Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Residential Market

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There has been a dramatic decline in property applications from Chinese investors ever since the Chinese government turned the screws on capital outflows and reduced credit availability.
Treasury secretary and ­Reserve Bank board member John Fraser said foreign investment applications for residential housing in Australia were expected to fall more than 60 per cent to about 15,000 this financial year, from 40,000 the previous year.
Fraser attributed the steep fall as “partly reflecting” the change in Chinese credit markets, according to an article in www.macrobusiness.com.au citing the Herald Sun.
The figures come amid warnings from property buyers’ advocates in recent years that strong foreign demand for Australian property has contributed to a price surge in some cities.
Fraser’s observations come amid news reports that Chinese investors are pulling out of Melbourne's apartment market, leading to a cooling in prices.
Around 5,000 new apartments are expected to be completed and up for sale this year, but many Chinese buyers will not be able to settle because of trouble with finances following Beijing’s policy crackdown and Australian banks tightening lending to investors.
Fraser’s comments came after Moody’s Investors Service downgraded its credit rating on China by one notch.
Moody's downgraded China's long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to stable from negative on Wednesday, saying the downgrade reflects expectations that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows.
Its growth had been fuelled by credit, Fraser said, but “Chinese authorities are clearly aware of the risks attached to this”.
“They are now implementing measures to maintain stability and this has included measures to reduce the outflow of capital from China,” Fraser was quoted as saying in the article.
“In turn, this has contributed to a softening of Chinese investment in Australian resi­dential real estate since late 2016 — although interest in business investment remains strong but, even here, we are seeing the impact of tighter credit availability.”
Around 80 percent of Chinese buyers will not be able to settle because of trouble getting finance, according to Ming Li, a real estate agent in Melbourne's eastern suburbs who specialises in selling Australian property to Chinese investors.
He said many of his clients had either forfeited their deposits or sold their apartments at a loss.
"The Melbourne apartment market is cooling down," Li was cited as saying by ABC News.
"It is kind of the oversupplied market, and the Chinese investors are losing their interest in buying an apartment in Melbourne. The capital gains return is so low."
China’s new rules only allow individuals to transfer about US$50,000 overseas, per head per year. Combined with Australian banks tightening availability of credit to investors, it is like a double whammy for Chinese investors.
"If you look at apartment approvals, which is a bit of a reflection on apartment off-the-plan demand, they peaked 18 months ago, and [now] they have started to slow,” Angie Zigomanis, BIS Oxford Economics property analyst, was quoted by the ABC.
"We did an analysis a little while ago looking at people who had purchased an apartment off the plan since 2011 and since resold."
Zigomanis found that: "Sixty per cent of buyers who had purchased off the plan and then resold recorded either no price growth or a loss."
Citi has warned that the downturn in apartments will filter through to a 7 percent price correction next year in the broader housing market.
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jonathanchancellor-7SQnKwU6yx

Steep fall in Chinese residential applications this financial year: Treasury secretary John Fraser

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GUEST OBSERVER
One of the most commonly asked questions when buying residential real estate is: what should I look for when purchasing a property to live in?
It’s difficult to pinpoint exactly what it is about a property that makes you feel at home, however there are some crucial elements you may want to consider when taking the plunge into property ownership.
Golden Age Development Group has noticed that when it comes to house hunting, everyone looks for something different. Affordability is often top criterion for most home buyers, however location, in a suburb with low crime rates and good proximity to schools, public transport and shops is perhaps the most important factor to consider. Location is vital both from a liveability point of view and also from a property appreciation point of view.  
Property located in suburbs with low crime rates, ample amenity, good infrastructure and public transport will appreciate much faster than those that are not. They are also likely to offer a much better quality of life. 
It’s also worth looking what plans are in place in terms of future development and infrastructure. If you purchase in a location with growth potential, this is likely to be reflected in the capital growth of your property.
A great example of a livable suburb with significant potential is Sydney’s Macquarie Park. Only 12km’s north-west of the CBD, Macquarie Park has benefitted greatly from recent infrastructure upgrades to its roads and public transport. It’s also home to a world-class university, hospital, several community parks and the largest suburban shopping centre in NSW. It is also home a thriving business centre, on track to becoming the nation’s fourth largest CBD, occupying over 200 hectares of previously industrial land.
Property in Macquarie Park is also likely to enjoy strong capital growth with significant infrastructure upgrades such as new roads and the expansion of the railway network servicing the area. 
Macquarie Park is a business precinct on the rise. Located just 12km north-west of the CBD, the area has quickly become Sydney's second largest business district, and is home to major global brands including Microsoft, Macquarie University, Foxtel, Oracle and Fujitsu. With well over 45,000 jobs (approx) located in Macquarie Park, this number is set to double in the next 20 years.
Macquarie Park is starved of residential accommodation – you have the university with 40,000 students and there’s been very little residential development in this area. As a result there’s a serious lack of rental accommodation.
This is why we have chosen Macquarie Park as the home of Golden Age’s premier Sydney project, Park One.  Located at 80 Waterloo Rd, Park One is just it is 100 metres to Macquarie Centre, 200 metres to Macquarie University, 300 metres to Macquarie Park CBD and 400 metres to Macquarie University station, meaning residents will have almost everything they need within a few minutes walk.
When it comes to deciding whether a location is right for you, it’s worth considering:
<ul style="text-align: left;">
<li>Whether the property is in close proximity to your work and social network</li>
<li>Access to services you regularly use. This may include public transport, schools, day care, universities, medical centres, hospitals, community centres and shopping centres</li>
<li>Proximity to parks, beaches, town centres, cultural destinations, dining and bar precincts and nightlife, depending on your interests.</li>
</ul>
To get an idea on whether the suburb you’re looking to buy in is right for you, try spending time treading the footpath. If possible, visit the suburb at different hours for a snapshot of daily life. 
Remember, no location is perfect, and your home is very much what you make of it. But if you choose a property in a location with ample amenity, good growth potential and close proximity to transport there’s a good chance you could enjoy a great lifestyle and financial prosperity for years to come.
Dandan Zhao is marketing and sales director, <a href="https://www.goldenagegroup.com.au" target="_blank">Golden Age</a>.
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jchancellor-FAypfDUnLy

What to look for when buying a property to live in

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Adelaide’s housing market has remained dormant when compared to the rest of the country with detached-home values rising only 12 percent since 2013, according to CoreLogic-Moody’s Analytics Australian Home Value Index Forecast, 2017Q1.
The report said South Australia’s uneven economic momentum can be attributed to the cool state of Adelaide’s market.
<a href="https://www.propertyobserver.com.au/images/2017/04/11/Screen%20Shot%202017-04-11%20at%201.39.30%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/11/Screen%20Shot%202017-04-11%20at%201.39.30%20PM.png" alt="">
"Detached-home values have risen only 12 percent since 2013, while apartment values have increased a slight 2.3 percent," it said.
"Unemployment of 7 percent in greater Adelaide is well above the national average, although it has trended down from 7.8 percent in late 2015.
<a href="https://www.propertyobserver.com.au/images/2017/04/27/Screen%20Shot%202017-04-27%20at%2012.38.35%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/27/Screen%20Shot%202017-04-27%20at%2012.38.35%20PM.png" alt="">
"Detached-home values are forecast to remain relatively flat, rising 0.9 percent in 2017 and 0.5 percent in 2018.
"Apartment values are expected to decline a little, by 0.1 percent in 2017, with a mild recovery of 0.5 percent in 2018."
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Adelaide property market still dormant: Moody's Analytics

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The housing market in Perth is showing signs the worst is behind with value gains possibly showing this year, according to the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast, 2017Q1.
CoreLogic-Moody's Analytics predict a 2.8 percent gain in detached housing values for 2017 following a 4.1 percent decline in 2016. 
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"The downturn in mining investment continues to weigh on Perth’s housing market, but the recent rally in key commodity prices suggests that the fall is over," it said.
"However, Perth’s housing market is unlikely to rebound sharply because commodity prices will remain well below the levels experienced during the boom in 2011.
"Perth’s housing market is showing signs that the worst is behind.
"Over the year, the decline in total values across Perth slowed to 3.2 percent in January compared with the 7 percent falls in the second half of 2016.
"The trough has likely been reached in the rental market, as rents have stopped declining since late 2016 and have stabilised.
"Detached dwelling prices in Perth are forecast to rise 2.8 percent this year after a 4.1 percent fall in 2016.
"Apartment values are expected to rise 5.6 percent following a 3.3 percent decline last year.
"The recovery will continue through 2019 thanks to slower supply growth; building approvals peaked in mid-2014 and have since fallen 48 percent." 
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Perth housing market leaving worst behind: CoreLogic-Moody's 

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March combined capital city dwelling values increased 1.4 percent over the month, according to CoreLogic, with the combined capital city annual growth rate at 12.9 percent -  the highest annual rate of growth since the twelve months ending May 2010. 
Tim Lawless, CoreLogic head of research said while Sydney and Melbourne recorded the strongest growth conditions, the annual rate of capital gains has also moved into double-digit growth in both Hobart (+10.2 percent) and Canberra (+12.8 percent).
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.48.11%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.48.11%20AM.png" alt="">
"On an annual basis, dwelling values in Perth fell by -4.7 percent and by -4.4 percent in Darwin where economic conditions and migration trends remain weak across both cities," he said.
"Adelaide and Brisbane also saw dwelling values continue to trend higher at a sustainable pace with increases of 3.4 percent and 3.7 percent respectively in these cities over the past twelve months.
"The March results highlight the continued resurgence in the pace of capital gains. 
“This became evident through the second half of 2016, fueled largely by lower mortgage rates and a rebound in investment activity. Since June last year, the CoreLogic capital city hedonic index has increased by 9.3 percent.”
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He said the diversity of performance between houses and units is also a current key feature of the housing market.
"Across the combined capitals index, house values were 13.4 percent higher over the past twelve months compared with a 9.8 percent rise in unit values," he said.
“The disparity in growth rates is more significant in those cities where high new unit supply is more apparent. In Melbourne, house values were 17.2 percent higher over the past twelve months compared with a 5.2 percent increase across the unit sector. Similarly, in Brisbane, house values were 4.0% higher over the past twelve months compared with a 0.2% rise in unit values over the same period.”
“The weaker growth conditions within the unit markets’ sector reflect heightened levels of new supply across specific inner city precincts and also suggests that consumer confidence has been negatively affected by the warnings of a potential unit oversupply.”
“Given the recent policy announcements from the Australian Prudential Regulation Authority (APRA) are aimed at dampening investment related credit demand, we can expect lending conditions for investment purposes will tighten, particularly for investors with small deposits or those applying for an interest only loan. Additionally, higher mortgage rates handed down by Australia’s major banks may contribute towards cooling some of the exuberance being seen in the largest capital city housing markets.”
“Furthermore, organic constraints in the market are becoming more pronounced. As examples, record-low rental yields, which imply dwelling values are out of balance with rents, and heighted affordability constraints are preventing some prospective buyers from participating in the market.
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“Record-high levels of apartment supply are also likely to act as a brake on capital gains in those precincts where supply levels are high.
“Stronger buyer demand can be attributed to the rising number of investors participating in the market compared with a year ago as well as the lower cash rate stimulus and population growth. However, overall transaction numbers remain approximately 15.5 percent lower than their recent 2013/14 peaks.”
 “A shortage of advertised stock can contribute to upwards pressure on prices, as prospective buyers experience FOMO (fear of missing out) which reduces a buyers ability or willingness to negotiate on prices and causes some urgency in the decision making process.” 
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Annual growth rate higher than 10 percent in half of Australian capital cities: Corelogic

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The former federal health minister Sussan Ley has upgraded from North Albury to West Albury.
The Member for Farrer who fought doggedly to hold on to her cabinet portfolio in January has recently settled into her new home with her Gold Coast businessman partner Graham Johnston.
The charming residence, set in her enormous southwest NSW electorate of Farrer, cost $850,000.
It was settled within just 12 days of signing the paperwork. The price well above the $362,000 median house price for the suburb, according to CoreLogic.  
Set on 2100 sqm, her new family home was marketed by Chapman Gould Estate Agents as "epitomising period elegance and beauty while incorporating contemporary luxury and style."
It comes with four bedrooms plus office not far from the Botanic Gardens, the Murray River and the Albury CBD.
Ley was caught up in a summer scandal when details emerged of her so-called off-the-cuff 2015 purchase Main Beach, Gold Coast apartment on Johnston’s Gold Coast and her associated travel expenses.
Ley has now reportedly rented out her former Albury residence as has Johnston done so with his.
Ley, now on a backbench salary, has signalled she will probably sell her old house to fund her new residential mortgage with the local lenders, Hume Bank. 
This article first appeared in the Sunday Telegraph.
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firstname1-iYD4UYzvBa

Sussan Ley upgrades Albury homes

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GUEST OBSERVER
Dear Young People, Malcolm Turnbull and Bill Shorten, Daniel Andrews and Matthew Guy.
Please consider younger homebuyers getting access to their super funds, to help them buy a home – please help young homebuyers level up the playing field.
Please don’t say the super idea will start in 2025 – say it will start now – as the time for having children may pass some by during this time.
Granted, it will add a bit more fuel to the market fire – but is that a fair-go reason, not to help young people get onto a level playing field?
It's not a level playing field - Reason 1
When I, as a 57-year-old tax payer can go to an Inner Melbourne auction for $1 million and it cost me $20,000 of my income to buy it – YET for a young homebuyer it costs them $80,000 of their income to buy that same home. It’s not fair. This is not a level playing field.
Is the market out of control, dangerous or is it doing what it should?
“Beggars belief – Defies logic – Unsustainable”
These are the headlines that in part, are being attached to the reasons why we should not help YOUNG PEOPLE with access to their super.
Can I ask why the authors of these headlines say this about the Inner Melbourne market?
What do they mean – what beggars belief in their mind?
That more and more people are wanting to come to Inner Melbourne?
That for all it’s internally recognised faults; Melbourne is seen externally as one of the truly great places in the world to bring up a family.
That political stability, business opportunities, an overarching community attitude of fair play, jobs, education, pollution, gun laws, health system, labour protections and………. are on the tick-off list of almost all skilled migrants in this world.
Why does our strong Inner Melbourne housing market, beggar belief?
Do the economists, bankers and other business people who are saying this, not believe in this century’s old economic demand and supply thesis.
<a href="https://marketnews.com.au/wp-content/uploads/DandS-260x195.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-medium wp-image-59674" src="https://marketnews.com.au/wp-content/uploads/DandS-260x195.jpg" alt="DandS" width="260" height="195">
What “defies logic” about the current Inner Melbourne housing and land market?
False assumptions or different perceptions
In a country, that for decades has been focused on “low fat”, only to become one of the obese nations of the world.
Is it defying logic to think that if we put more calories in (population), than we can exercise out (land), then our bellies will not explode (prices)?
It's not a level playing field - Reason 2
This government supported graphic below, is the Inner Melbourne home market price obesity issue.
This is another of the structural community decisions, that we as older people have made, that are impacting young people.
It’s great for us!
Our asset values go up; but it’s very difficult for young people who do not have housing assets.
<a href="https://marketnews.com.au/wp-content/uploads/VIF.jpg" target="_blank">Click to enlarge</a>
<img class="aligncenter size-full wp-image-59891" src="https://marketnews.com.au/wp-content/uploads/VIF.jpg" alt="VIF" width="299" height="205">
The true Inner Melbourne market price obesity issue is population and the lack of discussion we have around the actual number, rather than the issues.
Are the above population figures acceptable or not – are they sustainable or not?
Yes a falling population has different issues – look at Japan.
However Inner Melbourne doesn’t have a falling population issue – we have the opposite.
So are we really in some unexplainable pricing bubble, so bad that we can’t help YOUNG people because the market is “dangerous”?
Or are we in a normal, but strong market explained by limited supply (land) and increasing demand (population); which affects young people UNFAIRLY because of structural inequities around negative gearing, skilled migration, overseas investment and so on.
One final world about unsustainability of the market, before we get back to young people – young sub-million homebuyers.
These days we are all talking about “unsustainable.”
We seem to be focused on “unsustainable” pricing, rather than our “unsustainable” society as a whole?
In 2030 when your children’s children (grandkids) are 2-3 hours away in Albury or Bendigo, because of housing affordability inequities; or you can’t get an ambulance driver or a teacher, because they can’t find housing in your local area – is that the unsustainable bit you should be talking about or is it pricing?
We live in a society with some issues, but compared to many in the world right now, Inner Melbourne is one of the great pluralistic societies.
We have many obsessions like footy and food and housing AND population growth.
And as our population grows, I’m with the well known economist from Toy Story, Buzz Lightyear who says the Inner Melbourne housing market will, without a change in circumstance, continue to rise, with a few interruptions, ’till infinity and beyond.
Of course there will be hiccups and of course those that cry wolf often enough about doom and gloom, will eventually be right – but in the longer term are we really in so much trouble, that we can’t help young people?
Possibly when an assistant at the Reserve Bank or a leader of business says we are in danger, they are doing so for altruistic reasons to make people think, or they are under the boss’s riding instructions to “hose the market down” – BUT – when those statements are not attached with an additional explanation like – you still can buy a home only have a buffer for interests rate increases, then are those well meaning “expert” comments all that helpful?
Especially when all they usually hose down are the inexperienced homebuyers like the Youngies, who are nervous, in need of permanent housing and are already up against it.
If you believe in demand and supply, then possibly our Inner Melbourne market is not dangerous and we are in nothing more than a strong market.
Which brings us back to the young people in our society.
The young people's housing issue, in our opinion, should be addressed – it will not go away by osmosis AND it is UNFAIR.
Which brings us back to young people and their superannuation funds.
This could be a bloody good idea to level up the playing field for not us oldies, but for young people.
Young people don’t need special treatment; they just need a releveling of a very unlevel and UNFAIR playing field.
I will repeat – with my tax advantages as a 57-year-old tax payer I can go to an Inner Melbourne auction for $1 million and it cost me $20,000 of my income to buy it – YET for a young homebuyer it costs them $80,000 of their income to buy that same home, then that is UNFAIR.
As well, my deposit can come from the increase in my current home value for which I have done little – except make a few smart decisions over the last few decades – before many young people were born.
That possibly is unfair (but maybe not). My point – a young person’s deposit is so, so much harder to get – super could help.
<img class="aligncenter size-large wp-image-60071" src="https://marketnews.com.au/wp-content/uploads/49896-93WellingtonStreetKEW-3-597x447.jpg" alt="49896-93WellingtonStreetKEW-3" width="597" height="447">
Overseas skilled migration and overseas investors. With tax and other structural advantages, Xiou Lin from Beijing or Peter Pepper from the US, can buy that same Australian $1 million home with a myriad of interest rate and currency advantages over a local young homebuyer.
And please financial planners, bankers and so on – please don’t start telling us that young people’s money is better tied up in one of your funds, rather than good land content, near rail with a workable floor plan.
Please don’t do that without declaring your conflicts as well and showing us the stats that actually evidences that theory may have a scintilla of historical truth.
Young people, young Australians of all cultural backgrounds and religions are being pushed out of our society by housing structural unfairness such as negative gearing, skilled migration policies, overseas investment policies and restricted infrastructure spending.
We as older people have resided over a Tax and Immigration system, with the unintended consequence of making the homebuying market very unfair for young people.
It’s not a guilt trip, I don’t feel bad, I just think we should try and level it up a bit and MAYBE SUPER (under controlled circumstances and with due regard to other issues, such as the current industry) could do that.
The past week’s media blast on how bad an idea it is to try and help young people, because it may already add to a strong housing market is a valid point BUT total baloney in the overall scheme of things for young people.
I’m no rocket scientist and therefore I don’t know if the superannuation idea will work for sure, but it seems logical and worth a try.
This and other measures should be tried or Inner Melbourne may well become a desert of walking frames, grumpy old farts, unoccupied housing and NO YOUNG PEOPLE in a few decades.
Hawthorn, Toorak and Brighton could be just one big nursing home in 2035.
Try the superannuation idea and don’t make it too hard for young people to access it.
Please Young People, Daniel Andrews, Matthew Guy, Malcolm Turnbull and Bill Shorten – give the super idea some serious consideration – it seems to makes sense in giving young people a chance to get back on the playing field, with their biggest challenge – a deposit.
Apologies about being on a high horse and I’m not wedded to the super idea, nor am I the author of the idea – I just think it’s a bloody good idea worth being positive over and worth exploring for young people AND we oldies need to recognise that the current system is unfair for Youngies – and that may not be in our best interests in a decade or so.
MAL JAMES is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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Helping young people get onto a level property playing field: Mal James 

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As someone allegedly knows something about property, I have to confess I didn't participate in Melbourne's property market through its recent stellar run, having been focused on Sydney, and more lately Brisbane. 
 
At least I won't miss out on Geelong, though.
 
Geelong had always looked to be a likely contender for the ripple effect from Melbourne, being located less than 50 miles from the capital, and being a generally good city in its own right.
 
And then the Labor government more or less nailed it on by announcing a series of measures to stimulate the market.
 
I broke a golden rule of thumb when discussing possible price impacts here when I estimated that median house prices in the city could feasibly rise by 20 to 30 per cent by 2020 (never use numbers; they always go for the numbers...).
 
Somehow, that became a median price of $600,000 ("it's not hard to envision prices in Geelong moving 20 to 30 percent higher by June 2020, particularly in the sub-$600,000 bracket").
 
Anyhoo, the point was that prices could rise as a result of the stimulatory measures, not least because the new legislation doesn't take full effect for months, affording opportunists a free kick at buying before 1 July. 
 
And it looks like prices are teeing off already.
 
Last weekend the auction clearance rate in Geelong moved above 90 percent, the highest regional or non-capital city clearance rate in the country.
 
And there are now regular stories of street records being smoked.
 
This weekend a house that last sold for $310,000 in 2009 sold for an astonishing $836,000 at auction. 
 
It looks like a rocket has been put under house prices in Geelong West.   
<a href="https://www.propertyobserver.com.au/images/2017/03/23/A1.jpg" target="_blank">Click to enlarge</a>
<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/2017/03/23/A1.jpg" alt=""> 
All the hallmarks of a nascent boom.
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>.
 
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pwargent-M4siyDbqQY

Geelong prices teeing off early

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GUEST OBSERVER
Real-estate valuations in major cities are at historical peaks, banks are pulling back from commercial real estate lending and the tailwind from lower interest rates appears to be coming to an end. 
Against this background,  assesses the outlook for real estate, and opportunities in traditional and alternative exposures, such as real estate debt. 
Cap rates have come down; what’s next?
Qualitas is an investor that is agnostic to sector and which part of the capital structure we play in – ultimately what we are looking to do is find opportunities where there is the biggest mismatch between underlying real estate fundamentals and the capital markets pricing of parts of a capital stack for that sector.
The traditional commercial real estate sectors of office and retail have been a tough place for the past number of years in our view – underlying and fundamental tenant demand has been quite benign, outside of one off events such as the Sydney metro compulsory acquisitions, yet capital has been chasing those assets very hard right across the capital stack. Spreads and cap rates have come down a long way.
The easy money has been made in commercial assets by riding cap rates down: the Tailwinds are at an end. From this point, asset owners will need to deliver value through real asset management – focusing on your tenants and your physical product, because the easy wins are gone. That is often easier said than done and really requires focused on the ground management.
We anticipate there will be a period of further capital appreciation over the short term, this time driven by effective rental increases via some reduction in incentives, with cap rate compression petering away. The question for office owners will be how far incentives will fall and how sustainable is the increased effective rent in the face of the change in cap rate direction.
Residential will offer opportunities
Residential is where we see the biggest dislocation, despite consistent market paranoia.
It’s true that certain precincts and product types having challenging supply issues, but there remains a fundamentally strong underlying demand for housing that gives us medium term confidence in the market. This is supported by a number of macro factors outlined below.
Demand
There is unrelenting net migration, coupled with the strong political will in our major cities to increase housing density. There is also a massive change in tenure preference towards rental due to affordability and choice occurring in the market. 
These are combining to provide a robust inherent demand. The fears about supply issues in the Melbourne and Brisbane CBD investor apartment market and some of the issues out in Western Sydney are well founded – however they make up a fraction of the overall housing story and outside of those hot spots demand is unrelenting. 
The market is far from being in a structural surplus and if you measure supply by housing starts instead of planning approvals obtained, then this is particularly evident. Our research suggests that the reality is between Sydney and Melbourne we need circa 65,000 new dwellings per annum – that is around 180 dwellings each and every day and the market is nowhere near suppling that. 
The market is learning rapidly about what is a “good” apartment dwelling and the days of poorly designed and built apartments being fired up at record pace are as good as finished. The occupier and buyer markets are too savvy now for that and developers are increasingly focused on the minutiae of design, which hasn’t always been the case.
Supply
Our view is that these demand drivers are robust for the medium term but will be supported by the other side of the equation, being the supply situation – particularly the factors curtailing supply.
There is currently a severe shortage of debt capital for the development of residential – it is currently as bad as if not worse than the financial crisis. Notwithstanding media hype about “postcode blacklists”, the banking sector has taken a much more generic approach to development finance –the tap is very close to being off altogether.
Our commercial estate lending market is dominated by 4 major banks with around an 85% market share versus closer to 50% share in the US and Europe. Given the soft conditions in other sectors of the economy, the banks’ weighting to real estate is heavy and APRA has stepped up examination of commercial real estate books significantly. The property finance departments now have negative asset volume budgets and are actively seeking to shed developer clients. 
This significant pullback in credit availability is being compounded by a confusing and difficult town planning environment in both Sydney and Melbourne.
Notwithstanding the desire from government to increase density around existing amenity, there is an ongoing battle against local councils and the electorates. It is having a direct impact on the ability for new supply to be injected in to the right areas of the market and is exacerbating shortages in the areas housing is required – again, the political environment resulting from “too many city shoebox apartments” has led to a broad-brush approach to reigning in density due to issues in one small segment of the market, much in the same way the banks have done.
This means is that the majority of the cranes that you see in the sky in our major cities are what we call 2014 and 2015 vintage cranes – there are significantly less 2016 project commencements and we anticipate 2017 and even 2018 will be similar – meanwhile, the underlying demand and net migration pushes against the supply shortage.
Where to Find Value?
So if I turn to what Qualitas is looking for in the market currently, one thing we look at very closely is what we call the “Revenue &amp; Capital Curve”. This is a conceptual indicator for us about where we want to pivot our investing activity. As you will see there is a clear Equity Strike Zone and a clear Debt Strike Zone – we feel that we are currently clearly in the Debt Strike Zone.
On that basis, our thesis is to focus on playing the current position of the curve as well as laying the foundations for the next inflection point on the curve:
<ul>
<li>Filling the capital gap on “shovel ready” projects – playing the current cycle position</li>
<li>Repurposing assets to focus on expected 2020 supply shortage – positioning for the next turn in the cycle.</li>
</ul>
We are currently most focused on debt or debt-like instruments as the returns available at this point are equity like in our view. The debt pull back is leaving significant holes in capital structures and the returns on offer are strong on a risk adjusted basis and akin to equity, particularly given the late entry point of the debt.
This ability to deliver strong risk-adjusted returns to our investors is part of what’s driving Qualitas’ growth. Coupled with the addition of respected senior team members, we are confident this growth will continue, benefiting not just our investors, but the partners for whom we filling the lending gap. 
Mark Fischer is managing director, Principal Investments at Qualitas and can be contacted <a href="https://www.qualitas.com.au" target="_blank">here</a>.
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Why insto money is moving to residential: Mark Fischer

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A senior industry executive has brushed aside speculations about the risk of an Australian housing bubble, saying it is based on overseas analysis and doesn’t apply to the country's unique market.
Ray Ellis, chief executive of First National Real Estate said the Organisation for Economic Cooperation &amp; Development’s recent assertion that Australian house prices may represent a threat to the economy is similar to much of the foreign commentary we’ve heard before.
"it fails to fully appreciate the nature of our economy, how Australians invest, and where they want to live," he said.
The OECD recently warned that a potential hard landing in the property market could morph into a recession fuelled by record high household debt and the control wielded by big banks.
Its latest report cautioned that “a fall in house prices and or demand could have significant macroeconomic implications. Specifically, the market may not ease gently but develop into a rout on prices and demand with significant macroeconomic implications”.
But Ellis was of a different view. 
“Australia is the only country in the world where nearly 40 per cent of its population wants to live in two capital cities that together comprise less than 0.3 per cent of the country’s landmass,” he said. 
“Historic low interest rates have combined with overall positive economic conditions, and a national preference for housing investment over shares, to drive up house prices in Sydney and Melbourne. However, this is not the case across regional Australia and in Perth where house prices are still falling.”
First National says that unless there is a sharp increase in interest rates or a sudden rise in unemployment, the chances of a housing prices crash is low.
“Both scenarios are unlikely,” he said.
The Reserve Bank of Australia’s (RBA) preference would in fact be for further cuts to official interest rates if that didn’t increase the risk of further inflating house prices. While rates will eventually have to rise, that’s clearly not the RBA’s choice while inflation remains below target and the country is not at full employment. And, with 1.1 per cent economic growth announced last week, a significant increase in unemployment is also unlikely, said the media release.
Ellis concluded that in reality, Australia has no oversupply of property, with data showing new construction approvals are trending downwards. Meanwhile, a tightening of lending standards by banks contrasts with the conditions that led to housing bubbles bursting in many countries following the Global Financial Crisis.
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