coinciding wave of Australians approaching the latter half of their fourth decade (Point B below), the time of life at which they are likely to make their most consequential home purchases. </div>
<div> </div>
<div><a href="/images/2015/08/31/PP2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP2.jpg" alt=""></div>
<div> </div>
<div>
<div>This isn't to suggest here that the demographics for homebuyer activity then deteriorate after 2027 as such, rather that the projected figures then plateau for a period of time and thereby stop improving so impressively.<br><br><strong><span style="text-decoration: underline;">City winners and losers</span></strong><br><br>Drilling down to the next statistical level, it can be found that from around 2021 the demographic waves will become very favourable for Sydney, Melbourne, Brisbane and and <span style="text-decoration: underline;">particularly</span> Perth (assuming the superfluity of mining boom migrants opts to stay put, and interstate migration away from Western Australia doesn't begin to bite).<br><br>Hampered by an interstate migration "brain drain" these demographic waves do not suggest a favourable environment for the Adelaide housing market, with barely any improvement discernible over the same time horizon.<br><br>Meanwhile the latest projections suggest that Tasmania's housing market demographics could potentially worsen quite appreciably in the years leading up to 2035, although such longer term projections by their very nature tend to be less than reliable.<br><br><strong><span style="text-decoration: underline;">Dwelling starts</span></strong>
</div>
<div>
<br>While this is a blog post predominantly concerned with demographics, it's worth considering for a moment how the above findings tie in with the dwelling construction cycle.<br><br>Two of the "X-factors" which have impacted this housing market cycle have been an explosion in the volume of Asian capital invested in the Australian market and a hitherto unseen shift towards multi-unit construction.<br><br>Although 2015 will likely prove to be the market peak for dwelling starts, dwelling <em>completions</em> will remain elevated for the next few years.<br><br>In combination with a slowing rate of population growth, this will be one of the factors together with an erosion of yields which will eventually bring the current growth cycle to its end.</div>
<div> </div>
<div><a href="/images/2015/08/31/HIA.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/HIA.jpg" alt=""></div>
<div> </div>
<div><span>Since natural population growth and net overseas migration will take some time to absorb the excess dwelling stock, this also points broadly towards 2021-2027 as a likely period for housing market growth.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/31/AW1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/31/AW1.jpg" alt=""></span></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Long run demographics are healthy</span></strong></div>
<div> </div>
<div>While the latest data suggests that over the short term Australia's populaton growth is likely to continue to slow, over the very long run the demographics of Australia are exceptionally compelling, with the population potentially set to almost double by over the next half century.<br><br>Also note that immigration is projected to keep the headcount in the potential homebuyer age brackets expanding to heights that agents and other industry participants can only dream of today.</div>
<div> </div>
<div><a href="/images/2015/08/31/PP3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP3.jpg" alt=""></div>
</div>
<div> </div>
<div>
<div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>With life expectancies increasing there will evidently be a greater number of residents living well beyond the traditional retirement date in the decades ahead, although in time we might expect to see more folk working beyond the traditional retirement age too.</div>
<div> </div>
<div>The chart above implies that with the demand for capital city property likely to approximately double over the very long run, the likelihood of capital city land values in the landlocked inner- and middle-ring suburbs remaining anything less than singularly expensive appears quite remote.<br><br>Of course, it isn't possible to forecast or time markets so accurately, but over the near term there could easily be a relatively weak period ahead for housing markets as dwelling completions overtake demand, before a potentially strong rebound running broadly between 2021 and 2027. </div>
<div> </div>
<div>The most interesting and useful findings are those which incorporate the shifting composition of net migration at the suburb level, though I don't post detailed suburb research on my blog. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<div> </div>
</div>
</div>
</div>
</body></html>

pwargent-M4siyDbqQY

Making waves in the Aussie housing market: Pete Wargent

<html><body>
<p>Victoria had a clearance rate of <span style="line-height: 1.3em;">78% this weekend, up from 73% last weekend and 73% this weekend last year. </span></p>
<p><span style="line-height: 1.3em;">A total of 941 auctions reported to the REIV according to chief executive officer Enzo Raimondo who said of the 738 sold and 203 being passed in, 85 of those on a vendor bid.</span></p>
<p><span style="line-height: 1.3em;">"The suburbs with top auction sales in the year to date were Reservoir with 387 auctions followed by Glen Waverley with 306 auctions and Richmond with 298 auctions," he said.</span></p>
<p><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%2010.20.45%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%2010.20.45%20AM.png" alt=""></p>
<p> </p>
<p><a href="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%2010.20.52%20AM.png">Click to enlarge</a></p>
<p><img src="/images/2015/08/31/Screen%20Shot%202015-08-31%20at%2010.20.52%20AM.png" alt=""></p>
<p> For more information on weekend statistics, click <a href="/news">here</a>.</p>
</body></html>

Victorian weekend clearance rate up: REIV

<html><body>
<div>It's set to be a monester week of data releases ahead, from tomorrow in particular, but before that a quick look at the weekend auction results.</div>
<div> </div>
<div>
<em>Core-Logic-RP Data</em> reported its preliminary auction stats which showed stronger initial results than one year ago in Melbourne, Brisbane, and Perth.</div>
<div> </div>
<div>Sydney recorded another vigorous result of 78.1 per cent, which was stronger than the final result for last week of 76.2 per cent, but for the first time this year was below the preliminary clearance rate from one year ago at 79.9 per cent.</div>
<div> </div>
<div><a href="/images/2015/08/31/RPD1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/RPD1.jpg" alt=""></div>
<div> </div>
<div>
<div>Sydney's incredible run which has seen house prices rising at a pace of well over <a href="https://petewargent.blogspot.com.au/2015/08/residex-astonishing-sydney-boom" target="_blank">20 per cent per annum</a> has continued right the way through until the final week before the spring selling season.</div>
<br><div>The result of 78.1 per cent this week will doubtlesss lead to some premature extrapolation, but there are a few reasons why the Sydney market probably has a bit of a way to run yet before it runs out of puff.</div>
<div> </div>
<div>Firstly while auction volumes have been tracking at the highest level we have seen, total listings are still moderate, and less than those of Melbourne and even Perth.</div>
<div> </div>
<div>Secondly, in the inner- and middle-ring suburbs that matter, clearance rates are still tracking at exceptionally high levels.</div>
<div><span> </span></div>
<div><span><span>According to <em>CoreLogic-RP Data</em> the Eastern Suburbs (87.6 per cent), North Sydney &amp; Hornsby (86.3 per cent) and the Inner West (85.1 per cent) had the strongest clearance rates, followed by Blacktown (84.6 per cent), City &amp; Inner South (82.8 per cent) and the Northern Beaches (81.5 per cent).</span></span></div>
<div><span><span> </span></span></div>
<div><span><span>Although these are only preliminary results, traditionally it is said that results above 80 per cent point towards a "boom time" property market.</span></span></div>
<div><span><span> </span></span></div>
<div><span><span>And thirdly, John McGrath ignited some debate earlier this year when he claimed that Sydney's inner suburbs will be "hot forever".</span></span></div>
<div><span><span> </span></span></div>
<div><span><span>While this obviously isn't set in stone, simple geometry tells you that within the inner 6km there are only 113 square kilometres of land for which there is huge demand. </span></span></div>
<div><span><span> </span></span></div>
<div><span><span>Nothing is certain, of course, but personally I wouldn't bet against it. </span></span></div>
<div><span><span> </span></span></div>
<div><span><span>It's precisely what has happened in prime central London over the last couple of decades. </span></span></div>
<div><span><span> </span></span></div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
<span><span><br></span></span>
</div>
</div>
</body></html>

Property News

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Property News

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News