The Sydney housing bubble – plenty of people have predicted prices to come crashing down, but not even a pandemic seems to have slowed the market. It has been one of the strongest and most consistently growing markets over the last 40 years and it doesn’t look like things are going to change much in the next 12-24 months.

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​So, what’s causing the current housing boom considering much of the world has been in slow down mode for the last 12 months?
 
It really is the perfect combination of low interest rates, a shortage of available housing and buyers wanting in the market before prices increase again. According to an article on realestate.com.au, the major banks have forecasted some pretty strong growth over the next two years, with Commonwealth predicting up to 20% while Westpac has a more modest 7.5% over 2021.
 
One of the hardest things for many buyers to contend with is that there are plenty out there with cash to spend that aren’t even inspecting properties - they are making offers as soon as the listing is placed online, foregoing building and pest inspections, and just taking a chance on throwing out an offer to see if they can snag a home.
 
Clancy Yeates, journalist for The Sydney Morning Herald, recently pointed out that the biggest difference between the current boom and previous booms, is that this one is being led by owner-occupiers rather than investors. We only need to look back a few years where investors made up close to 50% of all new mortgages whereas now, it sits in the low 20%.
 
The big question - how far will your money go in the Sydney housing market in 2021? In a market where the median property price can sit in the millions, it’s tough to predict just how far your money is going to go when purchasing a new home.
 
While the performance of houses is going strongly, units are providing a lower entry cost into the market for buyers, with plenty sitting in the lower-middle price bracket of $600,000 to $800,000 but for some buyers, it may mean moving out of their preferred area and into places like Beverly Hills, Sans Souci, and Peakhurst.

​For those looking for a family home, suburbs such as Box Hill, Austral and Airds are going to provide a more affordable option than many other suburbs.
 
Of course, the other option for buyers looking to make the most of their money, are brand new builds providing something a little different. Montane Kellyville and Elysian Apartments in Alexandria are just two of the new builds making their way onto the market. Both have been popular with potential buyers looking for modern homes without breaking the bank.
 
What’s going to happen on the property market in the next 12-24 months really is anyone’s guess - unless you have a crystal ball to tell the future, there are numerous factors which could influence whether prices continue to rise or not. What is clear however, is that the longer you wait to get into the market, the less purchasing power your money is going to have.
 
Getting in while interest rates are low and incentives for new builds are around is going to help stretch every dollar just a bit further.

We recently took a look at the tallest buildings in Australia - but if you thought the Australian buildings were tall, it’s time to think again! Some of the world’s tallest buildings stand at more than double the height of Australia’s tallest building, the Q1 (an impressive 322.5m tall).

As we take a look at these buildings, you’ll notice something a little different – they aren’t all residential. So, this time, we’ve broken our list into two parts; the four tallest residential buildings, and the four tallest non-residential buildings.


RESIDENTIAL BUILDINGS

 
​Burj Khalifa – Dubai

The Burj Khalifa is a mixed-use skyscraper in Dubai. Standing at 828m, it is the world’s tallest building. To put that height into perspective, it is three times as tall as the Eiffel Tower or nearly twice as tall as the Empire State Building. Taking only six years to build, the Burj Khalifa also holds the record as the World’s tallest freestanding structure, the largest number of stories, the highest occupied floor, the highest outdoor observation deck, the elevator with the longest travel distance and the tallest service elevator.

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Central Park Tower – USA

​Built overlooking Central Park in New York City, the Central Park Tower is the tallest residential only building in the world. Despite being 472m tall, the building is home to just 179 of the most exclusive apartments you’ll find, with the lower floors home to New York City’s first Nordstrom store. It also holds the prize as the second-tallest skyscraper in the US and the western hemisphere, the 13th tallest building in the world, and the tallest building outside of Asia (by roof height).

​111 West 57th Street – USA
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Also known as the Steinway Tower, 111 West 57th Street is another premium build on Billionaires’ Row in New York City. With just 60 luxury condominiums (14 in Steinway Hall and 46 in the tower), it is one of the narrowest skyscrapers in the world. The building of 111 West 57th Street also included a restoration of Steinway Hall, a landmark in New York City.

432 Park Avenue – USA
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Overlooking Central Park, 432 Park Avenue also sits on Billionaire’s Row at 425.5m and includes some of the most expensive homes in New York City, with the media price in the tens of millions of dollars range. With a private restaurant for residents and just 122 condominiums (from one to six bedrooms), 25 studio units and penthouse units, the building has 85 stories above ground including five two-story windbreaks every 14 floors to reduce the wind loading on the tower.

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​NON-RESIDENTIAL BUILDINGS​


Petronius (Oil Platform) – Gulf of Mexico

​This one is an odd one, but it still makes the list. Standing at 640m from the tip of the flare boom to the mudline (sea floor), the Petronius oil platform was once the tallest freestanding structure in the world, before being overtaken by the Burj Khalifa in 2010. The seabed sits 535m below the platform so while it doesn’t actually look that high, there is a lot of building structure going on under the water!

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​Shanghai Tower – China

Sitting at 632m, Shanghai Tower is a mixed-use tower which includes restaurants, shops, offices and hotels. The building is organised into nine vertical zones, which include a sky lobby, a bright, natural light garden atrium and is one of the most sustainably built tall buildings anywhere in the world.

​KVLY-TV Mast – USA

​Another odd one to add to the list – the KVLY-TV mast is a 629m tall television transmitting mast in North Dakota. For some time, it was the tallest structure in the world, and in the western hemisphere, while being the second tallest broadcasting mast in the world. Built in 1963, at a cost of $500,000USD, the tower was completed in just 30 days.
 
While these buildings may currently be the tallest in the world, there are some quite large buildings being planned across the world including the Burj Mubarak al-Kabir in Kuwait (1001m), Oblisco Capitale in Egypt (1000m), Dubai One Tower and Uptown Dubai Tower 1 in the UAE (711m each) and Tower M in Malaysia (700m).
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It will certainly be interesting seeing these buildings potentially come to life over the next decade.

High density living and working spaces in busy urban cities is the predominantly recognised benefit of skyscrapers. Not to mention the incredible views.

But there's the awe-inspiring feeling of "how on earth is it humanly possible to build something that tall?"

If you've been to Dubai, you'll know that feeling well.

Dubai's Burj Khalifa stands at 828m, which giants anything here down under. 

Nonetheless, Australia has some impressive feats of engineering.

Walk or drive through any city in Australia and you are bound to find a skyscraper or two. But have you ever wondered just how tall those buildings are and even perhaps what the tallest buildings in the country are?

1. Q1 – 322.5 metres
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​Who would have thought that the Gold Coast would have the tallest building in Australia?

Since 2005, the title has stood with the Q1 in Surfers Paradise, standing at an impressive 322.5m when measured to the tip of the spire.

For 6 years it had a place as the tallest building in the world, only to be overtaken by The Marina Torch in Dubai in 2011.

The Q1 is home to Australia’s only beachside observation deck, with an express elevator taking you to SkyPoint in 43 seconds!

Visitors can also enjoy the views with the SkyPoint Climb – taking them 270 metres above sea level.

2. Australia 108 – 316.7 metres

​Australia 108 is Melbourne’s highest tower and the second highest in Australia.

With some of the best views across the Melbourne skyline, including the Royal Botanic Gardens, the Yarra and Port Phillip Bay, this is one pretty stunning building.
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With a starburst inspired by the Commonwealth Star on the Australian flag at the level of the resident facilities, Australia 108 is luxury in the clouds.

3. Eureka Tower – 297.3 metres

​Another Melbourne local, Eureka Tower was completed in 2006 and is still within the top five of Australia’s tallest buildings.

It once held the place of the world’s tallest residential tower, and from 2006 to 2019 was the tallest building in Melbourne until the completion of Australia 108.

Named after the Eureka Stockade, the design incorporates the gold rush era – the gold crown represents the gold rush, a red stripe represents the blood spilt during the revolt while the blue cladding and white lines represent the Eureka Stockade flag.
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The Skydeck occupies the entire 88th floor, with great views over Melbourne’s CBD, Southbank, Docklands, Yarra River, and the Dandenong Ranges.

4. Crown Sydney – 271.3 metres

​Located in Barangaroo, the Crown Sydney is yet another spectacular skyscraper.

Standing at a touch over 271 metres, there’s some pretty amazing views over the Harbour. It is Sydney’s tallest building, with construction finishing completely in December 2020.

5. Aurora Melbourne Central – 270.5 metres
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Finished in 2019, Aurora Melbourne Central features residential apartments, residents-only facilities, serviced apartments, strata office suites and retail space. It also features direct underground access to Melbourne Central Station and to the largest shopping precinct in the city.
With views across the city, parks, Dandenong Ranges and the bay, these premium apartments added a level of luxury to inner Melbourne.

The Coronavirus pandemic brought with it an interesting, and probably for many, highly unexpected outcome – a boom for the regional areas. Business shutdowns and relocations to working from home gave people time to think about the changes they could make in their own lives to promote a better work-life balance. What COVID-19 showed is that many jobs don’t need to be done in an office, they can just as effectively be done from almost anywhere. The same with many businesses – you don’t need a shopfront to be successful, you just need the dedication and ability to run your business online.

The Stats

​The ABC recently reported that a record 54,000 new job vacancies became available in the October figures – a 13 percent increase on the 2019 figures. According to Liz Ritchie, chief executive of the Regional Australia Institute, these positions including engineers, doctors, lawyers and accountants - well paid roles that are causing those living in the cities to think about their next move.

​It is really interesting to look at where those job advertisement figures are coming from.

In NSW – Dubbo and Western NSW are up 92.6%, the Southern highlands and Snowy Mountains are up 55.9% and Tamworth and Northern NSW are up 45.2%. This is compared to the Sydney market which is down 24.7%.

In Queensland, Toowoomba and the South West have increased 35.7%, the Sunshine Coast is up 24.5% and the Gold Coast is up 18.8%. Brisbane is down 8.7%.

The North West region in Tasmania has seen an increase of 26.3% while Hobart is down 4.9% and in Victoria, Melbourne decreased by 38.3% while Bendigo and the High Country went up 5.1%.

The Outcome

​So, what does this increase in regional job advertisements on top of the recognition that people can work effectively from home do to house prices and the decentralisation of the inner city and high-density areas?

In most states, capital growth has been increasing across the regional markets between March and October 2020. CoreLogic notes an increase of 3.3% in NSW, 1.6% in QLD, 3.4% in SA and 3.7% in TAS. Areas in regional Victoria, Orange (NSW), Byron Shire (NSW), the Tweed Shire (NSW), Geelong (VIC) and the Gold and Sunshine Coasts (QLD) have been benefiting from the mass exodus of inner-city areas, but whether this trend continues does remain to be seen.
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For others, moving out of the inner city and high density living to outer laying suburbs and regions has allowed them to continue working from home while commuting into the office one or two days a week. Being out of high-density living provides more lifestyle options and was certainly seen as beneficial during lock down periods.

​Another factor of the decentralisation of inner-city areas is affordability. Once you start to move out of the CBD and into outer suburbs and regional areas, land and property suddenly becomes (in many instances), more affordable, and first home buyers have really been taking advantage of Government incentives, both federal and state.

While we may not see an increase in single family homes being built in some city areas, what we can expect is what is know as medium density living – that is, housing that provides for a small number of families in the one location. These tend to include:

• Dual occupancy homes – two dwellings on the one lot, either detached or attached
• Manor houses – one home on top of another, usually 3-4 homes on the one lot of land
• Multi-dwelling homes, or terraces. This is where you find three or more residences on the one lot, all facing a public road.

We could also expect to see an increase in low-rise buildings as opposed to the high-rises we have been seeing in recent years.
The full outcome of COVID-19 on decentralisation and the decrease in high density living still needs to be seen, and it may be a little while before we see its full effects. There is however no doubt that many regional areas are currently benefiting from this decentralisation, and bringing life back to our regions can only be a good thing.

Super low interest rates are set to bolster the Sydney real estate market in 2021 and beyond. Economic uncertainty and outer city relocation due to COVID-19 resulted in a Q3 2020 slight decline 0.3% decline in the market, according to CoreLogic. But signs and forecasts for 2021 look promising.

​But what should we expect in 2021?

Some economists are predicting a turnaround, with Sydney prices expected to rise at around 8.8%, with the low interest rates and government stimulus packages really pushing people to purchase when they can. So, what is stopping those larger growth numbers that we have seen in recent years?

We likely won’t see these recently skyrocketing prices due to the effects of the pandemic – continued uncertainty, minimal population growth through immigration and the location independence of jobs relocating many outside of the the inner-city regions.

​CoreLogic noted in some of their recent weekly figures that Sydney’s housing market is performing well in auction rates with a 76.6 per cent clearance rates. Owner-occupiers and first home buyers are steering the market, particularly those who have been able to maintain stable employment. Yet the investor market is still quite low, with the ABS’s latest figures showing that investors are making up less than 15 per cent of new loan applications.

​What does this mean for the rental market?

While owner occupiers and first home buyers can still take advantage of lower home prices, what we are likely to see is more demand on rental properties and therefore price increases flowing through to meet those demands.

Predicting and forecasting the market is hard at any point but predicting and forecasting as we come out of a pandemic is even harder. But, as noted by Property Update, there are some promising indicators that the market is on an upwards trend, including:

• Gradual rise in consumer confidence
• Auction clearance rates getting stronger
• More buyers and sellers starting to come into the market
• Banks are becoming keen to get new business
• Loan deferral rates are falling - less likelihood of forced mortgagee sales
• Solid talk of rates remaining low for the next three years

​So, what about those looking to get into the market or downsize when prices are on the increase?

New developments and builds, like Montane Kellyville are popping up and are fantastic for those looking to get into the market, downsize or even upsize from an inner-city apartment. Boutique and smart technology apartments are in demand, and they aren’t lasting long on the market.

​With a collection of one-, two- and three-bedroom smart home apartments, in the heart of Kellyville, these five low-rise level buildings suit everyone from the young professionals and families through to retirees looking to downsize without losing facilities.

Built for living and entertaining, if you’re looking to enter the market and beat the rush when people start to notice prices increases, Laurus Projects welcomes you to register now for Montane Kellyville.   

Laurus Projects has welcomed their new development, Montane Apartments, in the heart of Kellyville.

A collection of one, two and three bedroom apartments, these homes have been superbly crafted to bring together intelligent architectural design and premium finishes. Designed to suit everyone from young professionals and families through to first home buyers and astute investors.

Montane has three low-rise five level buildings, compromising of 150 apartments, designed by award winning architectural firm Kann Finch, and reflects the stylish revolution of Kellyville.
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Inspired by the surrounding landscape, where urban living meets a relaxed lifestyle, Montane encapsulates Kellyville living – open space, fresh air and blue skies. With professionally landscaped surrounds, all buildings feature a rooftop terrace for relaxing outdoors and entertaining guests. With native landscaping, the rooftop terraces feature a covered barbecue area, integrated seating and a children’s play area with swings and a mini bike track.

The apartments are built for living and entertaining, with the kitchens featuring a large breakfast bar with stone bench tops, timber joinery and stainless steel European appliances, while the neutral classic tones used throughout compliment any taste. Smart home automation systems control air conditioning and energy efficient LED lights at the touch of a button, voice control or remotely via your smart phone.
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There is something to be said about Kellyville living, the combination of an urban setting while still enjoying the surrounding nature. Many apartments within the Montane development capture the Blue Mountains vistas while others look out over the surrounding district - a backdrop that is uplifting by day, and stunning by night as the sun sets and the city lights up.

Montane features plenty of amenities including those rooftop terraces, a versatile community room that can be booked out by residents for personal functions and celebrations, and a fully-equipped state-of-the-art gym, letting you work out close to home at a time that suits you.

Kellyville is 36k north-west of Sydney’s CBD in the Hills Shire and is connected to everything needed – a short drive to Kellyville Station on the new Sydney Metro North West high-frequency railway (featuring 1,360 commuter car parking spaces). From here, journey to Chatswood in 31 minutes, and Macquarie University in 22 minutes. The Niftie express CBD commuter bus is located at the end of the street providing an easy ride into the city.

Kellyville is part of the growing and thriving North West Priority Growth Area. There is plenty of new and planned infrastructure for the area which adds to the appeal, the connectivity and the liveability, with plenty of public amenities, transport links, retail precincts, schools, recreational facilities, parklands and thousands of predicted jobs. Montane takes advantage of the family friendly tone to the areas, with a sense of community, and the lifestyle plenty have been looking for but unable to find.
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Bringing smart and connected homes to Kellyville, Laurus Projects welcomes you to register now for the boutique design and affordable luxury that is Montane Apartments.

What is extended reality?

Extended Reality or XR is an overarching term that includes Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), and other technologies that combine real and virtual world to manufacture an immersive experience. 

Extended Reality In Construction
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Almost unimaginable even five years ago, clients can now take a virtual walk through their new home or office to ensure the design suits their needs now rather than after it is built.

So, what can we look forward to with the growing use of XR in the construction industry?


​Saving Time, Money and Stress
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When you initially speak to a builder, you’ll often notice building mock-ups, material samples and colour samples.

Walk through a display home and you’ll see everything put together. But what if you’re building a custom design home?

What if you make a few changes to the office layout? XR solutions allow builders and designers to put together a building design and make changes without having to build mock-ups and chase down hundreds of samples of building materials and colours.

When Extended Reality is fully implemented into the construction industry, builders and designers can get into a database of virtual buildings and products, quickly building a virtual home from the bottom up, giving their clients a great idea of what their build will look like.

New Technology On-Site
One area of technology that is expected to evolve the industry further is that of smart goggles. 

Imagine walking around a job site – less mobiles in hand, less paperwork and more smart goggles that show building plans, drawings, technical information, installation, checklists and more.

This information will help to cut down on meetings as everything is there when needed.

On Site Training and Safety
Another area where Extended Reality is shaping the construction industry is through the training and safety procedures for each site.

Virtual Reality can be a highly effective training tool for those machine operators to get an idea of what is required to use each piece of machinery on a particular site.

Assisted Reality can help technicians when inspecting equipment show past maintenance history.
On top of the training side, there is the safety side, particularly for building inspectors who could have all plans uploaded before the leave the office and know exactly what needs to be inspected and when.
As Extended Reality technologies grow and become more diverse, we can expect to see them changing the landscape of the construction industry over the coming years.

​Businesses that are already taking this technology on board or who are ready to jump on board will have a competitive advantage over those who are a bit slower to start.
There’s plenty of exciting things happening within the world of Extended Reality, and we look forward to seeing how it changes the construction industry over the coming years.

Convenience. It's the driving force behind the adoption of new smart home technology. 

With a single touch of a button or a mobile app, you can control your home from anywhere . You can have your air conditioner turned on and cooling down the house before you get home. Disable your security system. Unlock your doors so you don’t need to struggle with an arm load of groceries.

Smart homes also allow you to have those small things done at the right time. Automate your blinds in the morning so you get naturally awoken by the sun. Adjust your lighting to the task at hand. Change music playlist while cooking dinner. The convenience is endless.

There's also the money saving factor. In warmer weather it is common for people to leave their air conditioners or fans going all day to ensure the house is cool when they get home . Smart homes allow you to get the air con going before you get home, but not leave it on all day. Similarly with lighting, we know all too well how easy it is to leave the lights on in a bedroom or the kitchen even when you aren’t using them simply because you don’t feel like getting up. Having the ability to turn off your lights through an app on your phone, while you're sunk deep into the couch... It's a big win.

​Low Interest Rates

Low interest rates are the starting driving force; it’s certainly been a while since we’ve seen interest rates sitting in the 2 – 3% range, particularly for so long, and it is helping people get into the market and make larger repayments on their new homes, getting themselves ahead.

However, it can be harder to secure a loan, particularly if you are sitting on the fine line of whether you have enough of a deposit saved and how secure your job is.

Banks are certainly tightening their lending policies and for people in some industries, it is much harder to secure a home loan.

There are no restrictions to buying a new home, other than perhaps restrictions placed on inspections and auctions by relevant Government authorities, and the methods around buying certainly haven’t changed.

However there are a few things to be doing now that you may not have considered even 12 months ago:

• Getting a solid pre-approval before making any offers
• Ensuring you have a secure job and stable income
• Getting property valuations and appraisals done so that you aren’t overpaying

Government Grants

The announcement of Government grants to help people purchase a new home have certainly seen an influx in enquiries from potential purchasers.

Most states have also put into place grants suited towards those building a new home to complement the Federal Government grants.

The HomeBuilder grant provides eligible owner-occupiers a $25,000 grant to build a new home or to substantially renovate an existing home. In NSW, some of the eligibility criteria includes:

• A home where construction commenced on or after June 4, 2020
• Build a new home, substantially renovate and existing home or buy an off the plan home/new home
• Contract must be signed between June 4, 2020 and December 31, 2020 inclusive with construction to commend within three months of the contract date. ​

You can find out more about the HomeBuilder grant applications in NSW through Revenue NSW.

The First Home Buyer grant is available to first home buyers in NSW, with two sections – First Home Owner Grant (New Home) and First Home Buyers Assistance Scheme.

The First Home Owner Grant offers $10,000 towards the purchase price of your new home. There are a few requirements that need to be met including:

• Buying or building your first home
• New home that no-one has lived in before
• Worth no more than $750,000
• Must move into the property within 12 months and live there for at least six continuous months

The First Home Buyers Assistance Scheme provides a full or partial exemption on transfer duty, and to apply you must be buying your first home in Australia and it needs to be valued at no more than $800,000.

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Less Buyers in the Market

Another factor making it easier for buyers at the moment is that there are less buyers in the market. While the Sydney market is usually quite competitive, with less buyers out there, it can be easier to purchase your new home without the rush there normally is.

Real estate agents have more time to show you available properties and developments, and you’ll generally have a bigger selection to choose from.


The Market Might Be Right But I still Don't Feel Confident Buying Property

​It’s one thing to utilise the current grants and economic conditions to purchase your new home if you are able to do so, but you also need to feel confident in actually purchasing your new home, whether pre-built or off-the-plan.

If you are a first home buyer, it can be hard to know what to be on the look out for and what to consider.

If that's the case check out our article on the topic is a great place to start.