<p>Repeat buyers are one of the strongest measures of confidence in any apartment development.</p>

<p>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.</p>

<p>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.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe></p>

<p>"I had some boxes I wanted to tick," he says.</p>

<p>Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.</p>

<p>“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.</p>

<p>He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356818]</p>

<p>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.</p>

<p>"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."</p>

<p>Today, Keith says the move has completely changed how he experiences Newcastle.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356828]</p>

<p>Beyond the location, he says it's the sense of community that has surprised him most.</p>

<p>"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."</p>

<p>For Aimee and Lyle Goodman, the journey started almost by chance.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe></p>

<p>The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.</p>

<p>"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."</p>

<p>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.</p>

<p>"We actually catch up more as a family now," Aimee says.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356829]</p>

<p>Lyle says their confidence came from GWH's reputation within Newcastle's building industry.</p>

<p>"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."</p>

<p>That confidence only grew throughout the buying process.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351104]</p>

<p>Aimee says one moment stood out.</p>

<p>"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."</p>

<p>The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356822]</p>

<p>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;</p>

<p>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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356826]</p>

<p>For Keith, the appeal remains straightforward.</p>

<p>"You feel at home even before you've moved into your home."</p>

<p>For Aimee, the change is measured in time.</p>

<p>“I just felt like I had more time,” she says.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351102]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=135096]</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372549]</p>

<p>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.</p>

<p>"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.</p>

<p>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."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=314259]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372550]</p>

<p>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.</p>

<p>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.</p>

<p>The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.</p>

<p>"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."</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=4661]</p>


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

<p>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.</p>

<p><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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355297]</p>

<p>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.</p>

<p>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.</p>

<p>"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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355293]</p>

<p>The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.</p>

<p>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.</p>

<p>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;</p>

<p>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;</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355303]</p>

<p>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.</p>

<p>"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.</p>

<p>"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."</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>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.</p>

<p>"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.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>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.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"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."</p>

<p>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.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>"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."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


The apartment price gap drawing Sydney buyers west

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"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."</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"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.</p>

<p>"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."</p>

<p>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.</p>

<p>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>.</p>


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

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>
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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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spressley-sBoeMhannA

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>
<p><a href="/images/2016/11/11/LAND.jpg" target="_blank">Click to enlarge</a></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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<div class="separator"><img src="/images/2016/11/11/DCG.jpg" alt=""></div>
<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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<div><a href="/images/2016/11/11/1%20Forge.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/11/11/1%20Forge.jpg" alt=""></div>
<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>
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<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>
<p> </p>
<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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