Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Strategy

<html><body>
GUEST OBSERVATION
As property development involves significantly more components of risk factors, higher returns are required above rental income generating property returns.
Property investment strategies include: core; core-plus; value-add; opportunistic; and development. Each strategy exhibits different characteristics which have been evaluated and quantified.
The differences in required returns and prospective volatility of returns are demonstrated in Figure 1.
Figure 1: Effect of Increasing Risk
<img src="/images/2014/11/06/nui%20nov%206%20one.jpg" alt="">
Source: Atchison Consultants
Investors in property across the risk spectrum encounter multiple risk factor exposures. Key risk factors include:
<ul>
<li>Property</li>
</ul>
There are risks inherent in direct property investment. They reflect the potential variability of property return due to macroeconomic events, such as rental market changes, economic activity involving demand and supply and change in transaction costs.
<ul>
<li>Planning and zoning</li>
</ul>
In the preliminary stages applying for and obtaining the planning and zoning approvals can be a protracted process. Time taken in the process results in consequential increase in holding costs for outlays during the process. 
<ul>
<li>Construction</li>
</ul>
Construction risks are viewed from a cumulative perspective as each stage cannot commence until the preceding stage has been completed. Activities are grouped by the three key stages of construction comprising in-ground, structure and fit-out and completion with resulting holding costs.
<ul>
<li>Settlement</li>
</ul>
Settlement risk considers the potential for a downturn in financial markets, in particular property markets and the prospective failure of pre-committed contracts for sale or lease to settle.
<ul>
<li>Leasing</li>
</ul>
This represents the prospect that on completion of a property development or expiry of a lease, it cannot be leased or released for an extended time. 
<ul>
<li>Capital works</li>
</ul>
Capital works risk represents the potential extensive time during which rental income is not being generated when capital works are being undertaken.
<ul>
<li>Capital management including gearing</li>
</ul>
Capital management includes structuring equity and debt financing terms which are suitable for specific property acquisition and development.
<ul>
<li>Asset management risks</li>
</ul>
Inefficient asset management would result in delay in successful leasing, which consequentially results in lower rental income.
Risk factors result in the opportunity cost of time when these factors are incurred. Premiums for these risk factors would be measured on the basis of the opportunity cost being core property expected return over the time period when return income is not being received.
Table 1 illustrates the property investment strategies and their prospective required rate of return range.
Table1: Australian property strategies and expected returns
<table style="width: 400px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="172"> </td>
<td valign="bottom" nowrap width="228">Property Return Range per annum (%) </td>
</tr>
<tr>
<td valign="bottom" nowrap width="172">Core</td>
<td valign="bottom" nowrap width="228">8 – 10%</td>
</tr>
<tr>
<td valign="bottom" nowrap width="172">Core Plus</td>
<td valign="bottom" nowrap width="228">9 – 12%</td>
</tr>
<tr>
<td valign="bottom" nowrap width="172">Value Add</td>
<td valign="bottom" nowrap width="228">12 – 15%</td>
</tr>
<tr>
<td valign="bottom" nowrap width="172">Opportunistic</td>
<td valign="bottom" nowrap width="228">14 – 25%</td>
</tr>
<tr>
<td valign="bottom" nowrap width="172">Development</td>
<td valign="bottom" nowrap width="228">25 - 45%</td>
</tr>
</tbody></table>
Source: Atchison Consultants
Ming Niu is an analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
This article has been updated since initial publication.
</body></html>

mniu-gkBe4pvnDQ

The property risk factor spectrum: How it can affect returns

<html><body>
There are few words in the property investing lexicon that evoke as much emotion as the term “mining town”.
Known for their fast-moving property markets that are at the mercy of resources industries, it’s not surprising that many cautious investors steer clear. However, that’s not to say that numerous investors do not buy in, with promises of double digit yields and capital growth that tops hotspot lists an obvious lure.
In fact, they often come in droves.
SQM Research’s managing director Louis Christopher recently undertook an update on the resources towns.
His predictions in the company's 2013 Housing Boom and Bust report were that the hard commodity towns – those usually solely underpinned by resources – were truly in a downturn, while ‘soft’ commodity towns with other drivers, such as resources, have had more positive results.
Christopher's update revealed price drops of up to 40% in some areas and vacancy rates spanning up to 14% in others; a situation he referred to as "bloodshed".
Port Hedland fared the worst, with a 40% price drop, from $1,500,000 to $900,000. In 2002 the median price for Port Hedland was sub $200,000, showing just how far this market has come.
In 2012, Property Observer reported on an upcoming downturn, or at least a sense of caution, for several risky mining hotspots. This was based on a Westpac report, which had flagged a number of Queensland and Western Australian localities as ‘high risk’ due to their single industry basis. Port Hedland was on this list.
The <a href="/news/qld/moranbah-and-port-hedland-unsustainable-single-industry-mining-boom-hotspots-westpac">suburbs they had placed on the list were</a>:
• Blackwater (4714)
• Moranbah (4744)
• Dysart (4745)
• Middlemount and May Downs in the Isaac region (4746)
And in Western Australia:
• Roebourne (including Karratha, Baynton, Bulgarra and Pegs Creek, 6714)
• Port Hedland (including South Hedland, 6721)
• East Pilbara (6753)
More recently, NAB dropped their maximum loan to value ratio (LVR) for home buyers and investors in Mackay and Emerald, according to The Rockhampton Morning Bulletin. Investors have seen their potential LVR dive to 80% from 95%, while home buyers will face 90% instead of 95% LVRs.
Looking back towards Port Hedland, it’s not all bad news, writes Christopher.
While rents also took a dive – from a brief $3,200 peak to $1,550 at present – the vacancy rates are stabilising at 6% and listings dropping, according to SQM Research.
“So, there has been bloodshed in Port Hedland, but perhaps some signals from our leading indicators that the worst of it might be over,” said Christopher.
<img src="/images/2014/11/05/rents%20nov%205%20one.jpg" alt="">
Source: Residex
All in a few year’s work for a mining town hotspot. This sort of rapid-cycle behaviour is not just limited to Port Hedland– single-driver mining town risks do not discriminate based on location.
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
Western Australia’s Muswellbrook is also on Christopher’s radar.
With cancelled expansion projects – no doubt painful for speculators – listings seem to be “taking a beating”, he said. Vacancies are improving, however, now back to 9% from 14%.
“That still is a very, very high number but it is the relative movement that is just as important as the absolute number,” Christopher said.
“Rents of course, have been pulverised but there is a hint at the very end of the chart of a possible bottoming out.”
In South Australia things are looking a little more positive.
The much-discussed Olympic Dam is now at 3% vacancies, down from 10% previously, and rents are showing signs of recovery.
But rental yields are a paltry 4%, something that Christopher says is not justifiable given the risks of investing in a mining town.
At the height of its boom, according to the “home of positive cashflow property”, Realestateinfo.com.au, Port Hedland was offering yields of 9.5% as of September 2013, during a time when a downturn was in the offing. The Pilbara, meanwhile, topped the list – offering 14% yields (albeit only from 18 rental observations).
It is common sense that people buy in high risk locations for high returns – otherwise they’d purchase elsewhere with much more peace of mind.
The soft commodity markets Christopher looks at includes Orange, which was suffering in September 2013, but now the rental market is tightening.
When considering all the data, he’s not so sure about whether he’d invest in these areas.
“While our charts might be pointing to a possible bottoming in the market for some of these townships I believe it is very early days indeed and it could be just as likely there is another leg down before the real bottom finally arrives. I don’t know about you but I find the thought of renting a standard house in Karratha at $900 a week (as a tenant), very unappealing even while the same house was once renting at $2,100 a week,” he wrote.
When government planning documents,<a href="https://www.planning.wa.gov.au/dop_pub_pdf/port_hedland_combined_report.pdf" target="_blank"> like this one from Port Hedland in April 2011</a>, suggest that by the time many yield-hungry investors were buying in, it was already well established that the area had an issue with housing supply and rents.
The government was already looking at what needed to be done to take control, as well as possible land releases, across the Pilbara.
The distress that recent rising vacancies and rental yield drops are causing property investors is something that observer Terry Ryder hears about regularly.
<a href="/expert-insights/investing-in-a-mining-town-requires-a-long-term-view">He specifically mentions</a> a number of suburbs afflicted with these two softening indicators: New South Wales’ Muswellbrook, Mudgee and the Hunter Valley, Queensland’s Mackay, Emerald, Bowen, Gladstone, Moranbah and Chinchilla, and Western Australia’s Newman, Singleton, Port Hedland and Karratha.
Faced by what Ryder calls the ‘double-whammy’ of resources related demand dropping as developer interest increases, he urges that <a href="/expert-insights/investing-in-a-mining-town-requires-a-long-term-view">a long-term outlook is critical for any investor considering a mining town</a>.
“Many of the locations mentioned earlier will do well in the future. The resources sector is highly cyclical and the good times will return. Headline-grabbing one-liners like “the mining boom is over” are both silly and short-sighted. Australia has a very big future as a provider of key resources to growth economies, especially in Asia,” he wrote.
Ryder says that he hasn’t bought in mining centres as he knows he wouldn’t sleep too well.
Of course, those that bought into the Port Hedlands of Australia and sold out at the height of the boom could have made significant profits, while achieving strong yields. If no one ever made money in those areas then no one would buy in. On the flipside, those that didn’t time it so well may have faced bankruptcy.
Sometimes the higher you climb, the harder you may fall.
Photo of Port Hedland courtesy of Robyn Jay/<a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">C.C. BY 2.0</a>
</body></html>

jduke-EHk3XBmHkn

From hotspot to bloodbath: Property investment in Australia's mining towns

<html><body>
<div id="article-content">
GUEST OBSERVATION
Property investment is still the most popular and major vehicle for wealth creation in Australia.
Many Australians have most of their wealth within their family home. As many retirees have seen their superannuation fund plummet during the global financial crisis many have expressed the desire to diversify their portfolio to include direct property once again because of it's general stability and predictability.
Although it has long been the darling of the Australian investment scene, property investment is not as easy as it might first appear. It would be glib to suggest that an investor with sufficient equity in his or her own property can simply purchase an investment house, sit back and wait for the riches to pour in.
It takes a much more measured and professional approach to develop a suitable property investment strategy that reflects not just the likely financial gains, but also one that is tailored to your individual circumstances.
Many people simply jump on the web or look around their local neighborhood for another property with the idea of 'I can keep an eye on it'.
Whilst this gives emotional comfort and familiarity, it is not a scientific or business drive approach and can be an inferior decision. Each investor should consider whether they have repeatable methodology and what impact the property they are choosing will have on additional purchases.
Here are some of the elements you should consider when developing a strategy:
<ul>
<li>Asset growth projections This involves a detailed analysis of the value of investment properties in most regions of Australia and then choosing a property profile that suits your personalised budget and cash flow projections. You should not limit yourself to an area simply because you think you know it well enough. There are plenty of opportunities in all areas of Australia and only a specialist analysis can reveal these. </li>
<li>Aligning your capacity Essentially, your plan should incorporate a steady pattern of acquisition in line with your personal capacity. This means monitoring your cash flow position at every stage of your life and making adjustments so that you can continue to acquire property in line with your investment goals. There are times when you may have only one income due to family planning. </li>
<li>Arranging proper finance structures The financial market is awash with a raft of products that can be massaged and tailored to suit your individual needs. Investment loans and other products like deposit bonds can be coupled together to provide you with adequate cash to proceed with a purchase whenever your plan allows. When working with a specialist property service, finance preapprovals can be obtained to give you the peace of mind you need. </li>
<li>Administrative processing Every astute property investor knows that as your portfolio grows there is an increasing amount of troublesome paperwork that needs to be processed, not to mention tax returns and other financial reports that you need to keep a track of your investments. That's why aligning yourself with a specialist property service can take these worries out of your hands so you can get on with the tasks for which you are better equipped. </li>
<li>Tax effectiveness In line with the above points, making sure you take advantage of the taxation regime that applies to your individual financial circumstances is a vital part of any investment strategy. Property research and sourcing services are in the best position to provide you with a full suite of support options that make property investing a professional and streamlined process.</li>
</ul>
Take advantage of a specialist and professional property management service is the only way to go when it comes to managing your property investment plan.
<div>
Sam Khalil is director - marketing and development with <a href="https://www.dpn.com.au/" target="_blank">Direct Property Network</a>.
</div>
</div>
<div id="article-resource">
Direct Property Network provides clients with an end-to-end property investment solutions from selecting the right property, all the way through to settlement and beyond. We help clients establish affordable and profitable investments by researching and sourcing wholesale property.
</div>
This article first appeared on <a href="https://EzineArticles.com" target="_blank">Ezine Articles</a>.
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po-LsXgBTHBmX

Developing a property investment strategy that works for you

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GUEST OBSERVATION
I personally invest across all asset classes, property, shares and cash and I was interested in finding out how my property investments stacked up compared to other investments in my portfolio over the long-term.
So with that in mind I thought I would undertake some research into the performance of the two major investments in my portfolio, property and shares, and which is the better asset class to invest in. 
This is an age old question and the answer will depend on who you talk to. However, I wanted to strip the debate right back and look at recent data. As they say in the classics “you can’t argue with the facts”.  So, here is what I discovered.
According to statistics and the reputable Russell Investments/ASX Long-term Investing Report 2014, the past 10 years may have been a great time to invest in the equity market, but residential property delivered better, more steady returns over the longer run.
The report concludes comparing the total returns - after fees, and including rental and dividend incomes over the past 10 years up to the end of 2013, that Australian shares unsurprisingly led at 9.2% even after the crash associated with the global financial crisis.  It was closely followed by hedged global shares which delivered an 8.2% return. Investment property lagged behind at 6.1%, comparable to fixed interest over the same period.  
But the results over the past 20 years look quite different.  An investment in residential property returned a 9.9% gain, beating both Australian shares at 8.7% and global shares at 8.0%.  In addition, over the past 20 years residential property delivered steady rental returns compared to the erratic equity market.
However, the report also shows that the dominance of property over shares in the 20-year period becomes reduced after the tax benefits of the fully-franked dividends provided by Australian listed companies are factored in.  At the top marginal tax rate, property delivered a 7.5% return over the past 20 years, only just ahead of a 6.9% return for shares.
So now I sit back and look at the numbers provided by economists and then equate this back to my personal situation.  Have I achieved the sort of growth quoted by the reports? 
Firstly, returns vary from property to property and for me have not been as consistent as quoted within the report.  Yes rental returns have been consistent, with very little no vacancy periods and consistent CPI increases.  
Some of my properties have performed well and above the returns quoted and others below, however the same could be said about the shares.  The performance of individual assets, are probably more of a function of location and selection of the particular property or share investment, more than the Investment class itself. 
So, for me yes the returns are important but there are other reasons why I see property as a strong investment.
<ol start="1">
<li>As the report states, property delivers steady rental returns due to low vacancy rates and low supply, we are simply not building enough properties quickly enough in areas where people want to live to accommodate the growing population. 
</li>
<li>Lenders see property as a solid security and will lend up to 80% (in some cases more) of the asset at historically low rates, and even though my shares are more liquid it is more complex to borrow against them.  However the ability to access equity in property (without selling) is quite simple, as property lending is mainstream for banks that are aggressively competing for market share. 
</li>
<li>The tangible ‘see, touch and feel factor’ of property provides me with comfort and gives me control. 
</li>
<li>The ATO allows me to claim the tax benefits of depreciation on the building and various inclusions over a number of years, although some conditions do apply.  In other words on top of the rent I receive, the tax office is assisting my cash flow by allowing me to claim depreciation on the capital outlay. You cannot depreciate a share!</li>
</ol>
My conclusion is that both asset classes are an important part of my portfolio but the key is in the selection process. Seek professional help when it comes time to making your choice. 
For property I would recommend you speak to a registered buyer's agent and with shares a licenced financial planner. Assuming I have purchased the property well, specifically in the right location, taking into account the points 1-4 above and the economists research (numbers don’t lie), then I feel very confident that over the longer term my property portfolio will grow and is a good and solid investment.
David Naylor is non executive chairman and co founder of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a>.
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dnaylor-vq8r8EznXA

Property v shares: Which is the best assest class to invest in?

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Earlier this week, Property Observer reported on a new survey from ME Bank that recorded 18% of respondents believing they would never be able to afford to buy their own home.
For people aged under 30 and women this<a href="/news/nearly-one-in-five-believe-they-will-never-be-able-to-buy-a-home-survey"> figure rose even higher</a>, to 26% and 21% respectively.
The survey also found that 51% of people expect rises over the next 12 to 24 months, with just 9% expecting prices to fall.
ME Bank general manager asset products, Luke Easton said that many first time buyers are now adapting different strategies in order to purchase a home.
When surveying respondents aged 18 to 29, one trend was clear. This bracket of buyers is keen to work harder, make cutbacks and try new things to get into the market.   
Here are the five strategies young buyers are considering:
<ol>
<li>24% of young buyers are finding ways to save more to purchase property, double the national average of 12% 
</li>
<li>20% are finding ways to increase their income, compared to 11% overall 
</li>
<li>19% would choose a property based on eligibility for a first home owner grant 
</li>
<li>14% would buy jointly with friends and family, compared with just 6% overall 
</li>
<li>12% would change their expectations on size, quality or location, compared to 6% overall</li>
</ol>
Easton said that financial challenges are encouraging creative attitudes.
However, he warned against property speculation.
“Trying to pick the market is impossible and you’re better off focusing on what you can control – saving for a deposit,” he said.
“Similarly, investors would be wise to build their investment strategy based on long-term capital growth and ignore short-term price fluctuations”. 
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The five strategies of young buyers: ME Bank

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In July, economists Ryan Fox and Peter Tulip delivered a paper for The Reserve Bank which looked at the broad question: is Australian housing overvalued?
It found that Perth residents who bought a property during the 2005-2007 boom would have to hold it for three decades before the investment worked out cheaper than renting for the same period.
The RBA research also revealed that the surge in prices over the past decade had made renting more economically sound than buying.
Value equation
Although the researchers found long-term that prices were generally “fair value”, they also looked at whether people were better off buying or renting and discovered that the boom of seven years ago had significantly changed the equation.
They took into account all the costs of buying and running a house, including interest rates and depreciation, and the expected increase in value home owners hoped to get on their property.
Between 1955 and 2014, owning a home was less expensive than renting within about eight years. But over the past decade when prices in Perth more than doubled, those who bought have gone backwards relative to those who decided to rent.
Research data
“If real appreciation over the previous 10 years is used as a guide, buying is less expensive than renting only with extremely long expected tenure – in excess of 30 years,” the researchers found.
“Consistent with conventional wisdom, households expecting to move again in a few years time are better off renting, unless they believe they can sell the property for an unusually large capital gain.”
House prices in Perth have climbed 120% since early 2004 and rents have climbed 81%.
Capital gains since the start of this year have slowed a little, with preliminary REIWA data showing the metropolitan median price in Perth down by one per cent in the June quarter and up by a modest 3.8%t on the same time last year.
Advantage
The main benefit with buying is the long-term capital growth that comes from owning a quality asset which is tax free, given the absence of capital gains tax on the family home.
Home ownership is also a huge advantage in retirement when most people have diminished earning capacity and survive on low and fixed incomes, such as the pension.
Australian research shows that pensioners who don’t own their home can spend up to 60% on their income on rent, pushing them into housing poverty.
So while only very long-term home ownership is the more affordable strategy, it provides the best outcome for people in their latter years.
Personal benefits
Another benefit of buying over renting was the ability to paint, decorate and renovate as you like, as well as shaping the garden.
There are some personal and psychological benefits to buying that go beyond money.
It’s also a lifestyle improvement for many people and can provide a sense of security that isn’t always possible in the rental system.
In spite of the recent report from the RBA, I don’t know many people who would strongly agree with the findings.
I think most tenants aspire to home ownership and I can’t see that changing much for the time-being.
While it’s true that long-term renting is far more common through Europe and the US, I think social, cultural and economic conditions are different enough in Australia to still nurture the strong desire for home ownership among those who can secure a mortgage.
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The benefits of home ownership extend far beyond capital growth

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GUEST OBSERVATION
When it comes to selling your property, you want to ensure the agent you have entrusted is able to successfully fulfil the job at hand.
A real estate agent’s definitive role is to get the best possible result at sale for their client. However how each agent undertakes this process can vary from agency to agency. Selecting the right agent plays a crucial role in driving the result and who you chose to sell your most expensive asset could alter the outcome dramatically.
<ul>
<li>Successfully selling - To gain optimum results an agent needs to go over and above the basics and demonstrate exceptional sales and interpersonal skills. After all, the client’s interaction with the agency is not just about the sale but about the overall experience. </li>
<li>An ethical approach - It goes without saying that a real estate agent should act ethically at all times. Buyers are very astute and know when an agent is misleading them. Acting unethically will see potential buyers lose interest in the property and refrain from putting their best offer forward. Not an ideal scenario for the vendor looking to bring as many buyers to the table as possible. </li>
<li>Knowledge is power – For an agent to be able to secure the best result for the vendor they should posses a great deal of expertise in the local area, by knowing what has sold and what is on the market. This product knowledge will help in quoting a realistic reserve for the property which will attract the most prospective buyers. A good agent will manage the vendor’s expectations of what is a realistic result and then endeavour to achieve this. </li>
<li>Experience – An experienced real estate agent should be able to read buyers and know what to say and do to get them attracted in the property. As different situations arise, the agent should have the skill set to act upon issues and ensure both buyers and sellers are happy and confident to work with the agency. </li>
<li>Finding a buyer - Ultimately the vendor wants to sell their property for the best possible price and for this to happen the agent must bring as many enthusiastic and voracious buyers to the fore. To do this, an agent should not only have a bespoke marketing campaign in place but also create competition by proactively targeting interested parties from the company’s database who fit the brief and demographic. This will in due course create competition for a property and secure the highest price.</li>
</ul>
By sourcing a competent and trustworthy agent, vendors can feel confident that their agent is working hard to drive the end result. 
Paul Bond is a lifelong resident of the Bayside suburbs and director of <a href="https://www.hodges.com.au/hodgessandringham" target="_blank">Hodges Sandringham</a>.
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An agent's five key skills that help secure the best result

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GUEST OBSERVATION
There has been much talk about the “search for yield” in investment markets. 
Investor interest in decent yield bearing investments has seen the price of such assets rise and their yields (or the cash flow they provide relative to their price) fall. This is clearly evident during the last three years. 
The chart below shows the yield available on various Australian assets today versus what they offered three years ago. All have seen a fall in their yields to varying degrees. 
<img src="/images/2014/10/23/oliver-oct-23-one.png" alt="">
But what's driving this? Is it a bubble? What warning signs should we watch? What does it mean for investors?
Why all the interest in yield? 
The first thing to note is that interest in the yield or cash flow an investment provides is a normal part of investing. But it seems to become a greater focus at various points in time. This is particularly so when interest rates are relatively low and investors are a bit wary about going for growth.
In Japan it’s become the norm as interest rates have stayed at/near zero for 15 years. In the US and Australia, yield focussed investing was in favour in the 1950s when interest rates were low and investors still cautious after the Great Depression and WW2. It became particularly apparent last decade as investors started putting more into yield plays like property, infrastructure and credit as bond yields remained relatively low only to be interrupted by the GFC. It has since returned with a vengeance.
There are three main drivers:
<ol>
<li>Low interest rates have pushed bank deposit rates and bond yields down, all of which is encouraging investors into higher-yielding alternatives. </li>
<li>Reduced fear of economic meltdown has helped investors feel comfortable taking on more risk but with memories of the GFC and its aftermath still fresh, this is only in a cautious fashion. So there is a desire for the comfort provided by investments that get a high proportion of their return from income. </li>
<li>Finally, aging populations are driving a longer term interest in yield. This started last decade as the first baby boomers moved into their pre-retirement phase and is intensifying now as they are starting to retire. This is driving demand for investments paying decent income in the form of dividends, rent, interest payments, etc. That said, trying to get a handle on the precise impact of this is nigh on impossible given increasing retirement ages and longevity driving a need for a decent growth exposure. </li>
</ol>
Is it structural of cyclical? 
The safest option in investment markets is to assume something is cyclical (ie short-term) rather than structural (ie long-term) until proven otherwise. Demographic influences are clearly structural and long-term. However, there is a structural aspect to low interest rates that cannot be ignored. 
First, to state the obvious, interest rates have been trending down with lower peaks and troughs since the 1980s. 
Second, the period of near zero/low global interest rates that has followed the GFC doesn’t look like it is about to end anytime soon. While the low global rates and easy money of the last few years have been constantly met with scepticism and concern about inflation and higher rates around the corner, the reality is that it hasn’t happened.
We are now into the fourth year in a row where the hoped for lift off to above trend global growth has not happened. Global growth remains OK at around 3 to 3.5%, but it’s below trend and uneven with periodic flare ups of concern about recession and deflation as we have seen during the last month or so in relation to Europe.
While it’s dangerous to say “this time it’s different”, quite clearly the world is different to the pre-GFC environment with excess levels of saving, spare capacity and more cautious attitudes to debt resulting in sub-par, uneven growth and low inflation/deflationary risks.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
The impact of low bond yields 
The logic of the chase for yield can be seen in relation to Australian commercial property (ie office, retail and industrial property). The next chart shows average commercial property yields relative to 10-year bond yields. While commercial property yields have fallen over the last 34 years from an average of 8.3% to an average of 6.6%, the yield on bonds has literally collapsed.
While the step down in bond yields was initially treated with scepticism on the grounds that “it’s just a bubble” or “inflation will soon take off forcing yields back up”, the longer it has persisted, thanks to sub-par growth and low inflation, the more investors have come to expect bond yields to stay down. So they increasingly invest in yield bearing alternatives such as property.
<img src="/images/2014/10/23/oliver-oct-23-two.png" alt="">
Faced with the choice of investing in a 10 year government bond yielding 3.2% as they are in Australia now, or allocating to commercial property with a 6.6% average yield and capital growth of, say, 2.5% pa (ie inflation) giving a total return of 9.1%, an investor might well conclude the latter makes more sense. 
In fact, looked at this way the property risk premium – ie the return potential property provides over current bond yields – at about 5.9% is about as high as it ever gets.
<img src="/images/2014/10/23/oliver-oct-23-three.png" alt="">
And of course, the same logic can be applied to investment in assets such as infrastructure, shares and corporate debt.
But is the chase for yield on borrowed time?
Is it wise for investors to behave this way? Probably yes… until it goes too far, bond yields surge or growth disappoints.
Has it gone too far? 
Inevitably the search for yield will be pushed too far as it was last decade. Perhaps the greatest risks are seen to be around corporate debt where the gap between US investment grade and junk bond yields and US government bond yields has fallen to the range that prevailed prior to the GFC.
However, credit spreads remained around these narrow levels for many years in the mid-1990s and mid-2000s before trouble arose. Nor have credit lending standards deteriorated like they did prior to the GFC.
<img src="/images/2014/10/23/oliver-oct-23-four.png" alt="">
In terms of equities, there has certainly been a narrowing in the gap between the forward earnings yield on shares and bond yields. But, as can be seen in the next chart, this gap – or a guide to the risk premium shares offer relative to bonds – still remains relatively wide compared to pre-GFC levels.
<img src="/images/2014/10/23/oliver-oct-23-five.png" alt="">
And finally for real assets (if commercial property is a guide), as indicated earlier, the risk premium offered by commercial property relative to bonds remains about as wide as it’s ever been.
So overall, it’s hard to argue the search for yield has gone too far. That said, corrections like the one we have seen in shares and corporate debt markets during the last month are healthy in ensuring this remains the case.
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
What about the risk of an upswing in bond yields? 
The events of the last month, with renewed worries global growth and deflation, tell us that the immediate threat from higher interest rates is low. The US is closest to raising rates but global risks and a strong US dollar importing low inflation to the US could see that pushed out to the second half of next year.
Australia is under no pressure to raise rates, with sub-trend growth and low inflation, and probably won’t start raising rates till after the US and for both it will be gradual. Rate hikes aren’t even on the horizon in Europe, Japan and China.
What about the risk of slower growth? 
Slower growth is perhaps a bigger risk globally, with the global economic recovery remaining fragile. In the absence of a major external shock or a major monetary tightening, however, it’s hard to see a sharp slowing in global/Australian growth.
What to watch?
Our basic assessment is that the search for yield hasn’t yet gone too far. Key indicators to watch for signs that it has include the following:
<ul>
<li>Valuation indicators - such as price to earnings multiples and the gap between earnings yields and bond yields for shares, corporate bond yield spreads and the return premium property offers over bonds;</li>
<li>Signs global growth is becoming more synchronised and picking up and that global inflation is rising as a guide to global monetary tightening.</li>
<li>Global business conditions PMIs as a guide to whether growth is slowing again.</li>
</ul>
So far so good, but they are all worth keeping an eye on.
What does it all mean for investors?
While the yields and return potential across most assets has continued to fall, shares, non-residential property and infrastructure continue to offer better prospects than low yielding cash, government bonds and term deposits. Some value has also been returned to corporate debt following the recent back up in corporate bond yields.
Shane Oliver is head of investment strategy and chief economist at <a href="https://www.ampcapital.com.au" target="_blank">AMP Capital</a>.
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The chase for yield: What it really means for investors

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Most of what people think they know about real estate is misinformation.
It helps to explain why so many Australians who attempt property investment have a bad experience and sell out at a loss.
Most of the questions I get from people, at seminars or via email, spring from a misconceived notion of the state of play in real estate.
Common examples include:
<ul>
<li>“With house prices surging around Australia, do you think ….?”</li>
<li>“Now that the property boom is over, what …?”</li>
<li>“I want to buy property within 5 kilometres of the CBD to get the best growth, but ….”</li>
<li>“Given what we have a housing shortage, do you think  ….?”</li>
</ul>
Or the dumbest question of all: “When do you think the bubble will burst?”
There are myriad examples. It seems the depth of research achieved by most consumers is a scanning of newspaper headlines. Australians are adept at absorbing myths, misconceptions and misinformation from media sound bytes.
One of the greatest of real estate myths popped up last week. Like most pieces of misinformation in real estate, it was created by a press release from an organisation pushing its vested interest.
It sought to perpetuate the great furphy, much cherished by real estate agents, that you will always get a better sale price if you employ an agent, as opposed to selling privately. It was apparently based on a survey of the perceptions of real estate consumers.
This was self-serving nonsense which contradicted my own research and considerable experience in the market.
The opposite is true. Your best chance of getting a top price for your property is to sell it yourself. You will also save thousands in commissions and marketing costs. The only time you should engage an agent is when you don’t have the time to handle the marketing process yourself.
Part of the argument from the agency community is that when you employ a selling agent you gain their negotiating skills. This is a hilarious concept. I am still waiting for my first encounter with a real estate agent skilled in negotiating.
Another part of the argument is that agents are motivated to get you the best possible price, because they get more commission.
<blockquote>
The only time you should engage an agent is when you don’t have the time to handle the marketing process yourself.
</blockquote>
This, too, is nonsense. The only motivation of a selling agent is a fast sale. The faster the better. Their motivation is convincing the vendor to accept the offer on the table.
In terms of commission, the difference between a $450,000 sale price and $470,000 is negligible. It’s $20,000 worth of difference to the vendor, but only small change to the agent. The agent’s motivation is to get the vendor to accept the $450,000 offer quickly – not to work hard to get the buyer to lift their offer.
As a buyer, my toughest negotiations have always been with private sellers. They will fight tooth and nail to get their price. Most real estate agents, on the other hand, are pushovers. They just want a quick sale and will devote their energies to talking the vendor down in price, rather than trying to talk the buyer up.
So the typical scenario is this. The vendor wants $470,000 and the agent wins the appointment by telling the vendor they will indeed get $470,000, perhaps more. Then the agent will go to work on “conditioning” the vendor, which means acquainting them with the reality that their property really isn’t worth $470,000.
A potential buyer offers $420,000. The agent uses that to further condition the vendor. The agent’s motivation is, always, a fast sale. So the agent’s energy will be focused on getting the vendor to accept the low offer, rather than negotiating hard to convince the buyer to lift their offer. The former could mean a sale today, while the latter course could mean a sale weeks later, or no sale at all.
I know about this subject. One of the books I’ve published was on this very topic. I conducted a lot of research before writing it. And the overwhelmingly conclusion my research revealed was that private sellers get higher selling prices than do agents.
In my property buying career, I have never paid the asking price for a property marketed by an agent, always considerably less. I’ve never had to fight the agent. The agent has always taken my offer and worked on the vendor.
It shouldn’t be that way, but that’s the way it is.
Terry Ryder is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> him or contact him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter</a>.
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terryryder-YECXbqmri2

You don't get a better sale price with an agent

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If you are a buyer, perhaps re-think your position.
The Inner Melbourne million dollar plus market is at its strongest levels in terms or bidders, sellers and action in three years. There is no evidence of an end in sight, despite the current mainstream media’s obsession with doom.
Yes, the market may change next week, but it hasn’t yet and your buying strategies need to be in sync with the current market (if you want to buy).
The Block is not real – it’s fairy tales and it’s not a true representation of the Inner Melbourne housing market – it’s a true representation of poorly thought out buying and selling procedures in the apartment market.
Below is the real market and we think real buyers know this.
We bought four last week (two off market) and missed a young buyer's home.
<ul>
<li>All bar one had competition and we have 12 auctions and negotiations next week (double Super Saturday). 
</li>
<li>We as James Buyer Advocates are experiencing significant client demand on good homes. The market right now is incredibly strong and robust and  the average amount of bidders per auction supports that again, as it has all year. 
</li>
<li>The long-term bidder average does not lie – if its consistently over two, then the market is strong and getting stronger – it’s all about buyer depth.</li>
</ul>
When will it end?
We have no idea, but it hasn’t ended yet.
Here is our good buyer plan till Christmas:
<ol>
<li>
Consider engaging a professional buying team. Break the ‘losing cycle’ and become a buyer … of a good home. Get on board your team, one that really understands property. No, not the accountant that always says don’t do it. Yes to an accountant that actually owns property, has his or her own wealth and is successful in business. No, not a financial planner that tells you to buy off the plan or ready made investments while they are trousering a big commission. Yes to a financial planner that understands and helps build your wealth through home ownership. No to a banker who’s name escapes you. Yes to a private banker or broker whom you have a longer term relationship with. No to a buyer advocate that can’t show you 50 similar homes they have bought, unless of course you want them to “learn” on your job. Yes to a good buyer advocate. But hold on, what about all those advocate fees? A good advocate can cost 1% – the market is moving more than that each month – bought two months ago and you are in front even after the professional fee. Plus, please do not think that many of your real competitors (other buyers in your price range) are not getting professional help. 
</li>
<li>
Consider a plan that works. Many people's plan revolves around a fear of paying too much. Too much last year is 15% below what you may have to pay now. 
</li>
<li>
Arm yourself with knowledge. Understand that you are not just embarrassing yourself when you bid without knowledge at auction, but you are also leaving yourself open to buying poorly. Being back on the market reselling your home in the near future is seven times more expensive (fees, stamp duty, reselling costs, interest) than the professional fee you may pay to buy well in the first place – and what about the emotional turmoil. 
</li>
<li>
You don’t trust the selling agent – in fact you know he stretches the truth, yet you use him to bid to buy your dream home because he is ‘free’. Do you think the selling agent from another company, will be helping your selling agent, help you buy well. Are you really thinking this through?</li>
</ol>
You have three to four more weekends of good stock before February.
Self interest in above comments – yes, no doubt. Self interest for us and self interest for you. That’s very different from a selling agent – self interest for them and their selling client, no self interest for you the buyer.
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>.
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