Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Terry Ryder

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Politicians have a great appetite for exercises that chew up lots of time and money for little purpose other than to attract spotlight and give the impression that they’re doing something.
The current federal inquiry into housing affordability is a classic of the genre. Let’s galvanise the nation with a talkfest about a non-existent problem. We can stretch it out over many months, with regular media events, and really make it look like we’re on the ball and genuinely care.
Sir Humphrey Appleby would be proud.
But the Yes Minister icon would be fit to burst at the latest effort of the Queensland government.
It’s only taken them two and half years in government, but they’ve finally come up with it: a vision for the state.
Not just any vision. This is a blueprint for what Queensland will look like 30 years from now.
As we’ve seen regularly in state and federal politics, most governments can’t estimate the state of their own budget one year ahead, let alone the state of play in 30 years’ time.
But this is not about reality. This is about creating an illusion. The delusion that Campbell Newman and his crew are actually in charge of the state’s destiny.
The current Queensland government is busily turning a landslide into a mudslide. They hold almost all the seats in the Parliament but still manage to look like they’re under siege a lot of the time, fighting for their lives.
Labor, almost wiped out in the 2012 state election, has just won a by-election with a swing of 18.6%, after winning a February by-election with a swing of 17.2%.
Queensland unemployment has risen sharply and, at 6.8%, is well above the national average and the highest in 11 years. Economic activity, as measured by state final demand, has fallen recently. Queensland got a mediocre rating in the latest State of the States report from CommSec, well behind the growth leaders Western Australia, the Northern Territory and New South Wales.
So it’s a good time to create a diversion, more for their own benefit than the publics’. As Sir Humphrey observed, politicians don’t believe they exist unless they read about themselves in the paper.
But what a pointless exercise. Why create a 30-year plan when you won’t be around to implement it? The current mob is unlikely to be in government even four years from now, given the extraordinary volatility in the electorate.
Newman won’t be Premier in 2024, much less in 2044 which is the ultimate destination of this plan - during which time there will be a dozen new governments, each with its own deep vision and long-term plan.
So why bother with this window dressing? Why publish a plan that you have no chance of implementing?
And why get excited about it as journalists, consumers, businesses and developers?
But some have. Media lapped it up and one newspaper came up with this: “A wave of housing demand in Queensland areas such as Gladstone is expected to flow from The Queensland Plan …”
One development company latched on to this to promote the “masterplanned community” it’s developing in Gladstone. It said Gladstone had emerged as a growth area recently.
In reality, the only real estate factors growing in Gladstone at the moment are the vacancy rate (around 7%) and the consternation of investors who own property there. Prices have 10% in the past 12 months and it will get worse when the construction phase of the three mega gas projects winds down.
There are plenty of Queensland places worthy of consideration by investors, including Toowoomba, Cairns and the Sunshine Coast – each of them growing strongly for local reasons. Toowoomba, as I discussed earlier in the week, is arguably the nation’s strongest property market. Cairns is pumping in a way not seen since the 1980s and the Sunshine Coast is rising on the back of a big infrastructure spend.
None of this has anything to do with the 30-year “vision” that will be filed along with all the other political plans, never to be heard of or thought about again.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
Photo courtesy of BBC Television.
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terryryder-YECXbqmri2

Queensland's "30-year vision" a plot worthy of Yes Minister

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I feel some sympathy for the people conducting the Senate inquiry into affordable housing.
Based on the media reports I’ve seen, they’re being served up a motley mixture of propaganda, misinformation and outright lies by organisations pushing their private agendas.
How will they sort the wheat from the chaff, given that most of what they’re being fed is chaff?
The representative bodies of elements of the real estate industry are simply presenting their wish lists on behalf of their members. Each one of them would have us believe that the solution to the problem is to give their members everything they’ve ever wanted.
Apparently first home buyers around the nation will rejoice if real estate agents can be helped to earn more commissions or developers can make more money faster.
Firstly, what is the problem? Or, more pertinently, is there a problem?
The premise of the inquiry is that young adults can’t afford to buy a dwelling. I’m quite certain that’s a false premise. It contradicts all the available evidence.
First home buyers appear to be less active than before. And it has been assumed – incorrectly, I’m quite sure – that this is solely because they can’t afford to buy. No one has considered that there might be another explanation, or several other explanations.
Last Friday I was guest speaker at a business luncheon. I addressed a number of topics under the heading – “Residential Property – the market no one really understands” – and there followed a long discussion of the issues.
The hottest topic was the motivation of young Australians with regards to home ownership. Many of those present – who have adult children and/or work with young adults – observed that most twenty-something Australians have little or no interest in buying real estate.
Affordability is not the issue. They simply have other priorities. I was interested to hear those comments, but not surprised because this has been revealed in several surveys in the past 12 months. Young adults, generally speaking, don’t want to repeat the life path of their parents, which included being married with kids and a mortgage before 30.
They want lifestyle and travel. They’re more inclined to invest in themselves than in real estate. One view expressed at the luncheon was that many would rather start a business than buy property.
There’s another factor. I think there’s more first home buyer activity that the figures show, because most state and territories have changed their grants system. Grants are available now for new homes only. But the research shows that most first timers buy established properties, because they’re considerably cheaper and often better located.
There are first home buyers out there slipping under the radar because they’re not claiming grants.
All of that is an inconvenient truth to builders, developers and real estate agents. They want politicians to believe there’s a crisis and they have to act to fix the perceived problem.
And the solution they’re presenting to the Senate inquiry is: give us what we want and the problem with go away.
The <a href="/expert-insights/investing/five-supply-reforms-that-will-assist-affordability-master-builders-australia">solution presented by Master Builders Australia</a> is to release more land, make approvals easier and faster, and reduce or eliminate infrastructure charges to developers – with penalties for governments that don’t toe the MBA line.
That’s not a solution. That’s the lifetime wish list of builders and developers across the nation.
The attitude of the Real Estate Institute of Australia is particularly interesting, because their statements contradict their own research. The REIA co-publishes a quarterly affordability index that shows that affordability is the best it’s been in over a decade. But it’s telling the Senate inquiry that there’s a big affordability problem and the government must act to fix it.
Either the REIA index is nonsense or their submission to the inquiry is. I’d love to know which they think it is.
The REIA claims there’s a national housing shortfall of 100,000 dwellings. Developer bodies make similar claims. But they don’t justify the claim. They demand that we accept it as fact, without presenting any evidence. I think it is real estate’s greatest myth (and have presented my evidence many times in this column).
So, the <a href="/expert-insights/buying/government-needs-to-stem-exodus-of-first-home-buyers-reia">REIA’s solution to the problem</a> their own index says doesn’t exist is to make lots of changes to ensure more property deals happen: assistance to first home buyers, access to superannuation to make buying property easier, retention of negative gearing for investors, abolition of stamp duties and release of more land.
It’s pure coincidence that all these measures are likely to line the pockets of REIA members around Australia.
At some point in time, developers, agents and other servants of the property industry will have to accept that this generation of young adults will never adopt the priorities of their parents. They have better things to do with their lives.
You can contact Terry via  <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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Real estate industry bodies more concerned with lining their own pockets than easing affordability

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Every week there’s more evidence disproving the notion of a national property boom and the even more fanciful theory of a bubble fit to burst.
You really don’t need to go much beyond the price figures, which show wide variations in the results from different capital cities, with growth ranging from negative to low to moderate to strong to boom.
But given the steady flow of bloopers from economists whose five-second media grabs last longer than the research they do - and the plaintive cries from the industry about the “exodus of first-home buyers” because of the affordability crisis caused by the housing shortage they’ve spent years fabricating – here’s some more information.
The Home Buyers Index from the Commonwealth Bank and RP Data suggests that most markets around the country favour buyers. In other words, most markets are not booming.
According to this index, when you look at things from a statewide perspective the ACT is the only jurisdiction with a sellers’ market. Four states have a “balanced market”, two others have a “buyers’ market” and one (Tasmania) has an “extreme buyers’ market”.
So there are four different situations across the eight states and territories – and only one has a market strong enough to be classified as a “sellers’ market”.
When they examine the situation in each capital city, there are three cities deemed to have sellers’ markets, three with balanced markets and two with buyers’ markets. Eight cities with three different scenarios.
I could spend all sorts of time critiquing the methodology and wondering how on earth they managed to perceive Canberra as a strong market when all other indications suggest it’s struggling – and noting that it’s based on March quarter data and we’re now in the September quarter, so it’s dated even before they publish it.
But the bottom line is that the report has found a whole range of different scenarios happening nationwide and only a small number of locations have a market worthy to be called boom. In fact, the national top 10 list of the strongest markets includes only four locations rated as sellers’ markets. The other six on the top 10 list are merely balanced markets.
A graph in the HBI report shows that markets have overwhelmingly favoured buyers over the past four years. Only four out of the past 50 months have been classified as sellers’ markets. This would tend to harm the case of those arguing for a price bubble.
Also recently published was Australian Property Monitors’ Rental Report for the June quarter, which found that only one capital city recorded growth in house rentals. On an annual basis, three cities recorded significant decreases in rentals, one city had no change, three had growth between 1.5% and 2.6%, and the best in the land was a 5.6% annual rise in Melbourne.
It’s a similar situation with apartment rents.
I can’t see any evidence there of a booming market, nor anything to support the strident claims of a dwelling shortage from developers who seek to use the fictional shortfall as ammunition to coerce politicians into making their lives easier, faster and cheaper.
Turning to those persistent claims about our dwellings being over-priced, Cameron Kusher <a href="/expert-insights/buying/inflation-adjusted-home-values-are-still-lower-than-their-previous-peak">wrote recently on Property Observer</a> that only Sydney among the capital cities has price levels (adjusted for inflation) higher than the previous peak.
In real terms, Sydney’s market is only 4.3% above the previous peak, which was 10 years ago. All other cities remain in deficit – most of them by more than 10%.
All cities have shown some kind of growth recently, according to these figures, but not enough to lift values to the levels of the previous peaks (the timing of which varies from city to city) and anywhere close to them
You have to work really hard to concoct a bubble out of this situation.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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You have to work very hard to concoct a property bubble when we're nowhere near a boom

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About 18 months ago I started including Wollongong in some of the Hotspotting reports which identify markets expected to out-perform in the future.
This was at a time when the <a href="/news">Illawarra</a> was generally expected to be a non-performer. Indeed, some had predicted recession and a collapse in the property market there, because of recent economic bad news.
But <a href="/news">Wollongong</a> is a quality regional centre and I’ve been charting real estate markets long enough to know that good regional centres always fight back.
<a href="/news">Newcastle </a>did so after BHP shut down operations in the 1990s, reinventing itself and coming back stronger than before. I expected Wollongong to do likewise (just as I am confident <a href="/news">Geelong</a> will survive industry shutdowns and thrive in the future).
<a href="/expert-insights/investing/too-late-to-buy-sydney-try-wollongong-or-dubbo-tamworth-and-gunnedah-and-newcastle">Earlier this year I wrote</a> on Property Observer: “Wollongong has defied predictions that it would lapse into recession following economic reversals such as downsizing by Bluescope Steel. One hysterical headline suggested property values would fall 50%.
“But the Illawarra is the latest example of a regional community fighting back from adverse circumstances. A lot of infrastructure and property development money is pumping into Wollongong and real estate markets are rising.”
<blockquote>
Much of Wollongong’s improvement is due to its inherent qualities as a regional centre and the extent of new investment there.
</blockquote>
Now we have seen price data published which confirms that Wollongong has defied the dire forecasts made a couple of years ago.
Australian Property Monitors’ quarterly housing report credits Wollongong with a 7.5% rise in its median house price in the June quarter and an annual rise of 14%. The median has risen from $439,000 to $500,000 in 12 months.
Nearby markets also delivered solid annual increases, including <a href="/news">Shellharbour</a> (7%) and <a href="/news">Kiama</a> (12%).
I attribute part of the increases to a ripple effect from Sydney. As expected, regional centres close to the state capital have caught the Sydney wave.
But much of Wollongong’s improvement is due to its inherent qualities as a regional centre and the extent of new investment there.
The place has a lot going for it. There’s a substantial and growing population (the Illawarra region has around 275,000 residents), the proximity to Sydney, the seaside location, the strength of spending on infrastructure (including $1 billion on hospital facilities and $500 million at Wollongong University), and the significant investment in new property projects by national development entities like Lend Lease and Australand.
Australand’s Shell Cove is a $1.5 billion project. The total value of all the infrastructure and property developments on our lists for Wollongong is almost $5 billion.
Nothing drives property values like infrastructure spending, which generates economic activity, jobs growth and ultimately demand for accommodation.
The Wollongong has that factor working for it on overdrive.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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Nothing drives property values like infrastructure spending and Wollongong is in overdrive

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The latest price data tends to support my view that we have not had, to this point, a national property boom; and that we may be about to have one.
Australian Property Monitors’ price data for the June quarter suggests only Sydney has had exceptional pride growth, both for houses and for apartments. All other capital city markets have had growth ranging from negative to low to moderate.
The APM figures are generally (though not completely) in line with those published by RP Data.
Let’s look at houses first. In terms of annual growth to the end of June, both data sources report a capital city average a little above 10%. Economists have looked at that and perceived a national boom, which provides further evidence of how desperately dumb they all are, on property matters at least.
Looking city by city provides a different perspective. Only one city has achieved the city average growth rate. Sydney’s annual growth was 16% (RP Data) or 17% (APM). The property boom starts and ends there.
Both sources agree that Melbourne has grown close to 10%, Brisbane around 7% and Perth around 5%. Depending on which source you prefer, Adelaide has grown 3% or 5%, Hobart 2% or 6%, Darwin 5% or 1%, and Canberra has grown 3% or dropped slightly.
There’s a similar pattern with apartments. The capital city average is annual growth of 8.3% (APM) or 9.1% (RP Data). But the only boom figures have been in Sydney, up 12% or 13%.
Melbourne has risen 4% or 5%, Adelaide about 1% and Darwin 7% or 8%, while Perth is up 5% if you believe APM or more if you favour RP Data.
There’s conflict with the data on the other three capital cities: Brisbane is up 5% or down 1%, Canberra is up 4% or down 2%, and Hobart is up 7% or down 8% - for reasons I don’t understand, there is always this great contradiction about the Hobart unit market in the figures from the two competing sources.
The bottom line is that there is no boom in those figures, except for Sydney. There is evidence aplenty of solid markets in most cities, but the growth rates are low to moderate (and, in a few cases, negative). Keeping in mind that there were several years of falling values pre-2013, the data makes nonsense of the bubble arguments from those suffering from limelight deficit disorder.
So no national boom – but, if you look more closely, evidence that one may be brewing. Looking at APM’s annual growth figures for the cities, if you compare the 30 June 2014 numbers with those six months earlier, you find that the growth rates have improved in most cities.
Adelaide grew only 3% in 2013 but six months later the annual growth rate has doubled.  Brisbane’s growth rate is up from 5% to 7%. The annual growth rates for Sydney and Melbourne have both grown two percentage points. Hobart has improved from 5% to 6%. Perth, Darwin and Canberra have deteriorated, but the city average has risen from 9.8% to 10.9% in six months.
According to the APM figures, all capital cities except Darwin showed improvement in their median house prices in the June quarter.
Similarly, most of the cities delivered growth in their apartment markets in the June Quarter, with an average rise of 2.5%. Only Hobart and Canberra fell.
The overall picture, therefore, is growth rates that are moderate - but rising.
Housing finance approvals are up 10.7% for owner-occupiers (with all state and territories rising strongly except the Northern Territory) and 27% for investors (with five states/territories recording annual rises above 13% and six states/territories recording monthly rises of at least 14% in May, the latest month for which we have figures).
Residential building approvals rose 17.4% in the 12 months to the end of May, with five states or territories recording annual rises above 20%.
There’s a pattern there suggests growing national momentum in property markets. The national price boom that was incorrectly perceived by myopic economists, and then inaccurately declared dead by those who rush to judgment, may be only just beginning.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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National price boom may be about to begin

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In his latest Ryder Report, regular observer Terry Ryder takes on the so called "national property boom".
Unlike some other property commentators, Ryder doesn't believe Australia is in the grips of an emerging bubble or boom. Here are his 20 reasons why the country's boom isn't over yet.
1. "There is no national boom" For the market to bust, there would have to be a boom, and Ryder doesn't think we have one - outside of Sydney, anyway. He's previously criticised media outlets and <a href="/expert-insights/finance/the-rba-just-doesnt-get-the-housing-market">institutions like the Reserve Bank of Australia</a> for focusing too much on Sydney's market when generating national commentary. 2. "Sydney still has momentum" According to Ryder, any claims that Sydney's boom is over is "based on a single month's data", a <a href="/expert-insights/latest-media-fiasco-shows-exactly-why-monthly-movements-are-meaningless">criticism he's stated before</a>. He says: "buoyancy remains in Sydney's market". 3. "Melbourne still has momentum" Ryder says that a growing number of Melbourne suburbs are seeing rising sales activity, with even greater price rises likely to come. 4. "Brisbane just starting to rise" While the other Eastern Seaboard capitals are yet to reach their peak, Ryder says Brisbane is just getting started. "Brisbane is well behind Sydney in the current cycle and is only beginning its upward movement," says Ryder. He predicts prices will rise this year. 5. "Adelaide poised to grow" Ryder believes Adelaide "will be the surprise performer of 2014," with increasing sales activity across the city.
This list continues on the next page.
<hr class="system-pagebreak">
 
6. "Hobart starting to show life"
Despite "being ignored in national assessments", Hobart's market activity is also beginning to pick up, believes Ryder. 7. "Perth still has momentum" Although the city's sales have "plateaued" after a strong run in 2012 and 2013, Ryder thinks they remain "elevated", with possible future price growth. 8. "Darwin showing signs of revival" Despite signs of a slowing market last year, Ryder says Darwin appeared to pick up in late 2013 and early 2014. He believes prices in the city are likely to keep rising. 9. "NSW regional cities rising" Ryder thinks New South Wales' regional centres have picked up some heat from Sydney's market, or have their own local reasons for growth. According to Ryder, "their run is just beginning". 10. "QLD regional cities rising" Cairns, Toowoomba, the Sunshine Coast and the Gold Coast are leading the state's regional cities into "strong growth phases", according to Ryder.
 
This list continues on the next page.
<hr class="system-pagebreak">
 
11. "Other regional centres on the up"
Ryder says regional markets south of Perth are growing. He believes South Australian and Victorian regional centres are also picking up, as is Launceston in Tasmania. 12. "Sales volumes still rising" Ryder cites the latest update of his own Price Predictor Index which points to increasing sales volumes across the country, which he says "inevitably leads to price growth". 13. "Consumer sentiment improving" According to Westpac's July consumer sentiment report, there is a "healthy rise in confidence" regarding real estate, says Ryder. 14. "Budget news has been digested" "There was a brief period in May when decision-making halted as people digested the Federal budget we seem to have moved on," says Ryder. 15. "Building approvals are rising" Ryder notes that building approvals increased 16% in 12 months to April 2014, with South Australia, Western Australia, New South Wales and Queensland all leading.
This list continues on the next page.
<hr class="system-pagebreak">
 16. "Lending for homes still rising"
On an annual basis, lending for home loans is up 12%, says Ryder. He notes double-digit growth in six states and territories. 17. "Investor activity rising" Lending for investors is up by an even greater proportion, with 28% annual growth and 1.1% growth in the month to April. Investor lending has increased by 17% or more in five states (presumably annually), says Ryder. 18. "Asian investment growing" Though Ryder believes foreign buyers' impact on local markets is exaggerated, he does believe Asian investors are continuing to affect inner-city unit markets. 19. "Interest rates remain low" Ryder believes Australia's current record low interest rates are "unlikely to change in the near future". 20. "National boom is just starting" "Contrary to claims that 'the boom is over', all the evidence says that a national boom is really just beginning", claims Ryder.
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jrichardson-uRX5hFdKfN

Terry Ryder's 20 reasons the country's property boom isn't over

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Adelaide continues to deliver data suggesting a rising market – and further evidence that those who called the end of the so-called national property boom forget to look beyond Sydney.
The latest figures come from an analysis of Valuer-General’s data by the Real Estate Institute of South Australia. They confirm my own figures showing strongly rising sales volumes throughout Adelaide. The REISA report also provides evidence of the first signs of price growth.
This reinforces the findings of the Price Predictor Index, which suggest a rising Adelaide market in 2014.
I wrote <a href="/news/sa/adelaide-is-the-standout-market-and-opportunity-for-investors">on Property Observer last month</a>:
“The standout market for me at the moment is Adelaide. The South Australian capital has more forward momentum than most of the capital cities. Given that this has not yet translated into major price growth, it represents an opportunity for investors.
“South Australia is the only capital city which ended 2013 with sales volumes rising significantly and carried that into the early part of 2014. Some of our cities peaked, in terms of sales activity, in early or mid 2013. Some ended 2013 strongly but made a lukewarm start to 2014.
“But SA is really just beginning its run.”
The REISA report indicates a 6.2% quarterly rise in the number of houses sold in metropolitan Adelaide. It says the median price rose 4% to $415,000.
I would expect more growth to follow, given the strong pattern of rising sales volumes.
Adelaide and South Australia seldom get the credit they deserve. They only attract national headlines when something negative happens, like the deferral of the Olympic Dam resources project or the closure of a major manufacturing enterprise.
I think few investors realise how much is happening there, particularly in the area of new infrastructure spending and development of new property markets, such as urban renewal projects in the inner-city areas.
Adelaide has major infrastructure projects happening with rail links, road networks, hospitals, education facilities and sports infrastructure.
I commented about two years ago that Adelaide had more infrastructure developments under way than did Sydney. This is no longer true, as the NSW state government has initiated some major projects more recently, but Adelaide remains a significant centre for infrastructure spending, relative to its size.
As the year progresses, I expect to see more from the South Australian capital in terms of rising property markets and significant price growth.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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The data is in: Adelaide's on the move and I expect significant price growth

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The Reserve Bank has been giving a rolling seminar on why economists don’t get real estate.
This has taken the form of speeches by the Guv, Glenn Stevens, and press releases on RBA research and opinions.
The RBA view of residential real estate is a bible for economists, containing various commandments with which most economists comply. They include:
<ul>
<li>There is just one property market in Australia;</li>
<li>Sydney is Australia;</li>
<li>Australians are naughty because they like to invest in real estate;</li>
<li>They’re even naughtier when they borrow to do it;</li>
<li>When property prices rise we’re all very naughty and deserve a smack;</li>
<li>We’re all stupid because we think property prices always rise;</li>
<li>Buying a home is, or should be, a financial decision and emotion or culture shouldn’t intrude;</li>
<li>Financially it’s smarter to rent so how come we all don’t want to rent; and</li>
<li>We’re not building enough houses because that’s what our charts say.</li>
</ul>
Stevens has been getting out and about delivering his core message, which I suspect he lifted from the pages of Real Estate for Dummies. This is - wait for it, drum roll please -“property prices don’t always go up”!
Many media outlets have breathlessly reported that Stevens “has warned home buyers that people should not assume that prices always rise”. Just in case we haven’t got it, he drives home the message with this thunderbolt of wisdom: “Sometimes they fall!”
This is why Stevens earns the big money. He understands things the masses do not.
Seriously, is there anyone in Australia above the age of 11 who doesn’t know that property prices sometimes fall? Maybe someone who’s been meditating in a cave in the Himalayas might have missed the general decline in prices from 2010 to 2012. In my experience, most Australians have a hyper awareness of the value of their home, especially when it’s in reverse.
These days we have not only quarterly and monthly price monitors, we have attention-seekers claiming they can chart weekly price changes, even daily. Pretty soon we’ll have minute-by-minute price barometers.
And all these sporadic movements in prices, both up and down, have been reported ad nauseum by a gullible media.
According to some sources, prices have dropped three times in the past six or seven months.
Why does Stevens think none of us have noticed? He has intoned the “prices don’t always rise” sermon several times recently. Obviously he doesn’t get the emails I get, from people who bought five years ago on the Gold Coast and watched their investment steadily decline in value. Or from people who own Noosa apartments. Or from people who bought during the Gladstone boom and are now dismayed at the drop in values. Or from those who own real estate in Mackay, Moranbah, the Hunter Valley, Port Hedland, Karratha and Broome.
Or people who own a home in Canberra, where values in some areas are now going south.
Another offering of economist-centric advice from the RBA is that we might all be better off renting than investing. According to an RBA research paper, it’s only if prices rise 2.9% or more annually that it may be worth owning your home.
I wonder why they bothered with this research. Nothing better to do? It’s only when you understand that this is the work of economists that it makes any sort of sense.
This really is at the heart of why economists struggle to understand real estate. They think it’s about economics. They get a tad vexed when it doesn’t behave.
Most households don’t give a damn whether home ownership makes economic sense or not. It’s not about economics. It’s about culture. It’s about how they want to live.
According to the logic of the RBA research, unless values are rising around 3% a year on average it’s not worth owning. On this basis, nobody should own a home in Sydney, because it’s capital growth rate over 10 years has barely managed that level. How have so many people got it so wrong?
The RBA paper speculates that price growth in the future will be less than in the recent past, in which case we ‘d all be better off financially if we rented.
One question: price growth where? Everywhere in Australia? Price growth everywhere will be too low to justify home ownership?
This brings us back to one of my original points - that one of the great weaknesses of the RBA and economists generally is that they see Australia as one homogeneous market. That’s why they’ve looked at the national average price growth figure - not for Australia, mind you, but for the eight capital cities - and concluded that because the city average is 10% Australia has been having a real estate boom, oblivious to the reality - that only one city has had growth that big.
They really don’t get it.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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The RBA just doesn't get the housing market

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Terry Ryder’s most recent Price Predictor Index, June to September 2014, looks at Sydney’s fastest rising markets for units and houses across the suburbs.
Within the <a href="https://www.hotspotting.com.au" target="_parent">hotspotting.com.au</a> list, Property Observer selected the 17 opportunities for investors who are looking to enter into the market for $500,000 or less. We have included the suburbs available in alphabetical order over the page, as well as noting whether houses or units were on Ryder’s radar. The price provided is the median for the unit or house market in the respective suburb.
Ryder notes that while Sydney’s metropolitan star remains the inner-city market, the west and south west are continuing their rise to prominence.
The City of Sydney won the overall list, with six suburbs on the Rising Fast list, which numbered some 68 opportunities (some being the house and unit markets in the same suburbs), and seven on a subsequent Rising Steadily list.
The report notes that sales levels in <a href="/news">Darlinghurst </a>have doubled in less than 12 months, with <a href="/news">Chippendale </a>and <a href="/news">Haymarket </a>experiencing a similar result.
<a href="/news">Pyrmont </a>was also a performer, with a 110% sales rise in nine months.
“We are concerned that inner-city Sydney will eventually have a similar issue to inner Melbourne, where far too many apartments are being built, but at this stage Sydney has no apparent over-supply issues and demand for city units continues to rise,” the report notes.
However, beyond the CBD, it’s out west that is rising fast – and providing a more affordable entry point.
“Heading west from the City, the municipalities of Parramatta, Blacktown and Penrith are rising, while in the south-west Bankstown, Liverpool, Campbelltown and Camden all have strong markets,” explains Ryder.
Blacktown LGA continues its strong position, Penrith LGA also recorded good results and Parramatta LGA is a standout on the rising steadily and the consistent list.
Camden LGA, Bankstown LGA and Campbelltown LGA also managed to achieve strong rising market results.
Turn the page to see the 17 Rising Fast suburbs with median prices at $500,000 or less.
<hr class="system-pagebreak">
17 affordable Rising Fast markets
<ol>
<li>Auburn (U) $375,000 
</li>
<li>Bankstown (U) $365,000 
</li>
<li>Blacktown (H) $450,000 
</li>
<li>Camden South (H) $465,000 
</li>
<li>Cranebrook (H) $435,000 
</li>
<li>Greenacre (U) $469,000 
</li>
<li>Hinchinbrook (H) $500,000 
</li>
<li>Homebush West (U) $470,000 
</li>
<li>Ingleburn (H) $385,000 
</li>
<li>Jamisontown (H) $435,000 
</li>
<li>Jamisontown (U) $289,000 
</li>
<li>Kellyville Ridge (U) $440,000 
</li>
<li>Lakemba (H) $315,000 
</li>
<li>Liverpool (U) $300,000 
</li>
<li>Merrylands (U) $379,000 
</li>
<li>Roselands (U) $367,000 
</li>
<li>Westmead (U) $432,000</li>
</ol>
Source: hotspotting.com.au
Key:
(H) Houses
(U) Units
 
For more information on the report see <a href="https://hotspotting.com.au/reports/%20" target="_blank">Terry Ryder’s latest reports available here</a>.
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jduke-EHk3XBmHkn

Sydney’s fastest rising markets under $500,000: Terry Ryder

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The term "hotspot" was around long before I established my Hotspotting website eight years ago.
But today the word is bandied about with joyous abandon by way too many people, with fairly liberal definitions of what it means. 
For the record, I define a hotspot as a location which, for identifiable reasons such as infrastructure spending, will out-perform mainstream markets on price growth in the medium to long-term - and where it is currently a good time to buy. They are not places that will show flash-in-the-pan growth, with short-term spikes in the price graph, but locations with the fundamentals to deliver good growth over time.
It's important for consumer to understand that "hotspot" is used carelessly by press release writers and some media organisations which publish their work. Often, it is used to describe areas that have had strong medium price growth in the past 12 months past. By contrast, my purpose is to identify the strong locations of the future, which is of far greater value to property investors.
A current example is the reporting of a<a href="/expert-insights/investing/list-of-the-day-top-20-building-and-population-hotspots"> research document published by the Housing Industry Association</a>. This report pinpoints areas which have, in the recent past, experienced high levels of residential building and, as a result, new population growth.
In most cases, they are outer suburbs where new housing estates are being established.
This has been widely reported as a document identifying "real estate growth hotspots", which is both misleading and dangerous for investors who believe the locations highlighted are great places to buy.
Many of the top-ranked locations in this report are demonstrably poor places to invest.
Three of the top places in this report are in Canberra. They are suburbs with new housing estates, which is why they show up under the HIA's criteria of locations with high levels of new building and population growth.
But hotspots in terms of their potential for capital growth? Definitely not.
Right now, nowhere in Canberra is a hotspot under our definition. In stark contrast to Sydney, and one or two other cities, the Canberra market is stalled, with many statistics showing prices and rentals either stagnating or going backwards.
The federal government's spending cuts - which undermine Canberra's status as a place of high incomes and low unemployment - are hurting. There is more pain to come in this market.
It's important to realise also that the building approval and population data on which this report is based, was out dated even before the report was published. It focuses on the 2012-13 financial year, which is of limited interest or value now that we are into the 2014-15 financial year.
The report has interest, in terms of identifying the locations where new dwellings are being built, but these are not, in most cases, places that will deliver out-performance in price growth.
Accordingly, they are not the "hot real estate markets" described in many media outlets.
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on<a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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