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

Joel Robinson

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

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

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

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

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

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

The apartment price gap drawing Sydney buyers west

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

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

Residential Market

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A Runaway Bay trophy with its own private beach is listed with $5 million hopes.
Set on an 842 sqm parcel, the home has a 36 metre water frontage, sheltered pontoon mooring and direct ocean access
Previously traded for $528,000 in 2000, the home was architecturally designed with suspended concrete construction and double height invested pyramid ceilings. 
The master bedroom has a private balcony overlooking Broadwater, an ensuite with spa and sauna and a dressing room.
There are two executive offices, a seperate wine room, a private courtyard for entertaining and a fully self-contained two bedroom apartment with seperate entrance.
The property at<a href="https://www.realestate.com.au/property-house-qld-runaway+bay-120929401" target="_blank"> 2 Anglers Parade</a> is available through Island Realty agent Sarah Filippini. 
 The median price for a home in Runaway Bay is $930,000, according to CoreLogic.
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j.ballantyne1990-6AQqhLzZaK

Runaway Bay home offering at $5 million plus

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The United Kingdom's vote for Brexit may boost demand for Australian houses, Macquarie economic analyst James McIntyre suggests.
The vote for Brexit may prompting more expatriates to return home and deterring locals from heading abroad
Mr McIntyre's note to clients last week, obtained by Fairfax Media, also said there is now the "potential for a less negative house price outlook" for Australia.
It said the prospect of stronger population growth as a result of Brexit, alongside further interest rate cuts, "could boost housing demand, and confound some of the more aggressive expectations for negative housing spillovers".
"A weaker growth outlook for the UK, and Europe, could see a return of Australian expats, and a decline in the number of Australians seeking better opportunities offshore," the note said.
The plunge in pound sterling, which is about 10 percent below its pre-Brexit exchange rate with the Australian dollar, also makes working in the UK less attractive to expats who envisage bringing the money home with them.
His more optimistic price growth revision followed the prediction of a 7.5 percent decline in house prices from March this year, citing weaker population growth and a "bulging" pipeline of new homes being supplied.
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jchancellor-FAypfDUnLy

Macquarie sees Brexit assisting Australian property outlook

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The former Silverchair front man Daniel Johns joined with the other owners in his 1960s Bondi Beach apartment block hoping to ride the wave to property riches.
The seven apartments were offered in one line at auction last night, but the bidding went no higher than their $12 million vendor bid.
The Bondi Beach apartments that have beach views attracted two developer bidders when <a href="https://www.realestate.com.au/property-unitblock-nsw-bondi+beach-122859458" target="_blank">offered through Seaton Jones of Ray White TaylorJones.</a>
Johns owns two of the higher level apartments in the four level Campbell Parade complex having bought in 2001 costing $1.6 million.
He lived in the building for a short time before leasing the properties. He stands to secure around 33 percent of any eventual sale proceeds.
Spanning four levels, the entire block comes with six two-bedroom apartments and a one one-bedroom unit.
It was marketed as a duplex project or for the buyer to create their own home.
A group of 12 Queenscliff apartment neighbours triumphantly pocketed $10.1 million for their virtually uninhabitable clifftop apartment complex last month.
A private northern beaches builder bought the Queenscliff site, beating interstate investors and a Chinese group.
Auctioneer Damien Cooley noted there's an emerging trend across Sydney where neighbours - more so houses than apartments - are banding together to sell their homes in single amalgamated deals to developers.
It has been happening especially in response to government infrastructure programs on established or proposed public transport routes.
Estate agent John McGrath recently suggested "the ‘mega lot’ trend was a fantastic example of people power and creatively leveraging market conditions to your benefit."
"Some home owners are motivated by the financial windfall that comes with selling to a developer."
In St Leonards, nine home owners sold to a Hong Kong developer for about $66 million, netting an average of $7.3 million per vendor, he said.
McGrath suggested that caution was needed.
"You’ll need an iron-clad agreement with your fellow sellers stipulating the terms of the sale (especially settlement periods and whether the sale relies on official re-zoning before exchange), the division of sale proceeds and a commitment from everyone to proceed."
This article was first published in the Daily Telegraph.
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Daniel Johns' Bondi Beach auction result

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<div>Dwelling prices steadied in the first quarter of 2016. </div>
<div> </div>
<div><a href="/images/2016/07/04/B4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/07/04/B4.jpg" alt=""></div>
<div> </div>
<div>With share markets also down a notch in the first quarter, total household net worth ticked down marginally to $8,64 trillion. It was the first such quarterly decline since September 2011.</div>
<div> </div>
<div><a href="/images/3_StockBreakouts/B1.jpg" target="_blank">Click to enlarge </a></div>
<div class="separator"><img src="/images/3_StockBreakouts/B1.jpg" alt=""></div>
<div class="separator"> </div>
<div>Australians have about $4 trillion in net worth or equity tied up in housing. Sounds like a lot, but then in the UK - where there is no compulsory superannuation - the share of housing wealth has been tracking at close to two thirds of total household net worth according to the Office for National Statistics. </div>
<div> </div>
<div>Australia's average net worth per capital therefore ticked to just a notch below $360,000, which is still exceptionally strong. </div>
<a href="/images/2016/07/04/B2.jpg" target="_blank"> Click to enlarge</a>
<img src="/images/2016/07/04/B2.jpg" alt="">
 Gearing measures
On the matter of housing affordability, the interest payable to income ratio increased for a second successive quarter, although it remains 37 per cent below its 2008 peak. 
<a href="/images/2016/07/04/B3.jpg" target="_blank">Click to enlarge </a>
<div class="separator"><img src="/images/2016/07/04/B3.jpg" alt=""></div>
<div> </div>
<div class="separator">Gearing ratios ticked a bit higher, both for mortgage debt to housing assets (28.6 per cent) and for debt to assets (20.5 per cent).</div>
<a href="/images/2016/07/04/B5-1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/07/04/B5-1.jpg" alt="">
<div>Overall, Q1 was a soft quarter for household net worth.</div>
<div> </div>
<div>However, CoreLogic reported today that both Sydney houses (+6.8 percent) and apartments (+6.7 percent) surged in value in the June quarter, so household net worth will no doubt increase again in Q2.</div>
<div> </div>
<div>Houses and units across the eight capital cities grew by +3.8 percent and +3.7 percent in the June quarter respectively. </div>
<div> </div>
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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>. 
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>.
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Record household wealth takes a breather: Pete Wargent

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Sydney's property market may soon turn with CoreLogic research director Tim Lawless suggesting conditions will start to favour buyers according to the June CoreLogic Hedonic Home Value Index.
He said homes in the city are taking longer to sell and vendors are starting to offer larger discounts on their asking prices in order to make a sale.
"The typical Sydney home is now taking 40 days to sell compared with 26 days a year ago and discounting rates have risen from 5.5 percent a year ago to 5.6 percent,” he said. 
Some positive news for Sydney buyers is that there are early signs that Sydney’s housing market may be starting to turn in favour of the buyer.
“In balance, Australia’s two largest cities are facing increased affordability challenges that are likely to negatively impact the trajectory of dwelling values and activity as more prospective buyers are blocked from the market.
The CoreLogic Hedonic Home Value Index for June notes Sydney auction clearance rates have shown a noticeable improvement since December 2015 with Sydney clearance rates higher than 70 percent so far this year and the last two months posting clearance rates in the middle 70 percent range. Melbourne auctions have been around 70 percent to high 60 percent week to week in 2016.
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Early signs the Sydney’s housing market may be starting to turn in favour of the buyer: Tim Lawless

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GUEST OBSERVER
Brexit has delivered a shock to global financial markets. Australia’s markets have, however, seen much smaller moves than elsewhere, particularly in Europe. 
This partly reflects that commodity prices have held up well, with the iron ore price above its pre-Brexit referendum level. The AUD is down from USD0.76 to USD0.74, but the fall in the AUD is largely explained by strength of the USD. 
The market’s reaction seems consistent with the apparent limited economic significance of the UK for Australia. Britain takes only 2.8 percent of Australia’s exports and, although financial connections are larger, recent net capital inflows to Australia have mostly come from Asia. In short, Australia’s economic story is much more about Asia than about Britain or Europe. To the extent that Brexit affects Australia, it is mostly through an impact it could have on growth in Australia's major trading partners in Asia. We see Brexit as unlikely to trigger a cash rate cut from the RBA this month. 
Locally, economic focus will shift to the federal election this weekend (2 July), with current polling suggesting a tight race. The latest Newspoll show the Coalition slightly ahead, at 51:49 on a ‘two-party preferred basis’, although a 2pt lead is within the margin of error. We see the election as unlikely to have market implications, although the desire to be apolitical could explain the central bank’s recent reluctance to give much policy guidance (see Australian Election Observer, 17 June 2016). 
More generally, Australia’s growth remains strong, business conditions are at high levels, jobs growth has continued and house prices are rising. Last weekend’s consumer confidence and housing auction clearance rates remained high, despite the Brexit vote. We expect continued solid growth, although inflation remains low. 
We continue to see the RBA’s next potential trigger as the Q2 CPI print, due on 27 July. Our central case sees a 25bp cash rate cut in August, after a low CPI print. 
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What does ‘Brexit’ mean for Australia? 
Brexit has had a large impact on global financial markets, although the local effect has been smaller than elsewhere. Australia’s equity market sold off only modestly and the AUD has fallen, but the decline can be fully explained by strength of the USD rather than weakness of the AUD. Commodity prices have held up well, with the Bloomberg commodity price index broadly unchanged since prior to the Brexit vote and up 13% year-to-date. Iron ore prices have risen since the Brexit vote. 
The more limited local market impact reflects the relatively small economic significance of the UK to Australia. The UK only accounts for 2.8% of Australia’s exports (Chart 2). The rest of the European Union accounts for 4.6% of Australia’s exports, so a wider effect of Brexit on Europe could be more significant. However, this event would only be a big deal for Australia if it significantly affects Asia, as 74% of Australia’s exports go to Asia.
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Although trade linkages are small, Australia has more significant financial exposures to the UK. The UK accounts for 16% of the stock of foreign investment in Australia and a similar share of Australia’s investment abroad is in the UK. The UK accounts for 11% of Australian-owned banks’ offshore exposures on an ultimate risk basis. However, much of the recent growth in capital inflows into Australia has been coming from growing links to Asia (Chart 2). 
For the RBA, it is likely that the comparatively muted local financial market response to Brexit and the small trade linkages to the UK are the most important elements for monetary policy. The other key issue will be the effect that the UK’s recent, post-Brexit vote, sovereign rating downgrade could have on the AUD. S&amp;P has downgraded the UK by two notches, from triple-A to AA. Australia retains a triple-A rating, and is one of only nine countries with a triple-A rating from all three major rating agencies. Australia’s strong rating could put unwanted upward pressure on the AUD at a time when a competitive currency is needed to support growth. 
Local growth is strong and housing prices are rising 
On the latest readings local growth has remained solid running into Q2, following the strong GDP print for Q1 (1.1% q-o-q). Surveyed business conditions remained at around post-global financial crisis highs in June and capacity utilisation has recently also picked up strongly (Chart 3 and 4). Should the lift in capacity utilisation prove persistent, it may be expected to motivate non-mining firms to ramp up their investment plans, which is a much needed next stage of the rebalancing of growth following the end of the mining investment boom. 
The lift in capacity utilisation and business conditions also helps to explain continued jobs growth in recent months. Employment growth is running at around 2.0% y-o-y, which has been enough to keep the unemployment rate steady at around 5.7% in the past couple of months (Chart 5).
As activity has picked up, local firms have, so far, been choosing to take on more labour, rather than increase investment to meet demand. At some point, they may start to need to increase investment to support a continued pick-up in local production. The improvement in the labour market may also, at some point, start to put some upward pressure on wages growth, which could lift local inflation.
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For the RBA, another factor that could discourage a near-term cash rate cut is the recent re- acceleration of house price growth (Chart 6). Housing prices rose by 8% y-o-y in June (based on daily data), up from a rate of 6% y-o-y in March. However, given that loan approvals have been weaker recently, housing supply is coming online and the prudential settings remain tight, we expect that housing price growth will slow in coming quarters (for more on this see Downunder Digest: Australian housing is still set to cool, 21 June 2016). Nonetheless, the RBA may want a bit more evidence that the re-acceleration does not persist before cutting again.
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The Q2 CPI print on 27 July is all important 
Although we expect the RBA to be on hold on 5 July, our central case is for a 25bp cut on 2 August. This view depends on the Q2 CPI print, which is due on 27 July. Keep in mind, the almost singular motivation for the cash rate cut in May, was the significant downside surprise to the Q1 CPI print, which pushed underlying inflation to well below the RBA’s 2-3% target band (Chart 7). On a q-o-q and y-o-y basis, the first quarter underlying inflation print was the lowest result since inflation targeting began in 1993 (Chart 8). 
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In our view, if the Q2 print shows underlying inflation below the bottom edge of the 2-3% target band on a quarterly basis, that is, below 0.5%, we see the RBA as likely to cut in August. As our current forecast is for the average of trimmed mean and weighted median to be 0.45%, our central case is for the RBA to cut in August. A higher print will make a cut less likely, although much will then depend on other economic developments. 
Australia’s election has little bearing on the RBA 
Australia will hold a federal election on 2 July. The latest Newspoll shows the current Liberal/National coalition, led by Prime Minister, Malcolm Turnbull, slightly ahead of the Labor Party, led by Bill Shorten, at 51:49 on a ‘two-party preferred basis’, although a 2pt lead is within the margin of error. Perhaps more interestingly, the Coalition is currently leading in more of the marginal electorates. All in all, however, the polls suggest it will be a tight race. 
The market implications of the election are expected to be limited. Neither major party is proposing radical reforms. Both major parties agree on the fundamental economic framework, supporting a floating currency, independent central bank, free flow of capital and trade. For more on the economic policies of each party, see Australian Election Observer, 17 June 2016. 
For the RBA the election is unlikely to make any difference to its approach to policy. However, on the margin, a desire to remain apolitical may help to partly explain the central bank’s reluctance to provide much guidance in its recent statements. Keep in mind that the RBA’s recent statements have not included an explicit easing bias. 
We expect the RBA’s post-meeting statement to note that the board is waiting for more information, particularly on prices, thus suggesting that the Q2 CPI print will be of key focus for the RBA in determining its next move.
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 <a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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Brexit unlikely to trigger a cash rate cut from the RBA in July: HSBC's Paul Bloxham

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Capital city dwelling values in Sydney, Melbourne and Hobart have had a substantial rise according to the June Home Value Index from CoreLogic.
Dwelling values across the combined capital cities rose by 0.5 percent in June to be 8.3 percent higher over the past twelve months.
CoreLogic research director Tim Lawless said the June results continued to show a rebound in housing market conditions after weaker results were reported for the final quarter of 2015 when the combined capitals’ index was down 1.4 percent.
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He said the pace of capital gains in June was substantially lower than the April and May results when CoreLogic reported a 1.7 percent, and 1.6 percent month-on-month lift in capital city dwelling values.
“The monthly growth rate reduction is likely to be very much welcomed by state and federal government policy makers and regulators who may be concerned about a sustained rebound in capital gains," he said. 
“As an example, home values in Sydney have been rising for four years, and have increased by a cumulative 59 percent over this time frame. Melbourne dwelling values have been rising for the same length of time and have moved 41% higher over the growth cycle to date.
“The combined capitals’ headline result was driven by a strong 1.2 percent rise in Sydney dwelling values, and a 0.8 percent gain across Melbourne’s housing market. Hobart values also showed strong conditions with dwelling values moving 1.8 percent higher over the month.
"Housing market conditions in both Perth and Darwin are suffering from reduced housing demand resulting from a sharp downturn in migration and weaker employment opportunities. Rental rates have also fallen substantially in both cities, highlighting that lower housing demand is not confined to home buyers but also renters."
Monthly falls of more than 1 percent were recorded in Darwin (-1.6 percent), Adelaide (-1.3 percent) and Canberra (-1.1 percent), while the falls in Brisbane (-0.1 percent) and Perth (-0.8 percent) were less severe.
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Lawless said some positive news for Sydney buyers is that there are early signs that Sydney’s housing market may be starting to turn in favour of the buyer.
“We’re seeing homes in the city taking longer to sell and vendors are starting to offer larger discounts on their asking prices in order to make a sale," he said.
"The typical Sydney home is now taking 40 days to sell compared with 26 days a year ago and discounting rates have risen from 5.5 percent a year ago to 5.6 percent.”
“In balance, Australia’s two largest cities are facing increased affordability challenges that are likely to negatively impact the trajectory of dwelling values and activity as more prospective buyers are blocked from the market."
According to the report, capital city dwelling values have increased by 8.3 percent over the financial year which is lower than what was recorded over the previous two financial years when capital city dwelling values were 9.8 percent higher over 2014/15 and 10.1 percent higher in 2013/14. The recent peak rate of annual growth was recorded in July last year when capital city dwelling values were 11.1 percent higher over the preceding twelve month period. 
 
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June's ongoing dwelling price growth in Sydney and Melbourne: Tim Lawless

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GUEST OBSERVER
Sales activity and price growth in the prime London residential market have both slowed since mid-2014. The EU referendum has been only one of a number of headwinds which have impacted the market. 
The UK election, the threat of a Mansion Tax, the imposition of higher rates of stamp duty as well as the additional rate for investors and second home buyers, have all conspired with the EU vote to dampen market sentiment. 
The very strong volume of sales seen at the end of Q1, bolstered by the impending additional rate of stamp duty, was bound to weigh on deal levels in Q2, but it is fair to speculate that at least part of the decline since April has related to market uncertainty caused by the referendum.
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There is no doubt that the vote in favour of Brexit will generate a period of renewed uncertainty in the prime London residential market. Some demand, especially from investors, will be delayed and in some cases redirected to other markets – although the significance of these trends should not be overstated. 
Demand for prime London property rests on a wide range of drivers – most of which are unaffected by the referendum decision: the scale of London’s business cluster, depth of skills, education, lifestyle and language. It is not easy to identify an obvious alternative destination for investors despite short-term nervousness. 
On the eve of the vote the pound sat 14% below its mid-2014 peak meaning pricing in the prime market was more attractive for dollar buyers. While a further weakening of the pound could increase inward investment, this impact will be constrained by the fact that around 80 percent of central London buyers are UK residents.
It seems a reasonable assumption to make that interest rates will be lower for longer, despite the risk of imported inflation from a weaker pound. While the long-term benefit of ultra-low interest rates on the housing market may be questionable, in the short- term they will act to underpin demand especially for equity rich buyers with access to the best funding rates. 
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The prime country house market will be similarly impacted by the result. However while the market has performed relatively well over recent years, following a slow recovery immediately after the financial crisis, prices have not tracked London to date and there is scope for some out- performance in the short to medium term. 
While we are entering a period of renewed uncertainty in the UK and London market, ongoing issues around EU and especially Eurozone stability, which will be highlighted in the run up to French and German elections, are likely to counter this risk and shore-up London’s safe- haven appeal. 
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Liam Bailey is partner, Global Head of Research for Knight Frank and can be contacted <a href="https://www.knightfrank.com/research" target="_blank">here</a>.
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The factors dampening UK residential market sentiment: Knight Frank's Liam Bailey

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An review by ASIC into advertising targeting Chinese speaking home buyers has prompted four mortgage broking firms to change their home loan advertising.
The mortgage broking firms which published the advertising are:
Ace Mortgage Market Pty Ltd (also known as 袁翹新會計師), located in Parramatta, NSW;
Aus Realty Group Pty Ltd (also known as 澳人信貸), located in Hurstville, NSW;
Apex Finance &amp; Mortgage and its business owner (also known as 聯通信貸), located in Burwood, NSW; and
Trans Australia Mortgage Finance Pty Ltd (trading as Apple Home Loans, 全盛信), located in Burwood and Chatswood, NSW.
The range of concerns contained in the advertisements targeting Chinese speaking home buyers included:
<ul>
<li>representations in Chinese such as 'lowest fixed rate' and 'no proof of income' – which may be false and misleading statements, or indicate a breach of the responsible lending obligations,</li>
<li>heavy reliance  on disclaimers (such as 'terms and conditions apply') that did not explain qualifying terms and conditions in the same advertising. Also, promoters tended to advertise benefits in Chinese language, but stated the disclaimers and qualifications in English, when the advertising was aimed at non-English speaking consumers,</li>
<li>failure to disclose the required comparison rate when quoting an annual percentage interest rate,</li>
<li>failure to  disclose the required warning about the accuracy of the comparison rates, and</li>
<li>failure by their promoters to regularly review the advertisements  to ensure accuracy and compliance with the law.</li>
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ASIC Deputy Chair Peter Kell said the Australian Consumer Law applies to all advertising, including advertising in foreign languages.
"Consumers who are unable to understand written English are likely to be more reliant on advertising in their native language when in need of a financial product," he said.
"Promoters should ensure that their advertising is up to date and complies with the law. If the majority of the advertising is in a foreign language, the warnings, disclaimers or qualifications should be prominently disclosed in the same advertising and explained in that same language.
"ASIC will continue to monitor all forms of advertising, including advertising targeted at non-English speaking consumers', Mr Kell said.
To assist consumers from a non-English speaking background, a range of publications, including the Home Loans credit factsheet, are available in 26 different languages on the <a href="https://www.moneysmart.gov.au" target="_blank">MoneySmart website</a>.
Background 
As part of the review,  ASIC took action against four entities about their advertising, as follows.
Ace Mortgage Market Pty Ltd (also known as 袁翹新會計師) claimed that a person could apply for a low doc loan without proof of income. This advertising was drafted prior to the responsible lending obligations introduced in the National Consumer Credit Protection Act 2009, but Ace Mortgage continued to use the same advertising in its 2016 campaign. ASIC was concerned about potential breaches of the responsible lending obligations and possible false and misleading statements.
Following ASIC's concerns, Ace Mortgage has agreed to remove its advertising.
Aus Realty Group Pty Ltd (also known as 澳人信貸) claimed its 4.14%* as "Australia lowest fixed rate". This advertising was potentially misleading as ASIC had seen examples on the market at the time the advertisements were published where lenders were offering a fixed rate lower than 4.14%. The 4.14% interest rate was followed by an * and a statement, *Terms and Conditions Apply. The advertisement did not explain the relevant terms and conditions. The advertisement also included other potentially misleading representations including "guarantee to get the lowest mortgage interest rate for clients*, biggest credit centre in the South (Sydney) and biggest cash rebates."  The advertisement contained comparison rates; however, they were in small font and not prominently disclosed. 
Following ASIC's concerns, Aus Realty agreed to amend its advertising.
Apex Finance &amp; Mortgage and its business owner (also known as 聯通信貸) claimed that its 4.99%* is the lowest fixed interest rate. The 4.99% rate was followed with a * and there was a statement that *Terms and Conditions Apply but the advertisement did not explain the relevant terms and conditions. The advertisement contained a comparison rate; however, the rate was in small font and was not accompanied by a warning about the accuracy of the comparison rate. The business owner is an authorised representative of Australian Finance Group Ltd, the holder of an Australian credit licence.
Following ASIC's concerns, the business owner agreed to remove its advertising, and confirmed that their future advertising will be reviewed and approved by their licensee, Australian Finance Group Ltd. 
Trans Australia Mortgage Finance Pty Ltd (trading as Apple Home Loans, 全盛信貸) was promoting a 3.98% weekly recommended fixed interest rate, 4.13%* residential variable rate and 3.98%* residential fixed rate. However, Apple Home Loans failed to quote the relevant comparison rates and did not include warnings about comparison rates. Two of these rates were followed by a * but the Advertisement did not contain any relevant disclaimers and/or qualifications.
Following ASIC's concerns, Trans Australia agreed to amend its advertising.
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ASIC targets misleading Chinese language home loan advertising

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There’s been a lot of discussion about a resurgence in Sydney prices, but I’m not believing it.
The talk is based primarily on one month’s figures from one source, which suggested a significant rise in Sydney house prices in May.
People are so willing to blindly accept the figures pumped out by research companies. One international ratings agency rushed out a new assessment of the Australian residential market, complete with dire warnings, based on that one figure – apparently oblivious to the frequent statistical aberrations in price data for short time periods. 
Those figures for May presented a large number of very strange results. For example, are we seriously expected to believe that Hobart apartment values rose 8.4% in a single month? Or that Darwin apartment values declined 10 percent in May? Or that, in sharp contrast, Darwin house prices surged 3.5 percent in May? Or that unit prices dropped 6% in a month in both Canberra and Perth? Or that house values in Sydney suddenly turned around and jumped 3.6 percent in May?
The absurd nature on some of these numbers shows how rubbery real estate figures can be, especially when you’re dealing with month-to-month changes, which are notoriously erratic and essentially meaningless.
The Sydney figure was particularly strange because there has been a major drop-off in sales activity this year. Sales volumes have been trending steadily downwards since the end of 2014 in fact, but it’s been particularly pronounced in 2016 – and exacerbated recently by the calling of a federal election, which always causes consumers to stop dead with their decision-making and action-taking.
The thing is: all other price data, including the March Quarter figures from the ABS, has been recording a contraction of Sydney price growth, which is exactly what I would expect. It’s extremely rare in housing markets for prices to keep rising when there’s a significant decline in sales activity.
Hotspotting research for The Price Predictor Index finds not a single growth market in the Sydney metropolitan area, which contains over 700 suburbs. Many suburbs are in steady decline.
An example is Auburn (median house price $835,000, down 1.7 percent in the three months to April, according to Australian Property Monitors), where there were over 200 sales per quarter in late 2013, dropping to 170 in late 2014, 100 late in 2015 and now 75 per quarter.
Likewise, Bankstown ($840,000, down 2.7 percent percent in three months) was recording over 200 sales per quarter late in 2013, but numbers have fallen steadily to 95 per quarter late in 2015 and 80 per quarter in 2016.
Sales in Breakfast Point (median unit price $1.06 million, down 4.9 percent in three months) have fallen from 110 to 88 to 70 to 43 to 33 to 26 in consecutive quarters. 
In Cammeray (median house price $1.7 million, down 10.6 percent in three months), sales have dropped from 58 to 54 to 46 to 37 to 30 to 26 since late 2014. In Fairfield ($720,000, down 2 percent in three months) sales in the past four quarters have been 107, 77, 56 and 35. In Pymble ($2.05 million, down 3.3 percent in three months) sales levels have dropped from 112 to 99 to 71 to 64 to 39 in the past five quarters.
Unit sales in CBD fringe suburb of Haymarket (median unit price $895,000, down 1.8 percent in three months) have dropped from 77 to 57 to 39 to 24 to 9.
In Parramatta ($565,000, down 1 percent) unit sales have declined from 172 to 165 to 107 to 95 in the past four quarters, while in Potts Point ($710,000, down 4.3 percent), unit sales have dropped from 110 to 66 to 47 in consecutive quarters.
There are myriad other examples, all charting the same pattern of decline in sales volumes, with prices starting to follow.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a>
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