<p><a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.</p>

<p>Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.</p>

<p>Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.</p>

<p>Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.</p>

<p>"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.</p>

<p>"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370898]</p>

<p>For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.</p>

<p>Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;</p>

<p>All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.</p>

<p>Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.</p>

<p>"It's a place to choose your pace and live gracefully, seaside'," Sander says.</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370900]</p>

<p>The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;</p>

<p>Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.</p>

<p>"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;</p>

<p>"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370897]</p>

<p>Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;</p>

<p>Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.</p>

<p>The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;</p>

<p>"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;</p>

<p>Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.</p>

<p>[smartcode_project:default project_id=150499 project_image_fid=370899]</p>

<p>Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.</p>

<p>Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.</p>

<p>[smartcode_project_cta:default project_id=150499]</p>


Joel Robinson

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

<p>Investors may soon find themselves with fewer reasons to buy established property and more incentives to look towards the new apartment market.</p>

<p>Proposed changes to negative gearing and capital gains tax concessions would see new and off-the-plan apartments retain access to the tax benefits, while established properties would miss out, creating a clear advantage for buyers purchasing newly built housing.</p>

<p>The policy direction aligns with what many developers have been saying for several years. Australia needs more housing supply, and governments are increasingly looking for ways to encourage investment into new stock rather than existing homes.</p>

<p>The challenge for investors is that suitable product is becoming harder to find.</p>

<p>For much of the last decade, one-bedroom apartments were the cornerstone of investor demand. They offered a lower entry price, strong rental appeal, and were a common feature across most apartment developments.</p>

<p>Today, the development pipeline looks very different.</p>

<p>Across both New South Wales and South East Queensland, developers are increasingly targeting owner-occupiers and downsizers, delivering larger two, three and four-bedroom apartments in response to changing buyer preferences. While one-bedroom apartments still exist, they now form a much smaller portion of many new projects.</p>

<p>That shift has created a shortage of investor-friendly stock, particularly in well-located projects close to transport, employment hubs and lifestyle amenity.</p>

<p>At the same time, rising apartment prices have pushed many new developments beyond the reach of traditional investors. On the Gold Coast and across South East Queensland, it's becoming increasingly difficult to find new apartments priced around the $1 million mark, particularly those offering strong rental fundamentals and long-term growth prospects.</p>

<p>We've rounded up four new apartment developments where investors can still secure a foothold in the market for around $1 million or less.</p>

<h2 data-end="1140" data-start="844">Flourish Soleira</h2>

<h2>Priced from: $1.07 million</h2>

<p data-end="1140" data-start="844">Popular Palm Beach developer Sherpa is soon to officially launch its newest local apartment development, Flourish Soleira.</p>

<p data-end="1140" data-start="844">The one-bedroom apartments in the building were only offered to first home buyers rather than investors, and all of those have been snapped up. The two-bedroom apartments will start from $1.07 million, and the three-bedrooms, still a good investment given the popularity of Palm Beach for owner-occupiers, starting at $2,045,000.</p>

<p data-end="1140" data-start="844">&nbsp;</p>

<p data-end="1140" data-start="844">[smartcode_project:default project_id=150017 project_image_fid=370964]</p>

<p data-end="1140" data-start="844">Flourish Soliera will comprise 153 apartments across two buildings, connected by a skybridge, the first ever delivered in the suburb.</p>

<p data-end="1140" data-start="844">True to Sherpa's booming Flourish brand of apartment projects, Flourish Soleira will have extensive rooftop amenity across both buildings including a&nbsp;wellness centre with gym, work from home, yoga, pilates, a&nbsp;heated pool, private dining rooms, pizza oven and barbecues, basketball court, and golf simulator.</p>

<h2><strong>Corallo, Palm Beach</strong></h2>

<p><strong>Priced from: $841,500</strong></p>

<p>Nearby Flourish Soleira is Changfa Group's beachfront-inspired Corallo development. They still have some one-bedroom apartments remaining, priced from $841,500.</p>

<p>The 105-apartment project on Palm Beach Avenue is otherwise dominated by larger two and three-bedroom residences, many of which are aimed at owner-occupiers and downsizers.</p>

<p>[smartcode_project:default project_id=112194 project_image_fid=808]</p>

<p>For investors, the appeal lies in Palm Beach's continued transformation from a laid-back beachside suburb into one of the Gold Coast's most sought-after residential markets. Residents at Corallo will be within walking distance of Palm Beach's surf beaches, the recreational amenity of Tallebudgera Creek, and the increasingly popular collection of cafes, restaurants and boutique retailers along the suburb's central dining precinct.</p>

<h2><strong>Corner House, Stones Corner</strong></h2>

<h2><b>Priced from: $880,000</b></h2>

<p>One of only two Brisbane apartment developments to make the list with prices under $1 million is DeMartini Fletcher's Corner House development in Stones Corner.</p>

<p>One-bedroom apartments start from $880,000 within the 88-apartment development, providing investors with exposure to one of Brisbane's most established inner-south locations.</p>

<p>[smartcode_project:default project_id=149098 project_image_fid=330594]</p>

<p>Stones Corner has long been supported by strong tenant demand due to its proximity to major employment and education destinations. The suburb sits less than five kilometres from Brisbane's CBD and is within easy reach of the Princess Alexandra Hospital, Greenslopes Private Hospital, Queensland Children's Hospital and several university campuses.</p>

<p>The project's location within a walkable urban village environment, surrounded by retail, dining and public transport infrastructure, continues to attract both professionals and healthcare workers seeking accommodation close to work.</p>

<p><strong>Parkdrive Apartments, Chermside</strong></p>

<p><strong>Priced from: $749,000</strong></p>

<p>The most affordable apartments across Brisbane's new and off the plan market are in Chermside where developer AusDev is selling one-bedroom apartments from $749,000, and two-beds from $929,000, at its recently launched Parkdrive development.</p>

<p>The development is strategically positioned in one of Brisbane's largest employment and retail precincts, placing residents within easy walking distance of Westfield Chermside, The Prince Charles Hospital, St Vincent's Private Hospital Northside and the suburb's major bus interchange.</p>

<p>[smartcode_project:default project_id=152125 project_image_fid=363782]</p>

<p>Already under construction and scheduled for completion in early 2028, Parkdrive benefits from Chermside's ongoing evolution into Brisbane's northern metropolitan centre. The suburb continues to attract significant public and private investment, supporting population growth and underpinning long-term rental demand.</p>

<p>For investors focused on yield and tenant depth, the combination of healthcare, retail and transport infrastructure within close proximity provides a strong foundation for occupancy and rental performance.</p>


Investors to turn to new apartments after Federal Government changes spark hunt for Queensland's best $1 million apartments

<p>A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.</p>

<p>The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=364156]</p>

<p>Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.</p>

<p>“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.</p>

<p>That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.</p>

<p>The absence of holiday letting within the building has also resonated strongly with purchasers.</p>

<p>“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366491]</p>

<p>The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.</p>

<p>“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.</p>

<p>“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366486]</p>

<p>Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.</p>

<p>Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.</p>

<p>A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.</p>

<p>The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.</p>

<p>&nbsp;</p>

<p>To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.</p>

<p>[smartcode_project_cta:default project_id=150454]</p>


Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

<p>Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.</p>

<p>The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.</p>

<p>The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371009]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.</p>

<p>The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.</p>

<p>Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371016]</p>

<p>Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.</p>

<p>Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371017]</p>

<p>Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.</p>

<p>The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371025]</p>

<p>Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.</p>

<p>The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.</p>

<p><sup>*Conditions apply in relation to the deposit match offer.</sup></p>

<p>[smartcode_project_cta:default project_id=139552]</p>


Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

<p data-end="181" data-start="0">Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.</p>

<p data-end="484" data-start="183">From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.</p>

<p data-end="657" data-start="486">Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.</p>

<p data-end="806" data-start="659">Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.</p>

<p data-end="871" data-start="808">“We know the buyer profile exceptionally well,” Abolakian says.</p>

<p data-end="1097" data-start="873">“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”</p>

<p data-end="1169" data-start="1099">That buyer has historically been overwhelmingly owner-occupier driven.</p>

<p data-end="1434" data-start="1171">Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.</p>

<p data-end="1533" data-start="1436">“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.</p>

<p data-end="1665" data-start="1535">“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”</p>

<p data-end="1721" data-start="1667">That philosophy extends well beyond apartment layouts.</p>

<p data-end="1966" data-start="1723">From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.</p>

<p data-end="2051" data-start="1968">“There was probably a period where having an approved project in market was enough,” he says.</p>

<p data-end="2154" data-start="2053">“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”</p>

<p data-end="2386" data-start="2156">“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”</p>

<p data-end="2386" data-start="2156">[smartcode_project:default project_id=110379 project_image_fid=311393]</p>

<p data-end="2549" data-start="2388">The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.</p>

<p data-end="2678" data-start="2551">For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.</p>

<p data-end="2757" data-start="2680">“People buying now often aren’t moving in for several years,” Abolakian says.</p>

<p data-end="2949" data-start="2759">“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”</p>

<p data-end="3219" data-start="3163">That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.</p>

<p data-end="3219" data-start="3163">[smartcode_project:default project_id=149594 project_image_fid=362634]</p>

<p data-end="3454" data-start="3221">While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.</p>

<p data-end="3546" data-start="3456">“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”</p>

<p data-end="3919" data-start="3669">That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.</p>

<p data-end="4005" data-start="3921">“It’s about creating something that feels special without being excessive,” he says.</p>

<p data-end="4112" data-start="4007">“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”</p>

<p data-end="4112" data-start="4007"><img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" /></p>

<p data-end="4243" data-start="4114">The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.</p>

<p data-end="5230" data-start="5149">“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.</p>

<p data-end="5392" data-start="5232">“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”</p>

<p data-end="5674" data-start="5394">Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.</p>

<p data-end="5723" data-start="5676">“There are definitely people waiting,” he says.</p>

<p data-end="5902" data-start="5725">“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”</p>

<p style="text-align:start">Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.</p>

<p style="text-align:start">Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.</p>


Why Hyecorp continues to back Sydney's Lower North Shore apartment market

Residential Property

<html><body>
<p><span>The number of residential vacancies nationally fell during February, recording a vacancy rate of 2.3 percent, and 70,161 vacancies, latest figures from SQM Research show. </span></p>
<p><span>Year-on-year results demonstrate that national vacancies appear to be slightly above the common seasonal trends expected at this time of year.</span></p>
<p><span>Melbourne had the largest monthly fall, with vacancies falling 0.5 percentage points in February. Brisbane, Canberra, Sydney and Darwin also experienced monthly falls, with percentage points down 0.2 percent.</span></p>
<p><a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.32%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.32%20PM.png" alt=""></p>
<p><span>Despite this, both Darwin and Perth continue to record an alarming number of vacancies, compared with this time last year (February 2015).</span></p>
<p><span>February results for Hobart reveal the tightest rental market recording a vacancy rate of just 0.9% based on just 239 vacancies, the data shows.</span></p>
<p><span><strong>Asking rents</strong></span></p>
<p><span>Perth has recorded ongoing falls in asking rents of 10.5% for houses and 9.1% for units over the past 12 months. Darwin also saw yearly falls, with asking rents down 10.3% for houses and 11.2% for units. Hobart continues to record the most affordable rental accommodation with rents for houses at just $337 a week, while units on average rent for $286 a week.</span></p>
<p><span>“Overall, there was a noticeable fall in vacancies for the month driven by Melbourne and Sydney. However, year on year vacancies are still edging up for the country and we think this will still be the trend going forward. The cities and townships most exposed to the commodities downturn are causing this yearly rise. On the flip side Melbourne, Hobart and Canberra are all recording downward trends in vacancies now and this is resulting in upward pressure in rents for these three cities,” said Louis Christopher, managing director of SQM Research.</span></p>
<p><span>The calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties. </span></p>
<p><span>Key Points</span></p>
<p><span>* Nationally, vacancies fell during February 2016, recording a vacancy rate of 2.3%, based on 70,161 vacancies.</span></p>
<p><span>* Perth recorded the highest vacancy rate in February 2016 of 3.9% based on 7,819 vacancies.</span></p>
<p><span>* Vacancy rates in Sydney have fallen 0.1 percentage points over the last year.</span></p>
<p><span>* Year-on-year, vacancy rates dropped in Sydney, Canberra, Melbourne and Hobart.</span></p>
<p><span>* Hobart recorded the lowest vacancy rate during February 2016, with a rate of 0.9% based on 239 vacancies.</span></p>
<p><span>* Over the past 12 months, Perth asking rents have also experienced excessive yearly falls with houses down 10.5% and a 9.1% fall for units.</span></p>
<p><a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.47%20PM.png" target="_blank"><span> Click to enlarge</span></a></p>
<p><span><img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.47%20PM.png" alt=""></span></p>
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prateek24-ezbwHMbNAk

Melbourne leads the fall in February residential vacancies: SQM Research 

<html><body>
<p><span>The REIV has released details on the suburbs with the top growth in median unit prices in the December Quarter 2015. </span></p>
<table dir="ltr" border="1" cellspacing="0" cellpadding="0">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='[null,2,"Suburb"]'>Suburb</td>
<td data-sheets-value='[null,2,"Dec-15 Median"]'>Dec-15 Median</td>
<td data-sheets-value='[null,2,"Sep-15 Median"]'>Sep-15 Median</td>
<td data-sheets-value='[null,2,"Quarterly Change"]'>Quarterly Change</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"COBURG"]'>COBURG</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,540000]">$540,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,461000]">$461,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.171]">17.1%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"ST KILDA"]'>ST KILDA</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,530000]">$530,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,455000]">$455,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.165]">16.5%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"PRAHRAN"]'>PRAHRAN</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,555000]">$555,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,483000]">$483,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.149]">14.9%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"BALWYN"]'>BALWYN</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,892500]">$892,500</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,781000]">$781,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.143]">14.3%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"CLAYTON"]'>CLAYTON</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,622500]">$622,500</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,547500]">$547,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.137]">13.7%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"ELSTERNWICK"]'>ELSTERNWICK</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,589750]">$589,750</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,531000]">$531,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.111]">11.1%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"MOUNT WAVERLEY"]'>MOUNT WAVERLEY</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,795000]">$795,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,727500]">$727,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.093]">9.3%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"BRIGHTON EAST"]'>BRIGHTON EAST</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,1005000]">$1,005,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,925000]">$925,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.086]">8.6%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"MELBOURNE"]'>MELBOURNE</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,497500]">$497,500</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,460000]">$460,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.082]">8.2%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"RINGWOOD"]'>RINGWOOD</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,502500]">$502,500</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,465000]">$465,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.081]">8.1%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"FRANKSTON"]'>FRANKSTON</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,336000]">$336,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,312000]">$312,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.077]">7.7%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"BENTLEIGH"]'>BENTLEIGH</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,890000]">$890,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,828750]">$828,750</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.074]">7.4%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"MENTONE"]'>MENTONE</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,556000]">$556,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,520000]">$520,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.069]">6.9%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"FITZROY"]'>FITZROY</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,660000]">$660,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,617500]">$617,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.069]">6.9%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"BRUNSWICK"]'>BRUNSWICK</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,504750]">$504,750</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,472500]">$472,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.068]">6.8%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"GLENROY"]'>GLENROY</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,445000]">$445,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,418000]">$418,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.065]">6.5%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"CHELTENHAM"]'>CHELTENHAM</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,605000]">$605,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,570000]">$570,000</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.061]">6.1%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"NORTH MELBOURNE"]'>NORTH MELBOURNE</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,548500]">$548,500</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,518500]">$518,500</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.058]">5.8%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"ST KILDA EAST"]'>ST KILDA EAST</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,555000]">$555,000</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,526250]">$526,250</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.055]">5.5%</td>
</tr>
<tr>
<td data-sheets-value='[null,2,"NOBLE PARK"]'>NOBLE PARK</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,372500]">$372,500</td>
<td data-sheets-numberformat='[null,4,"\"$\"#,##0",1]' data-sheets-value="[null,3,null,353750]">$353,750</td>
<td data-sheets-numberformat='[null,3,"0.0%",1]' data-sheets-value="[null,3,null,0.053]">5.3%</td>
</tr>
</tbody>
</table>
<p>Only suburbs with at least 25 sales in the relevant quarter are included.</p>
<p><em>Property Observer</em> went looking for recent unit sales in Victoria's Coburg around the median price and came up with a few:</p>
<p><img src="/images/2016/03/3/image8.jpg" alt="" width="671" height="503"></p>
<p>1. A three-bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-coburg-121309090" target="_blank">103C/41-43 Stockade Avenue</a> (above) sold in December for $514,750 </p>
<p> <img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%204.45.12%20PM.png" alt="" width="609" height="370"></p>
<p>2. A two-bedroom unit at <a href="https://realestateview.com.au/real-estate/30-shaftsbury-street-coburg-vic/property-details-sold-residential-9411030" target="_blank">7/30 Shaftsbury Street</a> was sold for $553,000.</p>
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jchancellor-FAypfDUnLy

Coburg apartments top median price growth: REIV

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<p>GUEST OBSERVER</p>
<p>Consider this: ‘Investor A’ and ‘Investor B’ both purchased separate properties for $400,000 each. <span style="line-height: 1.3em;">Fast forward to fifteen (15) years’ time and ‘Investor A’s’ property is worth $600,000 while ‘Investor B’s’ property is worth $800,000. </span></p>
<p><span style="line-height: 1.3em;">Which property will make a greater contribution to the investor’s retirement?</span></p>
<p>The answer to this question is very logical however, the initial decision making process for a lot of investors is far from logical.</p>
<p>Decision making is a refined skill. Really good decision making starts by first exploring what ALL of your options are. Often, it won’t be obvious to people what all those options are – one can’t know what they don’t know – so seeking the advice of a genuine specialist will expose us to more options. There can be very few more important financial decisions than picking the right property to invest in.</p>
<p>Property investors ought to first start their decision making process by acknowledging that [as at 2015] there are 9.6 million properties. That’s a lot of choices.</p>
<p><a href="/images/2016/03/3/A_PropertyChoices.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/3/A_PropertyChoices.jpg" alt=""></p>
<p>Historically speaking, Australia has built on average 160,000 new dwellings each year. Over the last few years, this figure has increased to around 200,000 new dwellings per year. For the purpose of the exercise, let’s say that 180,000 new dwellings are added to the existing pool of 9.6 million dwellings each year. </p>
<p>Now, it is true that there are bigger tax deductions (depreciation benefits) to claim on brand new property. But, depreciation deductions can also be significant on established properties, too.</p>
<p>At the end of the day though, taxation benefits should not be any investor’s primary reason for investing. While we all want to take advantage of every benefit available, the primary reason for investing is to accumulate a big enough net asset base so that, in the future, we have sufficient passive income without relying on work.</p>
<p>Common sense suggests that ‘Investor B’ referred to earlier is better placed than ‘Investor A’.</p>
<p>Investors need to avoid being ‘lured’ in to the features-and-benefits that property promoters refer to when trying to sell new property.</p>
<p>The sale price of a brand new property typically includes a 40% loading for taxes associated with the initial construction. When compared to the price of a comparable established property, the owner of a new property is behind the eight-ball from Day 1.</p>
<p>Remember, all brand new properties become subject to wear-and-tear anyway. And, unlike machinery, properties don’t have a ‘used by date’ – as properties change hands they are often renovated. A property within my own portfolio is 104 years old and I have incurred less outgoings for repairs and maintenance than many other properties which are decades newer.</p>
<p>An astute property investment decision starts by reviewing the supply-and-demand investment fundamentals of the markets of Australia’s 550 local government jurisdictions – 100% of your options – not by limiting your potential to 2% of your choices (new properties).</p>
<p> </p>
<p><em>Simon Pressley is Managing Director of Propertyology, a REIA Hall Of Fame Inductee, property market analyst, accredited property investment adviser, and Buyer’s Agent. </em><a href="https://www.propertyology.com.au/more-than-a-buyers-agent/" target="_blank"><em>Propertyology works exclusively with property investors</em></a><em> to purchase properties in strategically chosen locations all over Australia.</em></p>
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spressley-sBoeMhannA

Why investors like old property not new: Simon Pressley

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<p>The Reserve Bank of Australia released its Financial Aggregates data for January 2016, which showed credit growth of +6.5 percent in the year to January 2016, a steady increase on the +6.1 percent recorded for the year to January 2015.</p>
<p><a href="/images/2016/03/RBA2.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/03/RBA2.jpg" alt=""></p>
<div>Total annual housing credit growth has slowed a bit from its recent peak of +7.47 per cent in November 2015 to +7.33 per cent in January 2016, reflecting in part the shift in composition of lending from investors to owner-occupiers. </div>
<div> </div>
<div>Investor credit growth is now well below APRA's arbitrary +10 per cent threshold at just +7.9 per cent and consistently slowing from +11 per cent in June, meaning that theoretically major banks could in due course start to ramp up lending into this sector should they feel the urge to do so. </div>
<div> </div>
<div>Of course, any such move would be dependent upon a range of regulatory factors, and whether APRA has the appetite to loosen its throttle.<br><br>Meanwhile owner-occupier annual credit growth recorded another significant jump in surging to a 64 month high of +6.95 per cent, with homebuyers looking to take advantage of attractive mortgage rates.</div>
<div> </div>
<div><a href="/images/2016/03/RBA1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/RBA1.jpg" alt=""></div>
<div> </div>
<div><span>Deposit growth seems to present few headaches for banks right now. While term deposits have been understandably less popular in the prevailing low interest rate environment, total deposits with banks have expanded in a robust manner over the year to January. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/03/RBA3.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/03/RBA3.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Business credit</span></strong></div>
<div> </div>
<div>Business credit grew by +6.2 per cent in the year to January 2016, up from +5.5 per cent in the year to January 2015. It is as yet unclear whether this is the end of the uptrend for business lending growth, or a blip in the upwards trajectory. </div>
<div> </div>
<div><a href="/images/2016/03/RBA4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/RBA4.jpg" alt=""></div>
<div> </div>
<div>
<strong><span style="text-decoration: underline;">Housing credit</span></strong><br><br><span>The chart below shows how lenders in the housing market have conveniently managed to shift almost seamlessly away from investment lending to owner-occupier credit, with a bit of reclassification jiggery-pokery along the way.</span><br><br><span>In fact, the data submitted by lenders makes it look as though the chart has been drawn up on an Etch-A-Sketch.</span>
</div>
<div><span> </span></div>
<div><a href="/images/2016/03/RBA5.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/03/RBA5.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div>Total housing credit continued to push beyond $1.53 trillion, growing at an annual pace of +7.33 per cent, although naturally there are marked differences between the states and capital cities, with some faring much better than others.<br><br>There have been a few pro-equities articles today discussing "plummeting" lending and investors "leaving the market in droves".<br><br>That's interesting, but it's not what I'm seeing. Don't forget that housing credit expanding at a pace of +7 per cent implies a doubling in outstanding credit over a decade.<br><br>It's all in the marketing, I guess.</div>
<div> </div>
<div><a href="/images/2016/03/RBA6.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/03/RBA6.jpg" alt=""></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div> </div>
<div>Credit growth was fairly steady in January, with owner-occupiers continuing to pick up the baton from investors within the housing sector.</div>
<div> </div>
<div>A key question going forward will be whether having managed to push investor credit growth below its preferred +10 per cent threshold APRA releases its grip on investor lending at all. </div>
<div> </div>
<div>As APRA's data last week showed, the overwhelming majority of property buyers these days have substantial deposits, the question is whether tougher criteria are to be maintained surrounding mortgage serviceability. </div>
<div> </div>
<div>Another key factor could be movements in the cash rate, with interest rate cuts potentially set to stimulate demand for mortgage borrowing further, although it appears likely that lenders would hold back 10bps to15bps of a prospective 25bps interest rate cut.</div>
<div> </div>
<div>Adding to the parts of GDP we already know such as net exports, the Business Indicators released by the ABS this morning including inventories (-0.4), wages (+0.5), and company profits (-2.8), each suggested that headline GDP growth for the fourth quarter of 2015 is likely to be weak. </div>
<div> </div>
<div>These GDP partials may prove to be another tack in the coffin for the next movement in interest rates being down. </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>
</div>
</div>
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pwargent-M4siyDbqQY

Owner-occupiers lead housing lending: Pete Wargent

<html><body><div>
<p>Share markets in Australia have had a horror start to 2016 following weak performance in 2015.</p>
<p>Market losses are leading some investors to query whether to look elsewhere for investment.</p>
<p>Amid market volatility, some Australians will be eyeing residential property as a safer haven for their investments, not withstanding the likelihood of reform to the longstanding negative gearing system.</p>
<p>The prospects for Australian property over the coming year also mixed.</p>
<p>So what should you consider when reviewing your asset portfolio?</p>
<p>To download our handy guide from DPN to help aid your decision, <a href="/images/2016/DPN_ebook/DPN.pdf" target="_blank">click here</a>.</p>
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po-LsXgBTHBmX

Property v Shares

<html><body>
<p><span>The Turnbull government has rejected Labor's policy to restrict negative gearing to new properties.</span></p>
<p><span>It now plans to target high-end investors by either capping the number of properties that can be geared or limiting the annual tax deductions of which can be claimed.</span></p>
<p><span>The Coalition is now pursuing negative gearing, superannuation and tax deductions for savings after plans for an increased GST were ditched.</span></p>
<p><span>"We've seen that they've converted tax reform into a cupcake process. The big reform is off the table. Clearly they're looking at options," Property Council chief executive Ken Morrison said.</span></p>
<p><span>Master Builders of Australia chief executive Wilhelm Harnisch took aim at Labor's policy saying it was a populist response.</span></p>
<p><span>"Investing in new private rental housing is not evil," he said.</span></p>
<p><span>Labor says its policy will raise $32 billion over 10 years, but just $570 million in the first four.</span></p>
<p><span>Treasurer Scott Morrison told <em>The Australian Financial Review</em> on Sunday that Labor's policy would focus all investors into the new housing market, making it harder for so-called "everyday mum and dad investors" to buy new houses or units off the plan.</span></p>
<p><span>This, he said, would intensify the inequity caused by negative gearing in which first homebuyers struggle to compete against cashed-up investors.</span></p>
<p><span>"Labor thinks all people who negatively gear are property barons to be fleeced."</span></p>
<p><span>On Saturday, Bill Shorten announced that a Labor government, if elected, would move change the rules so that only new homes purchased after July 1, 2017, could be negatively geared.</span></p>
<p><a href="/images/2016/02/15/Screen%20Shot%202016-02-05%20at%209.37.06%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2016/02/15/Screen%20Shot%202016-02-05%20at%209.37.06%20AM.png" alt=""></span></p>
<p><span>There would be no limit on the number of new properties that could be geared. Existing investors would not be affected by the changes.</span></p>
<p><span>Labor will also halve from 50 percent to 25 percent the capital gains tax deduction for investors who sell a property after holding it for at least 12 months.</span></p>
<p><span>On Sunday, shadow treasurer Chris Bowen reinforced Labor's reasoning that its policy would cause a boom in new home construction.</span></p>
<p><a href="/images/2016/02/15/Screen%20Shot%202016-02-05%20at%209.37.17%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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Scott Morrison targets high end negative gearing residential property investors

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<p><span style="line-height: 1.3em;">NewsLocal has launched a real estate portal geared towards Chinese-Australian audiences led by NewsCorp NSW real estate editor Tim McIntyre.</span></p>
<p><a href="https://sydneypropertyexperts.com" target="_blank"><em style="line-height: 1.3em;">SydneyPropertyExperts.com</em></a><span style="line-height: 1.3em;"><a href="https://sydneypropertyexperts.com" target="_blank">,</a> written in both Chinese and English, covers </span><span style="line-height: 1.3em;">market trends, new developments, suburb hotspots and foreign investment issues and is written by real estate experts </span><span style="line-height: 1.3em;">Shayne Collier, Brendan Wong, Erin Forster and Alison Cheung. </span></p>
<p><span style="line-height: 1.3em;"><img src="/images/2016/02/12/Screen%20Shot%202016-02-12%20at%202.02.08%20PM.png" alt=""></span></p>
<p><span style="line-height: 1.3em;">NewsLocal editor-in-chief Kathy Lipari said</span><span style="line-height: 1.3em;"> there is a gap in the market for expert real estate content and analysis tailored specifically to our Chinese-Australian audiences. </span></p>
<p><em style="line-height: 1.3em;">"SydneyPropertyExperts.com </em><span style="line-height: 1.3em;">utilises the expertise and resources of the NewsLocal real estate team to provide comprehensive information in both English and Chinese to Chinese real estate buyers," she said. </span></p>
<p>NewsLocal general manager Michael Wilkins said <em>SydneyPropertyExperts.com </em>is a true cross-platform experience for our audiences.</p>
<p>"We have listened to the feedback from our readers and the real estate team and are excited to deliver this unique in-language product to the market,” he said. </p>
<p><em>SydneyPropertyExperts.com </em>will feature an investment section, featured properties, market reports, ask the experts, development and the latest news.</p>
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NewsLocal targets Chinese community with new real estate website

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<div class="column"><span style="line-height: 1.3em;">GUEST OBSERVER</span></div>
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<div class="column"><span style="line-height: 1.3em;">The past week has been a turning point in the economic cycle. A raft of strong indicators has confirmed that economic momentum is picking up, reducing the need for lower interest rates. Data this week has shown strong employment growth, increased consumer confidence and solid business conditions. And the latest figures out today show that lending has hit 71⁄2 year highs, underpinned by stronger borrowing by businesses. </span></div>
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<br><span style="line-height: 1.3em;">If businesses are borrowing and employing more staff then they are likely spending and investing. Businesses are clearly more confident and embracing opportunities again.</span>
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<br><span style="line-height: 1.3em;">The Reserve Bank has patiently waited for businesses to get their mojos back. Well, it’s happening. A more stable political and economic environment has laid the groundwork for businesses to get back to business.</span>
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<br><span style="line-height: 1.3em;">It’s taken some time but new loans are almost back to record levels. But while businesses are less fearful about taking on debt, consumers remain cautious. Credit card debt is still lower than a year ago and personal lending is falling in trend terms near the fastest pace in almost four years.</span>
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<br><span style="line-height: 1.3em;">Aussie consumers are only really prepared to take on debt to buy cars (more generally, new cars) and homes. New loans to buy cars hit record highs over the year to September while new housing loans were also at historic highs over the same period. </span>
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<div class="column"><a href="/images/2015/11/13/Screen%20Shot%202015-11-13%20at%202.22.19%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
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<p><span>What do the figures show? </span></p>
<p><span>Credit card lending: </span></p>
<p><span>Figures released from the Reserve Bank show that the average credit card balance rose by $5.20 (0.2%) to $3,135.70 in August. Compared with a year ago, the average credit card balance was down 1.5%. In smoothed terms (12 month average) the average balance was down by 0.7% – the biggest fall in 13 months.</span></p>
<p><span>Of credit cards attracting interest charges, the average outstanding balance fell by $11.80 in September to a near 10-year low of $1,979.00. The average balance accruing interest is down by 6.8% on a year ago. In smoothed terms (12 month average) the average balance was down by 5.0% on a year ago – an 11-month low.</span></p>
<p><span>The average credit card limit rose by $5.80 (or 0.1%) to $9,067.70 in September. The average credit card limit rose by 0.2% in the year to September. </span></p>
<p><span>Usage of credit card limits lifted from a 14-year low of 34.5% in August (lowest since November 2001) to 34.6% in September.</span></p>
<p><span>The average repayment per credit card rose from $1,599.10 to $1,610.10 in September. On average, there were 11.8 transactions made per each credit card account in September, up from 11.6 a year ago. The average value of purchases was $128.01 in September with the rolling annual average up from a 101⁄2 year low of $130.96 to $131.29 in September.</span></p>
<p><span>The number of cash advances recorded a 1.3% annual fall in smoothed (12-month average) terms in September.</span></p>
<p><span>Debit card lending</span></p>
<p><span>The number of debit card accounts rose by 3.7% in the year to September to 41.0 million.</span></p>
<p><span>The number of purchases and cash-out transactions made with debit cards in August were up by 12.8% on a year ago. The annual growth rate has averaged 12.0% over the past two years.</span></p>
<p><span>On average there were 8.9 transactions made per debit card in September, up from 8.2 a year ago. The average value of a transaction was $53.26 with the rolling annual average at $53.91 – a record (12-year) low.</span></p>
<p><span>Lending finance</span></p>
<p><span>Total new loans (personal, business, housing &amp; lease) rose by 6.4% in September to a 71⁄2-year high of $75.3 billion. It was the biggest monthly rise in lending in eight months.</span></p>
<p><span>Housing finance: The seasonally adjusted measure of construction and new purchases rose by 3.0% in September while alterations &amp; additions rose by 0.9%. Home loans are up 22.9% on a year.</span></p>
<p><span>Commercial finance: The seasonally adjusted series for the value of total commercial finance commitments rose by 9.5% in September after falling by 4.1% in August and falling by 4.3% in July. Revolving credit commitments rose by 8.7% while fixed lending commitments rose by 9.8%. Business loans are up 14.1% over the year.</span></p>
<p><span>Personal finance: The seasonally adjusted series for the value of total personal finance commitments fell by 0.8% in September, the third straight fall. Revolving credit commitments rose by 3.0% and fixed lending commitments fell by 3.2%. Personal loans are down 3.4% over the year. Within personal fixed finance commitments, finance for used cars was down 1.8% on a year earlier while loans for new cars were up by 12.4%. Loans for residential blocks of land were down by 14.8% on a year ago – the 11th consecutive annual decline.</span></p>
<p><span>Lease finance: Lending fell by 0.5% in September. Lease finance rose by 8.8% over the year. </span></p>
<p><a href="/images/2015/11/13/Screen%20Shot%202015-11-13%20at%202.32.31%20PM.png" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/11/13/Screen%20Shot%202015-11-13%20at%202.32.31%20PM.png" alt="" width="453" height="151"></span></p>
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<span style="line-height: 1.3em;">What is the importance of the economic data?</span><br><p style="line-height: 1.3em;">The Reserve Bank releases data on credit and debit card transactions each month. The credit card figures are <span style="line-height: 1.3em;">useful in highlighting consumer borrowing and spending trends.</span></p>
<p style="line-height: 1.3em;">Lending Finance is released monthly by the Bureau of Statistics and contains figures on new housing, personal, commercial and lease finance commitments. The importance of the data lies in what it reveals about the appropriateness of interest rate settings, confidence and spending levels in the economy.</p>
<p style="line-height: 1.3em;"><span style="line-height: 1.3em;">What are the implications for interest rates and investors?</span></p>
<span style="line-height: 1.3em;">Businesses are borrowing again – but they are taking on debt quietly and with purpose. Consumers are also thoughtful when it comes to debt – there is clearly an inherent degree of conservatism involved.</span>
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<br><span style="line-height: 1.3em;">The latest lending data is encouraging for investors of banks and other finance providers.</span>
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<div class="column"><span style="line-height: 1.3em;">The latest data confirms that the Reserve Bank can stay on the interest rate sidelines. </span></div>
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<div class="column"><a href="/images/2015/11/13/Screen%20Shot%202015-11-13%20at%202.43.48%20PM.png" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
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<div class="column"><em>Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</em></div>
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cjames-5S2v74qSNK

New lending hits 71⁄2-year highs: CommSec's Craig James

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<p><span>Outside investors have shrunk considerably as a force in the Cairns market, according to Herron Todd White.</span></p>
<p><span>The valuation firms analysis suggests outsiders buying into Cairns have deceased from nigh on 50% of the market in 2003 down to around 22% of the market today.</span></p>
<p><span>They say that the switch is especially noticeable for units, where outside buyers have reduced in activity from near 70% in the heyday of the market in 2003 to approximately 36% of a much smaller market in 2015.</span></p>
<p><span>"The flip side is that the Cairns market these days is being sustained primarily by intending occupiers and a smattering of local investors.</span></p>
<p><span>"Over the same twelve year period, investor yields have improved from 6.3% to 6.8% for units and 3.6% to 4.9% for houses, though it must be said that the increased yield has in many cases been more than frittered away by higher ownership costs, particularly through escalated building insurance charges."</span></p>
<p><span>The report suggests that part of the explanation for the investor slowdown over the period has been the slowdown in new housing construction, especially of units.</span></p>
<p><span>"The absence of large unit developments has seen the absence of new units targeting out of town investors by project marketing specialists.</span></p>
<p><span>"Even though building conditions have improved significantly in Cairns over the past three years, building conditions are still patchy and only a fraction of normal.</span></p>
<p><span>"By rights Cairns should be returning as an investment hotspot given its relative affordability, especially compared to investment in the capital cities, and its good prospects as the economy continues to improve on the back of increased tourism.</span></p>
<p><span>The review showed that this is evidenced by the Golden Lakes unit development which commenced marketing earlier this year and has seen most of its first stage of 74 units sell to Chinese buyers.</span></p>
<p><span>"In addition the seven-tower Aspial Nova 8 development in the CBD, likely to ultimately consist of over 1,100 residential units, is also poised to commence its first stage development aimed largely at investor buyers."</span></p>
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jrobinson-rf4aSBido9

Outside investors shrink from 50% to 22% in Cairns: HTW

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<p><span>The rate of dwelling price growth across the capital cities slowed from 11.5% to 7.4% between April 2014 and March 2015, according to the latest r</span><span style="line-height: 1.3em;">esearch note from the Housing Industry Association, Perspectives on Australian Dwelling Prices.</span></p>
<p><span>The report found since March the pace of aggregate dwelling price growth increased to 10.1% during October 2015. </span></p>
<p><a href="/images/2015/11/5/Screen%20Shot%202015-11-05%20at%2011.46.16%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/11/5/Screen%20Shot%202015-11-05%20at%2011.46.16%20AM.png" alt=""></p>
<p><span>HIA senior economist </span><span style="line-height: 1.3em;">Shane Garrett said </span><span style="line-height: 1.3em;">the current market is quite polarised in terms of dwelling price growth. </span></p>
<p><span style="line-height: 1.3em;">"Two of the eight capital cities have seen prices drop over the past year, while two are experiencing growth at double-digit rates," he said.</span></p>
<p><span style="line-height: 1.3em;">"Tellingly, no capital city currently </span><span style="line-height: 1.3em;">lies in the ‘middle </span><span style="line-height: 1.3em;">ground</span><span style="line-height: 1.3em;">’ </span><span style="line-height: 1.3em;">price growth band of between 5% and 10%.</span></p>
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<p><span>"With respect to dwelling price growth, the situation in Australia is currently quite unique, with a significant gap between the high growth markets (Sydney and Melbourne) and those cities experiencing falling prices."</span></p>
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