National developer Time &amp; Place appears to have settled on a design for its long-anticipated Potts Point project.

After several years of back and forth with local council and the NSW Government, the developer, which has spent close to a decade targeting the former The Chimes site on Macleay Street, has now progressed its plans.

Following a concept design submission last year by SJB, Time &amp; Place has lodged a full State Significant Development Application with the NSW Government, this time for a scheme designed by Kerry Hill Architects.

<img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="504d2a27-d65f-4227-8189-1e35e3376e62" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%209.38.24%E2%80%AFAM.png?VersionId=_XqFKATYHF30KnVByPxhaI9UBzmkmfn7" />

The 16-storey proposal includes 44 apartments, 21 of which will be build-to-sell. These will comprise 19 three-bedroom apartments and two four-bedroom penthouses.

More than 50 per cent of the development will be dedicated to affordable housing, with 23 one- and two-bedroom apartments delivered in line with the NSW Government’s Housing SEPP.

Kerry Hill Architects said the proposal is driven by a strong response to place.

“Our proposal for a new residential building for Potts Point in Sydney is driven by a deep consideration of place,” the practice said in its submission.

“This operates on multiple levels, including a landscape approach that reinstates endemic flora of the Sydney peninsula and provides a ground-floor garden for residents, reconnecting the site to its pre-European history. A brick podium further strengthens this relationship to context, integrating planting and fine bronze detailing that references the predominant material language of Macleay Street.”

The three-level podium will be topped by a communal resident space, featuring a covered pool designed to receive direct afternoon sun in winter, a neighbouring reflection pool, dining and event areas oriented to maximise sunset views, and an outdoor exercise zone.

<img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="8d3eedc1-babb-44a3-bd96-d8a42f3adf1f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%209.37.48%E2%80%AFAM.png?VersionId=Ii7.4dvqNatu5GQi6bhqNjAswrMB998." />

The design also incorporates highly crafted shopfronts and a clearly defined residential entry to activate the street. Juliette balconies to the podium residences will provide passive surveillance and a strong sense of habitation.

Above, the larger apartments are housed within a light-coloured masonry and bronze tower.

“The tower steps back in a series of gently curved volumes that reference the rich Art Deco context of Macleay Street,” the architects said. “Carefully calibrated vertical fins frame the views while providing privacy and a sense of refuge.”

<img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="6fab60f4-3140-4469-b47a-48c781e0a30b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%209.28.44%E2%80%AFAM.png?VersionId=e5XxrM3kzdASdKlcIACHAHbOSZhSKC9O" />

Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in South Melbourne.

The developer has approval for The Burke, a mixed-use project in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>&nbsp;being delivered in partnership with Woolworths. The 60 apartments, positioned above a new Woolworths supermarket, are expected to launch in the coming months. Time &amp; Place is also progressing plans for the redevelopment of&nbsp;<a href="https://www.apartments.com.au/developments/northcote-vic-3070">Northcote</a>&nbsp;Plaza, and have recently submitted plans for a <a href="https://www.apartments.com.au/news/vic/time-place-unveils-plans-22-storey-south-melbourne-tower">22-storey tower</a>, another in South Melbourne.

In&nbsp;<a href="https://www.apartments.com.au/developments/sydney-nsw">Sydney</a>, the developer has two projects in Manly: Two Tides, which is currently under construction, and an ultra high-end building on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach. It is also continuing to work through the redevelopment of The Chimes building on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as Marlborough House, the redevelopment of the original David Jones warehouse building in&nbsp;<a href="https://www.apartments.com.au/developments/surry-hills-nsw-2010">Surry Hills</a>.

Joel Robinson

First look: Time & Place settles on design for The Chimes, Potts Point redevelopment

<a href="https://www.apartments.com.au/developers/develotek">Develotek</a> is joining the likes of TOGA, Deicorp, and One Global Capital, betting on a boom in Five Dock ahead of the 2032 mooted opening of the Five Dock Metro Station.

Develotek, which is currently developing Bianca on the Drummoyne waterfront and has plans approved for a tower in Chatswood, has filed a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/79-81-queens-road-five-dock-nsw-2046">two-building project in the evolving Kings Bay precinct</a>.

The buildings, one more boutique just five storeys and the other 26 storeys, will rise from an 3,158 sqm site across&nbsp;79–81 Queens Road and 2–8 Spencer Street, will home 134 one-, two-, and three-bedroom apartments, above ground-floor retail and five basement levels of parking.

A key component of the proposal is the inclusion of 15 per cent of residential floor space as in-fill affordable housing, unlocking additional height and density under the Housing SEPP.

<img alt="First Look: Develotek lodges State Significant shop top housing project in Five Dock precinct" data-entity-type="file" data-entity-uuid="3ee31bf7-75ba-4bc5-b190-49885193219f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_2.png?VersionId=730UbrduuwK3C1sO28RHjiLPUPqXqjkh" />

Designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, the scheme adopts a podium-and-tower configuration, with a five-storey street wall along Queens Road transitioning to a 26-storey tower set deeper into the site. The ground plane prioritises activation and permeability, with retail frontages and a new through-site link connecting Queens Road to Spencer Street.

At the upper levels, the tower façade has been conceived using a modular system to support prefabrication and reduce construction waste, while improving build efficiency. The splayed form draws on the geometry of surrounding industrial rooftops, reinterpreting the area’s heritage in a contemporary expression while also helping to reduce solar heat gain to east and west-facing apartments.

“This project aspires to transform a former industrial site into a connected, resilient and people-focused urban community, grounded in Country, shaped by history, and designed to enrich everyday life within the evolving Kings Bay Precinct,” said John Walsh, Principal at Plus Studio.

The proposal reflects the broader transformation of the Kings Bay Precinct under the Parramatta Road Corridor Urban Transformation Strategy, marking a shift from its industrial past to a higher-density, mixed-use urban neighbourhood.

<img alt="First Look: Develotek lodges State Significant shop top housing project in Five Dock precinct" data-entity-type="file" data-entity-uuid="abde734c-1e31-4a97-a1d2-fa9bcf31c380" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/building%20podium.png?VersionId=fNUupP6u146yEytQT31kKVRxwtACgPpP" />

Develotek is emerging as an active participant in the state’s affordable housing-led uplift pathway. The developer recently secured approval for a 34-storey mixed-use tower in Chatswood, where it similarly leveraged the in-fill affordable housing provisions to increase scale and deliver a 101-unit scheme with dedicated affordable apartments.

Their entry into Five Dock places them alongside a growing list of developers targeting the suburb ahead of its anticipated transport uplift, with Sydney Metro set to extend into the area. Major players including TOGA, Deicorp, and One Global Capital are all progressing large-scale precinct-style developments nearby, collectively reshaping the low-rise industrial fabric into a higher-density mixed-use corridor.

The Five Dock site sits within the Kings Bay Precinct, a key renewal area under the Parramatta Road Corridor Urban Transformation Strategy, where planning controls support significant uplift tied to affordable housing delivery. The consolidated 3,158 sqm site is currently occupied by low-rise industrial uses, including warehouses and vehicle workshops, earmarked for transition.

First Look: Develotek joins in Five Dock apartment boom

Ascot’s Racecourse Road continues to be a hive of activity for Brisbane developers.

Following Fortis and GRAYA, which are both preparing new projects along the key strip connecting Kingsford Smith Drive and Eagle Farm Racecourse, local developer <a href="https://www.apartments.com.au/developers/skyhold">Skyhold</a> is the latest to lodge plans for its own development.

The group is proposing One One Two Residences, a boutique project comprising just seven apartments, named after its address at 112 Racecourse Road.

The proposal outlines a five-storey building on an 810 sqm site. The built form slightly exceeds the four-storey expectation under the neighbourhood plan, aligning instead with the emerging character of the strip. As the planning report notes, “the locality is characterised by a transition toward medium-rise residential development, with a number of recent developments… above the stipulated height limits.”

<img alt="First Look: Skyhold lodges plans for boutique Ascot apartments as Racecourse Road revival gathers pace" data-entity-type="file" data-entity-uuid="ec577631-8c51-4163-960e-e7b3a77d655b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ascot.png?VersionId=iAzQ46D4Uu1UqiS0mVnlcy9jeFKBpJIj" />

Designed by 111 with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/paul-bangay-garden-design">Paul Bangay Studio</a>, the scheme adopts a layered architectural approach with strong articulation and a subtropical response. Deep balconies, integrated planters, and a mix of masonry and textured finishes define the façade, while upper-level setbacks reduce perceived bulk. The architectural statement describes “a series of horizontally expressed layers, defined by deep balconies and a consistent robust material palette,” aimed at delivering a refined streetscape presence.

Apartments are configured as large-format residences, including multiple three-bedroom layouts and a full-floor penthouse, supported by ground-level parking. A rooftop terrace will provide communal amenities including a pool and landscaped recreation areas. The design prioritises privacy, natural ventilation, and greenery, with planting integrated across all levels to soften the building form and contribute to the public realm.

<img alt="First Look: Skyhold lodges plans for boutique Ascot apartments as Racecourse Road revival gathers pace" data-entity-type="file" data-entity-uuid="1e1219bd-b45a-4d7f-bbc7-7207d7b2fc94" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ascot%20entry.png?VersionId=JIoUOLMgQ5xWpEF0etEI3ffIoIVjD7gO" />

The proposal sits within the Racecourse Road precinct, a key mixed-use spine in Ascot that continues to attract renewed development interest.

Later this year national developer Fortis will launch its own boutique development, which, pending council approvals, will be 16 apartments designed by Koichi Takada Architects, just down the street.

“Racecourse Road is going through a massive revitalisation and we’re proud to be a part of that transformation,” said Fortis's QLD General Manager, Dan Boman.

Nearby, GRAYA is advancing its larger-scale The Gallery, a mixed-use shop-top housing project designed to act as a “catalytic project for Racecourse Road.”

First Look: Racecourse Road, Hamilton revitalization to continue as Skyhold joins the party

Twenty-five years after launching one of Australia’s most visionary and successful masterplanned beach communities - Casuarina on the Northern NSW Tweed Coast - developer Consolidated Properties Group has unveiled plans for an $800 million sister project located 10 kilometres south, at Cudgera Creek near the coastal town of Pottsville.

CPG has taken the wraps off Caldera, a 78-hectare masterplanned village that builds on the legacy of Casuarina and aims to help address Northern NSW’s coastal housing shortage via the delivery of 550 homes built in a sustainable manner and addressing affordability and housing diversity, while also focusing on architectural and ecological merit.

Caldera is being brought to life by the same creative team that delivered Casuarina, led by Consolidated Properties CEO and chairman Don O’Rorke, Hutchinson Builders chairman Scott Hutchinson and renowned urban designer Brian Toyota, of architectural practice Bureau Proberts.

CPG has lodged a rezoning application with Tweed Shire Council for the Caldera site, which has been designated since 1991 as the Dunloe Park Urban Release Area, the final land release area within the Pottsville locality and one of only four remaining growth areas along the entire Tweed coastal strip. Preliminary plans for Caldera feature a 13-hectare retail and commercial precinct at the core of the village, surrounded by meticulously planned residential areas comprising around 550 homesites.

The retail hub will be anchored by a Coles Supermarket and will offer 7000 sqm of retail and 23 commercial lots designed to serve the local community and bring together curated shopping, dining, gym, wellness, childcare, medical and other essential services.

<img alt="Cons prop" data-entity-type="file" data-entity-uuid="fca7dc71-4b71-45b1-bb04-5a60bd7158d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%208.34.04%E2%80%AFAM.png?VersionId=vAKwIvLuwmTKj6blHJRYIEeXS_8lCgUx" />

The project will create more than 1500 jobs over its development cycle, according to its economic modelling, and significantly address the shortage of employment land in the Tweed.

The residential areas will encourage a sense of community via a cohesive urban design that encourages walking, cycling, enhanced resident connectivity and reduced reliance on cars via bike paths and pedestrian-friendly streets.

Homesites will include a range of options from premium ridge-top homes to affordable housing options, ensuring a community that is inclusive of different income levels and designed to appeal to a wide demographic from baby boomers to families, singles and professionals. Architectural and planting covenants on home building will support the village’s built form and protect its character.

O’Rorke says CPG intends Caldera to be a model project delivered efficiently in a dedicated urban release area and ‘very much for this region and for this time’.

“Our vision for Caldera is to create a modern coastal village with its own unique northern NSW identity,” he said.

“Building on our legacy of Casuarina, 25 years on, this new village is designed to stand apart, offering the future of modern living, balancing the natural beauty of the region with contemporary amenities and convenience.

“Caldera will be more than just a place to live - it will be a welcoming, inclusive coastal village neighbouring Pottsville that invites visitors and embraces new residents. With its strong ties to the land, vibrant lifestyle and sense of place, Caldera will set a new standard for village living in Northern NSW.”

<img alt="CPG" data-entity-type="file" data-entity-uuid="9a5a7cf4-5f76-4ddf-bd05-c8fb77d0a787" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%208.33.59%E2%80%AFAM.png?VersionId=J1CzCGD7kE7fcAMd41V4pKAf_sI4L5Jv" />

The project’s centrepiece is environmental sustainability, with comprehensive wetlands protection measures and planting of native trees, parklands, village greens and communal grounds to enhance the natural beauty of the area.

CPG will also deliver a developer-funded wastewater treatment plant to ensure zero ocean outflows and provide high quality long-term infrastructure for Tweed Shire.

A key focus is wildlife management planning, including extensive conservation controls for the West Pottsville koala population, aligned with Tweed Shire Council’s Koala Plan of Management and designed to enhance koala habitat connectivity and future population growth.

Caldera will extend the existing koala corridor by connecting koala precincts west of the Pacific Highway with populations in the north and east precincts. A koala underpass will be created under Pottsville Road to complete the connection of this important corridor. Native tree plantings will expand essential koala food sources, while approximately eight kilometres of exclusion fencing will be constructed to safeguard the koalas from urban threats.

The Caldera site is nestled in the hills of Cudgera Creek and benefits from its rich natural surroundings including the Pottsville Wetland, Cudgera Creek Nature Reserve and nearby Pottsville Beach.

It takes its name from the surrounding Tweed Shield Volcano and Caldera, the vast bowl-shaped depression stretching from Byron Bay to the Queensland border that 20 million years ago was the world’s largest shield volcano and which has shaped the region’s striking landscape, with Mount Warning standing as one of its most iconic features.

The development is a joint venture between CPG and Pottsville Development Corporation, which made its first investment in Pottsville more than 45 years ago and is the developer of Black Rocks By the Sea, a masterplanned community now part of the fabric of Pottsville and which was the catalyst for the construction of a bridge across the Pottsville Estuary, providing direct access to the beach.

CPG’s $1.5 billion Casuarina Beach township, 10 kilometres to the north of Caldera, commenced construction in 2000 and has become the model for modern Australian, eco-sensitive beachside development.

Consolidated Properties unveils $800m coastal village Caldera in Casuarina

Growing national developer Time &amp; Place has announced its fifth new apartment development.

With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.

The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.

Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.

Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.

fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.

The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.

fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”

The new development will replace five existing two-storey homes.

“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”

Mosman has become increasingly popular with developers in recent years.

Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.

Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.

Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.

Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.

They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.

Time & Place to take on Mosman apartment market

Rent

EXPERT INSIGHT

The national residential vacancy rate fell from 2.1 per cent to 1.9 per cent in April.

But these figures mask some serious variances across the country.

CoreLogic has already reported rents turning vertical in some markets, and now SQM Research is seeing the same.

This will eventually feed into inflation figures (although the ABS uses a measure of all rents, not just newly let properties, which will dampen the inflation impact a little).&nbsp;

Sydney&#39;s vacancy rate fell to 3.1 per cent in April, now well down from 3.9 per cent a year earlier, and gradually tightening. And Melbourne saw its vacancy rate drop from 4.4 per cent to 4 per cent in April as confidence returns in the city economy.&nbsp;

[smartcode_project:default project_id=90550]

There are still relatively high vacancy rates in the CBD markets as offices remain only half full, while tenants have often eschewed density over the past year.

SQM believes that household sizes have declined, as people shun living together in groups through the pandemic, which intuitively makes sense.&nbsp;

Almost everywhere else rental markets have tightened dramatically.&nbsp;

Brisbane&#39;s vacancy rate fell to 1.4 per cent from 2.8 per cent a year earlier, and every other capital city is now very tight at under 1 per cent.&nbsp;

Some of regional markets have reached crisis point.

I&#39;ve seen it first hand in Noosa, while SQM noted that the Gold Coast and north coast of New South Wales have often seen rental price hikes of about 30 per cent for houses.

Some parts of Perth are seeing the same.&nbsp;

This again goes to demonstrate how &#39;macro&#39; figures are only so useful for property market participants.

Immigration is effectively &#39;switched off&#39; at the moment, yet many rental markets are now feeling the pain of the preceding credit squeeze on investors, with rental supply approaching crisis point.

ACT case study

There was a bit of a debate some years back, where I suggested to a few economists that Canberra&#39;s property taxes would lead to spiralling rents, making Canberra the most expensive place in the country to find a rental.

My contention was essentially thus:

<ol>
	<li>Economists say property taxes won&#39;t lead to rent increases</li>
	<li>Property taxes ratcheted up apace</li>
	<li>Rents spiral</li>
	<li>Economists say record high rents are actually because of something else</li>
</ol>

Or something like that anyway.&nbsp;

COVID-19 threw in a major interruption to normal service last year, but now the double digit increases for Canberra&#39;s asking rents are hoving back into view.&nbsp;

In September 2014 the median asking rent for a house in Canberra was $465/week, while today it has increased to $690/week and now looks set to spike much higher on SQM&#39;s data series.&nbsp;

As such Canberra will take out the title as most expensive capital city in which to rent this year, eclipsing Sydney and Melbourne, although the jury is still out on the role of property tax.&nbsp;

Asking rents for units increased more modestly from $370/week for $490/week over the same time period, although one suspects that data series has partly been skewed higher by the relatively high number of new units constructed in the nation&#39;s capital.&nbsp;

The national residential vacancy rate fell from 2.1 per cent to 1.9 per cent in April.

pwargent

Large rental price increases across property markets: Pete Wargent

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Once again we need to ask the question: where in this nation of "chronic housing shortages" is the rental growth?
The latest Rental Report from Domain Group records virtually no rental growth in the capital cities in the September quarter. And, in annual terms, rental performance ranges from weak to nothing to negative.
The report covers the rental market for houses and for apartments in each of the eight capital cities. That's 16 rental markets in total, and in the past 12 months half of them have recorded falling rents or no growth.
The best performance in an Australian capital city is in Hobart, according to these figures, with a 4% rise in the median asking rent for units and a 3.3% rise for houses. That's a very anemic result, but it's the best in the nation apparently.
If you believe the constant rhetoric from the developer lobby, Sydney has the nation's most serious shortage of housing – yet in the September Quarter the median rent for houses did not change and the median rent for apartments fell 1%.
In annual terms, house rents in Sydney have grown a meagre 2% and apartments rents 3.1%.
The position in all the other capital cities is weaker than that.
Perth's rents have dropped around 6% in annual terms for both houses and apartments. In Canberra, the median rent for apartments is down 5% and for houses it's dropped 2.7%.
Darwin is down 2.9% (houses) and 1.8% (apartments).
Overall it's a very pallid performance and one that's inconsistent with claims of "a chronic housing shortage crisis", one that apparently demands urgent action from government.
The federal inquiry into the non-existent housing affordability problem, the one that is based on an Australian Bureau of Statistics miscount of first-home buyer numbers, is being fed a series of wish lists from groups representing builders and developers.
The common theme is that if you give developers everything they've ever wanted, they'll go away and build lots of dwellings and affordability will be miraculously transformed.
Economists, journalists and other commentators across Australia have bought the "chronic shortage" storyline and so it's accepted as fact by many people.
But there's a lack of evidence to support the idea and plenty of data that suggests the claim is nonsense – including rental performance.
The performance of rents has been so poor, yields have fallen in virtually every capital city market in the past 12 months. Only Hobart has managed to lift rental returns.
I continue to believe that the most pressing issue for markets around Australia is the opposite one, one of emerging over-supply in key locations.
Terry Ryder is the founder of hotspotting.com.au. You can email him or contact him on twitter.
 
</body></html>

terryryder-YECXbqmri2

If there's a housing shortage, where's the rental growth?

<html><body>
EXPERT OBSERVER
While media obsesses over price data as the only market measure worth talking about, the forgotten barometer is residential rentals.
Not only does mainstream media misunderstand and misinterpret median price data, but it largely overlooks the fundamental importance of what’s happening in the rental markets of our major cities. 
Vacancy rates and rental growth figures are important because they’re often a pointer to future rises in dwelling prices.
Before Sydney got on its growth path with price rises, it had a couple of years of strong growth in rents. Hobart, currently the price growth leader in capital city Australia, also had notable growth in rentals before prices started to rise. 
According to the latest SQM Research figures, Hobart still has the lowest vacancy rate among the cities and it’s still delivering significant rental growth alongside the price growth - still rising in double digits, according to some (but not all) research sources).
This is a pattern that, according to the research, is common - rents rise before prices do. This makes patterns with vacancies and rents worth noting.
So I’ve looked at the latest rental data from two key sources, Domain and SQM Research.
The market leader is a toss-up between Canberra and Hobart. This makes sense when you understand that these two cities have stood out for the past couple of years as the places with the tightest rental markets, both with vacancy rates well below 1 percent.
In the national capital, both Domain and SQM have house rents rising between 8 and 9 percent in annual terms, while apartments rents are up 7 percent (Domain) or 5 percent (SQM).
In Hobart, the two research sources agree that rents have risen markedly for both houses and apartments, but the numbers are quite different. Domain has rents up 11 percent for houses and 9 percent for apartments; SQM’s growth figures are 5 percent for houses and 14 percent for units.
So it’s pretty clear-cut. Canberra and Hobart have been the leading cities for low vacancies and strongly rising rentals.
But what is the third-ranked city in those terms? The answer is the city no one (other than me) ever talks about, Adelaide.
Adelaide’s vacancy rate has been hovering around 1 percent, according to recent SQM figures. Some sectors of the Adelaide market, such as the City of Marion, have vacancy rates closer to 0.5 percent.
And recently the SA capital has been producing solid rental growth figures. Domain records annual growth of 4.2 percent for houses and just under 2 percent for apartments, while SQM reports around 3 percent for houses and 3.4 percent for apartments.
Adelaide’s growth seems fairly moderate but, to put it in perspective, the two research sources have Sydney rents stagnating or falling. SQM, for example, has Sydney house rents down 3.6 percent and apartments falling 1.2 percent in annual terms.
In Brisbane, where vacancy rates have been high (although now trending downwards), rents have been fairly stagnant over the past year.
In Darwin, where vacancy rates have been elevated for several years, Domain has house rents down almost 4 percent and SQM records a reduction of close to 6 percent.
Domain records no change in Perth rents for both houses and apartments, although SQM suggests house rents are showing early signs of a return to growth - which would correlate to steadily improving figures on vacancy rates.
Melbourne’s rental data is moderate only, with both sources suggesting rises of 2-3 percent in the past 12 months.
So where do the vacancy/rental trends point us, in terms of predicting future growth in prices. I would suggest the best answers (particularly when considered alongside other evidence) are Adelaide, Canberra and Perth.
Canberra has very low vacancies and strongly rising rents. It also has a strong local economy and rising sales activity. Its price growth, currently solid but moderate, should improve. The top end of the market is already rising.
Adelaide has low vacancies and improving rental growth. It also has an improving local economy and a busy sales market. Price performance, already strong in the million-dollar suburbs, should escalate.
And Perth, where rents and prices have been falling in recent years, is poised to rise. Its vacancies are trending steadily downwards, there’s evidence of rising leasing activity and the first signs of a return to rental growth. As the state economy improves, sales activity is steadily rising - and price growth is already happening in the top end suburbs.
Terry Ryder is the founder of hotspotting.com.au
<a href="mailto:%20&lt;script%20type='text/javascript'&gt;%20%5Cn%20&lt;/script&gt;&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;This%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20&lt;script%20type='text/javascript'&gt;%20%20&lt;/script&gt;"></a><a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
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Top three Australian cities for rental growth and lowest vacancies: Hotspotting's Terry Ryder

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Planning how to rent out an off the plan apartment is similar, if not the same, to other forms of property investment strategy, however some developers may offer a rental guarantee on the new purchase.
Developers generally offer a rental guarantee for the first year or two, however many property professionals warn against buying into a development that offers a rental guarantee.
iProperty Plan director Mark Armstrong says by accepting a guaranteed rent level, investors are insulated from market forces.
“As newer properties come on to the market and tenants have a wider choice of places to live, the market rent for a property could fall,” says Armstrong.
Market analyst <a href="/guides">Catherine Cashmore</a> says the rental guarantee is always factored into the sale price of the apartment.
Cashmore says rental guarantees can be between 5% to 7%. If an investment has a gross return of 6% and the developer guarantees $300 a week rent, the purchase price would be $260,000.
But if the market rent is in fact $250 a week, the property is really worth $218,000, resulting in investors paying 19.2% over the market value.
“Once the guarantee expires, the unit’s yield will revert back to market forces,” says Cashmore.
Armstrong says once the guarantee expires, investors will need to have sufficient cashflow to hold the property during periods when the property is not tenanted.
Property 1 real estate agent Garth Rothwell says rental guarantees are good for overcoming fear of loss due to a vacancy period but in reality, all rents are guaranteed.
“I guarantee there will be people willing to rent a unit, it just comes down to how much rent they are willing to pay.
“Guarantees that are offered by the developer and are above market value are bound to fail, as proven in the past, as they are unsustainable over the medium to long term.
“Rent guarantees based on market value for a period of one to three years can be beneficial for investors to overcome the fear factor and help the investor with cash flow in the initial years of the purchase,” says Rothwell.
“Ultimately it comes down to how the rent guarantee is funded.”
Off the plan apartments can be advertised for rent prior to settlement but Rothwell says the investor will require the developer’s permission to advertise early, as the developer will have to authorise access to conduct inspections.
“If the unit is leased prior to settlement, the developer is entitled to the rent collected prior to the settlement date.
“If a guarantee is in place, the developer will already have this process in place,” says Rothwell.
For investors wanting to rent out their new apartment, Rothwell advises to price the unit at market value, not emotional value.
“Investors should be prepared to trade off $10 to $15 per week in rent to get a better tenant sooner, or alternatively a tenant with a small pet may pay more.
“The investor needs to identify the type of tenant they wish to attract, familiarise themselves with relevant facts regarding pets, body corporate rules and on site management,” says Rothwell.
Rothwell advises that a pre-purchase/settlement inspection is organised from a licensed building inspector and that a detailed initial inspection report is completed.
“Complete all guarantees for stoves, ovens, dishwashers and air conditioners and ensure a landlord’s insurance policy is in place to cover loss of rent due to malicious damage and a basic contents policy to cover any dispute about building or contents,” says Rothwell.
As with any property investment, research is the key to ensure the numbers add up and that all the correct measures are taken to safeguard investors and their property.
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How to: Rent out an off the plan apartment

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EXPERT OBSERVER
High-intent renters are still very active on realestate.com.au, despite a softening market and relatively high supply.
The REA Insights Weekly Demand Index is a weekly metric that looks at the volume of high-intent renter activity on the realestate.com.au website and app and tracks that activity over time.
Specifically, it looks at how users are behaving when they interact with live rental listings.
The characteristics of serious renter activity includes but is not limited to; the number of visits to a listing, looking at the photos for a listing multiple times, saving the property, sharing the property and/or making an enquiry with the agent.
Who is it useful for?
For renters looking for new rental accommodation the index gives a good indication of the level of competition they can expect when they look at and apply for properties. Higher renter activity on a listing would suggest greater competition for that property or property type. In this index we’ve aggregated the high-intent rental activity and analysed it by state.
For owners of rental properties the index indicates the likelihood that they will be able to rent out their property.
Why REA Group is well placed to tell this story
Realestate.com.au is Australia’s number one property portal. In April 11.9 million Australians visited the platform* creating an unparalleled view of consumer demand for Australian property. This vast onsite activity sends millions of signals of intent that allow the experts at REA Insights to model behavioural demand.
What is the latest data actually showing?
The latest data shows that the number of highly-engaged rental listing interactions on realestate.com.au increased by 2.7 per cent last week. That means that serious renter activity has now increased for 10 of the past 11 weeks (falling the previous week) and is up 102.9 per cent from its low in March. The 2.7 per cent weekly increase did not completely offset the -4.3 per cent fall the previous week.
One of the likely drivers of such high volumes of serious renter activity is the fact that the number of new rental properties becoming available is shrinking. With less stock, those serious about renting are required to narrow their focus and are more likely to be highly-engaged with what’s available online.
The data indicates that it isn’t just search volumes that are climbing, we are also seeing a significant increase in the volume of people searching that are in the late stage of their rental decision.
All states recorded an increase in the volume of high-intent rental activity last week except for Western Australia and Tasmania, which fell slightly.
Since the recent low related to COVID-19 serious renter activity has more than doubled in New South Wales (110.2%), Victoria (133.8%) and Australian Capital Territory (140.1%). The smallest gains have occurred in Tasmania (45.2%) and Northern Territory (48.5%).
What about compared to last year?
Nationally, serious renter activity is up 70.5 per cent higher on last year.
The heightened rental activity is being felt in all states and territories with the largest annual increases in Australian Capital Territory (102.0%) and New South Wales (84.3%), while South Australia (20.8%) and Western Australia (41.5%) recorded the smallest increases.
While a lot of people are showing high-intent in their rental searches it remains to be seen whether they will actually move, especially considering there is a rental moratorium in place.
The rental market remains challenged with international borders closed, first-home buyer demand being pulled forward the government’s HomeBuyer initiative and people under the age of 30 being much more likely to have lost their jobs through COVID-19.
While a lot of people are actively looking at rental accommodation it may not be until later in the year when we actually see them moving into new rental accommodation.
CAMERON KUSHER is the Director of Economic Research for the REA Group
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High-intent renters are still very active on realestate.com.au: Cameron Kusher

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The Real Estate Market Facts quarterly report has shown an impact on prices from the COVID-19 pandemic, but it has not been as dramatic as some have predicted.
“In the March edition I flagged that June quarter 2020 will reflect the impacts of the start of the COVID-19 pandemic on both the sales and rental markets,” said REIA president Adrian Kelly.
“Whilst there has been an impact on prices it is relatively modest and has certainly not been the doomsday prophesies some commentators expected.
“Nor has the impact been uniform across Australia with local market conditions varying, resulting in a range of outcomes.”
This REMF edition shows in the June quarter 2020 the weighted average median price for houses for the eight capital cities decreased by 2.2% to $770,359, with only Darwin having an increase and Adelaide remaining stable.
This is the first quarterly decrease since March 2019. For the year the weighted average median price for houses for the eight capital cities increased by 5.9%.
The weighted average median price for other dwellings also decreased by 1.9% to $592,415 over the quarter, with only Adelaide and Hobart recording increases.
For the year the weighted average median price for houses for the eight capital cities increased by 4.8%.
Over the quarter, the median rent for three-bedroom houses decreased in all capital cities except for Canberra, where there was a marginal increase, and Sydney where the rent remained stable.
The decrease in median rents for 3 bedroom houses, over the quarter, was 1.6%. There is a consistent pattern for June quarter median rents to decline and the 2020 decline cannot be attributed entirely to the impact of COVID-19. Indeed the quarterly decline is below the June 2018 decline of 2.5%.
The median rent for two-bedroom other dwellings decreased in all capital cities except Darwin, which had a 1.7% increase. The largest decline was in Melbourne, and at 8.7% it's the largest decline in the past 10 years.
The weighted average vacancy rate for the eight capital cities decreased to 3.0% during the June quarter, which shows a loosening in the market compared to last quarter.
“A factor contributing to the market stability is the decline in the number of listings for sale,” said Mr Kelly.
“In all capital cities except Perth the number of houses and other dwellings for sale declined compared to the June quarter 2019.
“The biggest declines were in Hobart where the number of houses for sale declined by 33% and the number of other dwellings by 26%.
“The market is holding up better than many expected with the Government’s initiatives of JobKeeper and JobSeeker as well as the banks loan deferrals playing their part in stabilising the situation.
“With extensions to these having been announced we expect continued stability in the market,” concluded Mr Kelly.
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Rents across most categories have seen drops across Australia with few exceptions: REIA

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GUEST OBSERVATION
A department store employee wheels clothes across Melbourne’s Bourke Street Mall on August 5 2020, as retailers prepared to close their doors to customers.
“This is not a bluff,” <a href="https://www.theaustralian.com.au/business/companies/mosaic-could-shut-between-300-500-stores-amid-rent-disputes-online-switch/news-story/8868980e1be2de4048b93b17b9da3880">Scott Evans</a>, the chief executive of Mosaic Brands, has said of his threat to permanently close 300 to 500 stores in Australia unless landlords reduce rents.
Mosiac’s network of about 1,300 apparel stores includes Katies, Noni B, Rivers, Rockmans, Millers and Crossroads. With stores shuttered temporarily due to COVID-19 restrictions, it posted a <a href="https://www.afr.com/companies/retail/mosaic-brands-to-close-stores-after-170m-loss-20200824-p55ovi">A$170.5 million loss</a> in the year to June.
It and other retailers such as <a href="https://www.premierinvestments.com.au/our-brands/">Premier Investments</a> (owner of Just Jeans, Portmans and Jacqui E brands) <a href="https://www.smh.com.au/business/companies/westfield-locks-retailers-out-of-stores-as-rent-battle-escalates-20200820-p55ns2">have reportedly</a> been paying lower or no rent to landlords, on the basis their rents should reflect revenue and landlords should share the pain.
Last week Mosiac’s stalled rent negotiations with Australia’s biggest shopping centre landlord, Scentre Group, led to a <a href="https://www.afr.com/companies/retail/retailers-landlords-in-open-warfare-over-rents-20200825-p55p5f">lockout of 129 Mosaic stores</a>. Scentre also locked the doors to 38 stores owned by luggage retailer Strandbags.
According to <a href="https://www.theaustralian.com.au/business/companies/mosaic-could-shut-between-300-500-stores-amid-rent-disputes-online-switch/news-story/8868980e1be2de4048b93b17b9da3880">Evans</a>:
The retail rental market in Australia is not paused because of the pandemic. It is fundamentally changed for the future.
A history of growth, conflict and negotiation
Though the coronavirus crisis has brought things to a boil, tensions between shopping centre tenants and landlords have simmered for more than 40 years.
Behind Mosaic’s standoff with Scentre are the underlying power dynamics between tenants and landlords. Mutually dependent on one another, they have always fought over the spoils of shopping centre profits. With the COVID-19 crisis, strained relationships are starting to break down.
Australia’s first American-style <a href="https://australianfoodtimeline.com.au/first-australian-shopping-mall/">shopping centre opened in 1957</a>, in the Brisbane suburb of Chermside. It had space for one department store, one supermarket, 24 specialty stores and parking for 650 cars.
As the rise of the private motor car reshaped cities and suburbs, <a href="https://www.propertyobserver.com.au/https://www.routledge.com/Managing-the-Marketplace-Reinventing-Shopping-Centres-in-Post-War-Australia/Bailey/p/book/9781138323025">shoppers embraced</a> the convenience and comforts and comforts of the mall.
By the late 1970s they were the dominant shopping experience, outstripping many established “high streets”. They became <a href="https://www.propertyobserver.com.au/https://epress.lib.uts.edu.au/index.php/sydney_journal/article/view/2817">social as well as commercial hubs</a>.
They were also protected by planning legislation intended to constrain sprawling development, but which also created geographic monopolies by blocking competition nearby.
This all produced highly sought after and valuable retail space.
Naturally owners were keen to increase their profits by <a href="https://www.google.com.au/books/edition/Managing_the_Marketplace/ZbXjDwAAQBAJ?hl=en&amp;gbpv=0">expanding these spaces</a> to attract even more shoppers.
Calls for government intervention
But as centres got bigger and more and more specialty retailers signed leases, complaints began to emerge about exploitation and steep rent hikes. By the early 1980s tenants’ complaints had become an issue for both sides of politics.
Intense lobbying led to government inquiries around the country, which found sufficient evidence to recommend industry self-regulation and then <a href="https://www.propertyobserver.com.au/https://www.legislation.nsw.gov.au/#/view/act/1994/46">retail tenancy legislation</a>.
But the fundamental power dynamics remain. Landlords still have the most convenient and attractive locations for stores. They have control over entire retail environments, and even collect the sales data of their tenants. Their bargaining position in leasing negotiations is invariably very strong.
Sharing profits and costs
In 2008 a <a href="https://www.pc.gov.au/inquiries/completed/retail-tenancies/report/retail-tenancy-market.pdf">Productivity Commission inquiry</a> noted:
Well-managed shopping centres can unify a large and divergent group of tenants and help centre trade. In return, tenants in centres generally pay higher rents and outgoing expenses than similar tenants in a shopping strip and forego some independence in operating their business.
It has often been a mutually advantageous relationship, but there has always been a contest between tenants and landlords over how they share both benefits and costs.
The retailers’ argument is rent should be based on the value of the customer traffic the shopping centre delivers to their stores, and those customers have evaporated with COVID-19. As analyst <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-05-21/shopping-centre-landlords-among-biggest-coronavirus-losers/12271266">Bill Mooney put it</a>:
With a lease agreement there’s an expectation of a certain amount of customers coming through into the shopping mall and if that nexus is broken, then yes, the landlord can insist on his rights, but which retailer is going to continue to pay rent and go broke?
Mosaic’s projection of store closures emphasises this point.
No one will come out of this a winner. The fight to minimise losses will be bitter. The first casualties will be the most vulnerable: the smallest tenants, with the least bargaining power, in the most precarious financial situations. This echoes the broader pattern of the pandemic’s impact.
For landlords there are longer-term questions. Will the current standoff push retailers towards a permanently smaller physical footprint and greater investment in online shopfronts? Has it created even more uncertainty about retail’s future? How deeply has trust been eroded?
Whatever happens, when there is any sort of return to normal, both sides will enter fresh leasing negotiations with an acrid taste from what is rapidly becoming their most vitriolic fight to date.
<hr>
This article has been co-published with <a href="https://lighthouse.mq.edu.au/">The Lighthouse</a>, Macquarie University’s multimedia news platform.<img src="https://counter.theconversation.com/content/145094/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/matthew-bailey-414427">Matthew Bailey</a>, Lecturer, Retail History, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/trouble-at-the-mall-as-landlords-and-tenants-ponder-mutually-assured-destruction-145094">original article</a>.
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Trouble at the mall as landlords and tenants ponder mutually assured destruction

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EXPERT OBSERVER
COVID-19 continues to show an acute impact on inner city rental markets, the latest CoreLogic data on rental listings has revealed.
In the 28 days to August 9, total rent listings on market across Australia had eased on the previous month, falling 10.9% nationally.
While most regions are now seeing rental markets gradually tightening, there is still a significant uplift in rental stock around innercity areas, placing downwards pressure on rents and upwards pressure on vacancy rates.
A summary of the increases in rental stock by SA4 region is presented below. SA4 regions are defined by the ABS as broad regions of 100-300,000 people, and are a useful area of measurement because of alignment with labour force data.
The increase in rental listings represents the change in the level of total rental stock counted in the 28 days leading up to the 15th of March, the week in which Australia recorded its 100th case of COVID-19, compared with that counted in the 28 days to August 9th.
Of the 88 SA4 regions measured across the country, 78 regions saw a decline in the volume of rental listings between these dates.
Focusing on the 10 regions that have seen an uplift in total rental stock, 8 were regions across Sydney and Melbourne, while inner-city Brisbane and the Adelaide Central and Hills have also seen an increase in rental stock.
The dominance of Sydney and Melbourne with regards to heightened rental supply highlights the much localised nature of the shock to rental demand that has been seen since the onset of the pandemic.
<a href="https://www.propertyobserver.com.au/images/2020/8/13/SA4%20CoreLogic%201.JPG" target="_blank">Click here to enlarge</a>:
<img src="https://www.urban.com.au/images/2020/8/13/SA4%20CoreLogic%201.JPG" alt="">
It is expected seasonally that most areas would see a decline in rental listings, as rental stock on market is usually highest at the beginning and end of each year. For the four years prior to 2020, rental stock on market at mid-August has on average, been -3.2% lower than what is seen over mid-March.
However, the 10 regions that did see an uplift in rent listings are large rental markets. Together, CoreLogic data suggests these regions account for about 27.6% of Australia’s total rent market.
More geographically granular data shows some of the highest uplift in rental stock is across Inner Melbourne and Sydney City and Inner South. SA2 regions with the largest uplift in advertised rental stock are shown below
<a href="https://www.propertyobserver.com.au/images/2020/8/13/SA2%20CoreLogic%202.JPG" target="_blank">Click here to enlarge</a>:
<img src="https://www.urban.com.au/images/2020/8/13/SA2%20CoreLogic%202.JPG" alt="">
Across Southbank, rental stock has erupted from 568 rental listings in the 28 days to March 15, to over 1,200 by August 9th. In the year prior to the pandemic, total rent listings across Southbank averaged 450 listings per month. Interestingly, as Melbourne moves through its stage 4 restrictions, total rental listings have started to fall across most Melbourne regions.
Inner Melbourne, which has seen the highest surplus of rental stock since the onset of the pandemic, saw total rent listings fall -8.1% over the 28 days to August 9.
A significant portion of this decline was a reduction of 450 new listings counted in the lead up to the 9th of August, suggesting new listings have fallen off the back of physical restrictions around letting property.
The regions with large accumulations in rental stock reflect many of the pain points that have come with the COVID-19 downturn, particularly more recent commentary which has highlighted the gaping hole in housing demand because of international border closures. This is because the majority of new migrants to Australia are renters, at least initially.
The 10 SA4 regions which have seen an uplift in rental listings between March and August, together accounted for 29.1% of the net overseas migration to Australia over the year to June 2019. Other factors contributing to the heighted level of rent listings include a recent history of significant supply additions via a surge in high-rise construction activity, while the demand side has been additionally impacted by the weakness in labour markets typically associated with renters, including food and accommodation as well as the arts and recreation sector.
These trends highlight some of the acutely impacted markets. Due to the relatively high level of investor concentration, particularly in inner-city apartment markets, the patterns in rental supply and demand point to added downside risk for values in these precincts until international borders re-open and labour market conditions tighten.
ELIZA OWEN is the Head of Research Australia at CoreLogic
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Rental listings fell 10% across Australia in August: CoreLogic's Eliza Owen

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During the quarter, DomaCom continued with remote working arrangements due to COVID-19 and progressed the development of key products which are expected to drive future revenue growth.
The Company also saw a strong growth in Funds Under Management, which rose 11.2 per cent in Q4 FY20 to A$71.4 million. 
Product development ramps up
During the quarter, the Company made progress across four products currently in development: Rent to Own, Essential Worker, Equity Mortgage, and Senior Equity Release. 
Rent to Own: The Rent to Own product documentation was completed in the June quarter along with the acquisition of the first RTO property. The Company is now looking for its second property to be acquired in Sydney. This product uses the develop distribution margin to provide a discount to investors whilst gifting equity to tenants each year. 
Essential Worker: DomaCom is progressing its Essential Worker affordable housing product with one of Australia's leading Community Housing Providers. This product aims to leverage the Government's affordable housing lending facility to deliver an RTO product for essential workers with a 25 per cent discounted rent. This product is expected to be attractive due to low vacancy risk stemming from the security of the tenants' employment (nurses, firefighters, teachers, police) in addition to the emotional impact of supporting essential workers at this time. The targeted launch period for this product is Q3 CY20. 
Equity Mortgage: Work is ongoing to deliver a Shariah-compliant mortgage product that is targeting Australian Islamic communities who, in accordance with their religion, are prohibited from borrowing money. This product is believed to be less exposed to the current negative property environment as it is aiming to provide a method of obtaining leverage for those who wish to purchase a home but cannot borrow. 
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Discussions are ongoing with a key B2C partner whilst the Company seeks regulatory approval for changes this product requires. The targeted launch period for this product is between late 2020 and early 2021.
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Senior Equity Release: Adviser accreditation for the Company’s Senior Equity Release (SER) product has progressed with a dozen advisers having completed accreditation. DomaCom has commenced a direct marketing campaign aimed at the retirees to help identify those needing equity from their homes. Covid-19s recent impact on self-funded retirees’ income has increased the market for this product and the Company is now seeking to obtain regulatory clarity on how the SER product works with the Government’s Downsizer legislation.
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Corporate
FUM increased from A$64.2 to A$71.4m in the quarter ended June, 30 2020.
Payment of remuneration to executive and non-executive directors and their related parties amounted to $184,000 during the quarter ended June 30, 2020.
As part of facilitating the completion of the Avery’s Green property development being carried out for a sub- Fund within the DomaCom Fund, DomaCom Australia paid a limited number of supplier invoices on behalf of the sub-Fund during the year ended June 30, 2020. In the 30 June quarter, these amounts were repaid by the DomaCom Fund resulting in a net inflow of $802,000 in the current quarter. DomaCom Australia, a subsidiary of DomaCom Limited, operates the DomaCom Fund. The DomaCom Fund is a separate legal entity with separate investors. It is designated a related party as DomaCom Australia is the Investment Manager.
DomaCom continued to carefully control costs during the quarter. Staff and administrative costs fell to $709,000 compared to $716,000 in the previous quarter. Advertising and marketing costs increased to $143,000 in the current quarter compared to $90,000 in the previous quarter as the Company introduced the market to new product offerings.
DomaCom’s cash position at the end of the June quarter was A$1.45m. The Company has refreshed its placement capacity via the EGM that was conducted 22 July 2020 and discussions are now progressing with an institution regarding a placement to top up the cash position.
DomaCom CEO Arthur Naoumidis said: “While the current environment is a challenging one, we are pleased that several of our key products are starting to gain traction in this environment. In particular, the ability to complete our first RTO syndication in the middle of the pandemic is a promising result. Encouragingly, we have seen significant investor interest in further RTO syndications and we are currently assessing potential acquisitions in Sydney."
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DomaCom completes first rent-to-own transaction

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Prices fell sharply on CPI data in the June quarter for a number of reasons including rents, which were down 1.3%.
That fall is the first and greatest quarterly quarterly fall in rents on record.
Rental yields have also slipped to record lows, CommSec's Craig James took a look at the overall state of the latest CPI data.
The ABS said, “Rents recorded the first quarterly fall since the series commenced in 1972."
"Weak rental market conditions as a result of COVID-19 lockdown restrictions and rising vacancy rates saw rents fall in most capital cities in the June quarter.”
However rental searches on realestate.com.au are up 39 per cent over the June quarter. Data from those searches reveals that tenants and prospective tenants are looking more often and looking for longer.
The volume of ‘high-intent’ search activity on the site is up an incredible 75 per cent over the same period.
“The results are a clear indicator of how COVID-19 has changed the property market dynamic,” REA Group Director of Economic Research, Cameron Kusher said.
“Rental rates are coming under pressure from multiple sources. We have virtually no migration, there is new stimulus encouraging purchasing from first home buyers who otherwise may have been renters, and then there’s the fact that unemployment is rising, and younger people are most affected."
“With a moratorium on rental evictions in place until September, the next quarter is unlikely to see rental CPI fall as severely. Thereafter it is likely rental rates will fall further and will take quite some time to recover to previous highs.
“The high demand on realestate.com.au is likely due to the possibility of finding cheaper and or better rentals, as evidenced by the CPI data,” he concluded.
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