Australian home market's first test of the year
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Australian home market’s first test of the year

It’s the first big auction day of 2024 as the gap between apartment and house values widens

By Bronwyn Allen
Fri, Feb 2, 2024 9:51amGrey Clock 2 min

The Australian property market will undergo its first major test tomorrow when 1,700 capital city homes go under the hammer on the first significant auction day of the year. CoreLogic economist Kaytlin Ezzy said it will be the second biggest start to February on record behind 2022 when 1,779homes went to auction. In the country’s two biggest auction markets, there will be 608 auctions held in Melbourne and 591 in Sydney.

Ms Ezzy said auction clearance rates weakened to below-average levels toward the end of last year and tomorrow’s event would help set the pace for the pre-Easter selling season and provide a timely test of buyer demand.

She added: This week’s results could help indicate whether the weaker selling condition seen towards the end of last year has persisted into 2023 or if sentiment has lifted with earlier expectations of rate cuts following [this week’s] inflation update.

Australia’s median home value moved higher for the twelfth consecutive month in January, up 0.4 percent. This follows an 0.3 percent uplift in both November and December. However, price performance is mixed across the capital cities, with Perth once again delivering outstanding growth at 1.6 percent in January. CoreLogic research director, Tim Lawless explained:The western capital continues to see housing demand outweigh supply, helping to push values 16.7 percent higher over the past 12 months. Despite that, housing prices remain relatively affordable compared with most capital cities, with the median dwelling value sitting just under $677,000.”

Adelaide home values lifted 1.1 percent in January, Brisbane prices rose by 1 percent and Sydney values moved up 0.2 percent. Conversely, Hobart home values fell 0.7 percent, Canberra prices dipped 0.2 percent and Melbourne declined by 0.1 percent.

Mr Lawless noted that house prices across Australia continued to rise faster than apartments. The price gap is now at a new record high of 45.2 percent. House values across the capital cities lifted by 0.5 percent in January, equivalent to about $4,800 in value, while apartments lifted 0.1 percent, or about $900 in value. “Since the commencement of the upswing, capital city house values have surged 11 percent higher while unit values are up 6.9 percent,” Mr Lawless said. It seems that most Australians are willing to pay a higher premium than ever for a detached home.”

Sales volumes remain elevated, with CoreLogic estimating 115,241 dwellings were sold over the three months ending January, which was 11.9 percent higher than the same time last year.Despite ongoing cost of living pressures, high interest rates, low consumer sentiment and affordability constraints, homes are still selling, Mr Lawless said. Housing demand has been buoyed by high migration, but also tight rental markets that have probably incentivised renters to transition towards home ownership if they can afford to do so.



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Property Of The Week: Burleigh’s Award-Winning Norfolk Penthouse Hits The Market

A two-level penthouse atop Burleigh Heads’ award-winning Norfolk development has hit the market for the first time, offering sweeping ocean views and a private rooftop pool.

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One of Burleigh Heads’ most architecturally significant penthouses has hit the market for the first time since its completion five years ago.

The listing provides the first real look inside the two-level penthouse crowning Norfolk, Forme’s award-winning Goodwin Terrace development which was completed in 2021.

The penthouse sold off the plan for $5.35 million around 18 months before construction was completed and has remained tightly held ever since, meaning its resale offers the first insight inside one of Burleigh’s most architecturally impressive apartment buildings.

The four-bedroom residence spans approximately 461 sqm, comprising 276 sqm of internal living and a further 185 sqm of outdoor space across its two levels.

Its position on Goodwin Terrace gives the penthouse one of the Gold Coast’s comparatively rare true north-to-water aspects, with views stretching from Burleigh Headland along the coastline towards the towers of Surfers Paradise. Floor-to-ceiling glazing has been used extensively throughout the residence, framing the ocean outlook from almost every principal living space.

Forme, led by Managing Director David Calvisi, acquired the prime 1,012 sqm site, formerly home to The Fish House restaurant, before developing Norfolk as the first new multi-residential project delivered on Goodwin Terrace in around three decades.

The strength of the location was clear. The more unusual proposition was the building itself.

Forme appointed Koichi Takada Architects to design the 10-level development, marking the practice’s first Gold Coast building. Rather than treating Norfolk’s beachfront setting as a backdrop, Takada used the Norfolk Island pines along the foreshore as the basis for the architecture.

Curved balcony slabs and horizontal battens create the building’s distinctive layered exterior. Sliding timber screens can be repositioned for privacy, shade and protection from the coastal conditions, continuously changing the appearance of the façade.

Takada has compared the concept to the structure of a pinecone, whose overlapping layers open and close according to environmental conditions. In an earlier account of the project, the architect said the objective was to celebrate the site and create a stronger connection between the residences and the elements outside.

The response helped turn Norfolk into an architectural marker for Burleigh’s transformation.

Norfolk comprises 12 half-floor apartments, two dual-level penthouses and one two-level beach house. MIM Design created the interiors, Hutchinson Builders undertook construction and Plus Architecture supplied documentation services for the builder.

Inside Residence 901, MIM Design’s restrained palette brings together timber, natural stone and tailored joinery without competing with the outlook. Travertine surfaces have subsequently received paint-protection film, while the home is being offered with a custom furniture package.

A private lift opens directly into the main living level. Living, dining and media spaces are arranged along the view, accompanied by a concealed bar and a broad north-eastern terrace.

The kitchen has an oversized stone island, European appliances and bespoke cabinetry, supported by a butler’s pantry and separate scullery. An integrated RTI system controls lighting, climate, fans, security, entertainment and audio using in-home touchscreens or a smartphone application.

The principal suite occupies a private wing with ocean views, a dressing room and ensuite. Two additional bedrooms have their own ensuites, while a fourth bedroom can operate as an executive study. A concealed Murphy bed allows that room to accommodate guests when required.

The rooftop is what moves the residence beyond even a generously proportioned beachfront apartment.

Reserved exclusively for the penthouse, it contains a heated lap pool, landscaped gardens, several entertaining areas and an alfresco kitchen with a built-in barbecue. An integrated outdoor cinema allows the rooftop to function as an open-air screening room above the Pacific.

Four side-by-side secure car spaces, dedicated electric-vehicle charging and private storage address practical constraints often encountered by prestige-apartment buyers. The parking allocation is particularly relevant for owners moving from a large house or maintaining a car collection.

Norfolk’s wider amenities include a beach-club-style residents’ area, swimming pool, gymnasium and sauna. Burleigh Beach is directly opposite, while James Street, Burleigh Head National Park and restaurants including Rick Shores and The Tropic are within walking distance.

The building’s reputation has also moved well beyond its beachfront address. Norfolk received both jury and popular-choice honours in the mid-rise multi-unit housing category at the 2022 Architizer A+Awards. It won a Queensland Australian Institute of Architects award for multiple housing and was named the 2022 Medium-Density Residential Development of the Year by The Urban Developer. Further recognition came from the Master Builders awards and Architecture MasterPrize.

Calvisi later said the aim with Norfolk was to produce something the Gold Coast had not previously seen.

The penthouse is being marketed through expressions of interest by Dean Pegoraro of Whitefox Gold Coast.

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