A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Residential Investment

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Fractional property investing platform has announced its newest property to investors in Sydney’s Potts Point, close on the heels of a townhouse it bought in Surry Hills.
The <a href="https://www.realestate.com.au/sold/property-apartment-nsw-potts+point-125209498" target="_blank">6/10A Challis Avenue</a> property is a one-bedroom unit. Its initial brick price is $66 and pre-orders start on May 26.
The fintech company divides every property it buys into 10,000 'bricks' and sells those 'bricks' to investors. Investors have the prospect of earning capital returns and monthly net rental income in proportion to the number of 'bricks' owned. 
According to BrickX, the estimated net rental yield from the Potts Point unit is 2.04 percent. In terms of capital returns, historically the suburb has shown a growth of 9.72 percent p.a. over the last five years, according to CoreLogic data.
The one bedroom apartment with study cost $885,000 and it has a 31 percent gearing.
It last traded for $298,000 in 2001, reflecting an annual price growth of seven percent.
The unit is located within 2 km of Sydney CBD. Fringe inner city locations are well sought after by both investors and tenants.
Last week, BrickX launched a townhouse in Surry Hills for an initial brick price of $95.
All 10,000 ‘Bricks’ were reserved amongst the 537 investors in under 1 hour, according to CEO Anthony Millet. 
Tim Lawless, head of Research at CoreLogic and an advisor at BrickX, said figures show unit prices in Potts Point have increased by almost 50 percent over the past five years.
“Considering the large captured working population within close proximity to Potts Point, the rental market has historically been strong within the suburb, which has contributed to ongoing low vacancy rates and high demand from both owner occupiers and investors," said Lawless.
Millet also announced a few changes to launches from now on.Property information will be available two days before pre-orders and it would start at midday, he said.
BrickX already has properties in popular locations: Surry Hills, Darlinghurst, Bondi Beach, Enmore, Mosman, Annandale and Double Bay in Sydney, and Prahran and Port Melbourne, in Melbourne. 
The combined value of all properties exceeds $9.5 million, its website says. 
For more information on the property, <a href="https://www.brickx.com/properties/PPT01/summary" target="_blank">click here</a>.
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jonathanchancellor-7SQnKwU6yx

BrickX on buying spree, unveil one-bed Potts Point unit at $66 a 'brick'

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Property investors tend to be drawn to boom markets, seeking rapid growth.
It’s understandable, but not always smart. Sometimes the outcomes are not what buyers expect.
Sometimes, also, buyers are not suited to the kinds of markets that attract them. Those with risk profiles that lean towards steadiness and safety should not be in resources-related regional centres or glamour high-rise markets like Surfers Paradise.
They should be in markets likely to deliver solidity – the consistency markets.
The best analogy I can provide is this, taken from one of my reports for investors:
The most-watched athletics events at any Olympics are the sprints. They’re excitement-plus, particularly when they feature athletes with star quality like “world’s fastest man” Usain Bolt.
The long-distance contests have their followers but are boring by comparison. Only diehard watchers sit through the two hours-plus of the marathon – people who admire grit and stamina more than flashy skills. You should have a similar attitude to real estate.
Many investors and developers go for the sprinters of real estate. The mining towns and the places with star quality like the Gold Coast attract many of property’s spectators and speculators.
But, in real estate, there’s a lot to be said for being boring. Many of the best performers are the unglamorous contestants. While the sprinters of real estate pull up lame or go down with cramp, the long-distance runners just keep on chugging along.
This speaks to the importance of seeking locations that offer consistency.
Of the various periodic reports I work on, my favourite is the Price Predictor Index which looks for patterns in markets to provide about the likely future movement in prices. We highlight the growth markets and also the ones we classify as danger markets, the ones where prices are likely to fall. 
But equally important are the consistency markets. These are the suburbs and towns that deliver consistent sales levels, quarter after quarter, year after year. They’re solid markets which represent safety for property consumers. They’re unlikely to deliver boom-bust scenarios.
Consistency markets also tend to have good price growth. The Autumn edition of The Price Predictor Index gave the award for the nation’s most consistent market to the suburb of Charlestown in the Lake Macquarie LGA which sits beside Newcastle. It has sold between 73 and 88 homes per quarter over the past three years. The median house price rose 10.4 percent in the past 12 months to $530,000.
Which brings me to one of the unsung markets of capital city Australia, Adelaide. One the hallmarks of the Adelaide residential market is consistency.
While the generalised price growth numbers have been fairly moderate, Adelaide markets have had busy sales activity in recent years - and a standout feature is the number of locations with consistent sales activity.
The Tea Tree Gully LGA continues to stand out as precinct with lots of suburbs marked by consistent sales performance.
They include Greenwith (median price $440,000), which won our vote as the nation’s most consistent suburban market in a previous edition of The Price Predictor Index. Quarterly sales in Greenwith over the past four years have been 51, 58, 56, 42, 53, 45, 43, 43, 44, 45, 49, 46, 51, 47 and 41.
And, as another indicator that this kind of consistency produces solid price growth, the median price for Greenwith has increased 8 percent in the past 12 months and 16 percent in the past three years.
The Onkaparinga LGA in the far south of the Adelaide metropolitan area is a frequent entry in our Hotspots reports, with its mix of coastal suburbs, new growth areas and wine country, boosted by improved road and rail links to central Adelaide.
Onkaparinga has many consistent performers, including Happy Valley and Morphett Vale (where quarterly sales have been 140, 142, 140, 124, 142, 137 and 135 over the past two years). Happy Valley’s median price has risen 6 percent to $380,000 in the past 12 months.
In the downmarket northern suburbs of Adelaide, both Salisbury and Salisbury North are very consistent markets. Salisbury (median house price $285,000) has recorded quarterly sales of 47, 49, 44, 54, 40, 42, 43, 43, 38 and 45 over the past 2-3 years. 
And at the more prestige end of the market, North Adelaide (median house price $1.04 million) had delivered sales of 58, 56, 56, 55, 64, 59, 57, 48 and 56 in the past couple of years. 
Australia abounds with markets like these, suburbs and towns that show great consistency in their level of sales. For investors who have patience and value steadiness, they’re good places to park your money.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can  <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a>
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terryryder-YECXbqmri2

Nation’s most consistent market is Charlestown, New South Wales

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Fractional property investing platform BrickX has completed six months since its official launch, and has managed more than 15,000 signups and 2,850 investors in this period, according to CEO Anthony Millet.
With seven properties under its belt so far in Sydney and Melbourne, the firm is now looking at opportunities further in Adelaide and Tasmania.
Its current portfolio of properties is valued at more than $8,68 million.
Property prices grew 18.4 percent in Sydney while gaining 13.1 percent in Melbourne over the past twelve months, according to CoreLogic - median price index, to Feb 17.
The letter also seeks to answer the questions around liquidity, which was raised in a recent survey the company ran. 
“The current median time for Brick Holders to sell any Bricks they have put up for sale is 1.8 hours (monthly average measured Oct 16 - Feb 17),” Millet says.
It said they will explain clearly the ongoing median times in an update.
There has been market chatter that this pace cannot continue indefinitely, and the CEO letter says the company will “be very selective around the types of properties and suburbs we choose for BRICKX”.  
The company will be hosting a webinar with realestate.com.au chief economist and BRICKX advisor, Nerida Conisbee on March 28 about how the residential market has performed so far in 2017 and what her predictions are for the rest of the year. 
On the panel of advisors for BrickX are CoreLogic’s director of research Tim Lawless and realestate.com.au’s Nerida Conisbee.
For more information on the webinar, <a href="https://www.propertyobserver.com.au/https://attendee.gotowebinar.com/register/7156001386243593731" target="_blank">click here</a>.
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prateek24-ezbwHMbNAk

BrickX looks to spread investment wings to Adelaide and Tassie

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Investors continue to under-rate and overlook regional Australia despite the appeal of what’s on offer for those who select well and invest intelligently.
There’s a strong inclination to cling to the capital cities, perhaps unsurprising when research sources publish comparisons with a single growth figure to describe the eight capital cities (inflated by Sydney’s growth figure, also inflated) and a single number to describe the vastness that is regional Australia.
The lone figure for regional Australia is always lower, dragged down by all those cities and towns undermined by the decline in the resources sector or drought or some other periodic affliction.
But the best of regional Australia provides one of real estate’s win-win-win situations: lower prices, better yields and strong prospects for capital gains.
Many of the regional centres with the best appeal are places most investors would never consider – or have even heard of.
Armidale in regional New South Wales is a good case study. It features in the new 2017 edition of the National Top 5 Cheapies With Prospects: Regional Edition for multiple reasons. A diverse economy sustained by education, tourism and agriculture is a big factor, as is the support of Deputy Prime Minister Barnaby Joyce, the local Member.
The city’s prospects are being boosted by upgrades to the airport and hospital, the possibility of a major solar farm, touted as being the largest solar farm in New South Wales, and a wind farm development.
There is also the plan for a government department currently based in Canberra being relocated to the township.
Located on the New England Highway inland from Coffs Harbour and with regular train services and daily flights to Sydney, Armidale has good connectivity for both freight and passengers.
In addition to its rural roots, Armidale is a significant education centre. The New England University College began life as a College of the University of Sydney in 1938 - the first Australian university established outside a state capital city. The University of New England now has campuses at Armidale, Lismore and Orange, catering for 22,000 students.
The prominence of the education sector has created a wider range of jobs and business opportunities than normally would be found in a regional location.
Tourism and hospitality play a vital role in the local economy, contributing $92 million in sales in 2015, when 181,000 visitor-nights were recorded by Tourism Research Australia. Canyoning, mountain biking, bird watching, trout fishing and other outdoor adventures attract visitors. There are also spectacular waterfalls, gorges, world-heritage national parks, cool-climate vineyards, music festivals and art exhibitions. 
Armidale has not lost its agricultural roots; rural land is used largely for sheep and cattle grazing, with some fruit-growing and viticulture. Sheep and cattle are sold each week at the Armidale Saleyards and around 1.8 million beasts are slaughtered each year. The sheep, beef cattle and grain farming industries employ about 10% of the population.
The region is serviced by the Armidale Hospital - a public hospital which is currently undergoing an upgrade.
The Metz Solar Farm, declared a “state significant project” because of its size, reportedly would be the largest solar development in NSW. Proprietor Infinergy has negotiated a 30-year lease for the land – a 950ha selection. This project would generate 150 construction jobs.
Other infrastructure improvements which will give Armidale a boost include upgrades of the airport. The present airport terminal will double in size. 
In a move driven by the Deputy Prime Minister Joyce, 200 public servants could be relocating to Armidale. Staff from the Australian Pesticides and Veterinary Medicines Authority have been told to prepare to relocate under the Federal Government’s “jobs and growth” strategy. 
The Armidale median house price is $360,000 following a 6 percent rise in the past 12 months. It’s quite a busy market with over 400 house sales in the past 12 months. 
Long-term growth, i.e. the average annual growth in median house prices over the past 10 years, is 5 percent per year for both houses and units.
Investors can expect solid rents to deliver yields in the 5 percent to 5.5 percent range on houses and around 6 percent on units.
 
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can  <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a>
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Armidale investments being overlooked

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Property investment in Hobart is showing an excellent return on investment according to figures from QSQM Research with an average implied gross rental yield of 4.4 percent for houses and 5.46 percent for apartments over 12 months.
Luca Simms, senior investment analyst for SQM Research said this is second only to Darwin at 4.65 percent for houses and Canberra at 5.68 percent for apartments.
He said whilst the nation has been obsessed with Sydney’s unstoppable, unaffordable juggernaut of a property market, unassuming Hobart has been happy to step away from the lime light to become a rather quiet achiever.
"When we look at the data on Hobart, we find that vacancy rates have rapidly declined by 1.42 percent over the past five years to record a February 2017 rate of 0.87 percent," he said.
"Hobart officially has the lowest vacancy rate in Australia! Stock on market levels have generally been falling in Hobart as well with a 32 percent decrease in homes on the market and a 39 percent decrease in apartments since a peak recorded in November 2012. 
"Although slow, property asking prices have been rising over the past 5 years; houses have increased on average by 16 percent and apartments by 17 percent showing compound annual growth rates (CAGR) of 3.02 percent and 3.19 percent respectively.
"Hobart also seems to be providing an excellent return on investment. Over the past 12 months, Hobart has displayed an average implied gross rental yield of 4.4 percent for houses and 5.46 percent for apartments, second only to Darwin at 4.65 percent for houses and Canberra at 5.68 percent for apartments. 
"So what exactly has caused this upswing in Hobart’s property market?
"The simple answer is population growth due to affordability. As mainland Australia continues to outprice itself, the great Australian dream of home ownership has become increasingly out of reach, especially for the younger demographic.
"Tasmania’s annual population increase is 0.5 percent which is the lowest in the country, however, an increase from previous years. More people have been arriving with less people departing the state. The ABS reports that the Greater Hobart area has received the majority of Tasmania’s increased population.
"So if you’re tired of the same old stories of Sydney’s unaffordability, or a looming oversupply of apartments in Melbourne, keep an eye on Hobart, it may be an interesting market to watch in the coming year."
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Hobart property investment quietly achieving: SQM Research

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Robert Kiyosaki, investor and author of the international bestseller Rich Dad Poor Dad, is holding workshops on investing for Sydney attendees.
Kiyosaki has previously suggested investors to avoid the <a href="https://sydney.richdad-workshops.com/?vsid=a5708f10-a3e5-e611-93f9-a0369f1303c6" target="_blank">Australian property market</a> as it was a bubble that was about to burst.
This seminar series suggests strategies for investment in any economic scenario.
The author told Fairfax Media in 2014 that foreign investment in Australian real estate was spiking domestic prices and forcing local buyers to pay well above the true market price.
"Foreign investors are queuing up to buy anything they can get their hands on. This is causing average Australian punters to think they need to start buying now. It has created a bubble," Kiyosaki was quoted as saying.
"It's pretty bad when the Australian property market is making news all over the world." 
In fact, he advised Australians to invest in gold or oil, where prices were falling.
Starting his property investing with a tiny one bedroom/one bath condominium on the island of Maui in 1973 for $18,000, Kiyosaki claimed in 2011 that he owned more than 1,400 apartments.
He built a substantial part of his portfolio during the <a href="https://www.reimag.co.za/2015/10/18/apple-server-most-powerful-rack-optimized-server/" target="_blank">property downturn of 2007</a>. 
Kiyosaki says he does not invest in real estate "just to own real estate...The primary reason I invest in real estate is to leverage debt and minimize taxes".
His book Rich Dad, Poor Dad has sold more than 26 million copies worldwide.
Kiyoski’s Rich DadEducation runs workshops and mentoring in real estate and other financial instruments in the United States, Canada, the UK and many other countries including Australia.
A previous article in <a href="https://limitlessrealestate.com.au/investor-advice/3-wealth-tips-from-robert-kiyosaki/" target="_blank">Limitless Real Estate</a> featured three important tips Kiyosaki which, according to the author were dead on target for Australian property investors.
1. ADAPT TO CIRCUMSTANCES.
“If you are a true investor, it does not matter if the markets are going up or coming down. A true investor does well in any market conditions,” says Kiyosaki.
When it’s booming they may use their equity to invest in up and coming areas.
When it’s slow they may focus on cashflow positive properties to continue growing their wealth.
And when it’s dropping they grab the opportunity to snap up bargains.
2. UNDERSTAND THE DIFFERENCE BETWEEN ASSETS AND LIABILITIES.
“Understand the difference between an asset or a liability. An asset puts money in your pocket. A liability takes money out of it. Buy assets, not liabilities.”
One of his favourite quotes is “keeping up with the Joneses”.
It means spending money to appear wealthy even if you can’t afford it. 
“People think that working hard for money and then buying things that make them look rich will make them rich. In most cases it doesn’t. It only makes them more tired…And if you notice, the Joneses are exhausted.”
3. MOST PEOPLE HAVE NOT LEARNT HOW TO RECOGNISE OPPORTUNITIES OR HOW TO CREATE THEM.
“Most people never get wealthy simply because they are not trained financially to recognise opportunities in front of them. The rich have learned how to recognise opportunities as well as how to create them.”
Recognising that things change and being ahead of the curve is important, he says.
Kiyosaki says he has stuck to his formula for owning property, which uses a series of rolling-equity refinances and government tax incentives, plus debt rather than his “hard-earned” after-tax dollars for the purchase.
The formula is: 
<ol>
<li>Acquire undervalued property. </li>
<li>Improve the property. </li>
<li>Raise rents. </li>
<li>Increase NOI  (Net Operating Income). </li>
<li>Refinance—taking out cash, tax-free. </li>
<li>Reduce taxes using fundamental accounting principles, of amortization, appreciation, depreciation, and component depreciation.</li>
</ol>
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j.ballantyne1990-6AQqhLzZaK

'Rich Dad' Robert Kiyosaki spreads property investment message in Australia

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Most people jump into markets when they hear they’re booming. Few will buy in a down market, with an eye to the future.
They’ll wait until a newspaper report tells them prices have jumped in the past year, which means they’re too late to maximise the best opportunities to buy well.
Perth is the most depressed of the capital city markets and buyers are staying away in droves. The real estate industry is working hard to talk up the market, claiming buyers should dive in before prices rise. Such claims are among real estate’s greatest clichés, but they will be right in the not too distant future – at the right time Perth will represent great buying, after 3-4 years of falling prices. But most won’t make a move until they read there’s a new boom on.
Another example of this conundrum is provided by Townsville. The North Queensland city has had a lot of negative publicity recently and you wouldn’t buy there on the current numbers.
But I rate locations on their future prospects, often in defiance of the current situation, to alert investors to areas poised for growth. Townsville is a classic case.
It’s among the sturdiest regional economies in Australia. I rate economic diversity and Townsville has more than most regional centres, with strong elements of government admin, education, defence, resources, health, tourism and manufacturing – plus an export port.
Its property market had a run of strong annual growth up to 2011 – and, after decline in the past few years, is ready to resume its forward progress. Its comeback will be boosted by major events, including retail projects, CBD commercial and infrastructure spending. It is also receiving economic impetus from the expansion of its military economy and will benefit from the $22 billion Adani mining project.
Townsville is forecast to be one of Australia’s fastest-growing cities, reaching a population of 340,000 by 2050, according to demographer Bernard Salt in a 2015 report.
Townsville has over 100 education facilities, including the James Cook University, where around 12,000 students are enrolled.
It’s close to the Barrier Reef and tourism is a big industry. The city received 1.2 million domestic visitors in the year to September 2016, injecting $925 million (up 35 percent on the previous year). Around 12,000 cruise ship passengers visit Townsville each year and, following a Cruise Ship Terminal upgrade, larger numbers are expected in the future.
Trade through the Port of Townsville often tops one million tonnes per month and it is now Queensland’s third largest port. Examples of the port’s growth include an $85 million export facility opened by Glencore in 2015 and Puma Energy’s $150 million fuel import terminal.
The Townsville house market was one of the strongest among the Queensland regional cities over the five years to 2011, with median prices rising 50 percent. In recent years, there have been few signs of growth and many suburbs remain in decline as a result of recent economic reversals.
News of Clive Palmer’s nickel refinery closing in 2016 has not helped the market.
But Hotspotting expects an economic revival in 2017 and better results in the property market, a sentiment shared by Herron Todd White. In the October 2016 edition of its In Focus report, HTW said conditions in the residential market were starting to stabilise.
A core problem for Townsville has been oversupply, bringing an adjustment in rents. Despite that, yields remain attractive and are generally in the 5-6 percent range for houses. Some of the unit markets have median yields close to 7 percent.
So it’s a good time to consider Townsville as it gears for a growth phase. Job-generating projects are set to get under way in 2017, headed by a $1.9 billion CBD makeover. The Townsville City Waterfront Priority Development Area plan is designed to create a modern city space where 30,000 people are expected to be living and working in the CBD by 2030.
New developments will include bars, restaurants and shops. This will also be the site of a sports stadium, convention centre, arts precinct and a redevelopment of the North Yards railway sheds.
Townsville will thrive on the Adani coal project, which will have its HQ in Townsville, if the miner’s undertakings are kept. But nothing is certain in the resources sector and Townsvillemay have to fight to maximise the benefits because other regional cities can sniff the opportunities. Hence this headline in the local paper on 10 February: “Townsville declares war on Rocky.”
In a story on the front page of the Townsville Bulletin, Townsville Mayor Jenny Hill said the gloves were off in beating out other regional cities for Adani's FIFO hub.
Townsville is likely to benefit from other mining activity in Central Queensland, despite being hundreds of kilometres from the mine sites, in many cases. As one example of how major mining companies approach staffing these days, reports suggest BHP Billiton “has turned to Townsville locals to fill 200 fly-in, fly-out jobs in the Bowen Basin”.
There are 270 jobs on offer at the company’s Peak Downs and Saraji mines near Moranbah and a spokesman for BHP Billiton Mitsubishi Alliance (BMA) says they are advertising FIFO roles from Townsville.
Townsville is also likely to benefit from plans for Singaporean Armed Forces to train at Shoalwater Bay Training Area and Townsville Field Training Area. Up to 14,000 Singapore personnel will conduct unilateral army training for up to 18 weeks a year by 2021. Land will be used for tank training and $300 million will be spent on new facilities. This is the plan that became contentious recently when rural landholders claimed their properties would be forcibly resumed to make way for the military manoeuvres.
Then there’s a $225 million solar farm planned in the Upper Ross, with the project attracting federal funding and a solar power purchase agreement reported to be the biggest in the country. Under a 13-year contract, EnergyAustralia will buy 80 per cent of the electricity generated by the 142MW facility, enough power for 52,000 homes.
With so many large-scale projects in its future, Townsville is poised to return to growth and tuned-in investors will be looking around for opportunities.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can  <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a>
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Tuned in investors turning towards Townsville

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Batemans Bay on the NSW South Coast has made it to the top three localities expected to grow the most in Australia over the next eight years, according to a new report. 
The latest Residex Predictions Report list identifies 109 suburbs and towns nationally that are most likely to deliver better than average growth over the next five and eight years.
The report ranks the top 109 suburbs where predicted capital growth is forecast to be between an average of 4.0 percent and 11.1 percent per annum over the next five years, and between an average of 5.1 percent and 8.4 percent per annum over the next eight years.
It is a valuable starting point for property investors researching where to buy next, Kylie Davis, Residex head of marketing said.
“The suburbs listed in the report are the ones that we would expect to perform well in future years based purely upon the statistical patterns that the Residex algorithm has identified in their historical growth rates,” said Tim Lawless, CoreLogic’s Asia Pacific Research Director.
“Residex’s predictive model doesn’t allow for new developments, changing demographic patterns, improved infrastructure or any other such factors and these can have a substantial impact on the capital gain prospects across a suburb or town.”
Based on Residex’s predictive model, Batemans Bay (postcode 2536) came in third position with an average of 8.29% growth anticipated per year over the next eight years. The top two positions were taken by Gordon in ACT and Pemulwuy in NSW. 
The median house value in Batemans Bay is currently $340,000 with an annual average growth of 2.57 percent. 
For that median price, a two-bedroom cottage at <a href="https://www.realestate.com.au/property-house-nsw-batemans+bay-124170842" target="_blank">15 Bent Street Batemans Bay NSW 2536</a> has been listed for sale at $350,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/ResidexBatemans1.jpg" alt="">
Similarly, another two-bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-batemans+bay-124442830" target="_blank">2/6 Pacific Street Batemans Bay NSW 2536</a> is on the market for $359,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/ResidexBatemans2.jpg" alt="">
Among those that sold recently around the median prices, there was a three-bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-batemans+bay-122751174" target="_blank">3/34 High Street, Batemans Bay</a> that sold for $345,000 in October 2016.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/ResidexBatemans3.jpg" alt="">
Another three-bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-batemans+bay-123988002" target="_blank">23 Golf Links Drive, Batemans Bay</a> sold in November 2016 for $350,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/17/ResidexBatemans4.jpg" alt="">
The December report is the first Predictions Report compiled by Residex since the business was purchased by CoreLogic in 2016, and uses the combined data resources of the two businesses.
The data is drawn from median values using the CoreLogic automated valuation model, rather than median sales prices. This is an important distinction as it takes into account the value of all properties within the suburb, not just those that have transacted across the period. This makes it a more reliable and stable indicator of values across the region.
The suburb of Pemulwuy in NSW held the number two spot with house values expected to provide an average of 8.34% growth per year over the next eight years. Batemans Bay on the NSW South Coast came in third position with an average of 8.29% growth anticipated per year over the next eight years. Houses in Middle Swan ranked fourth while houses in Brighton, Tasmania ranked fifth.
In the national report, 107 suburbs had top predictions for houses while there were two suburbs for units. Across the country, 60 of the top 109 suburbs were in regional Australia and 49 were in city areas.
Broken down by state, 16 were in the ACT, 39 suburbs were within NSW, 15 were in Queensland, there was 1 from SA, 13 from Tasmania, 6 from Victoria and 19 from WA. Separate reports are also available for Victoria, NSW and Queensland.
Lawless said the report was not definitive and other suburbs could also perform strongly. Investors should conduct their own additional research before deciding to commit to a purchase.
“As with any forward looking analytic, the reports are predictions, not a guarantee of future growth, and taking into consideration your own personal circumstances is vital,” Mr Lawless said.
Get your full copy of the <a href="https://www.residex.com.au/top-100-predictions-report?utm_source=blog.residex.com.au&amp;utm_medium=article-link&amp;utm_campaign=kd-160117" target="_blank">Residex Predictions Report here</a> for $195 per state or $250 for the national report.
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Batemans Bay ranks as third best prospect for price growth to 2025: Residex report 

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Two official interest rate hikes and a slowdown in the Sydney property market were predicted in 2016 by David and Libby Koch who, when analysing predictions they made 2016, forecasted the property market this year will be 'tricky'.
In their latest column for News.com.au, the pair predicted the Sydney property market will slow in 2017.
"Sydney has slowed without crashing, Melbourne has slowed but still stronger growth than we expected, Hobart was better than we thought as was Canberra," they said.
"Perth was still pretty bad although we thought it would have turned."
In their current predictions for 2017 they noted the cost of money is set to change and the impact of rising interest rates (both official and bank induced) on the back of the US and European trends is hard to predict, but there will be a fallout.
"The expected big increase in new properties coming to market will tip the demand and supply balance more in favour of buyers," they said.
"Overall, the slowdown in property prices will continue for Sydney and Melbourne while Brisbane will take a bit of a hit as well.
"Darwin and Perth property declines look to be bottoming out while Adelaide, Canberra and Hobart will stay positive but flat.
"Up until the September quarter residential property prices rose in Melbourne (+6.9 percent), Hobart (+6.8 percent), Canberra (+5.5 percent), Sydney (+3.2 percent), Adelaide (+3.2 percent) and Brisbane (+3.1 percent), and fell in Darwin (-7.2 percent) and Perth (-4.0 percent).
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David Koch says residential property will be 'tricky' in 2017 

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A defining feature of 2016 was that knowing where NOT to buy became as important as where to buy.
Until recently, for investors it’s simply been a matter of buying in the places where prices were rising, mainly Sydney and Melbourne.  For most of the past 3-4 years, it’s felt as if owning real estate anywhere in the two biggest cities was a guarantee of capital growth.
As we contemplate 2017, buyers need to be lot more particular about their choice of location. Now, more than any time in the past four years, there’s a real prospect of losing money if you choose badly. Next year my No Go Zones report will be as important as the Best Buys report.
And the key factor in that equation is oversupply, specifically for apartments in specific locations. Both Sydney and Melbourne, as well as other parts of Australia, have locations I classify as “danger markets”.
And it’s clear that people are already choosing badly.
CoreLogic has published a report which was designed as the most popular places to buy but which, inadvertently, served as a de facto No Go Zones report. It highlighted most of the worst places to buy in the nation.
The fact that these were the most popular places for buyers, based on the number of sales in the past 12 months, just shows how bad real estate consumers are when it comes to choosing location - and how little research some people do before committing big money.
According to CoreLogic, the most popular market in Australia is the Surfers Paradise apartment market (1,616 sales in the past 12 months), followed by the Melbourne CBD apartment market (1,296). 
I’m trying to think of a worse place to buy real estate in the major population centres of Australia, but there are few I can think of. The only real contenders would be the inner-city apartment markets in Perth and Brisbane.
The Brisbane CBD also makes the Top 10 list of most popular places to buy apartments in Australia, alongside the CBD, Southbank and South Yarra in Melbourne, four highrise locations on the Gold Coast, the Adelaide CBD and Dee Why in Sydney.
Not all of those locations are absolute duds but most of them are.
You have to wonder about the thought processes behind buying an apartment in Surfers Paradise. Of the major markets around Australia, there are few with a worse track record on capital growth. The median price today is lower than it was 10 years ago. Very few locations have a record so bad.
Of course, a poor past record doesn’t disqualify a location from the prospect of future growth – but there needs to be evidence that something has changed, or will change to turn the situation around.
But the situation with the high-rise suburbs of the Gold Coast is not changing. It’s situation normal – developers going overboard and building too many apartments. The Gold Coast economy is currently strong and there is growth to be found in the city’s real estate market – but not in the high-rise suburbs, where developers are determined to repeat history through overbuilding, in the belief they can make sales by marketing to poorly-researched investors interstate and overseas.
In the Melbourne CBD, the median apartment price is lower than it was a year ago and three years ago, and about the same as it was five years ago. Is anything set to change? Yes, but not for the better. Massive oversupply will cause vacancies to rise, with rents and property values falling.
Ditto near-city locations like Southbank.
So, as a guide for consumers on where to buy, this list is worse than useless – it’s dangerous.
There’s a different look about the list of Top 10 most popular places for house sales, but as a guide for buyers it also has little value. It consists of new suburbs on the periphery of Melbourne where lots of new homes are being built and three NSW regional cities which are treated as a single suburb, rather than being diverted into individual suburbs like most cities.
So, again, meaningless information of no value to serious investors.
Sadly, many investors employ the “me too” research method. If everyone’s doing it, it must be right. Right?
Those who apply that method after reading these lists, especially the Top 10 list for apartments, run the risk of losing serious money.
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>
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