<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>


Joel Robinson

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

<p data-end="315" data-start="85">The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.</p>

<p data-end="499" data-start="317">The project, to be known as <strong data-end="376" data-start="345">Capella Residences Brisbane</strong>, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.</p>

<p data-end="899" data-start="501">The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.</p>

<p data-end="1154" data-start="901">The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.</p>

<p data-end="1387" data-start="1156">The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.</p>

<p data-end="1387" data-start="1156"><img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" /></p>

<p data-end="1611" data-start="1389">Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.</p>

<p data-end="1823" data-start="1613">Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.</p>

<p data-end="2042" data-start="1825">The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.</p>

<p data-end="2177" data-start="2044">The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.</p>

<p data-end="2420" data-start="2179">The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.</p>

<p data-end="2724" data-start="2422">"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.</p>

<p data-end="2858" data-start="2726">"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."</p>

<p data-end="3130" data-start="2860">Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.</p>

<p data-end="3415" data-start="3132">"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.</p>

<p data-end="3658" data-start="3417">"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."</p>

<p data-end="3820" data-start="3660">Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.</p>

<p data-end="3961" data-start="3822">"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.</p>

<p data-end="4083" data-start="3963">"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."</p>

<p data-end="4227" data-start="4085">Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.</p>


Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

<p>Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.</p>

<p>The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.</p>

<p><img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" /></p>

<p><a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.</p>

<p>"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.</p>

<p>"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.</p>

<p>"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."</p>

<p><img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" /></p>

<p>Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.</p>

<p>The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.</p>

<p>"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.</p>

<p>"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."</p>

<p>Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.</p>

<p>"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.</p>

<p>"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."</p>

<p>Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.</p>

<p>[smartcode_project_cta:default project_id=113271]</p>


Lewis Land targets first home buyers at latest Harbour Shores release, Solis

<p>Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a></p>

<p>The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.</p>

<p>The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.</p>

<p>The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.</p>

<p>[smartcode_project:default project_id=108800 project_image_fid=370093]</p>

<p>Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.</p>

<p>"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.</p>

<p>"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."</p>

<p>Brown says the&nbsp;response to Park Residences following completion has been particularly strong.</p>

<p>"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.</p>

<p>"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."</p>

<p>[smartcode_project:default project_id=114246 project_image_fid=370116]</p>

<p>Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.</p>

<p>"Today's buyers are incredibly discerning," Tack said.</p>

<p>"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.</p>

<p>"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."</p>

<p>The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.</p>


KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

Residential Market

<html><body>
<p>There’s a growing body of research data pointing investors towards the regions.</p>
<p>A recent CoreLogic report, which compiled a Top 50 list of locations where the value of home sales had grown the most over 12 months, found that 46 of the Top 50 were regional locations.</p>
<p>Other recent research highlighted the New South Wales regional areas where price growth is now greater than Sydney’s.</p>
<p>And a report from Brisbane researcher Simon Pressley has predicted that retiring baby boomers will boost regional markets by seeking out towns and cities that offer attractive affordability and good services.</p>
<p>In addition, a State Government report has highlighted regional cities in Victoria where major population growth is expected over the next 15 years.</p>
<p>All that – and a lot more that’s out there in the way of compelling data – is significant because a lot of the simplistic price information and commentary that’s published tells investors that the capital cities are always better than the regions for capital growth. </p>
<p class="Body">This is usually generalised data which produces a single growth figure for the cities and a single growth figure for the regions. It’s quite misleading, because the regional sample includes myriad negative markets (such as resources-impacted towns and drought-affected areas) which drag down the regional average. </p>
<p>That generalised figure doesn’t really tell us anything useful and shouldn’t dissuade investors from considering regional areas – which offer plenty including lower prices and higher yields.</p>
<p>Residex data suggests that Melbourne price growth has averaged 6.9 percent per year over the past decade and regional Victoria only 4.7 percent – but does that matter if you can find a regional centre growing at 8 percent a year?</p>
<p>Right now, the most active and buoyant market in Victoria is not in Melbourne – it's the regional city of Geelong just outside the capital.</p>
<p>A new report on future population growth provides a few clues as to where investors might look for growth in Victoria. Geelong is one of the key places highlighted, alongside Bendigo and Ballarat. </p>
<p>I see all three regional centres as places worthy of consideration by investors. They all offer economic strength and diversity, affordable housing and good transport links to Melbourne, particularly since the completion of the Regional Rail Link. </p>
<p>And, according to the Department of Environment, Land, Water and Planning, all three cities can look forward to strong population growth. </p>
<p>The <em>Victoria in Future</em> report forecasts that the City of Greater Bendigo will grow 30 percent in the next 15 years, assuming current demographic, economic and social trends continue. </p>
<p>According to the report, Bendigo can expect its population to grow from 110,000 in 2016 to 145,000 in 2031.</p>
<p>ABS figures show this will be the continuation of a trend, with the population rising from 93,000 in 2005 to 108,500 at June last year.</p>
<p>Greater Bendigo, Ballarat and Greater Geelong combined are expected to provide half of all regional growth to 2031. </p>
<p>But the municipality likely to see the most dramatic increase is Mitchell Shire, which is forecast to more than double its population from 40,000 in 2016 to 81,500 in 2031. </p>
<p>This will make it the fastest-growing area and the municipality with the second-largest growth in regional Victoria behind Greater Geelong. Mitchell Shire is a little north of Melbourne and includes towns such as Kilmore, Seymour, Broadford and Wallan.</p>
<p>Another LGA getting spill-over growth north of Melbourne is Macedon Ranges, which can expect its population to grow 25 percent over the next 15 years. Macedon Ranges towns have experienced major increases in median prices in the past 12 months, including 20 percent in Gisborne, 14 percent in Riddells Creek and 25 percent in Macedon.</p>
<p>It's further evidence that there is major capital growth to be found in the regions, if you look behind the generalised data.</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>
</body></html>

terryryder-YECXbqmri2

Most active property market in Victoria is not in Melbourne: Terry Ryder

<html><body>
<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>
<p><img src="/images/2016/11/11/LAND.jpg" alt=""></p>
<div id="post-body-2271360423463001001" class="post-body entry-content">
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<div class="separator">Small wonder that people look at bricks at mortar as an investment option with mortgage rates close to record lows. </div>
<div class="separator"><strong><span style="text-decoration: underline;"> </span></strong></div>
<div class="separator"><strong><span style="text-decoration: underline;">Elephant in the room</span></strong></div>
<div class="separator"> </div>
<div class="separator">Since we're on the subject of asset classes that are set to underwhelm, let's talk about Aussie shares!</div>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/11/11/4%20XJO.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/11/11/4%20XJO.jpg" alt=""></div>
<div class="separator"> </div>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"><span><span> </span></span></div>
<div class="separator"><span><span><strong><span style="text-decoration: underline;">Market is not returning to 2007 peak</span></strong></span></span></div>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<div class="separator"><strong><span style="text-decoration: underline;">Volatility</span></strong></div>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<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>
<div class="separator"> </div>
<div class="separator">Here's value stock favourite Vita Group (VTG), for example, which recently crashed spectacularly. </div>
<div class="separator"> </div>
<div class="separator"><a href="/images/2016/11/11/2%20VTG.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"> </div>
<div class="separator"><img src="/images/2016/11/11/2%20VTG.jpg" alt=""></div>
<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>
<div> </div>
<div><a href="/images/2016/11/11/3%20HSO.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/11/11/3%20HSO.jpg" alt=""></div>
<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>
<div> </div>
<div>
<a href="/images/2016/11/11/SRX.jpg" target="_blank">Click to enlarge</a><br><br><div class="separator"><img src="/images/2016/11/11/SRX.jpg" alt=""></div>
<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>
</div>
<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>
<div class="separator"> </div>
<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>
<div> </div>
<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>
<div>
<br>Herein can lie some of the many challenges with value investing in individual stocks - companies can report half-truths, or mask enormous losses, or trade while insolvent, or sometimes even worse. </div>
<br><div>In case you think you won't ever pick a dud stock, recall that Warren Buffett recently took an enormous bath on his huge investment in Tesco, when a corporate fraud was uncovered in the guise of aggressive accounting and overstated profits.<br><br>
</div>
<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>
<div> </div>
<div>
<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>
</div>
</div>
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pwargent-M4siyDbqQY

Why Australians invest in property

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<p>As lockdowns ease across the globe, people are emerging into a new normal.</p>
<p>Businesses are reopening and market activity across almost all sectors is resuming.</p>
<p>Real estate is no exception: the loosening of lockdown means that listings, viewings, and sales can once again take place. </p>
<p class="Pa3">Savills Research has carried out a sentiment survey of the Savills global residential network to assess how COVID-19 is changing the residential property market as restrictions lift and what the future trends might be. </p>
<p class="Pa3">In a promising result for property markets globally, 78 per cent of respondents said that most or almost all of the buyers in the areas they cover are still looking for a new property. </p>
<p>Similarly, the majority of vendors across over 90 per cent of markets surveyed are still planning to sell their properties. This sustained level of interest from both buyers and vendors bodes well for the resumption of transactions as restrictions continue to ease. </p>
<p>There is a disconnect when it comes to price expectations, however. 78 per cent of respondents stated that buyers were expecting to see lower prices than before lockdown. Conversely, 78 per cent of vendors are anticipating pricing to remain the same. Resort and second home locations such as the Algarve and the French Riviera report both buyers and vendors expect prices to remain the same, however respondents in urban markets, such as Bangkok, Sydney and Prague report expectations of lower pricings from both buyers and sellers. </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/2020/6/19/8_Existing%20buyer%20and%20vendor%20plans%20post%20covid%20.jpg" alt="" width="529" height="372"></p>
<p>Despite the pandemic and prospect of a global recession, 33 per cent of respondents report the same number of new buyers post-lockdown compared to this time last year. Some markets are even beginning to see more activity with 10 per cent of respondents reporting that since lockdowns lifted, there are more new applicants than the same time last year, particularly in second home and resort locations.</p>
<p>The general sentiment across survey respondents is that things are looking positive, but the market hasn’t quite recovered yet. Respondents in China, which has been out of lockdown for the longest, stated that the market took two to three months to recover, though activity has largely returned to normal. Many survey respondents reported that it was simply too early in the recovery to make any comparisons, either because flights for international buyers are still not allowed, or because potential buyers are still waiting to view properties in person. </p>
<p>As activity resumes in the property markets globally, changes to the way people lived and worked during lockdown are already affecting buyer preferences. Respondents in 33 per cent of markets are reporting increased interest from buyers looking to upsize their main residence. Urban centres such as Sydney, Rome, and Monaco reported increased interest in upsizing particularly as residents likely endured lockdown periods in smaller spaces. </p>
<p>For second homes, the overwhelming trend is that there has been little change in level of interest in 2020 from 2019. The number of buyers looking for investment properties could dip in 2020, however, as 30 per cent of markets are reporting a decrease in buyers looking for investment properties compared to last year.</p>
<p>Optimism is returning to the market as restrictions ease and commercial activity restarts. The new normal will present many opportunities for both buyers and vendors. Key to growth will be increased confidence from market participants and the resumption of travel after lockdowns are lifted and borders are reopened. As restrictions have eased, survey respondents are reporting increased demand, particularly from domestic buyers, and are anticipating stronger activity levels going forwards.</p>
<p>Respondents anticipate slightly increased stock levels, particularly in the near term as lockdowns are lifted and business activity returns to a more normal level. Resort markets in particular are reporting the potential for increased supply as international travel remains more difficult and buyers prioritise upsizing their primary residence in the near term. </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/2020/6/19/8_Future.jpg" alt="" width="535" height="282"></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/2020/6/19/8_Future%202.jpg" alt="" width="540" height="273"></p>
<p>In Australia, Paul Craig, CEO, Savills Australia and New Zealand expects buyer sentiment to strengthen as confidence returns to the market.</p>
<p>“90 per cent of vendors surveyed globally are still planning on selling, and this is also true locally as stock levels are beginning to increase now in what seems counter cyclical for Australia’s winter period.</p>
<p>“The market is coming off an extremely low base of listings so whilst some say the higher stock levels coming to market will create great opportunities for bargains, I believe we’re just seeing a return to normal levels which should see us return to a balanced market” he said.</p>
<p>Chris Orr, Director, Residential at Savills Australia said it is easy to be negative right now as there are a lot of Australians doing it tough. What many may forget though is while rental yields and capital values have dropped recently, so too have interest rates and incentives are now being offered to boost turnover. </p>
<p>“This has made it an even better time to buy in many cases than Pre-COVID for investors and people wanting to upsize or just get into the market. </p>
<p>“We won’t know the full impact on buyer sentiment until we look in retrospect, however a key piece of information we’re looking forward to will be when the ABS release their Lending Indicators report on 9 July” he said.</p>
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j.ballantyne1990-6AQqhLzZaK

Global residential markets show signs of renewed activity 

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<p>Residential land sales have increased by 45.9 per cent from their record low in the March 2019 quarter, according to the February 2020 edition of the HIA-CoreLogic Residential Land Report.</p>
<p>HIA Economist, Angela Lillicrap said, "the first half of 2019 was particularly rough for the residential building industry, with falling house prices, uncertainty surrounding the election and the credit squeeze all weighing on confidence."</p>
<p>“Leading indicators in the final months of 2019 show that the housing market has improved and the increased demand for residential land is further proof of this."</p>
<p>“A shortage of land is one of the factors that has driven home prices to increase over the past decade. With demand for land picking up, it is important that an adequate supply is maintained each year to avoid undue pressure on housing affordability,” concluded Ms Lillicrap.</p>
<p>According to Eliza Owen, CoreLogic’s Head of Residential Research, “Demand for land and dwellings has rebounded strongly from June last year, which is also reflected in a 6.7% rebound in national dwelling values over the past 7 months."</p>
<p>"The strength of the rebound comes from a halved cash rate between June and October last year, the re-election of the Coalition Government providing certainty around negative gearing and capital gains concessions, and ongoing demand for owner-occupier dwellings as the millennial cohort moves through the first home buyer age bracket of 25-34."</p>
<p>"Prices for land and housing are likely to rise further over 2020, though this may be slightly mitigated by higher listing levels coming to market, as sellers take advantage of price increases,” she concluded.</p>
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Demand for residential land is on the rise: HIA

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<p>The inner Sydney residential market is cooling off, according to the June report from valuation firm Herron Todd White.</p>
<p>Dwelling values are down almost 7%.</p>
<p>The majority of the suburbs are returning to longer-term auction clearance rate averages with typical auction rates over recent months being closer to the 60% mark, the valuation firm noted.</p>
<p>Auction numbers and clearance rates for these areas during early to mid 2017 were generally well above 70%.</p>
<p>Housing market conditions in general have continued to slow after a period of sustained growth over recent years in the inner west and inner regions of Sydney which HTW noted include a vast range of property types that appeal to a broad spectrum of purchasers including first home buyers, upsizers, downsizers and investors. </p>
<p>Sydney’s inner west has seen dwelling values fall by 6.8% as of 1 May 2018, it advised adding this region of Sydney had been performing extremely well for a sustained period of time.</p>
<p>"It is not uncommon for a previously heated market to experience some correction."</p>
<p>There are also property types and locations that continue to be in high demand such as Annandale, which was named the most popular inner west suburb in a recent survey, the report noted.</p>
<p>The new unit investment market in particular is now feeling the squeeze as banks have tightened lending criteria across the board with a focus on interest-only loans and investment loans.</p>
<p>"This is intensified with lending restrictions on certain postcodes, most of which are high-density apartment markets around the city fringe locations.</p>
<p>The valuation firm suggested that "based on recent indications we anticipate that the property market will continue in a similar fashion for the remainder of 2018."</p>
<p>"We consider that the market will generally remain subdued with longer selling periods as buyers can be more selective and the frenzy style buying conditions are no longer a factor."</p>
<p>"Oversupply is a strong word, but there is some evidence of this in certain areas."</p>
<p>The market is still going through many large-scale developments, particularly around Green Square.</p>
<p>It remains unknown whether investors and overseas purchasers will have any issues when it comes time to settle the report suggests.</p>
<p>The valuation firm suggests that "we are seeing is an increasing number of units which sold off the plan in the past two to three years being valued below purchase price when they become due to settle".</p>
<p>During the heated market conditions experienced in recent times, it was common that most property types and locations performed well, however given that we are now within a different part of the property cycle there is likely to be a contrast between good quality properties and inferior alternatives.</p>
<p>The HTW June report predicts that property types that appeal to the broader market (owner-occupiers and tenants alike) and location fundamentals such as proximity to train or light rail, shopping, cafes, parks and other services and amenities will continue to be key in ensuring that a property performs well.</p>
<p>While other factors that may have a material effect on the market could relate to interest rate changes (RBA or bank rates), the banking royal commission, legislation and politics, media and overall consumer sentiment.</p>
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Longer selling periods as buyers more selective amid inner Sydney price cooling

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<p>As winter hits Ballarat the property market traditionally sees less stock transacting, as vendors hold off marketing their properties until spring.</p>
<p>Despite lower transaction numbers, the prices being achieved continue to be strong with quality inner city and period stock and rural residential property the standout performers, according to the June report from the valuation firm Herron Todd White.</p>
<p>The valuation firm noted a major upcoming project which is beginning to have a strong impact on certain sections of the market is the development around the Ballarat train station.</p>
<p>The land to the north and east of the train station which has long been a car park and open storage space is in the process of being developed into a large hotel and conference centre.</p>
<p>Additionally, land on the corner of Armstrong and Mair Streets has development approval for a building of approximately eight levels which will be known as the Gov Hub or Government Hub.</p>
<p>This building will be predominantly government office space and will become a workplace for around 200 people, noted the report.</p>
<p>These two developments are creating quite the buzz among local traders in the area and from a residential perspective, are creating significant demand in the area.</p>
<p>The valuers stated that "not only will the developments increase demand for residential accommodation in the area, they will also beautify sections of the city which have been unsightly for some time."</p>
<p>"This demand will seep into the remainder of the Ballarat market and for that reason, we foresee continued sustainable growth in the residential market between now and Christmas."</p>
<p>Elsewhere in the residential market, residential serviced lots appear to be selling well, the report noted.</p>
<p>There is a significant supply of lots in the more affordable south-western section of Ballarat around Alfredton, Symthes Creek and Delacombe.</p>
<p>The report notes that, the development of shopping facilities at the Delacombe town centre has assisted.</p>
<p>At the upper end of the vacant land market however, there is a limited supply.</p>
<p>Insignia Estate has sold out and the Lucas Platinum Estate has almost sold out.</p>
<p>There is a new estate coming online in Ballarat North called Drew’s Paddock which is receiving significant interest.</p>
<p>The valuation firm suggests that, the demand for these products primarily comes from increases in the population of the area as the population growth has been strong in the past ten years, and it will be this continued growth that will dictate the success of the new land coming onto the market.</p>
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Continued sustainable growth tipped for the Ballarat residential market in 2018

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<p>The residential property market in the Mildura region shows no signs of slowing, according to the June report from the valuation firm Herron Todd White.</p>
<p>The region's selling periods remain comparatively low, often below 30 days, which contributes to agents having a shortage of listings, it noted.</p>
<p>The main sector to see growth is the upper end of the market, with a higher than normal number of sales occurring above $600,000</p>
<p>Many of these sales are in the surrounding semi-rural areas of Irymple, Nichols Point and Gol Gol.</p>
<p>This sales activity points to strong confidence in the local economy and is likely to also reflect a bit of a rub off effect, with some buyers having sold properties in metropolitan areas.</p>
<p>The valuers have noted, "a dramatic improvement in rural land values has been providing an impetus for older farmers to plan their retirements and we expect that this will bolster demand for better standard homes."</p>
<p>"In the past month, we have seen several examples of this occurring, including the sale of a riverfront property at Gol Gol for over $2 million", the report stated.</p>
<p>Values appear relatively stable in the lower end of the market, while mid-range properties appear to have risen by around 4% to 5% over the past two years.</p>
<p>"Building activity remains strong, with a number of residential subdivisions selling quite quickly", according to the HTW valuers.</p>
<p>The value of serviced lots has risen faster than established housing over the past few years due to a limited supply, which has helped developers recoup the higher cost of completing subdivisions.</p>
<p>The valuation firm forecasts that it is unlikely the current strong conditions will weaken during the remainder of 2018 and that while it appears that the Melbourne market has peaked, they expect that the Mildura market will continue to improve or at least remain stable.</p>
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Mildura residential property market showing no signs of slowing: HTW 

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<p>The Tamworth residential market is continuing to trade strongly across all sectors.</p>
<p>According to the June report from Herron Todd White, residential properties are trading well with both owner-occupiers and investors being active.</p>
<p>There has been an increase in the number of prestige properties being sold across several suburbs, with strong prices and limited time on market achieved.</p>
<p>"As we reach the middle of the year, the slight dip in construction we noticed at the start of the year appears to have stabilised and increased slightly, however it still appears to be down on what was occurring this time last year", stated the HTW valuers.</p>
<p>"This is still being attributed to the change in the first home owner grant as it is the lower end of construction ($350,000 to $450,000) which has slowed down."</p>
<p>The newer sections of Calala, North Tamworth and Moore Creek have seen an increase in sale prices as newer homes come onto the market.</p>
<p>The increase also seems to be attributed to the subdivisions now being more established with less construction happening around the homes, and streets on the whole having a better appeal.</p>
<p>It is not only the newer suburbs performing well - East Tamworth has seen an increase in values particularly among the older style brick dwellings.</p>
<p>According to this report, the average increase in median price for north, east, south and west Tamworth is 11% as at today’s date.</p>
<p>Although this is only data for the past five months and not completely up to date, it does however give a good indication of the strength of the Tamworth market.</p>
<p>Given the relative affordability of housing in Tamworth, the unit market trades has been trading steadily with no real highs or lows.</p>
<p>However with the town continuing to grow and with more professionals moving in, the executive townhouse style unit is certainly increasing in demand, the valuers suggest.</p>
<p>A 3-bedroom, 2-bathroom townhouse sold earlier this year for $550,000 in East Tamworth and with many new dwellings available in this price range, it shows a strong attraction for this style of townhouse.</p>
<p>Overall, the Tamworth market has been trading well, and the valuers forecast this will continue for the remainder of 2018.</p>
<p>There is some concern given the current drought conditions and there may be a slight drop noticed within the rural residential sector, however local agents continue to report strong demand for these properties.</p>
<p>Tamworth is not a town reliant on any one industry and although the drought may affect the rural and rural lifestyle sector, it is expected that the general residential market will continue to trade strongly concludes the report.</p>
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Investors active in Tamworth residential market: HTW

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<p>Across the Southern Highlands the residential market for dwellings has experienced a recent hiatus.</p>
<p>The number of sales in the Southern Highlands has contracted from the highs of late 2017, according to the June report from valuation firm Herron Todd White (HTW).</p>
<p>The average price is tracking lower, between 4% to 8% across the region with the exception of Bowral, which has flattened from the highs of August 2017.</p>
<p>The most active price point continues to be in the $650,000 to $1 million band.</p>
<p>"As has been the case historically there is emerging market volatility in the rural lifestyle/acreage properties in the $2.5 million plus sector, where purchasers tend to be more discriminating in their purchasing decisions," the report suggests.</p>
<p>The valuers state that "when looking at some of the more recent land release areas across the Southern Highlands, they are noticing increasing stock levels as new blocks in the 450 square metres to 2000 square metres land size finally come to market".</p>
<p>"Because of this delay in registering titles, some speculative investors may find their dated lender approvals no longer current, which may prove challenging with tightening current credit criteria."</p>
<p>For the remainder of the calendar year, the valuers anticipate some further easing in the market as the increasing number of vendors particularly in the vacant residential land market compete with a limited pool of purchasers.</p>
<p>Whereas existing housing stock located close to the main townships of Moss Vale, Bowral and Mittagong, with the benefit of being located close to retail, medical, school and transport infrastructure are going to remain attractive to the Sydney buyer market.</p>
<p>Particularly families in the up to $1.5 million price point who continue to “discover” the Southern Highlands region as an affordable lifestyle alternative to an increasingly congested urban existence.</p>
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Southern Highlands acreage estate pricing becomes volatile: HTW

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<p>A cooling off is occurring in Sydney's Eastern Suburbs residential market for properties especially at lower price points.</p>
<p>The eastern suburbs market is currently witnessing some mixed results which vary between market segments and property types, according to the June report from the valuation firm Herron Todd White.</p>
<p>The first quarter of 2018 started fairly stably however more recently has seen some softening in values, extended selling periods and auction clearance rates falling to 68.3% as of 27 May, compared to 79.4% at the same time last year, t.he report noted</p>
<p>The stronger sector of the market is currently good quality prestige houses in the $5 million to $10 million price range.</p>
<p>The reported quoted prominent eastern suburbs agent, Alexander Phillips, stating that “it’s harder to sell a $900,000 apartment by the beach than a house for $8 million in Bellevue Hill in the current market”.</p>
<p>As he points out, it’s just harder to borrow money, which is reducing the buying power for people looking for apartments.</p>
<p>“If you had a two bedroom apartment in Bondi open for $900,000 you’d get four or five groups, but if you had a house priced at $6 million or $8 million in Bellevue Hill you’d get 20 groups... there are just more buyers at that price point at the moment,” he said.</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/2018/6/15/6%20Latimer%20road%20Bellevue%20hill.jpg" alt=""></p>
<p>6 Latimer Road, Bellevue Hill which sold on 12th May for approximately $8,600,000 after the first open home and three days on the market (above). </p>
<p>"While the prestige housing sector remains somewhat stable, the general unit market is showing signs of market resistance compared to previous years", according to the valuation firm.</p>
<p>A Bellevue Hill unit was originally passed in at auction, then set an asking price of $929,000 which was further reduced to $890,000 and was then sold for $870,000.</p>
<p>"Although not a significant reduction, this is something very rarely seen in the eastern suburbs over the past several years," HTW noted.</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/2018/6/15/10-175%20Victoria%20Road%20Bellevue%20Hill.jpg" alt=""></p>
<p>10/175 Victoria Road Bellevue Hill is a typical 2 bedroom, 1 bathroom art deco unit (on a busy road) sold on 4th May for $870,000 after 85 days on the market (above).</p>
<p>Buyers have a more reserved attitude and HTW is forecasting that this will continue for the remainder of the year. </p>
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