Sydney Harbour

There are five reasons to expect a further slowing in the national average home price growth next year, which will follow by a peak in prices sometime in the second half of 2022, and then falling prices in 2023, according to Dr Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital.

"We remain of the view that we may be getting closer to the end of the 25-year bull market in property prices," he said.

He suggests firstly worsening affordability is constraining more buyers. Affordability has long been an issue in the Australian property market, he noted.

"While interest rates are still low the surge in house prices relative to wages has gone hand in hand with a surge in the level of debt relative to incomes. 

"That now means that it takes 8 years to save for a deposit in Sydney and 7 years in Melbourne.

"This is now squeezing out first home buyers yet again (which has seen their share of new housing finance fall from 25% to 18% since December) and increasingly existing owners looking to trade up are being squeezed out as well. 

"This is particularly an issue in Sydney and Melbourne and partly explains their slowing relative to other cities.

Secondly Oliver noted the supply/ demand balance is starting to improve. 

"Supply is on the rise again reflecting pent up selling, the end of lockdowns and high prices. 

"This could start to reverse the chronically low level of listings seen over the last 18 months. 

"More fundamentally strong levels of home building over the last two years following the unit building boom since 2015, combined with the absence of immigrants - which has resulted in a slump in underlying housing demand - have started to see the underlying supply/demand balance come under control," he noted. 

Thirdly Oliver noted rising interest rates will reduce the amount new borrowers can borrow and hence pay for dwellings. 

"Fixed mortgage rates are already on the rise (with several banks increasing them by 0.5% or more) and the RBA is expected to start raising the cash rate (and hence variable mortgage rates) from late next year. Rising interest rates are likely to be a big dampener. 

"The collapse in fixed rates to 2% or less played a big role in the recent boom. 

"Fixed mortgages have accounted for 50% or so of new loans recently, so are far more significant than they used to be in impacting new buyer demand (even though there is no impact on existing fixed borrowers until they roll off current terms which may become an issue next year)," he noted.

Fourthly Oliver noted macro prudential tightening is reducing the amount new borrowers can borrow and pay for homes. 

"So far APRA has told banks to increase the interest rate serviceability buffer they apply to borrowing rates in assessing borrowers from 2.5% to 3% and are now moving to require banks to hold more capital for higher risk loans. 

"The former will reduce the amount borrowers can borrow and the latter will raise the interest rate on or reduce the supply of higher risk loans. 

"Further tightening measures are possible."

Finally Oliver noted a rotation in consumer spending back towards services as reopening occurs (covid and the Omicron variant permitting) may reduce housing demand.

He noted there had been a "sharp loss of momentum since March" as a result of worsening affordability, rising supply, rising rates, macro prudential tightening and some eventual rotation in spending away from housing. 

"We expect a further slowing in home price gains to 5% in 2022, with prices likely to start falling from around September/October next year resulting in a 5 to 10% decline in prices in 2023," he said.



Oliver said the anticipated gradual recovery in immigration may take pressure off capital city prices.

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Five reasons to expect a cooling in the property market: Shane Oliver

Apartment re-sales in the recently completed Opera Residences have shown price increases of between 20% to 30% since the project launched, according to CBRE.&nbsp;

All 104 Opera Residences sold off the plan within two hours of their 2016 launch, with $600m in sales recorded in a single day.&nbsp;

The level 19 penthouse sold for $26 million (or $96,000psm), and the buyer also purchased two three-bedroom apartments below, spending a total of $57 million.

&quot;The feedback I&rsquo;m getting is Opera Residences&rsquo; finish is beyond expectation,&quot; leading re-sale agent of Opera residences, Auschain&#39;s Sean Huang said.

[smartcode_project:default project_id=6012 project_image_fid=84194]

&quot;The CBD market has been impacted the most from covid and border closures, but this building has proven to be bullet proof.

&quot;Original purchasers re-selling are making exceptional profits and I don&rsquo;t see this slowing down.&rdquo;&nbsp;

Experts say Australia&rsquo;s growing ultra-high-net-worth population is driving the luxury end of the property market. The latest property forecasts show that luxury sales are 17% higher this quarter than the fourth quarter of 2020, compared to average national luxury home prices rising 2.9% in previous years.

Re-sales&nbsp;have increased by 20-30%&nbsp;since the project launched,&nbsp;CBRE&rsquo;s Tim Rees says, adding that they expect that trend to continue.

&ldquo;That&rsquo;s well above the percentage increases reported in the latest prime forecast report,&quot; Rees suggested.

[smartcode_project:default project_id=6012 project_image_fid=84195]

Rees attributes&nbsp;Opera&nbsp;Residence&rsquo;s success to its exceptional location opposite the Sydney Harbour Bridge and next to the&nbsp;Opera&nbsp;House, as well as its stunning architecture, interiors and panoramic vistas.

&ldquo;The project represented a limited opportunity to buy into the Circular Quay precinct with a dress-circle view of the world&rsquo;s most beautiful harbour and a highly sought-after, iconic building that&rsquo;s tightly held by locals. That makes it a magnificent proposition, and it&rsquo;s likely to be tightly held and passed down to future generations as one of the world&rsquo;s most extraordinary addresses,&rdquo; Rees says.&nbsp; 
 
Macrolink Landream Australia recently revealed four new tenants confirmed for the retail precinct, including Japanese teppanyaki fine dining restaurant and bar OBOROZUKI, a trendy ground floor caf&eacute;, award-winning international restaurant chain, IPPUDO Ramen and upmarket Opera Ice Creamery. 
&nbsp; 
Landream have a diverse portfolio of projects across New South Wales and Victoria, with two high-end residential developments currently under construction in Victoria - The International, Brighton and Hurstmon, Malvern East. 
&nbsp; 
Opportunities remain to secure two and three bedroom residences across these two developments in premium Melbourne locations.

For more information about Opera Residences, <a href="https://operaresidences.com.au/">click here</a>.

Opera Residences was a Macrolink Landream project at 71 Macquarie Street

Residents set to move into Macrolink Landream's Opera Residences

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Renders have been revealed for the two penthouses atop Residences Two, one of the towers in luxury Barangaroo project One Sydney Harbour.

The three level penthouse in the neighbouring Tower One made history in 2018 when it sold for a record $140 million, the most expensive residential transaction in Australia's history. It was bought as two separate apartments, the sub-penthouse below added to the double-storey penthouse.

The two Skyhomes in Residence Two span a whole floor each, ranging between 540 to 670 sqm. They both will have three-metre high ceilings throughout, as well as gun-barrel views overlooking Sydney Harbour's famous icons.

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The Skyhomes, accessed through their own private lobby, will each have their own Sky Terrace which will have an entertaining space and a pool. The apartments have been designed in collaboration between Daniel Goldberg, the creative director at State of Craft, and the internationally acclaimed Pritzker award winning architect Renzo Piano.

The pair have collaborated before, on The Shard and Shard Place in London in 2012, and Goldberg was behind the interiors of the $140 million penthouse. 

Estimated to be completed in 2025, One Sydney Harbour will be made up of 808 apartments across three towers. Tower One is set for completion in 2023 and will home 317 apartments across 72 levels.

 

<blockquote>
  
We wanted to create two unique, world-class homes in the sky that capture the essence of living high above Sydney Harbour. The experience of being in the Skyhomes was inspired by life onboard private yachts with their seamless transition from inside to outside spaces, and the feeling of freedom and elegant comfort. 

Daniel Goldberg, Founder and Creative Director - State of Craft
</blockquote>

 

<blockquote>
"All places have a story to tell, you just have to listen to that story and I think Sydney has a great story to tell. We immediately started to think about these buildings being like crystals, playing one to the other. In this case I think it’s very much about this, about making something that tells the essence of this city that is about sense of lightness, a sense of light, the sense of transparency."

Renzo Piano, Chairman and Founding Partner – Renzo Piano Building Workshop
</blockquote>

 

<blockquote>
“The design collaboration between Renzo Piano and Daniel Goldberg continues to bring Lendlease’s vision for One Sydney Harbour to life, setting the tone for this landmark residential offering. Following the record-breaking Residences One penthouse sale, we are now showcasing the Residences Two ‘Sky Homes’, which pay homage to Goldberg’s design expertise and luxury living vision.” – Ben Christie, Head of Residential, Property - Lendlease
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Renders have been revealed for the two penthouses atop Residences Two, one of the towers in luxury Barangaroo project One Sydney Harbour.

Joel Robinson

Lendlease reveal One Sydney Harbour luxury skyhome penthouses 

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Bellevue Hill was officially the most expensive suburb in 2018, with the highest median house price of $5.4 million.
Units come in cheaper, with a median price of just over $1 million in 2019.
To see the current median unit price in Bellevue Hill, <a href="https://www.propertyobserver.com.au/The%20harbourisde%20locality%20in%20the%20Woollahra%20Council%20LGA%20is%20bounded%20by%20Sydney%20Harbour%20to%20the%20north,%20Double%20Bay%20to%20the%20east,%20Edgecliff%20to%20the%20south%20and%20Rushcutters%20Bay%20to%20the%20west.%20%20The%20Darling%20Point%20median%20unit%20price%20has%20jumped%20over%20%241%20million%20in%20the%20last%20five%20years.%20%20For%20the%20current%20median%20unit%20price%20in%20Darling%20Point,%20click%20here." target="_blank">click here</a>. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/16/Bellevue%20Hill.jpg" alt="">
The pricey harbourside suburb has long been home to Sydney's elite given its proximity to some of the country's best schools.
Part of the Woollahra Council LGA, Bellevue Hill is bounded by Rose Bay to the north, Bondi Junction to the south, Double Bay to the west and North Bondi to the east.
Living in Bellevue Hill
Transport
Bellevue Hill is located five kilometres from the Sydney CBD. The nearest train station is Bondi Junction.
There's the ferry service nearby at Rose Bay, while buses 326, 327, 386 and 387 pass near the area.
Schools
Living in Bellevue Hill puts property owners in the closest areas to some of the best schools in the country.
The revered Cranbrook School and The Scots College are located in Bellevue Hill.
 
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What you need to know about buying an apartment in Bellevue Hill

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Darling Point is a harbourside eastern suburb of Sydney, renowned for its desirable and expensive real estate.
It is mostly residential and regarded as one of the most exclusive and prestigious suburbs in Australia.
The harbourisde locality in the Woollahra Council LGA is bounded by Sydney Harbour to the north, Double Bay to the east, Edgecliff to the south and Rushcutters Bay to the west.
The Darling Point median unit price has jumped over $1 million in the last five years.
For the current median unit price in Darling Point, <a href="https://www.urban.com.au/news/3706-darling-point-nsw" target="_blank">click here</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/16/Darling%20Point%20median.jpg" alt="">
Living in Darling Point
Transport
Darling Point is located four kilometres from the Sydney CBD.
Darling Point Road follows the ridge of the headland that is Darling Point. Mona Road and Greenoaks Avenue act as two other main access roads to the suburb. 
New Beach Road runs between the western boundary of the suburb and Rushcutters Bay Park. The 327 bus service used to go through Darling Point but it has been reduced to a lesser route, now called 328. 
Darling Point ferry wharf provides access to Double Bay ferry services. Darling Point is also serviced by the nearby Edgecliff railway station.
Demographic
At the 2016 census, there were 4,190 residents in Darling Point.
The most common ancestries in Darling Point were English (24.1%), Australian (15.1%), Irish (9.7%), Scottish 7.4% and Chinese 3.3%. 54.2% of residents were born in Australia.
The most common countries of birth were England 5.3%, New Zealand 3.4% and South Africa 3.2%. 72.6% of people spoke only English at home. The most common responses for religion were No Religion 27.2%, Catholic 18.3% and Anglican 16.5%.
Parks
McKell Park was originally the site of the now-demolished Canonbury House, but is now a public park.
Situated at the northern end of Darling Point Road, it has panoramic views of Sydney Harbour and is a popular location for picnics and weddings.
It also provides access to Darling Point's ferry stop.
 
 
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What you need to know about buying an apartment in Darling Point

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The final design has been unveiled for an iconic new Sydney Fish Market which will revitalise Blackwattle Bay and expand the public’s access to Sydney Harbour and its foreshore.
Premier Gladys Berejiklian said the purpose-built retail and wholesale facility will be positioned over the water as the centrepiece of a new harbour-side precinct, taking advantage of panoramic views to the Anzac Bridge.
“The Sydney Fish Market currently attracts more visitors annually than the GreatBarrier Reef and accounts for around 20 per cent of international visitors to the Sydney region,” Ms Berejiklian said.
“It is already the largest fish market in the southern hemisphere, trading approximately 14,500 tonnes of seafood per year.
“This brand new fish market will draw locals and visitors to Blackwattle Bay to experience the excitement of an authentic market and auction floor, and taste some of our finest seafood in state-of-the-art surrounds.”
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The building will feature a unique timber and aluminium roof inspired by fish scales floating over the building like a canopy and be home to an expanded seafood cooking school, food kiosks, restaurants, bars and outdoor spaces for social events.
Plans also include new public wharves, a waterfront promenade, a new ferry stop and new civic and community spaces.
“This will become a vibrant economic and community hub that supports NSW’s fresh seafood industry, our professional fishers and coastal fishing towns from Eden toTweed Heads,” Ms Berejiklian said.
“Relocating the fish market to the new site will return Blackwattle Bay’s foreshore to the public, improve pedestrian and cycling links and connect more of Pyrmont to the water as part of the long-awaited revitalisation of the area.”
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The design was commissioned last year and is being led by Danish architects 3XN, in partnership with Sydney firms BVN and Aspect Studios.
Sydney Fish Market will continue to operate uninterrupted during construction of the new facility, which is expected to begin mid 2019, subject to all necessary approvals.
The new fish market is expected to open in 2023.
GBCA CEO Romilly Madew said the new Sydney Fish Market would be a world-class tourist attraction, with the stunning complex not only reinvigorating the CBD location, but embracing energy efficiency and water and waste-saving measures.
“We applaud the NSW Government, UrbanGrowth NSW and the Sydney Fish market for ensuring the regeneration of the fish market is undertaken with sustainability front-of-mind,” “For such an iconic Sydney attraction to embed environmental and social sustainability as a core function sets a great example for others to follow and represents best-practice.
“It also shows the importance of Green Star and how, increasingly, Sydney’s iconic buildings and precincts are aiming for and achieving certification, such as the Sydney Opera House, Barangaroo and Sydney Airport.
“We are excited to work with the key stakeholders on this monumental project, which will reshape, redefine and reinvigorate Blackwattle Bay.”
 
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Sydney Fish Market final design unveiled

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The Sydney Harbour foreshore is set for infrastructure upgrades after the NSW Government announced plans to sell the revenue streams to the ground lease rental income at four government-owned properties.
The government plans to sell the ground lease rental income for the Novotel Rockford at Darling Harbour, the Holiday Inn Old Sydney in The Rocks, the Quay West car park and the Shangri-La Hotel in The Rocks.
Property NSW CEO Brett Newman said the transactions will provide much needed funding.
"These transactions will enable us to unlock much needed funding to preserve and enhance our iconic foreshore, ensuring the millions of locals and tourists who visit these precincts each year enjoy a world-class experience," he said.
By selling the ground lease rental income for the properties, the government will receive an upfront payment to help fund important infrastructure work, while ensuring the properties remain in government hands.
The plan to divest the ground lease rental income follows the announcement in 2015 that certain non-core commercial assets held by the government would be considered for divestment.
The government has previously entered into long-term lease arrangements with existing tenants at the four properties and the proposed divestment strategy will have no impact on existing lessees.
On expiry of the term to receive ground lease rental income by the successful purchaser(s), the rights to the ground lease rental income at the four properties will revert back to the government.
Property NSW is managing the divestment, with Deloitte Real Estate engaged to provide due diligence, advisory and transaction services.
In December 2016, the Government announced the divestment of the ground lease rental income at Darling Quarter for $191 million to help fund the new Circular Quay ferry wharves.
 
 
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State Government divestments at The Rocks to fund Harbour infrastructure work

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A former naval site on the Sydney Harbour has been unveiled to the public, after being out of bounds for 150 years to Sydneysiders.
The Sydney Harbour Federation Trust has launched a national campaign aimed at opening up the former HMAS Platypus site — part of Australia’s maritime history — to the public and re-launching the site as Sub Base Platypus. 
The former submarine workshops will be revitalised to provide terraces, streets, squares and gardens for public by the waterfront, along with retail spaces such as cafes and shops.
The Harbour Trust, which looks after historical sites on the Sydney Harbour, has called for expressions of interest to turn the 1.8 hectare site into a cultural, community and commercial hub, according to a media release. The campaign closes on October 31.
Parts of the site will be opened to the public from mid 2018, with the bulk of the work on the buildings expected to proceed over the next two years. 
While unveiling the campaign, the Federal MP for North Sydney, Trent Zimmerman, said he was pleased to see one of the Harbour’s most important historical and industrial locations opened up to the public after 150 years. 
“Under its legislation, the Harbour Trust has a responsibility to ensure the site is opened up to the public and to contribute to its further protection, which is why the Government is happy to support this call for cultural, community and commercial groups to become part of the Sub Base Platypus story,”  Zimmermann said. 
The Chair of the Harbour Trust’s Board, Kevin McCann, said the while the industrial heritage values of the buildings will be retained, the buildings and public spaces will be adapted for the public recreation and the revenue raised would be invested back into the parklands.
The site has a lettable area of 12,000 sqm with spaces available ranging from 35 sqm through to the Torpedo factory, at 6,630 sqm. 
The Torpedo Factory is the largest building on site with three floors. At the height of the wartime production, the factory employed 200 civilian workers.
“Once completed, we will see Sub Base Platypus become a special destination for Sydneysiders and visitors alike, providing a range of facilities and venues for cultural performances, function areas, cafes and restaurants, as well as offices and commercial spaces,” said chief executive of the Harbour Trust, Mary Darwell. 
The site is Cammeraygal Country and was once a gasworks providing gas for street lights, homes and businesses on the North Shore of Sydney. As part of the war effort, the site was resumed by the Commonwealth Government in 1942 and became a torpedo manufacturing and maintenance factory as well as a service facility for the naval vessels of the Pacific Fleet. 
In 1967 the site was commissioned as the base for the Royal Australian Navy’s Oberon-class submarines and was named HMAS Platypus. The submarine base was closed in 1998 and the asset was transferred to the Harbour Trust in 2005.
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Former naval site at Sydney Harbour to be redeveloped as public spaces

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Chinese developer Wanda has unveiled its $1 billion Sydney harbour-front hotel and apartment tower, One Circular Quay.
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The new 60-storey glass and stone residential building has been designed by Kerry Hill Architects.
The Crone Architects and Kengo Kuma Architects-designed five-star hotel will have 28 levels and just 181 rooms.
Wanda International Projects global head of sales and marketing Michael Purefoy said the hotel doors are expected to open in November 2020.
The apartment sales would start this year.
"I think this is a project that is going to generate interest from a global base,” he told The Australian.
The Circular Quay skyline is to be re-imagined with the creation of the five star Wanda hotel, following a collaboration between Australian architecture firm CRONE and Kengo Kuma &amp; Associates to win an international design excellence competition.
It is part of Dalian Wanda’s $1 billion redevelopment of Gold Fields House at 1 Alfred Street, Circular Quay.
The residential tower uses sandstone, green walls and large windows framing views towards the harbour.
“We are extremely proud to be involved with Wanda’s ambitious reimagining of this prominent site in Sydney, working alongside our colleagues in Japan,” commented CRONE design director Sandra Furtado, who led the design team in Sydney. 
“The Tokyo and Sydney teams worked very hard to make this a true design collaboration, and both firms are delighted with the opportunity to work together, as part of a wider team to deliver Wanda’s vision,” she said.
“Our design aspirations for the Wanda Vista hotel required the crafting of a building with a distinct identity, while being mindful of numerous site constraints, the client’s ambition, as well as the City of Sydney’s plans for the surrounding Alfred-Pitt-Dalley-George precinct.”
The hotel’s five star features include a welcoming lobby which extends visually onto Herald Square, a 300-person grand ballroom with views of Sydney Harbour, two levels of restaurants and a rooftop bar with outdoor areas.
“This is a truly international project, giving us a chance to work with our friends in Australia to offer high-quality design for the City of Sydney. We look forward to Dalian Wanda’s intent to work with us to hone the city’s vision and give something great to residents and visitors alike,” added Kengo Kuma.
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Wanda's One Circular Quay has 2020 completion date

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Buckley’s Bar at Opera Quays on the Sydney Harbour waterfront promenade is set for public auction, 25 November through Cushman &amp; Wakefield.
The property, 1A Macquarie Street, East Circular Quay sits between the Sydney Opera House and Circular Quay Ferry terminal and is 408 sqm across three levels.
The property has a net annual rental income of $809,738 with a 5 year lease in place which began May 2014 and has the option to extend for a further 4 years and 9 months.
Anthony Bray, Cushman &amp; Wakefield director, sales &amp; investments, said despite yield compression in the NSW retail property market, we have seen flagship retail assets of this nature performing strongly.
"The recent sale of the former Bates Milk bar site on Campbell Parade on Bondi Beach was sold at a 3.14 percent yield, and demonstrated the fierce competition for investment in Sydney’s prime retail and tourist precincts," he said.
"Buckley’s Bar is strategically located with a large outdoor seating component with direct water views, with these features making this retail strip one of the most tightly held precincts in the Sydney CBD.
“We are expecting interest in Buckley’s Bar will be significant, underpinned by limited supply of premium retail investment opportunities in the inner city coupled with income security for a potential purchaser over the medium to long term."
 
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