<p data-end="568" data-start="388">Abadeen has released the whole-floor penthouse crowning its recently completed <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences</a> development in Cremorne, bringing the near-300 sqm residence to market for the first time.</p>

<p data-end="803" data-start="570">Occupying the entire top floor of the boutique Lower North Shore development, the penthouse includes 221 sqm of internal living and a 74 sqm wraparound terrace, with a prized north-facing aspect taking in views across Middle Harbour.</p>

<p data-end="1041" data-start="805">The residence has been completed and fully furnished following a collaboration between Abadeen Executive Chairman Justin Brown and internationally recognised interior designer Jack Freeman, Founder and Managing Director of FREEMAN &amp; CO.</p>

<p data-end="1239" data-start="1043"><a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and Freeman approached the penthouse as a finished home, sourcing furniture, artwork, lighting and objects from Australia and overseas.</p>

<p data-end="1239" data-start="1043">[smartcode_project:default project_id=114246 project_image_fid=378718]</p>

<p data-end="1459" data-start="1241">Pieces from Parisian design house Pierre Augustin Rose sit alongside contemporary artworks and bespoke lighting, with Freeman drawing on recent visits to PAD Paris and Salone del Mobile Milano for the final collection.</p>

<p data-end="1582" data-start="1461">Brown said the aim was to create a penthouse that felt more like a large-scale private home than a traditional apartment.</p>

<p data-end="1777" data-start="1584">"The experience begins the moment the lift doors open. You're welcomed into an elegant dining room before the home opens into an extraordinary living space framed by sun-drenched harbour views.</p>

<p data-end="2018" data-start="1779">"Every time someone walks through the front door they pause. It's not just the view, it's the incredible sense of space, the warmth created by the northern sunlight that fills the interiors, and the way every room connects so effortlessly.</p>

<p data-end="2245" data-start="2020">"It has all the proportions of a luxury home, while delivering the effortless lifestyle and personalised experience of living in a world-class six-star hotel, combined with the simplicity and convenience of apartment living."</p>

<p data-end="2245" data-start="2020">[smartcode_project:default project_id=114246 project_image_fid=378713]</p>

<p data-end="2438" data-start="2247">A secure lift provides exclusive access to the penthouse level, opening to a dedicated arrival foyer and dining area before the residence expands into its main living and entertaining spaces.</p>

<p data-end="2577" data-start="2440">Floor-to-ceiling glazing runs across the northern side of the home, connecting the interiors with the terrace and Middle Harbour outlook.</p>

<p data-end="2772" data-start="2579">The penthouse also features a fireplace and substantial chef's kitchen, while the wraparound terrace has been designed to accommodate both everyday outdoor living and larger-scale entertaining.</p>

<p data-end="2245" data-start="2020">[smartcode_project:default project_id=114246 project_image_fid=378720]</p>

<p data-end="2245" data-start="2020">Freeman said the interiors had been deliberately kept restrained to complement the scale, natural light and outlook already established by the architecture.</p>

<p data-end="2996" data-start="2932">"The penthouse is a serene study in quiet luxury," Freeman said.</p>

<p data-end="3264" data-start="2998">"The interior pairs soft, sculptural forms with warm timber, pale stone and a restrained neutral palette. Curated artwork and metallic accents add depth, while abundant natural light creates a calm, effortlessly refined atmosphere. In my world, less is always more."</p>

<p data-end="3384" data-start="3266">Freeman said the approach was centred around collecting individual pieces rather than simply decorating the apartment.</p>

<p data-end="3531" data-start="3386">"Every material, every object and every piece of furniture has been curated with intention. I am a true believer in collecting versus decorating.</p>

<p data-end="3823" data-start="3533">"The architecture already provided extraordinary natural light, remarkable volume and an uninterrupted connection to Middle Harbour. Our role was to complement those qualities with unique one-of-a-kind pieces of fine art and collectible design sourced from recent travels around the world."</p>

<p data-end="3823" data-start="3533">[smartcode_project:default project_id=114246 project_image_fid=378694]</p>

<p data-end="3986" data-start="3825">Among the collection are solid bronze sculptures by Lorenzo Quinn, alongside a curated crystalware collection and pieces sourced from international design fairs.</p>

<p data-end="4199" data-start="3988">Park Residences sits opposite Cammeray Golf Club, Cammeray Croquet Club and Grand Slam Tennis Cammeray, around 300 metres from Neutral Bay Village and its established collection of restaurants, cafés and retail.</p>

<p data-end="4370" data-start="4201">Brown said the combination of a whole-floor floorplan, northern aspect and proximity to Neutral Bay was becoming increasingly difficult to find on the Lower North Shore.</p>

<p data-end="4516" data-start="4372">"Completed whole-floor penthouses with a sun-drenched north-facing aspect and sweeping Middle Harbour views are exceptionally rare," Brown said.</p>

<p data-end="4717" data-start="4518">"Add a quiet position opposite golf, croquet and tennis facilities, a level walk to Neutral Bay Village and only minutes to the CBD, and you have a lifestyle that's incredibly difficult to replicate.</p>

<p data-end="4883" data-start="4719">"This is a home that offers the privacy and generosity of a luxury residence together with the convenience of one of Sydney's best-connected harbourside locations."</p>

<p data-end="4947" data-start="4885">The penthouse will be exclusively marketed by SRM Residential.</p>

<p data-end="4947" data-start="4885">[smartcode_project_cta:default project_id=114246]</p>


Joel Robinson

Abadeen unveils penthouse at Park Residences in Cremorne

<p>New Brisbane developer Dalcott has unveiled Marrone, the first of three residential projects it is planning in and around Browning Street in South Brisbane.</p>

<p><a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a> will comprise 97 predominantly two- and three-bedroom apartments, with larger residences aimed squarely at the owner-occupier market.</p>

<p>The project will sit in a quiet pocket of South Brisbane between South Bank and West End, close to the restaurants, cultural attractions and riverfront amenity that have driven the suburb's continued transformation.</p>

<p>Dalcott is targeting buyers looking for more space and amenity than has traditionally been offered in the inner-city apartment market, particularly downsizers and professionals wanting to remain close to the city.</p>

<p>[smartcode_project:default project_id=149951 project_image_fid=377072]</p>

<p>Resident facilities will be concentrated around an extensive rooftop amenity offering, including a swimming pool, spa, infrared sauna, warm and cold magnesium plunge pools, private lounge, dining room and outdoor entertaining areas.</p>

<p>Dalcott Managing Director Lachlan Cottee said South Brisbane's combination of lifestyle, connectivity and established character had been central to the approach to Marrone.</p>

<p>“South Brisbane offers a combination of lifestyle, connectivity and character that’s difficult to replicate elsewhere in Brisbane,” Cottee said.</p>

<p>“Our focus has been on creating homes that feel connected to that environment while providing the level of design, functionality and quality that today's owner-occupiers expect.”</p>

<p>The residences will feature an expressive material palette. Italian Calacatta Viola marble, known for its deep burgundy veining, will be paired with aged brass tapware, Chestnut engineered timber flooring and Tuscan Oak joinery.</p>

<p><img alt="Marrone" data-entity-type="file" data-entity-uuid="b8d833da-3b30-496a-ae30-07bdff371b50" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.35%E2%80%AFAM.png?VersionId=P6DAgOfaQzIXljKKK5j3e5NhWtrHIu9G" /></p>

<p>Bathrooms will feature Nara Japanese ceramics and glass bricks, while clay, walnut and brass lighting will be used throughout the apartments.</p>

<p>Dalcott has appointed Realm Projects, led by Managing Director Shane Foley, to handle sales and marketing following previous sold-out collaborations between the groups.</p>

<p>Foley said the Brisbane apartment buyer had become increasingly focused on the quality of the home itself rather than simply securing an inner-city address.</p>

<p>“We expect to see strong demand from buyers who still want all the advantages of inner-city living but aren’t prepared to compromise on the quality of their home,” Foley said.</p>

<p>“Many will be downsizers looking to leave behind the maintenance of a traditional family home without giving up the space they enjoy, while others are likely to be professionals wanting a residence that reflects the way they live today.”</p>

<p>“Marrone responds directly to that demand, with generous floorplans, exceptional resident amenity and a location that places some of Brisbane’s best dining, entertainment and cultural attractions within walking distance.”</p>

<p><img alt="Marrone" data-entity-type="file" data-entity-uuid="61f7b22f-899e-4c0f-940a-7d3ab1bfb93a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%2010.52.44%E2%80%AFAM.png?VersionId=PvN1JYxBgUpyCB7efKo52WGdSDs9nmim" /></p>

<p>Marrone will be the first project delivered as part of Dalcott's broader investment in the precinct.</p>

<p>It will be followed by La Terra, a boutique project comprising penthouse-style, single-level apartments on a northeast corner site with extensive resident amenity and city views.</p>

<p>Cottee said Marrone represented the first stage of the group's longer-term plans for the area.</p>

<p>Dalcott was established in 2025 by Lachlan Cottee and Ben Dalgliesh, combining development and construction capability under an integrated model and focusing on architecturally considered residential projects.</p>

<p>Marrone will initially be offered through a pre-release registration campaign ahead of its broader public launch.</p>


Dalcott targets owner-occupiers with South Brisbane debut Marrone

<p>Parnell Developments is the latest to seek significant uplift through the NSW Government's Housing Delivery Authority on a Strathfield site previously approved for a much smaller apartment development.</p>

<p>Parnell has sought approval for a 32-storey mixed use tower across&nbsp;<a href="https://www.apartments.com.au/new-apartments/7-lyons-street-strathfield-nsw-2135">3-7 Lyons Street and 18 Parnell Street</a>, a&nbsp;1,857 sqm site around 400 metres from Strathfield Station. The building would yield 160 apartments, 15 per cent of which will be dedicated affordable as per the government mandate for buildings seeking additional uplift.</p>

<p>Approved previously was a nine-storey building back in 2022 with just over 30 apartments. That approval came prior to the project being&nbsp;progressively reconsidered as planning policy shifted toward greater density around transport hubs.</p>

<p><img alt="Strathfield" data-entity-type="file" data-entity-uuid="c5af5281-a643-4eb2-b8c4-0081b59c04c7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.16.48%E2%80%AFAM.png?VersionId=37bd3mI7rHNpThOV_75VO8xsGFwWOi1u" /></p>

<p>Turner has designed the latest building that would replace&nbsp;existing detached homes across the four lots.</p>

<p>The apartment mix comprises 22 one-bedroom apartments, 107 two-bedroom and two-bedroom-plus configurations, and 31 apartments with three or more bedrooms. The scheme also includes 203 car spaces across six basement levels and 58 bicycle spaces.</p>

<p>The proposal has been designed around a three-storey podium addressing Lyons Street, with the tower rising above and stepping toward its upper levels.</p>

<p>Turner said the podium was deliberately scaled to respond to the existing street, while the taller element has been designed as part of the emerging skyline anticipated around Strathfield Town Centre and the wider Homebush transport-oriented development precinct.</p>

<p>The Lyons Street frontage would have a more active, pedestrian-focused character, incorporating the commercial tenancy, landscaping and a brick-framed podium with an awning.</p>

<p><img alt="Strathfield" data-entity-type="file" data-entity-uuid="14b20874-b8c3-4ac7-bc03-92be9a69fb78" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.48%E2%80%AFAM.png?VersionId=av.9TxtqIRTC6v3PkSuu1rL9rreWoe2h" /></p>

<p>Parnell Street, which faces the railway corridor, has been given a different architectural treatment, with double-height breeze blocks, landscaping and communal areas used to soften the interface with the rail infrastructure.</p>

<p>The tower itself uses curved and recessed facade elements, with wave-like indentations across the northern elevation breaking the building into three vertical forms.</p>

<p>A palette of grey concrete, brick and breeze blocks is complemented by clay and terracotta accents, while the upper tower adopts a lighter expression through articulated slab edges, vertical fins and recessed glazing.</p>

<p>Residents would have access to 467 sqm of communal open space spread across three levels. The ground floor would accommodate the more active resident areas, including barbecue and group gathering spaces and an internal communal room capable of being used for working from home.</p>

<p>A more passive viewing deck is proposed at level three, overlooking the ground-level landscaping and neighbouring tennis courts, while a rooftop "sunset deck" at level 30 would provide another social and relaxation space.</p>

<p><img alt="Parnell" data-entity-type="file" data-entity-uuid="c3dce401-a80f-4682-8471-4caa01180880" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%209.17.34%E2%80%AFAM.png?VersionId=Xyo8JVqbOhSJXNy6Ih.1cHL.O6i0bGR." /></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>Strathfield has been earmarked for substantial change through the Strathfield Town Centre planning work and the nearby Homebush TOD precinct.</p>

<p>Turner's report says the project has been designed to act as a transition between the existing low and mid-rise development surrounding the site and the taller built form expected to emerge across the town centre.</p>

<p>The proposal is being assessed as State Significant Development under the HDA pathway, alongside the concurrent request to amend the Burwood Local Environmental Plan.</p>


First look: New apartment tower pitched for Strathfield Town Centre precinct

<p>An $18 million penthouse has hit the market in Main Beach as construction tops out on La Mer, the $155 million apartment development rising just metres from the beach.</p>

<p>Spanning around 600 sqm across the top two levels of the 29-storey tower on Main Beach Parade, the four-bedroom penthouse is one of the latest eight-figure residences to test the upper end of the Gold Coast apartment market.</p>

<p>Its launch comes amid continued activity at the very top of the market, following the $30 million off-the-plan sale of a Burleigh Heads penthouse earlier this year, which surpassed the Gold Coast's previous $24 million apartment record set in 2023.</p>

<p>The <a href="https://www.apartments.com.au/new-apartments/la-mer-main-beach-3580-main-beach-parade-main-beach-qld-4217">La Mer penthouse</a> has been designed as a private residence in the sky, with 360-degree views spanning the ocean, Broadwater, hinterland and Gold Coast skyline.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378731]</p>

<p>All four bedrooms have ensuites, while the ocean-facing master retreat occupies around half of the upper level and includes its own lounge, private balcony, two walk-in wardrobes and an oversized ensuite with a freestanding stone bath positioned to take in the views.</p>

<p>The residence also features a kitchen designed to accommodate a private chef, a 3.6-metre island bench, expansive butler's pantry, wine cellar and integrated bar.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378732]</p>

<p>A rooftop pool and substantial outdoor entertaining area with its own kitchen sit above the residence, while a grand staircase connects the two internal levels. The penthouse also has its own express lift.</p>

<p>OTP Group Director James Elliott, who is marketing La Mer, said the penthouse was expected to appeal to high-net-worth buyers seeking either a permanent Main Beach residence or Gold Coast holiday home.</p>

<p>“The La Mer penthouse represents exceptional value, considering its quality design, size, privacy and location, not to mention the 360-degree views capturing the beach and Gold Coast Broadwater,” Elliott said.</p>

<p>“We’re anticipating interest from high-net-worth individuals and couples seeking a residence or holiday home in the sought-after village enclave of Main Beach, taking advantage of the unprecedented growth underway in the area and neighbouring The Spit.”</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378736]</p>

<p>La Mer is being developed by developer-builder ODUS and Nazero, in partnership with funder Metrics Credit Partners.</p>

<p>ODUS Director Byron Sakha said topping out the tower had provided the opportunity to release the project's most significant residence.</p>

<p>“We’ve worked with internationally-recognised studio Sici Design on the penthouse interiors, with a focus on ensuring it isn’t luxury for luxury’s sake. Every element has been thoughtfully designed to enhance quality of life for those who call it home,” Sakha said.</p>

<p>“The views are the hero of virtually every space, but we’ve given equal attention to the fittings and finishes, so every detail exudes elegance and refinement.”</p>

<p>Sici Design Founder and Director Maria Papadopoulos said the extensive views became an integral part of the interior design rather than simply something the residence was designed around.</p>

<p>“The views weren't something we designed around, they became part of the design itself, with the true luxury of La Mer in its feeling of peace, calm and wellbeing,” Papadopoulos said.</p>

<p>“Luxury isn't defined by how something looks, but how it makes you feel, and we believe a luxurious home should be beautiful to live in, not stressful to maintain.”</p>

<p>The interiors combine Austral Dream Dolomite natural stone and travertine with timber flooring and a restrained coastal palette.</p>

<p>[smartcode_project:default project_id=95606 project_image_fid=378734]</p>

<p>Designed by Plus Studio, La Mer is one of the more boutique additions to the rapidly changing Main Beach apartment market.</p>

<p>The tower comprises just 24 full-floor, three-bedroom plus multipurpose room apartments below the two-level penthouse, giving the project a considerably lower density than many of the larger towers being developed across the Gold Coast.</p>

<p>Residents will have access to a pool and spa, gym, sauna, barbecue facilities, private sun lounges, yoga lawn and outdoor beach shower.</p>

<p>The penthouse has been released as part of the final collection of residences at La Mer, with remaining apartments priced from $4.3 million.</p>

<p>Construction is expected to complete later this year, with a fully furnished display apartment now open on level four.</p>

<p>[smartcode_project_cta:default project_id=95606]</p>


ODUS releases $18 million penthouse crowning La Mer Main Beach

<p><a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.</p>

<p>Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.</p>

<p>The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365685]</p>

<p>"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.</p>

<p>Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.</p>

<p>"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368869]</p>

<p>That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.</p>

<p>Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.</p>

<p>Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=365689]</p>

<p>Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.</p>

<p>They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.</p>

<p>The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.</p>

<p>"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.</p>

<p>[smartcode_project:default project_id=509 project_image_fid=368872]</p>

<p>The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.</p>

<p>With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.</p>

<p>A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.</p>

<p>Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.</p>

<p>[smartcode_project_cta:default project_id=509]</p>


Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

Sydney Apartments

<html><body>
<p>EXPERT OBSERVER </p>
<p>The Australian Bureau of Statistics published building activity data this week which showed there were 227,122 dwellings under construction nationally, only slightly lower (0.6%) than the record high set over the March quarter earlier this year.  </p>
<p>69% of these dwellings were classified as ‘other residential projects’ which are predominantly apartments. </p>
<p>Three quarters of these new apartment projects are located in New South Wales (66,511) and Victoria (50,085).</p>
<p>Click <a href="https://www.corelogic.com.au/sites/default/files/2018-10/2011012_settlement_risk_blog_0.jpg" target="_blank">here</a> to enlarge</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2018-10/2011012_settlement_risk_blog_0.jpg" alt="CoreLogic Settlement Risk Blog Graphs" width="2258" height="1192"></p>
<p>Many of these apartments would have been sold off the plan, at a time when housing conditions were much stronger and credit conditions weren’t as tight.  With so many units in the pipeline at a time when overall housing market conditions are weakening, settlement risk is heightened.  </p>
<p>Settlement risk refers to the risk that the purchaser of a property isn’t able to meet their settlement obligations and subsequently the contract for purchase may not settle.  Settlement risk is inherently higher for an off-the-plan purchase due to the long time period between signing the contract of sale and the completion of the project prior to settlement.  Market conditions and personal circumstances can change materially between these two dates.  Off-the-plan buyers would of course be hoping the value of property rises during the settlement period, and this has certainly been the case in Sydney and Melbourne during the growth phase.  </p>
<p>The unfortunate reality is that dwelling values are now falling and for some off-the-plan buyers, the value of their unit at the time of settlement could be lower than the contract price.  Metadata from CoreLogic’s Valex platform highlights this trend.  In Sydney, 30% of off-the-plan unit valuations were lower than the contract price at the time of settlement in September, double the percentage from a year ago.  In Melbourne, 28% of off-the-plan unit settlements received a valuation lower than the contract price.  In Brisbane, where unit values remain 10.5% below their 2008 peak, the proportion was substantially higher, at 48%, although the trend is easing due to the unit construction cycle peaking two years ago and much of the unit supply now absorbed.  </p>
<p>Off-the-plan buyers who find their valuation comes in lower than the contract price at the time of settlement could be in for a rude shock.  Lenders will generally be looking for a loan to valuation ratio of at least 90%, more often closer to 80% - meaning their deposit will need to be at least 10% and potentially closer to 20% of the property value.  If the valuation comes in lower than expected, the buyer may need to top up their deposit in order to meet the lenders loan to valuation criteria.   Some buyers may simply not have the funds to do so which could see the contract fail to settle. </p>
<p>Additionally, some buyers may simply be reluctant to settle on a property that is now worth less than what they originally thought.  Im not a lawyer, but contracts of sale are generally tight. Buyers who aren’t able to settle or choose not to settle would likely lose their deposit and could be sued by the developer to recover any costs incurred, including any difference between the contract price and ultimate selling price.  </p>
<p>With the unit construction cycle moving through an unprecedented peak, the settlement phase will be an important facet of the market to monitor.  </p>
<p>Markets where unit supply has been high and market conditions weak have seen a surge in loss making re-sales.  Brisbane and Perth are prime examples, with loss making apartment re-sales substantially outweighing loss making resales for houses.  An oversupply of inner city apartments has seen a divergence in Melbourne as well, however stronger housing market conditions across the city have helped to keep a lid on more substantial instances of loss as seen in Brisbane and Perth.  </p>
<p>Click <a href="https://www.corelogic.com.au/sites/default/files/2018-10/2011012_settlement_risk_blog_houses_v_units.jpg" target="_blank">here</a> to enlarge</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2018-10/2011012_settlement_risk_blog_houses_v_units.jpg" alt="CoreLogic Settlement Risk Blog Houses v Units" width="2116" height="642"></p>
<p>As new apartment supply reaching settlement peaks in Sydney and Melbourne, amidst weaker housing market conditions, tighter finance, fewer domestic and foreign investors and sublime rental conditions, we could see loss making resales across this sector trend higher as well.  </p>
<p><em>Tim Lawless is the national research director of CoreLogic RP Data</em></p>
</body></html>

tlawless-5VLUrbAk9s

A growing settlement risk across the Melbourne and Sydney unit markets: Tim Lawless

<html><body>
<div class="cq-article-content-paras section">
<p>Sydney-based developer Ceerose said the absence of foreign buyers had left it with unsold apartments.</p>
<p>Chinese buyers, including many local Chinese Australians with capital from mainland China, accounted in good times for up to half of Ceerose's clientele, the Australian Financial Review noted.</p>
<p>"This year the market's hit the handbrake," Ceerose director Edward Doueihi said.</p>
<p data-gtm-vis-first-on-screen-7770372_137="66719" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">"It's really affected us.</p>
<p data-gtm-vis-first-on-screen-7770372_137="66719" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">"We've taken our developments off the market now. We've stopped marketing. We've stopped buying sites. In Sydney it's very negative."</p>
<p>He was now renting 100 of his unsold apartments across Sydney's inner west, north shore and the CBD.</p>
</div>
<div class="cq-article-content-media section">"We're holding a lot of stock," he said. "We just rent them out now. We can't move them."</div>
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<div class="cq-article-content-media section">Doueihi said the role landlord was not one he'd traditionally played.</div>
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<p>Donehi noted a further complication was a simultaneous slowdown in the sales and rental markets.</p>
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<p data-gtm-vis-first-on-screen-7770372_137="90738" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Doueihi added the weaker rental market meant his average rent across one, two and three-bedroom apartments was $650 per week, about $50 less than landlord investors secured a year ago.</p>
<p data-gtm-vis-first-on-screen-7770372_137="90738" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">His units were all occupied, but it had taken an average six weeks.</p>
<p>"I've never seen markets in 32 years that the rental market's been affected and the residential sales have been affected," he said.</p>
<p>"It's scary."</p>
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j.ballantyne1990-6AQqhLzZaK

Ceerose become landlords after Sydney apartment sales slowdown

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<p>Both new residential building and renovation activity declined significantly in 2017, with total seasonally adjusted dwelling starts down to 52,600 by the final quarter of the year, well down from the peak of 62,300 in the first quarter of calendar year 2016.</p>
<p>The drop was driven by a 17% year-on-year decline in attached dwellings, with Brisbane's inner city apartment market the prime culprit. </p>
<p><a href="https://2.bp.blogspot.com/-Aqgce8eMVis/Ws3krKiHsuI/AAAAAAAApW4/hwxLmhWjgzMkCiXBwS61LwBb0e9cfsQXgCLcBGAs/s1600/3.jpg"><img src="https://2.bp.blogspot.com/-Aqgce8eMVis/Ws3krKiHsuI/AAAAAAAApW4/hwxLmhWjgzMkCiXBwS61LwBb0e9cfsQXgCLcBGAs/s640/3.jpg" width="640" height="386" data-original-height="816" data-original-width="1346"></a></p>
<p>Sundry indicators suggest that activity across Queensland should now trend moderately upwards, spurred on by a healthier spread of boutique developments, 'plexes, and townhomes.</p>
<p>But inner Brisbane's new build high-rise sector is absolutely cactus as the renters move in. </p>
<p>Interestingly, despite the extremely high level of apartment starts through this cycle, total dwelling completions continued to decline for another quarter, suggesting that all is not well in developer-land. </p>
<p><a href="https://2.bp.blogspot.com/-fxCJHA8tq6o/Ws3lYKrikcI/AAAAAAAApXY/P5ORNb1wvhQ0wojNqhZxHtnvOX-DwSl0gCLcBGAs/s1600/5.jpg"><img src="https://2.bp.blogspot.com/-fxCJHA8tq6o/Ws3lYKrikcI/AAAAAAAApXY/P5ORNb1wvhQ0wojNqhZxHtnvOX-DwSl0gCLcBGAs/s640/5.jpg" width="640" height="386" data-original-height="808" data-original-width="1338"></a></p>
<p><strong>Crunch looms for developers</strong></p>
<p>By the end of the year there were still some 150,000 attached dwellings under construction. for the seventh consecutive quarter.</p>
<p><a href="https://1.bp.blogspot.com/-6uuK9Vf8lJw/Ws3uwfvG1oI/AAAAAAAApXs/hd3mUvlFK6wWWot_rbIw_LtZco3QyHtwgCLcBGAs/s1600/1.jpg"><img src="https://1.bp.blogspot.com/-6uuK9Vf8lJw/Ws3uwfvG1oI/AAAAAAAApXs/hd3mUvlFK6wWWot_rbIw_LtZco3QyHtwgCLcBGAs/s640/1.jpg" width="640" height="382" data-original-height="825" data-original-width="1380"></a></p>
<p>Drilling down a level it's clear to see that while apartment activity was fading fast in Melbourne and Brisbane respectively, Sydney and the state New South Wales had more than 68,000 attached dwellings under construction.</p>
<p>To say that this is unprecedented would be an understatement; the numbers are off the charts!</p>
<p>Now it does take a long time to see apartment projects through from approval, but in Sydney the completions just haven't been hitting the market in the numbers expected.</p>
<p><a href="https://1.bp.blogspot.com/-Rq6BLQR7lGc/Ws3krLf7-rI/AAAAAAAApW0/FofyGN3Y-BEk1VE3yTRvzAk-EzbKXW1FQCLcBGAs/s1600/2.jpg"><img src="https://1.bp.blogspot.com/-Rq6BLQR7lGc/Ws3krLf7-rI/AAAAAAAApW0/FofyGN3Y-BEk1VE3yTRvzAk-EzbKXW1FQCLcBGAs/s640/2.jpg" width="640" height="386" data-original-height="816" data-original-width="1352"></a></p>
<p>Total dwelling completions in 2017 for New South Wales were 61,600, with just over half of that total accounted for by attached dwellings, which on a net completions basis is barely keeping pace with demand. </p>
<p>Officially, of course, everything is fine.</p>
<p>There are few reported defaults, and settlement valuations are holding up reasonably well despite the softening of the resale market and the total evaporation of the offshore Chinese bid.</p>
<p>With pre-sales flagging it's certainly hard to envisage as many new projects getting off the ground, as investors grapple for finance in the midst of a Royal Commission into banking misconduct.</p>
<p>It's become a vicious circle, with nervous banks requiring higher pre-sales which developers are unable to achieve, and finance for construction thus not forthcoming. </p>
<p>In any case, a raft of actioned and proposed budgetary and regulatory macroprudential measures have made property investment less appealing at the margin (and totally unappealing for foreign investors). </p>
<p>Another compelling indicator of troubled times ahead for developers is the sheer number of dwellings approved but not commenced at 46,400, mostly accounted for by apartments and by far the highest figure in Australia's history. </p>
<p><a href="https://1.bp.blogspot.com/-gUWVmdnHC2E/Ws3kr6g6XAI/AAAAAAAApW8/wcRYn02NKMIyys25qx5zJ4VRnBJ_JRaZQCLcBGAs/s1600/4.jpg"><img src="https://1.bp.blogspot.com/-gUWVmdnHC2E/Ws3kr6g6XAI/AAAAAAAApW8/wcRYn02NKMIyys25qx5zJ4VRnBJ_JRaZQCLcBGAs/s640/4.jpg" width="640" height="380" data-original-height="825" data-original-width="1385"></a></p>
<p><strong>What happens next?</strong></p>
<p>Now sure, the plural of anecdote is not data, but I believe that we'll see many of Sydney's apartment projects running into trouble. </p>
<p>The official line is that defaults are low, and everything is going swimmingly, but I'm not so sure. </p>
<p>By the way, don't rely on anything you read here either, this is just my opinion.</p>
<p>Take a drive around, speak to a few sales staff, observe how apartment projects are progressing. </p>
<p>In addition to the astonishing boom and collapse of Chinese investors, another potentially unique aspect of this cycle is that construction and materials costs could remain high in Sydney, even in the face of a sharp drop in apartment activity.</p>
<p>Forged on the back of a stamp and transfer duty bonanza from both residential housing and asset sales, the state has embarked upon an overdue thrust at tackling its infrastructure deficit, in turn propelling total construction employment to even greater heights. </p>
<p>As a result construction employment surged higher than it had ever been before both in absolute terms and as a share of the workforce, squeezing developer margins.</p>
<p>Incidentally, I personally believe that most of the apartments approved in Sydney will be converted into dwelling starts in the fullness of time, but quite possibly at a different price and rate. </p>
<p>Receivers and cashed up opportunists will stand by at the ready. </p>
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Receivers and cashed up opportunists are at the ready watching Sydney apartment prices: Pete Wargent

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<p>Sydney's apartment market has challenges emerging as new supply increasingly comes on line and banks continue to tighten funding to investors.</p>
<p>There was little potential for further unit price growth, according to BIS Oxford Economics.</p>
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<p><span>Apartment development has increasingly moved from inner Sydney suburbs to the city’s middle ring, it noted.</span></p>
<p><span>After accounting for around 29% of total apartment building approvals in 2010/11, middle ring Sydney suburbs comprised 40% of apartment building approvals in 2016/17.</span></p>
<p><span>Two bedroom apartments account for most of the Sydney stock.</span></p>
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<p><span>Suburbs </span><span>report, which covers the Local Government Areas of Sydney (below), and profiles indicators relating to demand, supply, rents and prices. </span></p>
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<p><span>STOCK DEFICIENCY </span></p>
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<p><span>Underlying demand for dwellings increased over the four years to June 2017 on the back of strong population growth. Low interest rates have allowed pent up demand to be </span>released into the market.</p>
<p>Underlying demand rose to an estimated peak of 42,500 dwellings over 2016/17, well above the average of 32,600 dwellings pa over the previous five years.</p>
<p>However, dwelling completions surged far ahead of underlying demand. Annual completions doubled from 23,100 starts in 2012/13 to an estimated 47,200 starts in 2016/17.</p>
<p>This has seen the underlying dwelling deficiency slowly eroded since 2014/15.</p>
<p>Over 2017/18, completions are forecast to remain strong while underlying demand is expected to ease as net interstate outflows rise. This will lead to a further decline in the level of stock deficiency </p>
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<p><span>APARTMENT OCCUPIERS </span></p>
<p><span>Two bedroom apartments account for the majority of the Sydney apartment stock, at 56% of occupied apartments at the 2016 Census. Moreover, studios and one bedroom apartments account for another 29% of Sydney’s occupied apartment stock, with the remaining 15% containing three or more bedrooms. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/BEDROOM%20TYPE.jpg" target="_blank">to enlarge.</a></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/DEMAND.jpg" target="_blank">to enlarge.</a></p>
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<p><span>The households occupying apartments are reflective of the composition of the apartment stock. Studio and one bedroom apartments are dominated by lone person households (who accounted for 55% of total studio and one bedroom apartments), while two bedroom apartments have a more even split of lone person, couple without children and family with children households, at around 25-30% each. </span></p>
<p><span>In comparison, family with children households were the most prevalent household type in three bedroom apartments (40% of households). </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/APARTMENT%20HOUSES.jpg" target="_blank">to enlarge.</a></p>
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<p><span>Studio and one bedroom apartments are dominated by rental tenants, who account for 76% of households. In contrast, only 12% were fully owned suggesting that studio and one bedroom apartments are not attracting downsizers. Around 74% of two bedroom apartments were renting. Households with a mortgage accounted for the larger share at 18%. In contrast, a high share of three bedroom apartments were owner occupied (43%), with a high percentage (18%) being fully owned. This suggests that many owner occupiers in three bedroom apartments are downsizers and are buying with full equity. </span></p>
<p><span>APARTMENT SUPPLY </span></p>
<p><span>The high density sector has benefited most in this upturn in the Sydney market. High density building approvals more than doubled from 13,500 approvals in 2012/13 to 30,100 approvals in 2016/17. While there has also been a moderate upswing in house approvals, the medium density sector has remained flat. Inner Sydney has traditionally attracted the greatest amount of high density activity, although the middle ring has begun to account for a greater share of high density dwelling approvals. The deterioration of affordability in Sydney has encouraged a shift towards both apartments over houses, and also activity from inner to middle regions.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/tenure.jpg" target="_blank">to enlarge.</a></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/15/tenure.jpg" alt=""></span></p>
<p><span>RENTS, PRICES AND YIELDS </span></p>
<p><span>As the market picked up, median price growth for units averaged 9.1% per annum between 2012 and 2017. This price growth was fairly even geographically across the Inner and Middle regions of Sydney, ranging from 10.8% per annum in Eastern Suburbs to 7.3% in the Middle West.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/approvals.jpg" target="_blank">to enlarge.</a></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/2/15/approvals.jpg" alt=""></span></p>
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<p><span>The result has been that indicative unit yields have now fallen below their previous lows of 2005, to be 3.6% in June 2017. This would suggest little potential for further unit price growth (and eventually the possibility of price declines), as occurred during the mid-2000s. A smaller dwelling deficiency and tightening restrictions on investor activity will also add drag to market sentiment. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/2/15/greater.jpg" target="_blank">to enlarge.</a></p>
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jrobinson-rf4aSBido9

Little potential for further Sydney unit price growth: BIS 

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<p>Melbourne house prices will outpace the Sydney market with 10 percent growth over the next three years, QBE's latest Australian Housing Outlook report forecasts.</p>
<p>Investor lending curbs will hit Sydney more heavily pulling its median house price down 0.2 percent to $1,150,000 by 2020 from the current $1,178,000, according to the report by QBE's Lenders Mortgage Insurance unit produced with consultancy BIS Oxford Economics.</p>
<p>House prices in Melbourne will rise from $852,700 to $940,000 by 2020, the report predicts.</p>
<p>The Sydney dip would be limited to just the two next years, with a 1.1 percent fall in the year to June 2018 and a 2.6 percent decline the next year before recovering to post a 1.3 per cent increase in the year to June 2020, the report predicts.</p>
<p>QBE’s Housing Outlook 2017-20 reveals the majority of Australia’s cities will experience house price growth with Canberra house prices to rise 16%, Hobart to 11%, Melbourne to 10%, Brisbane to 7%, Adelaide to 7% and Perth to 3% over the next three years.</p>
<p>The picture is less rosy for apartment owners, with unit prices set to fall for Brisbane 7%, Melbourne 5%, and Sydney 4%. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/25/QBEForecast.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/25/QBEForecast.png" alt=""></p>
<p>QBE Lenders’ Mortgage Insurance CEO Phil White said that while unit prices will soften, the sector will play a growing influence on the nation’s property market over the coming decades. </p>
<p>“With so many Australians priced out of the housing market, the Australian Dream of owning property is increasingly turning to high and medium density apartments,” he said. </p>
<p>“Units contribute to a greater share of the market as changing lifestyles and affordability dictate property choices. </p>
<p>“Encouragingly, that dream should become a reality for more Australians, with improving affordability overall.” </p>
<p>Units now account for 46 per cent of all residential construction across the country. </p>
<p>The report forecasts Sydney, Melbourne, Adelaide, Perth and Darwin to become more affordable in the next three years. Hobart and Canberra are expected to become less affordable to June 2020. </p>
<p>“Recent low affordability in Sydney and Melbourne should stop purchasers from taking larger mortgages and bidding up prices even more,” he said. </p>
<p>“With more lending restrictions impacting investors, it could be good news for owner occupiers as they should find less competition from investors.”</p>
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<div class="cq-article-content-media section">The report also predicts the benchmark cash rate will rise just 25 basis points higher to 1.75 per cent by 2020.</div>
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Sydney prices to fall slightly over next three years with Melbourne's surge continuing

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<p>While the September results had dwelling values edging 0.2% higher across Australia over the month, Sydney dwelling values slipped 0.1% lower over the month.</p>
<p>Sydney’s quarterly result was the slowest since values declined by 2.2% over the March quarter of 2016 and it’s the first month-on-month decline after 17 months of consistent capital gains, CoreLogic advised.</p>
<p>"Interestingly, across the Sydney housing market, it was the detached housing sector that pulled the monthly and quarterly growth rates lower," Tim Lawless, CoreLogic head of research said.</p>
<p>"While unit values are also appreciating at a slower rate, detached housing values were 0.3% lower over the month of September and 0.2% lower over the quarter while unit values recorded a subtle rise.</p>
<p>"For the Sydney housing market, concerns around unit oversupply is less evident compared with the Brisbane unit sector, or to a lesser extent with Melbourne," Mr Lawless said.</p>
<p>“Potentially the affordability challenges facing Sydney buyers within the detached housing sector are pushing more demand towards the medium to high density sector, where, based on median values, houses are almost $290,000 more expensive than units.”</p>
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<p><span>Index results as at September 30, 2017</span></p>
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<p><span>Sydney                 -0.1% 0.2% 10.5%             $909,613 </span></p>
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<p><span>Melbourne             0.9% 2.0% 12.1%             $703,816</span></p>
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<p><span>Brisbane                0.3% 0.5% 2.9%               $490,208 </span></p>
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<p><span>Adelaide                0.0% 0.3% 5.0%               $429,583</span></p>
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<p><span>Perth                    0.1% -1.3% -2.9%              $462,783 </span></p>
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<p><span>Hobart                 1.7% 3.4% 14.3%               $391,618</span></p>
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<p><span>Darwin                -0.7% -4.0% -4.7%              $445,516 </span></p>
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<p><span>Canberra             0.6% 1.3% 7.8%                  $580,043</span></p>
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<p><span>Combined capitals 0.3% 0.7% 8.5%                 $648,845 </span></p>
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<p><span>Combined regional 0.1% 0.0% 5.6%                $350,471</span></p>
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<p><span>National              0.2% 0.5% 8.0%                  $540,647 </span></p>
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<p>Melbourne’s housing market is also showing slower growth conditions, however growth remains relatively resilient compared with Sydney. Dwelling values were almost 1% higher over the month of September and rose by 2.0% over the September quarter.</p>
<p>Mr Lawless said the stronger housing market conditions in Melbourne are supported by auction clearance rates which have consistently remained above 70%.</p>
<p>"Additionally, advertised stock levels remain remarkably low and private treaty sales continue to sell rapidly, averaging 30 days on market.”</p>
<p>The remaining capital cities have shown a diverse performance over recent months.</p>
<p>Perth dwelling values look to be moving through the bottom of the cycle, with values edging 0.1% higher over the month, however values remain down over the quarter and year.</p>
<p>For Darwin, the housing market isn’t showing the same signs of bottoming out with dwelling values slipping 0.7% lower over the month and 4% lower over the September quarter.</p>
<p>In Brisbane, the market has seen a growing divergence between the performances of houses compared with units; house values were 0.2% higher over the month to be 4.0% higher over the year, while unit values showed an increase over the month but remain 2.5% lower over the past year.</p>
<p>Adelaide dwelling values held firm over the month but have shown a 5.0% rise over the year.</p>
<p>Hobart further cemented its position as the best performing housing market after a recent history of sluggish growth conditions.</p>
<p>The past twelve months has seen Hobart dwelling values surge 14.3% higher; the highest annual growth rate since 2004.</p>
<p>Despite the strong capital gains, the cost of housing remains substantially lower than any other capital city with a typical house value of $412,340 and a median unit value of just under $320,000.</p>
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Sydney dwelling values slip in September, but apartments aren't the current weakness

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<p>Sydney’s apartment boom has been more evenly spread than Brisbane and Melbourne, and fears that oversupply will cause a fall in prices are overblown, says a senior Reserve Bank official.</p>
<p>RBA’s assistant governor of economics, Luci Ellis, noted that while growth in the building of new Australian homes had been outpacing population growth, Sydney was not expected to suffer a big price fall. </p>
<p>Brisbane was the real risk, Dr Ellis said.</p>
<p>"It's a truism that the more supply you have, the weaker prices are going to be relative to what would have happened if supply had been lower," Dr Ellis told a lunch of the Women In Economics Network and the Australian Business Economists in Sydney on Wednesday.</p>
<p>"But, at this stage, we're not seeing that ... that supply, in and of itself, is going to create a big fall in prices and certainly not in Sydney."</p>
<p>Instead, Dr Ellis singled out Brisbane, pointing to the high geographic clustering of the new developments set to hit the market this year.</p>
<p>"This year is crunch time" for Brisbane, she said.</p>
<p>"Over the years, we've pointed more to Melbourne and to Brisbane as where that's more likely to cause trouble in terms of concentrated increases in supply resulting in lower prices and therefore potentially distress,” Fairfax Media quoted Dr Ellis as saying.</p>
<p>Sydney was a different story though, she said. </p>
<p>“Whereas, in Sydney, it's sort of all over the city, so it's much more evenly spread and so less likely to create a really concentrated local price effect."</p>
<p>And while new construction was running ahead of population demand, that was unlikely to last as a “point of peak” for building approvals had been reached. </p>
<p>“Building approvals have stepped down to a new level. The backlog of work in residential property is now starting to decline, even in NSW and Victoria, but particularly in Queensland,” she said.</p>
<p>"So in some sense, this is a phase that will eventually end and we won't be building more than the population requires."</p>
<p>On the demand side, Dr Ellis said Melbourne's surprisingly strong population growth gave strong cause for belief that prices would not fall there.</p>
<p>"Similarly, population growth remains fairly strong in Sydney, so it's not clear to me that we end up with a serious problem here."</p>
<p>Home price figures released by the Bureau of Statistics on Tuesday showed Australian home prices rose 10.3 per cent last financial year and 13.8 per cent in Sydney and Melbourne. But price growth has slowed in Sydney,  with just 2.3 per cent increase in the final quarter.</p>
<p>According to a CommSec analysis of the Bureau's data, the median price of houses transacted in Sydney in the June quarter was $1.02 million, $110,000 more than a year ago.</p>
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RBA official fears for Brisbane apartment prices

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<p>Prominent art collector John Schaeffer is selling the whole-floor Darling Point apartment he bought only last year.</p>
<p>It is full of his 19th-century Pre-Raphaelite works of art which will follow him to his next home.</p>
<p>The apartment in the Manor development on Darling Point Road cost Schaeffer $4.25 million in March 2016.</p>
<p>Offering harbour views, the 322sqm apartment is described as house-size in its marketing.</p>
<p>It has three bedrooms, three balconies, a glass-enclosed sunroom and a new kitchen. The master suite comes with a balcony, walk-in wardrobe and marble ensuite.</p>
<p>Paul Biller and Ronan Chastain at Biller Property Double Bay have the listing.</p>
<p>Schaeffer is known in the east for his passion for prize property, having once owned the Bellevue Hill trophy home, Rona, before selling it for $20.5 million in 2005 to developer Terry Agnew and wife Kyril.</p>
<p>Collector John Schaeffer with a statue by Frederic Leighton from Schaeffer’s collection of Victorian art, on show at the Art Gallery of NSW.</p>
<p>He also sold the Spanish Mission trophy home Boomerang in Elizabeth Bay the same year for $20 million to the Fox trucking family. It was the first property in Australia to crack $20 million.</p>
<p>Schaeffer sold in Dover Heights in 2015, selling his 1958 Harry Seidler designed Lyons Street home, but then spent $4.85 million on his soon-to-be home.</p>
<p>The former contract cleaning entrepreneur owns at Bondi Beach in the Bondi Pacific.</p>
<p>This article first appeared in the Sunday Telegraph.</p>
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Art collector John Schaeffer selling whole-floor Darling Point apartment

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<p>The Housing Industry Association's recent Stamp Duty Watch report claims foreign investors now pay nearly $100,000 in taxes to buy a Sydney unit, almost four times as much as local buyers.</p>
<p>Shane Garrett, HIA Senior Economist said the average stamp duty bill in Australia paid by resident owner occupiers is also up by 16.4 percent over the year to $20,725, even though dwelling prices increased by just 10.5 percent.</p>
<p>Shane Garrett, HIA Senior Economist said recent changes to stamp duty in NSW mean that foreign investors now pay almost $100,000 in transaction taxes to acquire a standard apartment in Sydney – almost four times as much as local buyers.</p>
<p>“Foreign investors are a vital component of rental supply in cities like Sydney and Melbourne," he said.</p>
<p>"With rental market conditions now so tight in Australia’s two biggest cities, should we really be placing more and more barriers in the way of new supply. </p>
<p>“On the owner occupier side, stamp duty drains family coffers of $107 each and every month over a 30- year mortgage term.</p>
<p>“For owner occupiers, the typical stamp duty bill now amounts to $20,725 – an increase of some 16.4 percent on a year ago.</p>
<p>“Shelling out so much in stamp duty drains the household piggy bank of vital funds for their home deposit. Families are then forced to take out larger mortgages and incur heavier mortgage insurance premiums."</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/08/04/Screen%20Shot%202017-08-04%20at%2011.13.27%20AM.png" target="_blank"><span>Click to enlarge</span></a></p>
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Foreign investors slugged with taxes on Sydney apartment sales

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<p>Stricter regulation around lending and more levies on foreign buyers was likely to impact apartment demand in inner Sydney, according to BIS Oxford Economics.</p>
<p>Surging prices had also pushed yields to long-term lows, but this price growth is now slowing, the economic forecaster suggested. f</p>
<p>Foreign buyers still however prefer to invest in Australia given the stable political environment, while local investors still benefit from low interest rates, said BIS. </p>
<p>It noted that while oversupply concerns had been voiced for Melbourne and Brisbane, Sydney’s new apartment supply had already peaked at 3,698 completions in 2015, falling to 2,521 last year, and it was likely to remain largely steady at 2352 in 2016-17.</p>
<p>Though demand is expected to be weaker ahead, new Sydney supply is set to surge over the three years to 2019-20, with completions averaging 4,650 apartments a year over the period.</p>
<p>About 2,800 units were already under construction, with other large projects locked in and pre-selling, the research said.</p>
<p>Occupier demand mainly came from three groups — students, particularly overseas, young adults in white-collar employment, and empty nesters. </p>
<p>Vacancy rates have been tight for more than a decade, after falling below the balanced market rate of 3 per cent in inner Sydney in June 2005, as demand outstripped construction for much of this time, The Australian reported.</p>
<p>Vacancy rates also tightened to 1.7 per cent in February 2017 after rising to 2.6 per cent in June 2015. </p>
<p>Meanwhile with price increases, yields on the median two-bedroom apartment dropped to an estimated 4.17 per cent at June 2017. The median two-bedroom unit rent in inner Sydney was an estimated $745 in June, with the median price at $930,000, said BIS.</p>
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