<p data-end="256" data-start="0"><a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.</p>

<p data-end="446" data-start="258">The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.</p>

<p data-end="645" data-is-last-node="" data-is-only-node="" data-start="448">Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.</p>

<p><img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.</p>

<p>The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.</p>

<p>The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”</p>

<p data-end="626" data-start="350">Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.</p>

<p data-end="928" data-start="628">“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”</p>

<p data-end="1147" data-start="930">Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.</p>

<p data-end="1510" data-start="1149">“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”</p>

<p data-end="1510" data-start="1149"><img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" /></p>

<p>&nbsp;</p>

<p>The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.</p>

<p>Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.</p>

<p>The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.</p>

<p>The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.</p>

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
<p data-end="305" data-is-last-node="" data-is-only-node="" data-start="0">The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.</p>
</section>


Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

<p style="text-align:start">The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;</p>

<p>The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.</p>

<p>The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.</p>

<p>Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.</p>

<p>The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.</p>

<p>As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.</p>

<p><img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" /></p>

<p>The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.</p>

<p>An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;</p>

<p>The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.</p>

<p>The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;</p>

<p>It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.</p>

<p>Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.</p>

<p>“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.</p>

<p>“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;</p>

<p>Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.</p>

<p>“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.</p>

<p>“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”</p>


Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.</p>

<p>Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.</p>

<p>“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.</p>

<p>The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.</p>

<p>Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.</p>

<p>Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.</p>

<p>“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”</p>

<p>Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.</p>


400 new homes planned for Adelaide's former West End Brewery site

<p>Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.</p>

<p>The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.</p>

<p>Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" /></p>

<p>“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.</p>

<p>The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”</p>

<p>The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" /></p>

<p>The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.</p>

<p>According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.</p>

<p>“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.</p>

<p><img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" /></p>

<p>All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.</p>

<p>The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.</p>


Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

<p>Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.</p>

<p>The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.</p>

<p>Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" /></p>

<p>Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.</p>

<p>The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.</p>

<p>The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.</p>

<p><img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" /></p>

<p>Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.</p>

<p>Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.</p>


First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

Residential Market

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<p>Hunters Hill in Sydney's North Shore led the country in the biggest change in median values for units in 2016, according to the latest CoreLogic report.</p>
<p>The top 10 list for 12-month change in median values in CoreLogic's Best of the Best 2016 report was dominated by Sydney suburbs. The report's data was for the 12 months up to September 2016. </p>
<p>Hunters Hill topped the list with a median value change of 45.8 percent over 12 months and a median value of $1.16 million. The suburb saw 52 units sold during the period.</p>
<p>Fairlight in Manly and Point Piper in Woollahra, also in Sydney, were in second and third place respectively. However, the 12-month change in Fairlight was 31.5 percent, making it a distant second to Hunters Hill.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%209.40.46%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/01/11/Screen%20Shot%202017-01-11%20at%209.40.46%20AM.png" alt=""></p>
<p>Property Observer looked up some sales around the median price.</p>
<p>A two-bedroom unit at 14/64 Gladesville Road Hunters Hill, NSW, 2110 sold in September 2016 for $1.25 million, according to RP Data. It was on the market for 59 days. The selling agency was First National. It had previously changed hands late in 2013 for $840,000, meaning a 48 percent change in median value in nearly three years.</p>
<p> <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/2017/01/10/CoreLogic-12mth-HuntersHill1.jpg" alt=""></p>
<p>A two-bedroom unit at 213/64 Gladesville Road Hunters Hill, NSW, 2110 sold in July 2016 for $1,040,000. The unit changed hands just a year earlier in 2015 for $805,000, which implies a percentage change in value of 29 percent, which is still below the average 12-month change.</p>
<p><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/2017/01/10/HuntersHill2.jpg" alt=""></p>
<p> </p>
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prateek24-ezbwHMbNAk

Sydney's Hunters Hill tops 12-month change in median values: CoreLogic

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<p>Increases in Melbourne and Hobart residential asking prices led the nation over the year to November however Sydney property prices are still highest, according to SQM Research. </p>
<p>Louis Christopher, managing director of SQM said Melbourne now leads the nation for growth in asking prices for houses, with a jump of 13.4 percent to $805,000 and 5.2 percent for units to $459,800 over the year to November.</p>
<p><a href="/images/2016/12/05/Screen%20Shot%202016-12-05%20at%2010.03.31%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/12/05/Screen%20Shot%202016-12-05%20at%2010.03.31%20AM.png" alt="" width="460" height="484"></p>
<p> </p>
<p>"Sydney median asking house prices have risen 4.7 percent to $1,193,400 over the year," he said.</p>
<p>"Over the month, median asking prices jumped 3.7 perccent in Canberra to $660,600, though unit prices are edging lower. </p>
<p>"Prices in Darwin and Perth are still falling, with the median asking price for a house in Perth at $682,600, 5.2 percent lower than this time last year, and $616,700 in Darwin, down 6.0 percent."</p>
<p>The amount of residential listings rose 2.2 percent over the month to 347,362 new listings, down 4.2 percent from a year earlier.</p>
<p>"Sydney property listings rose 2.9 percent in November, though they are 3.8 percent lower than a year ago.</p>
<p>"In Melbourne, listings increased 3.0 percent over the month to a healthy 36,868, while in Hobart they jumped 7.0 percent, as some home owners try take profits on strong price gains.</p>
<p><a href="/images/2016/12/05/Screen%20Shot%202016-12-05%20at%2010.03.46%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/12/05/Screen%20Shot%202016-12-05%20at%2010.03.46%20AM.png" alt=""></p>
<p>“Notably, asking prices for Brisbane units have edged lower over the year and downward pressure could remain on asking prices with emerging signs of oversupply in the city.</p>
<p>"That weakness could extend to Sydney and Melbourne with some oversupply also predicted in 2017 and 2018 there due to high levels of unit construction, particularly in inner-city areas."</p>
<p> </p>
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jonathanchancellor-7SQnKwU6yx

Melbourne, Hobart residential asking price increases lead nation: SQM Research

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<p><img src="https://counter.theconversation.edu.au/content/69291/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1"></p>
<p>GUEST OBSERVER</p>
<p>Housing affordability is a hot topic in Australia. Governments are increasingly recognising that more needs to be done to provide a greater range of affordable housing options, especially in the major cities.</p>
<p>It is well documented, however, that proposals for affordable housing development often encounter opposition from host community members. </p>
<p>These community concerns tend to focus on the potentially damaging effects of such projects on property values and quality of life for existing residents. This is despite the public being generally supportive of affordable housing in principle. They would just prefer it wasn’t sited in their local area.</p>
<p>In reality, though, do the concerns that people have about affordable housing development materialise? Do property values go down? Does neighbours’ quality of life suffer?</p>
<p>Our case studies in Brisbane and Sydney provide evidence that, in most cases, they do not.</p>
<h2>Testing for local property impacts</h2>
<p>How did we test for the impacts of affordable housing projects? With thanks to Australian Property Monitors, we had access to property sales data throughout the Brisbane local government area (LGA), going back to 1999. </p>
<p>Using this data, we tested the impacts of 17 affordable housing developments on property sale prices through two different hedonic pricing models. The models were designed to test whether:</p>
<ol>
<li>
<p>The announcement and eventual construction of affordable housing projects had any impacts (positive or negative) on local property sale prices. Project announcement date was used to capture any “panic sales” that may have happened as a response to the announcements.</p>
</li>
<li>
<p>The extent of such impacts depended on proximity to the development (by direct distance in 100-metre intervals, up to 500 metres away from the affordable housing project).</p>
</li>
</ol>
<p>The two models were used to test these outcomes collectively for 17 affordable housing projects that were developed across Brisbane LGA between 2000 and 2009, and also on an individual project basis.</p>
<p>Collectively across the 17 projects, these had no significant negative impacts on local property prices. There were mild impacts on properties within 100 metres of affordable housing projects, but not at any statistically significant level. </p>
<p>We found that the characteristics of the individual properties sold (such as number of bedrooms, number of bathrooms) consistently had much greater influence on sale prices than proximity to affordable housing developments.</p>
<p>When looked at individually, the impacts of each project on local property prices were mixed. Some affordable housing projects had positive impacts and others negative. </p>
<p>Only a handful of the measured impacts were statistically significant, however. Even in these cases the impacts of proximity to affordable housing had much to do with other features of the neighbourhood (such as proximity to public transport hubs, water frontages and so on).</p>
<p>These two tests clearly showed that the impacts of affordable housing development on local property sales prices had been minimal. The impacts that were experienced were not universally negative (or positive).</p>
<h2>Impacts on the quality of life of neighbours</h2>
<p>What then of the impacts on neighbours’ overall quality of life? How does an affordable housing development affect things like traffic, crime, an area’s visual appearance, or sense of community? </p>
<p>To understand this, we conducted doorstep surveys with 141 residents who lived close to (within about 60 metres) eight affordable housing projects in Parramatta local government area. </p>
<p>These projects had been locally opposed but still completed. We selected the most-controversial projects and were able to achieve participation by between one-fifth and one-third of the 60 or so residents likely to have been most affected by those developments. </p>
<p>We wanted to know whether people’s fears at the planning stage had materialised once the developments were complete and occupied.</p>
<p>Across the eight projects, 78% of respondents had experienced no negative impacts as a result of affordable housing development. At only two of our eight sites had a significant number of neighbours experienced negative impacts. These impacts were mostly associated with the behaviours of a small number of individual residents. </p>
<p>At the other sites, the negative impacts were dispersed. Mostly, these related to minor issues such as parking and traffic. </p>
<h2>Fears are an obstacle in themselves</h2>
<p>Overall, our findings indicate that the feared impacts of planned affordable housing developments tend to be much greater than the impacts neighbouring residents actually experience once those developments are complete and occupied. </p>
<p>In other words, the perception of affordable housing is the key problem, not the affordable housing developments themselves. These are by and large unproblematic once completed. </p>
<p>These findings suggest that governments and developers need to devote much more attention to tackling negative public perceptions of affordable housing and its residents.</p>
<p><em><span class="fn author-name">Gethin Davison is l</span>ecturer in City Planning and Design, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gethin-davison-317895" target="_blank">here</a>.</em></p>
<p><em><span class="fn author-name">Edgar Liu is r</span>esearch Fellow at City Futures Research Centre, UNSW Australia and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/edgar-liu-32200" target="_blank">here</a>.</em></p>
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jchancellor-FAypfDUnLy

Neighbours’ fears about affordable housing are worse than any impacts

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<p>Home values are estimated to be around 8.4 percent overvalued, with property in Melbourne the most overvalued nationwide according to the CoreLogic-Moody's Home Value Index Forecast.</p>
<p>The report said values in Melbourne are around 20 percent overvalued compared with their fundamental value.</p>
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<p><span>"This degree of overvaluation is greater than in Sydney, where properties are estimated to be overvalued by 14 percent," the report said.</span></p>
<p><span>"Part of the reason for this diver- gence is that income growth in Sydney has also outpaced Melbourne’s. Since 2013, in- comes have grown 0.7 percent per quarter in Melbourne compared with 1.1 percent in Sydney.</span></p>
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<p><span>"However, unlike their capital cities, the rest of New South Wales and Victoria have seen lower house price growth. </span></p>
<p><span>"Home values have followed their fundamentals closely, but both states are marginally undervalued. Victoria is slightly more so at 6.5 percent, and NSW is 4 percent undervalued. </span></p>
<p><span>"In other capital cities, the recent pickup in the ACT housing market—around 9 percent y/y in September—has caused home values to become marginally overvalued at around 7 percent. Similarly, Adelaide’s housing market is </span>around 5 percent overvalued compared with fundamentals.</p>
<p>"Conversely, Brisbane is one of the only capital cities where home values are fairly valued, as actual house price appreciation has tracked fundamental prices closely."</p>
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National property market becoming more overvalued: Moody's Analytics

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<p>Tasmania is a fine example of the adage that it’s easy to get a bad reputation but very hard to lose it. </p>
<p>The days of Tasmania being the basket case economy of Australia are gone, as are the days when investors steered clear of Hobart as a place offering no growth.</p>
<p>I’ve been advocating the merits of investing in Hobart for the past 18 months or so, based on the marked improvement in the state economy and the status of Hobart as the capital city with the lowest prices, tightest vacancies and highest rental yields.</p>
<p>Hotspotting’s regular research into sales activity has noted the rise in sales volumes in Hobart (and also in Launceston and Devonport) this year.</p>
<p>I’ve felt a bit like a voice in the wilderness, given that Hobart and Tasmania is a pretty hard sell. It’s very hard to shift entrenched attitudes, particularly as your average punter isn’t terribly well informed.</p>
<p>So how refreshing to see the latest research-based report from Simon Pressley of Propertyology. </p>
<p>He says: “Hobart is Propertyology’s tip to be Australia’s best-performed capital city property market in 2017."</p>
<p>“An under-rated economy, limited properties for sale, the tightest vacancy rates in Australia, a more controlled housing supply pipeline than mainland cities, and increased buyer activity are expected to drive property prices and rents higher.</p>
<p>“We have been actively investing in Hobart for a while and our buyer’s agents have observed first-hand price growth of 8 to 10 per cent over the past 12 months. We can only see buyer activity further intensifying and forcing stronger growth over the next couple of years.”</p>
<p>And Pressley makes this forecast for next year: “On an all-things-being-equal basis, double-digit price growth is well and truly on the cards for Hobart in 2017.”</p>
<p>He says the significant retraction in properties listed for sale has made it increasingly difficult for our buyer’s agents to find suitable properties for investors. “Properties are generally selling within a week of listing and often going for prices well above our own appraisal range. The market is red hot.”</p>
<p>All this is happening on the back of improving economic performance. There is now a long list of reports from name brands which have noted the improvement in the underlying fundamentals.</p>
<p>The latest to confirm that view is CommSec’s <em>State of the States</em> report, which notes Tasmania’s population growth is the fastest in five years and the state no longer ranks last overall. </p>
<p>“Tasmania has improved from 8<sup>th</sup> to 7<sup>th</sup> on the rankings,” it says. “Tasmania is 4th ranked on two indicators and 5<sup>th</sup> on three indicators. Annual growth on home lending is the strongest in the nation at 10.3%. Both home loans and home prices are lifting.”</p>
<p>State Treasurer Peter Gutwein says the report card is the best in five years. “But there is still a long way to go,” he says. He’s right, but a significant turnaround has been achieved already.</p>
<p>Another positive indicator for Tasmania is the level of infrastructure and construction work. The Deloitte Access Economics <em>Investment Monitor</em> report says: “The value of Tasmanian engineering projects under way has stayed well above $1 billion and there’s just under $1 billion worth of planned projects in the pipeline.”</p>
<p>The biggest under way is the $535 million Midland Hwy update. Work worth $239 million is ongoing on the freight rail revitalisation statewide and there is a $40 million extension of the Hobart Airport runway. The report says commercial building is also “coming along well,” with $1.5 billion worth of projects under way and a similar pipeline of planned work.</p>
<p>“The $689 million Royal Hobart Hospital project is still the largest project,” it says. “Planned work has been boosted, with University of Tasmania plans to move its science-technology-engineering building to Hobart’s CBD, at a cost of $400 million.”</p>
<p>The value of projects under way is up 27 percent to $2.9 billion. Adding planned projects, the total is $4.98 billion.</p>
<p>Tourism is big for Tasmania, with strong results for 2015-16. For the first time Tasmania had over one million interstate visitors, who spent $2 billion. Airline capacity rose by 173,658 new seats between the state’s two main airports and Melbourne, Sydney and Brisbane. TT-Line ran 33 extra day sailings over peak season, with visitors arriving on Spirit of Tasmania growing 17 percent.</p>
<p>In the 2015-16 summer, there were 59 cruise ship port calls in Tasmania — delivering 163,328 passengers and crew. Big growth in cruise ship visits is forecast for the next two seasons. The tourism industry supports 36,700 jobs or 15.3 percent of total jobs, and contributes $2.55 billion to the economy (10 percent of gross state product).</p>
<p>All of that provides a solid foundation on which real estate can continue to grow in Hobart, Launceston and Devonport.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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terryryder-YECXbqmri2

Solid foundations for real estate growth in Hobart, Launceston and Devonport

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<p class="x_MsoNormal"><span>GUEST OBSERVER</span></p>
<p class="x_MsoNormal"><span>Hobart is Propertyology’s tip to be Australia’s best performed capital city property market in 2017.</span></p>
<p class="x_MsoNormal"><span>An underrated economy, limited properties for sale, the tightest vacancy rates in Australia, a more controlled housing supply pipeline than mainland cities, and increased buyer activity are expected to drive property prices and rents higher.</span></p>
<p class="x_MsoNormal"><span>We have been actively investing in Hobart for a while and our buyer’s agents have observed firsthand price growth of 8 to 10 percent over the past 12 months. We can only see buyer activity further intensifying and forcing stronger growth over the next couple of years.</span></p>
<p class="x_MsoNormal"><span>On an all things being equal basis, double-digit price growth is well and truly on the cards for Hobart in 2017.</span></p>
<p class="x_MsoNormal"><a href="/images/2016/11/16/1.Population3.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p class="x_MsoNormal"><span><img src="/images/2016/11/16/1.Population3.jpg" alt=""></span></p>
<p class="x_MsoNormal"><span>The significant retraction in properties listed for sale has made it increasingly difficult for our buyer’s agents to find suitable properties for our investors. Properties are generally selling within a week of listing and often going for prices well above our own appraisal range. The market is red hot.</span></p>
<p class="x_MsoNormal"><span>Residential vacancy rates in Hobart are the lowest of all capital cities and rental yields are the highest. </span></p>
<p class="x_MsoNormal"><span>It’s an investor’s paradise in that Hobart is producing the dual benefit of solid capital growth and high rental yield.</span></p>
<p class="x_MsoNormal"><strong><span style="text-decoration: underline;">Housing Demand</span></strong></p>
<p class="x_MsoNormal"><span>On the back of the underrated improvement with Tasmania’s economy over the last couple of years, the latest quarterly population data from ABS showed its highest population growth rate in five years.</span></p>
<p class="x_MsoNormal"><span>Some property investors place too much emphasis on Tasmania’s below average population growth rate. The fact is that, over the last 20 years, there have only been 2 quarters out of 80 where Tasmania’s population grew by more than the national average but Hobart’s property market has experienced plenty of strong years. During the 6 years 2001 to 2006, inclusive, Tasmania’s population growth rate was below the national average for 5 of those 6 years yet property price growth was far superior to Sydney, including growth of 44.6 per cent, 32.1 and 11.2 in 2003, 2004 and 2005.</span></p>
<p class="x_MsoNormal"><span>Of greater significance to housing demand than population growth is affordability and economic improvement. Hobart’s median house price is well less than half the cost of Sydney and Melbourne and there’s good reason to be optimistic about Tasmania’s economy.</span></p>
<p class="x_MsoNormal"><span>The much lower entry price and higher yield make Hobart a significantly safer investment than Australia’s two biggest cities, particularly so when interest rates start trending up again.</span></p>
<p class="x_MsoNormal"><span>Job volumes in Hobart bottomed at 100,400 in January 2014 and increased to 106,000 as at December 2015. The improved labour market has definitely lead to a general increase in consumer confidence.</span></p>
<p class="x_MsoNormal"><span>Sydney and Melbourne are much closer to the end than the beginning of their growth cycles. Hobart, on the other hand, is just beginning. </span></p>
<p><strong><span style="text-decoration: underline;"><span>Economy</span></span></strong></p>
<p><span>Tasmania’s improved economy is somewhat of an untold story:</span></p>
<p><span><strong>International Exports</strong>: 8.7 percent increase in Tasmania for the year ending September (compared to 2 percent growth nationally).</span></p>
<p><span><strong>Retail Trade</strong>: 7.3 percent increase over the two years ending September (compared to 7.1 percent national average)</span></p>
<p><span><strong>Visitor Arrivals</strong>: 17.7 percent increase for the year ending August 2016 (the biggest increase of all states)</span></p>
<p><span><strong>Unemployment Rates</strong>: Tasmania’s September unemployment rate of 6.5 percent is far and away the most improved state in Australia over the last 3 years.</span></p>
<p><span><strong>Housing Finance</strong>: the number of loans for the quarter ending August 2016 is 7.2 percent higher than the same time last year (second highest growth in Australia).</span></p>
<p class="x_MsoNormal"><span>Propertyology is anticipating continued improvement in Hobart’s economy to come from greater engagement with Asian countries, a very strong tourism industry, an expanding international student market, major construction projects like the Hobart hospital, several new hotels, and the exciting Macquarie Point project, and fast-rising demand for Tasmania’s world-quality agriculture products (Asia’s food bowl).</span></p>
<p class="x_MsoNormal"><strong><span style="text-decoration: underline;">Housing Supply</span></strong></p>
<p class="x_MsoNormal"><span>Big mainland cities have unprecedented high volumes of new properties in the supply pipeline at a time when population growth (demand) is not dissimilar to historical trends. Hobart on the other hand has building approval volumes which are much more sustainable. </span></p>
<p class="x_MsoNormal"><span>There is an imbalance which threatens Sydney and Melbourne property markets, especially if interest rates rise and / or Asian investors need to get their money out of Australia. Hobart’s supply and demand metrics certainly look more balanced.</span></p>
<p class="x_MsoNormal"><span><em>Simon Pressley is managing director of Propertyology, an REIA Hall Of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. </em><a href="https://www.propertyology.com.au/more-than-a-buyers-agent/" target="_blank"><em>Propertyology works exclusively with property investors</em></a><em> to purchase properties in strategically chosen locations all over Australia.</em></span></p>
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Hobart to be Australia’s top capital city performer in 2017: Simon Pressley

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<p>In my blogroll I link to some useful sources for the diminishing number of fans of Australian share markets, including Motley Fool (stock picking) and Montgomery (value fund).</p>
<p>Both have put out pieces recently talking about the property market peaking.</p>
<p>Demonstrating excellent efficiency Motley Fool simply released a near carbon copy of last year's note, while by my last count Montgomery has run no fewer than seven articles in a dozen days (could be eight, I've lost count). An impressive hit rate indeed!</p>
<p>Of course, as a property market advisor, I'm duty-bound to say that just as there is no one 'share market', so do homebuyers buy one house, and not the entire real estate market with all of its gleaming dog-boxes in the sky.  </p>
<p>In any case, share market promoters predict property market downturns every year; it's all part of the sales pitch. </p>
<p><strong><span style="text-decoration: underline;">Why property?</span></strong></p>
<p>I do a good deal of my work with hedge funds, and one of the points which often requires explanation to curious visitors from overseas is why everyday Australians even invest in property at all.</p>
<p>Good question. It's partly because Aussies are encouraged or incentivised to do so, since the government invests as close to zero as makes no difference in the provision of rental housing.  </p>
<p>It's also because because Australia is one of the most urbanised nations on earth, with a population broadly set to double by mid-century, and with more than four fifths of that population growth expected to be in just a handful of capital cities. </p>
<p>Investors fancy that by owning property in middle ring capital city suburbs, land prices will rise over time, and over any meaningful period of time they've consistently been very handsomely rewarded for taking that view.</p>
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<div class="separator">Perhaps even more important than all of the above, it's because with our compulsory superannuation contributions tens of thousands of Mum-and-Dad investors saw their retirement plans cruelly FUBAR by the last share market crash (it's a family blog, so you'll have to look up a few of today's acronyms). </div>
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<div class="separator">Small wonder that people look at bricks at mortar as an investment option with mortgage rates close to record lows. </div>
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<div class="separator"><strong><span style="text-decoration: underline;">Elephant in the room</span></strong></div>
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<div class="separator">Since we're on the subject of asset classes that are set to underwhelm, let's talk about Aussie shares!</div>
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<div class="separator">The towering elephant in the room is that Australia's share market has been performing atrociously, with the ASX 200 some 24 per cent below where it was nearly a decade ago, despite yesterday's bounce and in spite of the lowest interest rates on record ("time in the market....lol).</div>
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<div class="separator">Since December 2012 while record low rates have pushed the S&amp;P 500 around 50 per cent higher, Australia's ASX 200 is struggling to record any gains at all (not that this is a new phenomenon - hardly! - Aussie stocks have chronically underperformed the S&amp;P 500 for well over two decades). </div>
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<div class="separator">And what's more, since we have an index that has a fair weighting towards resources stocks, the market is not even heading back to 6000 any time soon, at least not sustainably, however much the vested interests may try to talk it up. </div>
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<div class="separator"><span>Thanks to collapsing resources earnings, the market is actually offering less value than all those years ago, not more, as measured by forward PE ratios.</span></div>
<div class="separator"><span> </span></div>
<div class="separator"><span>What's that you say? Ah, you don't invest in the market, you invest in individual securities? Ha, t<span>ouché!</span></span></div>
<div class="separator"><span><span> </span></span></div>
<div class="separator">Yes, I know, I know, it's all about the dividends (assuming that those don't get slashed as well). </div>
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<div class="separator"><span><span><strong><span style="text-decoration: underline;">Market is not returning to 2007 peak</span></strong></span></span></div>
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<div class="separator">In my opinion, the share market is more likely to fall than rise, just as soon as the latest ridiculous spike in commodity prices inevitably reverses, and as APRA taps on the credit brakes again.</div>
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<div class="separator">When I wrote my first book in 2011, I set out some introductory guidelines for how investors should assess 'value' in the share markets.</div>
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<div class="separator">I noted in that book that healthcare was definitely a sector worthy of attention, not only because I'd previously worked in the listed healthcare sector as a Group FC - spending endless hours and weekends fine-tuning my beloved Annual Reports and ASX releases - but because of our ageing population.</div>
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<div class="separator"><strong><span style="text-decoration: underline;">Volatility</span></strong></div>
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<div class="separator">Share market investors could be forgiven for being confused, as there is a lot of conflicting advice around. Some like to invest actively or trade, others like to invest passively with low fees, others still take a more focused or value approach.</div>
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<div class="separator">As a value investor, Montgomery has previously noted that technical analysis is "nonsense", which may well be so, but TA does at least present market participants with some guidance for when to sell. </div>
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<div class="separator">Value investors need to be rigorous, and to employ a considered judgement call for when a stock is no longer offering value, all the while benchmarking a portfolio against new opportunities as they arise. </div>
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<div class="separator">One of the challenges for value investors is that the most mouthwatering opportunities inevitably lie outside the largest listed companies, in smaller and more dynamic businesses with far greater potential for growth.</div>
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<div class="separator">These mid-cap companies have potential for greater returns, and can be more volatile (higher beta, if CAPM is your thing), which means that you might sometimes need to be able to cope with large drawdowns. </div>
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<div class="separator">Here's value stock favourite Vita Group (VTG), for example, which recently crashed spectacularly. </div>
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<br><div>And in the healthcare sector, which has performed tremendously well in recent years, here's another favourite value stock Healthscope (HSO), which has also recently crashed.</div>
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<br><div>It's also been quite a rollercoaster ride for value investors' favourite Sirtex Medical (SRX) over the past year, which rose quite impressively before crashing.</div>
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<br>A value investor's motto is that you should buy shares like you buy groceries (i.e. BTFD...more acronyms sorry) and therefore theoretically these crashes in the share price can represent buying opportunities.<br><br>Assuming that you still see the intrinsic value stacking up, and assuming that you are right and the market is wrong, that is.<br><br><strong><span style="text-decoration: underline;">Buyer beware</span></strong> </div>
<div>
<br>Like you and me, all businesses have a life cycle. They are born, they grow, and one day, they wither and die (or merge, or get bought out, or taken over).<br><br>For that reason a value investor must know when to sell as well as when to buy.<br><br>
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<div>Forge Group (FGE) was one of Montgomery's "A1" services businesses of yesteryear, while Decmil (DCG) was another favourite, both of which ran into trouble after the resources capex cycle peaked in 2012.<br><br>Fortunately Montgomery is a market pro, and being in the market full time he has the ability to manage risk, so in turn he was able to see the writing on the wall for the mining service sector and sold out in 2012 before the SHTF.<br><br>The way in which this is possible is to forecast the economy and its unpredictable cycles, and to recalculate the intrinsic value of a security on an ongoing basis.<br><br>In my experience, too many amateur investors fall in love with their analysis, and while they enjoy the process of buying stocks they find that breaking up is harder to do (too often they think the market is wrong, when perhaps it is the outlook for the company or sector that has changed).<br><br>Here's what happened to Decmil (DCG), which struggled to stay profitable after the resources investment boom peaked in 2012:<br><br><div class="separator"><a href="/images/2016/11/11/DCG.jpg" target="_blank">Click to enlarge</a></div>
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<br>Forge Group (FGE) went to the wall almost overnight in 2013 after massive power station losses were unexpectedly revealed to the market, with Forge's Managing Director David Craig (not the singer) noting that the this was "extremely disappointing".<br><br>David Craig (not the singer) proved to a master of understatement as he noted that unexpected writedowns on two power stations for the 2013/14 financial year totalling $127 million were "not acceptable to the board". Probably not that acceptable to shareholders either, tbh.</div>
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<br><div>Even in September 2013, just before the company went into administration, the intrinsic value of FGE was said to be above $13 (when the real value was closing in on $nil, had the full story been disclosed to the market). </div>
<div>
<br>Herein can lie some of the many challenges with value investing in individual stocks - companies can report half-truths, or mask enormous losses, or trade while insolvent, or sometimes even worse. </div>
<br><div>In case you think you won't ever pick a dud stock, recall that Warren Buffett recently took an enormous bath on his huge investment in Tesco, when a corporate fraud was uncovered in the guise of aggressive accounting and overstated profits.<br><br>
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<strong><span style="text-decoration: underline;">ASX to fall</span></strong><br><div> </div>
<div>Don't be duped into believing that the Australian share market offers better value just because the index is still much lower than it was in 2007. It doesn't.<br><br>In fact, in my opinion the index is probably heading lower when the prices of coal and iron ore crash again, and, as always, it's only a matter of time before the next 30 to 50 percent drawdown. So you'd better be prepared. </div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Why Australians invest in property

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<p>Another Melburnian, businesswoman Penelope Maclagan has emerged as a prestige Byron Bay buyer.</p>
<p>She's behind the $5.6 million purchase of Seregenti on the exclusive Lighthouse Road.</p>
<p>It was sold by Unique Estates Ruth Gotterson and Nicolette van Wijngaarden in conjunction with Byron Bay McGrath's Ian Daniels and Nick Dunn</p>
<p>She bought the four bedroom home overlooking the ocean in August for the joint biggest sale in coastal suburb this year.</p>
<p>Set on 713 sqm, the luxury home features an abundance of terraces and a salt water swimming pool with poolside accommodation.</p>
<p>Penelope co-founded in software company Computershare, ranked among the 10 richest Australian business woman.</p>
<p>Maclagan has listed her Byron Bay apartment with a price guide of $1.6 million to $1.65 million through Byron Bay McGrath.</p>
<p>Last year spa king Eddie Phillips sold on Lighthouse Road for $6.3 million to Melbourne based businessman Mark Ruff.</p>
<p>The home, <span>Villa Natasha Bonita, has five bedrooms and five bathrooms.</span></p>
<p>Earlier this year Real Estate of Distinction agent Janis Perkins sold Wattai at Watego's a renovation by Grand Designs host Peter Maddison.</p>
<p>The acclaimed architect spent two years renovating the luxury Byron Bay Beach house, which sold for $5.6 million to a relative local.</p>
<p>It was sold by Melbourne property developer Allan Sinclair, the father of Sydney Swans footballer Callum Sinclair.</p>
<p>The most striking feature of the four bedroom home is the 183 sqm rooftop terrace complete with 10 person spa.</p>
<p>In 2011 Sussan fashion chain executive chairwoman Naomi Milgrom, usually dubbed Victoria's richest woman expanded her Byron Bay holdings. She spent $6.2 million to buy the 1200-square-metre property adjacent to her $4.75 million acquisition in 2007. It took her hillside holding to 2130 square metres.</p>
<p>Milgrom's 2007 purchase was from the Melbourne-based Asciano boss Mark Rowsthorn, who had bought the property in 2002 for $2.825 million from John Weller, the former Melbourne solicitor who made international news when he won the first case of child maintenance for a man in the 1970s.</p>
<p>Rowsthorn upgraded to Marine Parade, Wategos, where he paid $6.2 million in late 2006.</p>
<p><em>This article was first published in the Saturday Daily Telegraph.</em></p>
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More Melburnians buy the best in Byron Bay 

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<p>Houses in Newcastle, the NSW Central Coast and Coffs Harbour are now at the peak of the market according to Herron Todd White's houses property clock for November.</p>
<p>The clock puts houses in the Gold Coast, South East NSW, and the Sunshine Coast as approaching peak of the market.</p>
<p>Houses in Bundaberg, Townsville, Emerald and South West WA sit at the bottom.</p>
<p><a href="/images/2016/11/07/Screen%20Shot%202016-11-07%20at%2010.32.18%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/11/07/Screen%20Shot%202016-11-07%20at%2010.32.18%20AM.png" alt=""></p>
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<p>Industrial property in Brisbane and Melbourne was approaching the peak of market place in Herron Todd White's October 2016 industrial property clock.</p>
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Houses in Newcastle, Coffs Harbour and NSW Central Coast at peak, Gold Coast nearing top: HTW property clock

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<p><span>GUSET OBSERVER</span></p>
<p><span>With property prices typically viewed as the crux of the affordability problem, and little able to be done on this score, new ideas are needed to open the door to first home buyers - and targeting up-front costs is the place to start. </span></p>
<p><span>While much has been written about the huge burden of stamp duty, particularly in NSW, Ms Pilkington nominates mortgage insurance as an area that could also be addressed to give first home buyers a more realistic chance of entering the market. </span></p>
<p><span>Enabling first home buyers to negatively gear a percentage of their mortgage </span><span>– </span><span>even just a small one </span><span>– </span><span>is another opportunity to address affordability.</span></p>
<p><span>A 10 percent deposit on a Sydney property is a significant amount of money but when you factor in mortgage insurance, legal costs and initial home insurance, on top of the exorbitant </span><span>cost of stamp duty, it’s no surprise so many first home buyers are disheartened. </span></p>
<p><span>The </span><span>various up-front costs mean the numbers fail to add up for many first home buyers. </span><span>It’s at this point the excitement dissipates and stress takes ov</span><span>er, and many </span><span>looking to enter the market simply bow out, assuming they’ll never have enough. </span></p>
<p><span>That’s why it’s at this point we need to help first buyers navigate a successful purchase.</span></p>
<p><span>Mortgage insurance is an important safeguard but questions the methodology of paying an up-front one-off lump sum. </span></p>
<p><span>Most insurance policies are pai</span><span>d annually on an as-needed basis. There is no reason this </span><span>couldn’t be applied to mortgage insurance too. </span></p>
<p><span>One Laing+Simmons franchisee </span><span>was recently working with a customer who had to pay over $8,000 in mortgage insurance up-front as they only had a 10 percent deposit. The property subsequently rose in value by 10% over the next six months, meaning their equity was now 20% and they therefore had no further need for mortgage insurance. </span></p>
<p><span>Y</span><span>et they had already incurred the cost - a cost </span><span>that could, and should, be avoided.</span></p>
<p><span>The number of times an insurance company has to pay out on mortgage insurance is not in line with the amount they charge. </span></p>
<p><span>Aside from a fairer approach to mortgage insurance, Ms Pilkington says Governments could also explore how negative gearing could help first home buyers. </span></p>
<p><span>Under certain conditi</span><span>ons, perhaps we could enable first home buyers to access negative gearing on the home they live in, even if it was only for a small percentage of their </span><span>mortgage. </span></p>
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<p><span>For example, </span><span>first home buyers might negative gear a percentage of their loan for a fixed period of time which would lower repayments and, like any property negatively geared, the Government could claim some sort of capital gains tax when they sell. </span></p>
<p><span>Any </span><span>options to improve the tax effectiveness for home ownership to support first home buyers </span><span>could be considered.</span></p>
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<p><em>Leanne Pilkington is managing director, Laing+Simmons and can be contacted <a href="https://www.lsre.com.au/home" target="_blank">here</a>.</em></p>
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