Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

Robert Simeon

<html><body>
For those predicting housing values to start dropping in the near future you should start rethinking that analysis.
Of course, the newly created investment market is facing severe headwinds and yes, it would be fair to assume that there will be a correction should a large number default on their respective acquisitions.
The mistake many continue to make is that housing affordability is actually about the established markets of households not the investment market.
If you were asked a simple question for those residing in NSW, do you want a second Sydney Airport or high-speed rail connecting Newcastle to Sydney, the Hunter Valley to Sydney and Wollongong/Southern Highlands to Sydney I am pretty sure what the answer would be.
With the second Sydney Airport estimated to cost between $6 and $8 billion it is comical that a second airport is prioritised over high-speed rail networks.
Everybody aside from politicians can see that high-speed rail networks would have an instant effect on housing affordability in NSW.
For those who disagree NSW is facing major problems over the upcoming decade that require immediate attention.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.17%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.17%20am.jpg" alt="">
As a direct result of what is happening to Sydney rental markets and housing markets we are now starting to see the exodus of NSW residents to the more affordable Victorian markets.
This is happening to such an extent that Melbourne will surpass Sydney in terms of population to seize the title as Australia’s biggest and number one city.
<a href="https://www.propertyobserver.com.au/images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.40%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/02/Screen%20Shot%202017-06-02%20at%2010.59.40%20am.jpg" alt="">
It has been well documented that since that Sydney 2000 Olympics there has been next to no forward planning which explains exactly why Sydney is now overcrowded with our transport infrastructure at breaking point.
What makes this even worse is that there are no viable solutions – no drawing boards.
This then leads to the population considering alternate solutions to relocate simply because the financial pressures have become untenable.
NSW has had no succession planning where vision has simply been ignored, and now it is starting to pay the price for that ignorance.
In the established property markets we are now at levels never seen before.
Only last week, a garden apartment that was sold in Cremorne in September 2016 for $1,582,000 sold again less than eight months later for $1,970,000.
At a federal level, we are now witnessing the lowest annual growth rates in terms of government spending since the 1960’s.
Federal government overheads keep increasing so we are now witnessing cutbacks that will seriously damage growth as infrastructure continues to be ignored.
There is no collaboration between the states and territories with Canberra and this is fracturing growth given population growth continues to climb to record highs.
If elected politicians started displaying signs that Sydney was full 17 years ago then what do you think they should be displaying now?
With the federal government tightening the spending belts then the states and territories will start cancelling future projects simply because there is no available funding.
The latest Australian Bureau of Statistics figures reveal that approximately 2.3 million Australians earn the lowest legal rate of pay for what they perform.
Recently the Reserve Bank of Australia commented that “wage growth is low.
Although it seems unlikely that wage growth will slow much further, wage pressures are expected to pick up only gradually.”
There has been next to no political commentary about wage growth where one would think that elected politicians would make this a priority to find out exactly why Australia has such weak wage growth?
With record low wage growth how is it possible that we can have record high property rentals?
The Property Council of Australia recently released a five-point plan to assist the NSW government with housing affordability.
<ul>
<li>Turbocharging housing supply through increased land supply and planning reform.</li>
<li>Reforming state property taxes and reducing fees, charges, and red tape.</li>
<li>Better co-operation between all levels of government.</li>
<li>Bridging the deposit gap and supporting first home buyers better.</li>
<li>Supporting the rental market and fostering innovative, affordable rental product.</li>
<li>Whilst fine in principle – this simply won’t happen.</li>
</ul>
Sydney has a massive problem with no clear solutions in the short-term.
Common sense needs to prevail so put the second Sydney Airport on immediate hold and start building fast-train networks.
I am yet to see a better solution to tackle housing affordability. Have you?
MOSMAN – 2088
Number of houses on the market this time last year – 51
Number of houses on the market last week –56
Number of houses on the market this week –57
Number of apartments on the market this time last year – 41
Number of apartments on the market last week – 40
Number of apartments on the market this week –38
CREMORNE
Number of houses on the market this time last year – 10
Number of houses on the market last week – 6
Number of houses on the market this week – 9
Number of apartments on the market this time last year – 18
Number of apartments on the market last week – 16
Number of apartments on the market this week – 18
NEUTRAL BAY – 2089
Number of houses on the market this time last year – 8
Number of houses on the market last week – 2
Number of houses on the market this week – 3
Number of apartments on the market this time last year –23
Number of apartments on the market last week –21
Number of apartments on the market this week – 19
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog<a href="https://www.rwm.com.au/"> </a><a href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000.
</body></html>

robertsimeon-hRNTwJyXkQ

Politicians are doing nothing to fix housing affordability: Robert Simeon

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Negative gearing is safe for the short-term and definitely gone for the long-term simply because we are witnessing housing dynamics that have never been seen before. 
Both federal and state governments know that it’s imperative to drive Australia’s population at rates never seen before because this drives revenue.
Federally, the Abbott government is struggling to get over the mining boom demise, especially when it relates to debt and deficit.
This week I read a comment by Craig James: “Over the last 65 years the federal budget has been in deficit 71% of the time with the average deficit 0.9% of GDP."
Now back to the housing dynamics which is win, win, win for the NSW government and woe, woe, woe for the federal government. Last week <a href="https://www.rwm.com.au/2015/04/17/hold-whats-going/" target="_blank" title=" Hold – on, what’s going on here">I wrote</a>: “Secondly the big property market mover in Sydney especially is the rezoning of high density residential land into new developments. Previously this was a domain dominated by Australian developers who now can’t compete with the Asian developers. Given that it’s legal to buy new off the plan, these developments are then resold exclusively in Asia.”
The NSW government is only too well aware that the booming real estate markets are its “rivers of gold” – these revenues are vital to ensure a budget surplus is maintained and more particularly as the government is about to embark on the greatest infrastructure spend in NSW history.
In order to balance the books and remain the most prosperous state/territory in Australia the NSW government is focussed on two revenue streams – stamp duty and land tax. To make this happen NSW will see a development explosion of apartment developments with the NSW government’s blessing. It knows only too well that Asian developers are all over Sydney developments given they have enormous offshore markets to capitalise on. The business model is quite simple – the government will drive infrastructure predominately from the sale of the wires and poles and the developers will follow Pied Piper-style.
For this to happen the NSW government needs to change the mentality of local councils whom for generations have been anti-development and protective of the suburbs cultural and environmental heritage. So what the NSW government is now doing is trying to entice councils to merge so that it will then be easier to abandon the community mentality and embark on massive highrise developments. It’s all about the revenues from the developers and the ongoing stamp duty and land tax trails.
Now this may be fine for the NSW government which has just been re-elected for another four year term but it spells disaster for the federal government given the concentration is on investors who no doubt will want to remain deeply immersed in negative gearing. It also means that rents will fall although we must not forget that in the background we will see a massive population drive.
Naturally there will be a massive movement from those who were previously employed in the mining sector who will then migrate into the building and construction sector.
By all reports Sydney and surrounding areas are now on the cusp of a massive construction/real estate boom which I might point out is totally different to a property boom. This is a property investor’s boom which is completely different to the household boom which is exactly what we have been witnessing of late. The majority of the investors will come from offshore combined with Australian resident investors who will be all over the high density rezoning that we are currently witnessing.
Now many will be massively against this massive construction boom – although as I see it in the short term there is not much that can be done so we simply have to go with the flow.
In the meantime watch with interest what happens to the local council mergers especially with regard to high density rezoning – which is coming to a suburb near you. If the local councils stymy and delay new construction the government is then likely to step in in typical ‘Big Brother’ style. All I can say is watch these developments with interest given the wheels of motion have started.
Back to the negative gearing debate which I do find somewhat comical given the federal government has advised that there are no intended changes on the horizon. Well that is fair and reasonable given they are working from the 2011/12 tax figures. We all know it’s the 2012/13, 2013/14 and 2014/15 where the property investor boom took off so for some strange reason there has been a delay releasing the 2012/13 and 2013/14 negative gearing results...
Makes one ponder just why that is or possibly just a coincidence? I’m with the former.
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Is negative gearing the sacred cow or sacrificial lamb? Robert Simeon

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The internet has become a fascinating tool; it’s revolutionised how we do business today but it has also caught many governments off guard. Not to mention made them more accountable as strange as that may sound. 
For example, I have been for some time now mystified about how Australia’s house market continues to soar with Sydney prices up nearly 15% just in the past 12 months. Our unemployment rate sits at 6.1% which is the highest rate (or thereabouts) for 13 years, where of all developing countries Australia’s is the only rate increasing. And real wage growth is now at the weakest level for two decades.
Deutsche Bank has just released its fourth annual Mapping the World’s Prices report and for the fourth year in a row Australia sits at the top of the list for being the most expensive. Yes Australia is now into its 24th year of uninterrupted growth – a feat no other developed country has been able to replicate. It must have been release week as the International Monetary Fund also produced its World Economic Outlook which has economic growth still on target at 2.8% for 2015. Before we get too excited they also thought that Greece will be the strongest Eurozone economy over the next few years too.
Whilst businesses and individuals have been using and adapting this online phenomenon the same can’t be said for a government, the best case at hand is that they have no idea just who is buying Australian real estate. In 2014, I and others started writing and probing this actual point about foreign investors in Australia. This brought the treasurer Joe Hockey on 19 March 2014 to announce an inquiry and report on ‘Australia’s foreign investment policy as it applies to residential real estate’. 12 months on nothing has actually happened so it would appear that such a debate might be construed as not being politically correct. Treasurer Hockey did announce to all and sundry that he had sought a divestiture order on the $39 million sale of Villa del Mare in Point Piper – although despite claims of more to come no announcements have been made. One might think that the backlash of sentiment coming from Asia may have seen these forensic investigations put on the back-burner?
Let’s face it – Australia is one very popular destination especially when you look back at what Philip Ruddock as Immigration Minister had to say in a speech back in 2000. Back then official projections suggested that Australia’s population would reach 24 million by 2050. Just 15 years later those population targets have almost been met with the latest projections having our population as now likely to be 40 million by 2050.
I read a report recently that the Master Builders of Australia estimated that overseas buyers make up approximately 5 to 6% of Australia’s housing market. The Foreign Investment Review Board (FIRB) figures show for the year from July 2013, $24.8 billion in foreign investment was approved, 44% higher than the previous year.
It’s now common knowledge that the FIRB have failed miserably in their assigned duties. The problem we have is twofold. Firstly, the government has no way of precisely knowing exactly how many properties are being acquired by foreign investors – I would suggest that realistic estimations should be more than double what the FIRB are suggesting. The only way to know for sure would be to extrapolate the stamp duty data and then run that through the Australian Taxation Office data – and we all know that won’t be happening anytime soon.
Secondly the big property market mover in Sydney especially is the rezoning of high – density residential land into new developments. Previously this was a domain dominated by Australian developers who now can’t compete with the Asian developers. Given that it’s legal to buy new off the plan, these developments are then re-sold exclusively in Asia.
So what we are clearly seeing is the Asian property developers paying much more for the sites given the apartments can be sold for much more to overseas buyers – who are using the buying off the plan incentives to buy Australian real estate which is totally legal.
 When we dart back to populations we see that as of 1 January 2015, the population of China was estimated to be 1,370,811,348 people which is a bit more than our 23,790,582 as at 30 September 2014.
Maybe our federal government could lower our unemployment rate by employing some computer programmers’ to extrapolate all the countries’ stamp duty data and then cross pollinate that with Australian Tax Office data and create their (as promised) National Property Register?
<a href="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-09-PM.jpg"><img class="aligncenter size-full wp-image-466586" src="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-09-PM.jpg" alt="16-04-2015 12-10-09 PM" width="614" height="324"></a>
<a href="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-48-PM.jpg"><img class="aligncenter size-full wp-image-466587" src="https://www.rwm.com.au/files/2015/04/16-04-2015-12-10-48-PM.jpg" alt="16-04-2015 12-10-48 PM" width="616" height="324"></a>
Then again I’m probably spending way too much time on my computer and simply imagining what is happening to Australian residential property prices!
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Hold on, what’s going on here? Robert Simeon

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There are three things missing from Australia’s current economic debate – honesty, bravery and conviction.
We know that the Australian tax system is badly broken however the politicians won’t do a thing to fix it simply because they are only too well aware that any such moves would jeopardise their political wellbeing.
Social media runs amok around every time the Reserve Bank of Australia (RBA) meets to discuss the cash rate, whilst we all know that monetary policy is failing miserably. We even have competitions to see which economists have the highest success rate by predicting the cash rate outcome.
The reality is that since the global financial crisis (GFC) we can be certain of two things – cash rates are all headed to zero (or close to) and debt and deficits keep climbing. It’s interesting to note that this year marks the fifth anniversary of the Henry Tax Review although each year it re-emerges under a different name – intergenerational report and last month’s tax discussion paper. All sadly are nothing more than public relations exercises that highlight weak governments with an inability to act.
Iron ore prices are collapsing as to the price of oil and the Aussie dollar has fallen about 20% over the last 18 months. Like most governments around the world they are now devoid of an economic conviction and simply don’t know how to start a national debate.
Here’s an idea – stump up $50 million and see which Australian businesses can come up with the best economic reforms, and that would mean stripping all current governments – local, state and federal. Of course we keep getting that old chestnut of raising the GST although the problem Australia has is so much work is done in the cash economy that the GST fails the test miserably. You wouldn’t need to increase the GST if all the loopholes were closed.
We should be looking at the economic models were the principle place of residence is taxed on profits made when sold. It should also be a tax deduction for all expenses too – that way the cash economy is significantly minimised and GST receipts increase significantly. Then the state governments can start shutting down many of their tax rorts like payroll tax, land tax and stamp duties.
There are two other very important points that need raising which highlights another problem Australia has – <a href="https://insidestory.org.au/how-to-bridge-the-infrastructure-gap" target="_blank" title="How to bridge the infrastructure gap">How to bridge the infrastructure gap</a>. “The faster our population grows, the worse our governments are performing in choosing and building the infrastructure we need to cope with that growth.”
“Three statistics issued in recent days reveal the scale of the problem.
<ul>
<li>"On 26 March, the Bureau of Statistics issued the latest population figures. They revealed that Australia has grown by more than three million people in just eight years to last September. We are gaining almost 400,000 people every year. Every two and half years or so we add another million people. 
</li>
<li>"On 31 March, the Bureau released its regional population estimates for the year to last June. They showed that almost half of that rapid population growth is going into just two cities: Melbourne and Sydney. Add Brisbane and Perth, and almost three – quarters of it is going into four cities. 
</li>
<li>"On 1 April, the Bureau released its estimates on engineering construction in 2014. You might wish it was an April Fool’s Day joke, but sadly, that’s not so. It reported that work carried out in the December quarter plunged last year for the second year in a row, falling 12.5% below the 2012 peak. 
</li>
<li>"In every mainland state, infrastructure investment is now in free-fall. In most of them – New South Wales, Victoria, Queensland and South Australia – the work carried out in the December quarter was down between a quarter and a third from its recent peak.”</li>
</ul>
Now it gets even more interesting.
<ul>
<li>“But hang on, you say: isn’t that because the mining investment boom peaked in 2012? That’s true, it is winding down. And our governments have told us that that they’re increasing infrastructure investment to fill the gap, and to help sustain economic activity as the mining boom subsides. 
</li>
<li>“But what they’re doing is the exact opposite. Since 2012, the Bureau’s figures show public sector investment in infrastructure has collapsed even faster than private sector investment. In 2014 alone, it shrank 15%. Since 2012, it has shrunk 20%.”</li>
</ul>
I would think that most would agree that Australia urgently needs a public debate given our elected governments are having a shocker.
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Why our elected governments are having a shocker: Robert Simeon

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In my 30 years of selling real estate I’ve seen some amazing market trends - but what I am seeing now is arguably the most amazing trend that Australian real estate has ever witnessed before. 
The last such event, which happened on a much smaller scale, was the introduction of the capital gains tax on 20 September 1985. I was a real estate agent on my L plates who was just learning the trade and caught the back end of a mad investor rush to buy investment properties before the new legislation was enacted.
It’s called the Grandfather clause or the Grandfather Policy. It's where an old rule continues to apply in certain existing situations, while a new rule is introduced and will apply to all future cases. Cue negative gearing which is now front and centre of Australia’s great tax debate. What we are seeing today is just how smart and savvy Australian property investors are as they vigorously gold-plate their property investment portfolios. The reality of being guaranteed full deductions on your investment property explains exactly why property investors have run amok with Sydney real estate.
The government recently released its tax discussion paper which just so happens to be spruiking debate on negative gearing and capital gains tax. Property investors in Australia are all over the “Grandfather clause” simply because of the sheer weight in numbers of property investors  - in 2011-12 a staggering 883,325 of 1.266 million taxpayers claimed deductions. Negative gearing by property investors reduced personal income tax revenue in Australia by $600 million in the 2001-02 tax year, $3.9 billion in 2004-05 and $13.2 billion in 2010-11. So one can only shudder to think what this year’s deductions will be like given the investor boom.
But let’s now look at what effect this is having on local real estate markets. They reveal (something that I have been alluding to for ages) exactly how household sentiment has radically changed when it comes to buying the principal place of residence today – thanks mainly to the global financial crisis which has re-calibrated how households approach their modern day property folios.
Trading up is now a thing of the past with households now opting to renovate and then leverage investment properties from their principal place of residence – that’s right, the gold plated guaranteed tax deduction.
Look at how many houses are available today in Neutral Bay - the number is zero. If you look at the number of houses available today in Cremorne the number is also zero. When I go back over our house data for the last five years on a weekly basis Neutral Bay averaged 12 houses on the market each week and Cremorne averaged 15. Mosman houses have averaged 88 houses and today there are just 57 and going lower. What we are seeing is unprecedented given whilst the principal place of residence is tax free, households have decided to stay put and lock in long-term real estate investment property with a locked-in maximum tax deduction. All thanks to the Grandfather clause.
For the record this is the very first time that no houses have ever not been for sale in Cremorne and Neutral Bay. A coincidence? I don’t believe so.
The Sydney Morning Herald ran a piece last week – <a href="https://news.domain.com.au/domain/real-estate-news/property-investors-use-of-negative-gearing-contentious-20150330-1maq16" target="_blank" title="Property investors’ use of negative gearing contentious.">Property investors’ use of negative gearing contentious.</a> 
My commentary: “Given all that’s currently going on with overseas buyers – more particularly, the uncertainty of exactly what’s happening – it would only be reasonable that with all new developments, only Australian citizens can qualify to buy. The Australian government has lost all control for new developments where it is now imperative that the multitude of loopholes are immediately addressed. It’s that serious that our government is only now just starting to understand the debacle we have with overseas buyers who are the driving force behind these booming markets.
"When negative gearing was introduced back in July 1985 by the Hawke/Keating government, the architects would never have calculated the effects it would have in the market when you have a present cash rate of 2.25% and going lower. Only when the Liberal and Labor parties agree that they will support a bipartisan inquiry into negative gearing will we see a (probable) slowing down of the Australian property investor tsunami.
"Having said that, negative gearing is now 30 years old, where only in the last five years has it reached maturity. The fact that after each financial year we have now seen a new Australian record deduction clearly shows how well the system is being manipulated by investors.
"The consensus is not calling for its abolition – rather an intelligent discussion on what is a fair and reasonable outcome that best suits our property industry today. Given we have a record low cash rate that looks to go even lower, we could then see the cash rate at or around this level for well over a decade to come – maybe even longer, if Australian Treasury bonds are any indication.
"Instead of burying the negative gearing debate in that too-hard basket, the time has now arrived for it to be debated warts and all. It would be a fascinating debate.”
The reality of the matter is that Australia is not in one of the worst ever housing bubbles we have ever seen, rather household’s cherry-picking investment properties over trading up simply because we have a record low cash rate and with negative gearing a gold plated tax deduction which won’t be available for much longer if rumor and speculation prove to be correct.
Sydney is also on track to become the first Australian city with a population to hit 5,000,000 with demand consistently outperforming supply.
I’m of the opinion that too many commentators have completely missed the ‘big’ housing picture and are way off the mark with their persistent household debt criticism lecturing.
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The looming demise of negative gearing has triggered a tsunami of investor activity: Robert Simeon

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Without a shadow of a doubt the most asked question in Sydney real estate circles at the moment is – do you try and buy now or wait for ‘that’ market correction?
The simple answer is ‘that’ market correction may be years off, with some niche markets in all probability not even facing a correction. The key factor is the rate of growth over a twelve month period although I must admit some areas are posting capital growth gains that will almost certainly end in pain and significant losses.
I was looking at some CoreLogic RP Data statistics during the week and I found some niche markets are simply defying logic. In NSW Keiraville is presently sitting on 49.49% growth, Seven Hills 46.84% and Hay on 45.45%. In Victoria Portland is running at 47.54% and Caulfield East 45.57%. In South Australia, Wayville at 47.25%, Clayton Bay 45.40% and Paringa 45.24% – that is scary data that strengthens my argument that we should have postcode cash rates in Australia.
Overall there are two market demographics that are driving the Sydney real estate markets at above the acceptable speed limit. The first are the property investors who thus far have been 100% accurate with their market assessment given they have been driving the market now solidly for over three years. Given the Australian bond rates look to be sitting below 3% for the next decade or two, they have been very shrewd to target property and of course the benefits of negative gearing.
When negative gearing was introduced in July 1985 by the Hawke/Keating government the architects would never have calculated the affects it would have in the market when you have a cash rate at 2.25% and going lower. Only when the Liberal and Labor parties agree that they will support a bipartisan inquiry into negative gearing will we see a slowing down of the property investor tsunami.
Not all real estate markets are being drawn in the current whirlpool of real estate euphoria. When I look at the number of houses for sale in Mosman this week we see 69 homes. Twelve months ago there were 93, twenty four months ago there were 93 and forty eight months ago there were 141. So what we are seeing is reduced stock in many suburbs given vendors are simply not that interested in selling given the preference is to pay down debt which is directly attributed to the Global Financial Crisis.
A dominant player in the market today (and growing) is that of the overseas buyer and let’s be honest the government regulators have completely lost control and have absolutely no idea how strong this buyer demographic is or has been. When the Chairman of the Foreign Investment Review Board (FIRB) Brian Wilson openly admits that “The ATO is better set up for coordinating a big data approach than Treasury, which is a policy body.” We then begin to realise that the FIRB has lost this battle and the white flag has now been well and truly raised.
Naturally these comments were ignored by the Treasurer Joe Hockey and mainstream media which I find simply amazing.
<a href="https://www.therealestateconversation.com.au/news/2015/03/20/why-australia/1426842000#.VQ-irH5zm3M.linkedin" target="_blank" title="Why, Australia? ">Why, Australia?</a> Grainne Gilmore, head of residential research UK at Knight Frank, told The Real Estate Conversation:
“Over the past decade, Australia was positioned fourth in terms of countries with the greatest foreign inflows of High Net Worth Individuals (HNWI) with a gain of 22,000, which represents 14% of Australia’s total HNWI population.
"In 2014, there were 1,734 Ultra High Net Worth Individuals (UHNWI) living in Australia who had a net worth of over US$30 million.
"Sydney accommodates half of these individuals, with Melbourne (26%), Perth (15%) and Brisbane (14%) taking up the balance."
So no matter what happens to property prices in Sydney there will always be greater demand than supply given there is a fast growing line of buyers from China wanting to buy Australian real estate. Although don’t expect to hear any debate on this topic given it’s deemed ‘politically incorrect’.
Although in this day and age the groundswell is started by outside forces given this really is the only way to make politicians accountable for their inactions.
As for the cash rate there is no point in predicting where it will be at the next meeting rather where it will be in a decade’s time given we now know that Australia Treasury bonds won’t be going anywhere until 2030. Unfortunately the same can’t be said for property prices where in 2035 it’s too scary to even contemplate and I’m not talking down.
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 Australia has quite scary emerging and submerging property markets: Robert Simeon

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When Treasurer Joe Hockey announced the divestment order for Villa del Mare with fanfare and hoopla, we were left hanging on the words that there was a high expectation of more to come. 
Well there have been no more ‘big’ announcements on that front which is not that big a surprise given their top end property infatuation will in all probability reveal no further indiscretions.
Of course we are now seeing a different acquisition scenario being painted with the Australian Crime Commission reportedly investigating Melbourne real estate agents with regard to foreign buyers laundering monies in the form of real estate acquisitions. Last December, I wrote <a href="/expert-insights/investing/foreign-buyers-inquiry-leaves-many-questions-unanswered">Foreign buyer inquiry leaves many questions</a> – “Of course it is just a mere coincidence that the Chinese government requested a bipartisan arrangement with the Australian government to process the identities of all Chinese buyers who purchase Australian real estate.”
At present China only permits a resident to transfer a maximum of US$50,000 per annum, so the current investigations simply add to the intrigue of how these supposed mystery funds end up on our shores? At the heart of the problem is just how the current and previous governments have been so hopeless in monitoring real estate transactions and that not only applies to residential but commercial and agricultural as well.
Whilst these inquiries are simply a distraction that quite possibly may lead to nothing the Sydney property market today faces an unprecedented challenge.
The latest data from the Reserve Bank of Australia (RBA) shows home lending is now at $1.43 trillion at the end of January – and steadily climbing. Following last week’s meeting of the RBA where the cash rate remained steady, RateCity calculated that the average standard variable home loan has dropped to 5.07% – which happens to be the lowest in 60 years.
Given the Sydney residential market continues to run amok it is worth noting that when we witnessed these markets previously in 2003 and 2010 the cash rate was rising yet this time around the cash rate is reducing. The Australian economy grew by 0.5% in the December quarter, to then post 2.5% growth for 2014. This week, ANZ chief economist Warren Hogan suggested that a third rate cut in 2015 may be required for the Australian economy.
Last week I read with interest comments made by David Murray, who is also heading – up the Abbott government’s financial systems inquiry. David Murray said: “It is a serious issue and if interest rates continue to fall, there will have to be prudential offsets to limit the risks in the housing market.”
The trouble as I see it at the moment is that we have “too many chiefs and not enough Indians” pontificating about just exactly what is the “best practice” to manage this property dilemma. For quite some time now the RBA have telegraphed their concerns and now we see the Australian Prudential Regulation Authority (APRA) being suggested as the likely weapon to closely look at loan to value ratios. The only problem with all this is that investors have become addicted to negative gearing so any action to slow them down would only increase their tax breaks.
I am a big fan of abolishing the blanket cash rate by then introducing individual suburb cash rates that would be determined by the RBA. Presently all the major lenders analyse data daily on the suburb trends so it would make sense that all new lending be determined by the individual strength of that suburb when applying the suburb cash rate.
Of course the higher the rate for an investor the higher the negative gearing so the Abbott government needs to look at just how many properties can an individual investor have in a property portfolio? We have anecdotal evidence that investors have smashed first home buyers when they are competing against each other – with the investors winning in nearly every instance.
It has been well documented that David Murray is not a fan of negative gearing, which is stated in his report that still sits with the Treasurer Joe Hockey – so don’t expect a release anytime soon.On top of that the government is now pursuing releasing superannuation to first home buyers – which is a dumb idea. How about releasing the Murray Inquiry and let’s see what recommendations are contained within that report. I’ll guarantee a superannuation release does not crack a mention.
In the meantime we can expect the Sydney property juggernaut to surpass all previous records and the federal government to do next to nothing about it due to their galvanisation of popularity polls.
The government will be focused on media distractions as against working to correct the imbalances that are so obvious and confronting to Australia’s residential property markets.
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The Sydney property conundrum: Robert Simeon

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Well, the property is actually named Villa del Mare and I don’t really see the current owners having too much trouble as they correct their divestiture order.
The nightmare is actually faced by treasurer Joe Hockey given he now has to investigate millions and millions of property transactions – which we all know by now that such a task is impossible. First of all they don’t have the manpower nor the most important criteria – the data.
Let’s be honest here, the Abbott government decided to announce their ‘ferocious’ crackdown on foreign buyers simply to distract attention from its decision to back-flip on the Medicare co-payments, and what a smoke screen this proved to be.
Naturally, this was all tied into Foreign Investment Review Board (FIRB) statistics where it was revealed to The House of Representatives Standing Committee on Economics that in the first nine months of 2014 foreign investment had surged 44%. One would seriously have to ask the question is there a hotter real estate market in the world at the moment than Sydney?
For the federal government to forensically investigate all the property transactions and we are talking about millions and millions of transactions the answer is simple – no chance. In 2013-14 alone NSW recorded 860,000 property transactions.
So front and centre we have a $39 million Point Piper mansion that must now find a new buyer within the next 90 days. Well didn’t the media fall for that bait hook, line and sinker. I’m happy to bet that this property will not be offered for sale, rather the present owners will simply transfer the property into another name. At the heart of the problem is that Joe Hockey is totally wrong when he claims that: “Under the Foreign Acquisitions and Takeover Act 1975, foreign investors must notify the treasurer through the Foreign Investment Review Board before purchasing residential real estate.”
Sorry to tell you Joe, but foreign buyers have found much better ways to acquire residential real estate and yes, thanks to your crackdown, you’re about to find out just how. Although I am sure that there will be many cases of foreign buyers who have simply disregarded FIRB regulations and purchased properties without application.
The much preferred method that foreign buyers have pursued is to simply transfer funds to their newly appointed “trustee” who has Australian residency, and they then legally purchase a property. When it suits the foreign buyer they apply for Australian residency and once this is granted they then apply the <a href="https://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s18" target="_blank" title="Duties Act 1997 – Sect 18">Duties Act 1997 – Sect 18</a> which applies to “no double duty”. Given that they can prove that they actually provided all the funds to acquire the property to their appointed “trustee” they then pay a duty of $50 to have the property transferred into their name. So you see there is absolutely no need to advise the FIRB given this is totally legal in NSW – so Joe Hockey should be looking at all the legally available loopholes first.
At last count the treasurer’s FIRB consisted of just 10 staff, so given the recent announcements we may assume that this department has been increased tenfold so that they can energetically confront these serious concerns. In all probability this too will be placed in the too hard Canberra basket, although I believe everyone would agree that this is a serious problem that requires urgent attention.
The reality of the matter is that the FIRB is, as I have said on many occasions now, “hopeless’’ given they don’t even know where to start to take control of this crisis. For most obvious reasons the states and territories won’t exactly be energetically offering assistance given they are only concerned about protecting their “rivers of gold”, otherwise known as stamp duty.
The only way that the federal government can get to the bottom of these foreign acquisitions is to somehow get hold of the stamp duty records – which won’t happen anytime soon.
Like a bull at a gate Joe Hockey has opened up his very own house of worms without even realising the sheer magnitude of the job at hand. From past experience we all know only too well what happens next, don’t we.
Nothing happening here folks, move along, we have everything under control. Next question?
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Treasurer Joe’s Villa del Nightmare: Robert Simeon

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As Australia faces the reality of life after its mining boom, now more than ever it’s vital that we embark on a path of prosperity and sound government – just don’t hold your breath (just yet).
First and foremost it’s imperative that NSW embarks on the greatest infrastructure expenditure in the state’s history – at the end of the day the upcoming election is all about economic reform. 
Based on the recent election results in Victoria and Queensland the word ‘privatisation’ has indeed become a dirty word. In the case of the Baird government strategy the proceeds from the sale of state ownership of the electricity network would be directed to the generation of pivotal capital works projects and not state debt reduction.
A 2013 report on the Electricity Network Regulation the Productivity Commission announced that electricity prices had risen 70% in real terms over the previous five years with structural problems most apparent in NSW. The Productivity Commission went on to say: “There are strong arguments for privatisation of those businesses. There is no evidence that the productivity, reliability, quality or cost performance of private – sector electricity network businesses is worse than their public sector equivalents. To the contrary, the evidence in Australia and internationally suggests that such private sector enterprises are more efficient.”
NSW Labor proposes to tax business more then cut and defer major projects whilst doing next to nothing to fix congestion in Sydney. Congestion is exactly what determines property prices in Sydney, which is why I have said if you own real estate within a 10 kilometre radius of the Sydney CBD you have nothing to worry about.
A recent report commissioned by the Property Council of NSW has found that Sydney is facing a housing crisis with an additional 190,000 homes needed to be constructed over the next 10 years. The report identified that since 2005 an average of just 17,002 homes had been approved by Sydney’s 43 councils each year. From a business perspective you’re not going to attract new housing projects unless you are rolling out massive new infrastructure community platforms.
<a href="https://www.rwm.com.au/files/2015/02/23-02-2015-9-11-41-AM.jpg"><img class="aligncenter size-full wp-image-389483" src="https://www.rwm.com.au/files/2015/02/23-02-2015-9-11-41-AM.jpg" alt="23-02-2015 9-11-41 AM" width="463" height="477"></a>
The above graph clearly identifies what happens to property prices when you’re closer to the CBD and highlights what happens when governments drop crucial infrastructure spending – <a href="https://www.businessspectator.com.au/article/2015/2/23/infrastructure/australias-train-nowhere" target="_blank" title="Australia’s train to nowhere. ">Australia’s train to nowhere. </a>More than anything we see glaring highlights as to what happens when governments fail to invest in crucial areas such as public transport. As a result house prices to those areas located within that crucial 10 kilometre radius of the CBD skyrocket.
NSW faces an additional 1.600 million people requiring housing over the next two decades – which in itself explains why now more than ever before infrastructure has to be the key ingredient into guaranteeing NSW’s prosperity into the future. Privatisation should not be a dirty word rather the dirty word clearly is lack of infrastructure spending by past NSW governments.
Sydney must absorb Newcastle, Wollongong and western Sydney into its business model by creating a world class metropolis. Given what’s been achieved in other countries there is no excuse why Sydney does not have a very fast train that connects all the cities.
Given that investors today are getting next to no return given the record low cash rate – investors can purchase syndicates that would allow them to invest in infrastructure projects <a href="https://www.businessspectator.com.au/article/2015/2/25/infrastructure/neat-fix-politics-infrastructure-funding" target="_blank" title="a neat fix to the politics of infrastructure funding.">a neat fix to the politics of infrastructure funding.</a>
Given that the self-managed superannuation funds are driving investment property in NSW due to a lack of choice such a proposal to attract these funds with infrastructure investment is a brilliant and a long overdue alternative. Naturally the big superannuation funds want as much of this pie as they can get so the state governments must offer allocations to ensure that everyone has equal investment opportunities.
From an investment perspective NSW can easily offer thousands and thousands of critical infrastructure investment funds for investors to diversify as against relying solely on the real estate markets.
Of course nothing can happen if we have a change in government given the alternative is simply too scary to contemplate. If NSW had previously had a strong infrastructure platform property prices would be nowhere near as high as they are today.
If the Baird government is successful at next month’s election and they stick to their infrastructure platforms there is a strong possibility they could become the most successful government in NSW history.
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Robert Simeon

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Robert Simeon

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Developments

New apartments

New townhouses

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