How A Digital Token Designed to Be Stable Fuelled a Crypto Crash
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    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,516,817 (-0.06%)       Melbourne $971,359 (-1.00%)       Brisbane $819,969 (+2.77%)       Adelaide $731,547 (+1.72%)       Perth $621,459 (+0.34%)       Hobart $751,359 (-0.46%)       Darwin $633,554 (-4.02%)       Canberra $1,005,229 (+2.77%)       National $966,406 (+0.40%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $700,089 (-0.30%)       Melbourne $470,277 (-0.26%)       Brisbane $404,718 (+2.58%)       Adelaide $332,602 (+1.44%)       Perth $348,181 (-0.09%)       Hobart $551,005 (+2.68%)       Darwin $355,689 (-3.55%)       Canberra $477,440 (+4.12%)       National $484,891 (+0.89%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 8,451 (-507)       Melbourne 12,654 (-279)       Brisbane 9,158 (+847)       Adelaide 2,765 (-40)       Perth 9,974 (+39)       Hobart 595 (+36)       Darwin 247 (-1)       Canberra 666 (-49)       National 44,510 (+46)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,895 (+164)       Melbourne 8,149 (-24)       Brisbane 2,260 (+33)       Adelaide 649 (+5)       Perth 2,489 (-21)       Hobart 101 (-3)           Canberra 430 (+13)       National 23,351 (+167)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $630 $0       Melbourne $470 $0       Brisbane $460 ($0)       Adelaide $495 (+$5)       Perth $500 ($0)       Hobart $550 $0       Darwin $600 ($0)       Canberra $700 ($0)       National $562 (+$)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $540 (+$10)       Melbourne $410 (+$2)       Brisbane $460 (+$10)       Adelaide $380 $0       Perth $440 (-$10)       Hobart $450 $0       Darwin $500 ($0)       Canberra $550 $0       National $473 (+$2)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,470 (-50)       Melbourne 7,404 (-70)       Brisbane 1,986 (-122)       Adelaide 875 (-29)       Perth 1,838 (-38)       Hobart 254 (+18)       Darwin 70 (-3)       Canberra 388 (+17)       National 18,285 (-277)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 10,652 (+58)       Melbourne 9,001 (-180)       Brisbane 1,567Brisbane 1,679 (-62)       Adelaide 403 (+4)       Perth 1,050 (-21)       Hobart 87 (+1)       Darwin 131 (-10)       Canberra 453 (+43)       National 23,344 (-167)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.16% (↑)      Melbourne 2.52% (↑)        Brisbane 2.92% (↓)       Adelaide 3.52% (↓)       Perth 4.18% (↓)     Hobart 3.81% (↑)      Darwin 4.92% (↑)        Canberra 3.62% (↓)       National 3.03% (↓)            UNIT ANNUAL GROSS YIELDS AND TREND       Sydney 4.01% (↑)      Melbourne 4.53% (↑)        Brisbane 5.91% (↓)       Adelaide 5.94% (↓)       Perth 6.57% (↓)       Hobart 4.25% (↓)     Darwin 7.31% (↑)        Canberra 5.99% (↓)       National 5.07% (↓)            HOUSE RENTAL VACANCY RATES AND TREND         Sydney 1.5% (↓)       Melbourne 1.9% (↓)       Brisbane 0.6% (↓)       Adelaide 0.5% (↓)       Perth 1.0% (↓)     Hobart 0.8% (↑)        Darwin 0.9% (↓)       Canberra 0.6% (↓)     National 1.2%        National 1.2% (↓)            UNIT RENTAL VACANCY RATES AND TREND         Sydney 2.3%ey 2.4% (↓)       Melbourne 3.0% (↓)       Brisbane 1.3% (↓)       Adelaide 0.7% (↓)     Perth 1.3% (↑)        Hobart 1.2% (↓)     Darwin 1.1% (↑)        Canberra 1.6% (↓)     National 2.1%       National 2.1% (↓)            AVERAGE DAYS TO SELL HOUSES AND TREND         Sydney 31.2 (↓)       Melbourne 30.9 (↓)       Brisbane 35.7 (↓)       Adelaide 27.6 (↓)       Perth 40.5 (↓)       Hobart 30.2 (↓)       Darwin 27.1 (↓)     Canberra 28.1 (↑)        National 31.4 (↓)            AVERAGE DAYS TO SELL UNITS AND TREND         Sydney 33.7 (↓)       Melbourne 32.6 (↓)       Brisbane 34.8 (↓)       Adelaide 29.5 (↓)       Perth 46.6 (↓)       Hobart 27.4 (↓)       Darwin 38.2 (↓)       Canberra 30.2 (↓)       National 34.1 (↓)           
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How A Digital Token Designed to Be Stable Fuelled a Crypto Crash

The latest crypto crash was fuelled by stablecoins, a type of token that’s supposed to hold up when everything else tanks.

By JACK DENTON
Fri, May 20, 2022Grey Clock 8 min

Bitcoin and other cryptocurrencies went from bad to worse as selling pressure spread across the tech landscape. But the latest crypto crash was also fueled by stablecoins, a type of token that’s supposed to hold up when everything else tanks.

Stablecoins are designed to maintain a fixed value, typically at US$1 per token. But a fast-growing “algorithmic” stablecoin called TerraUSD collapsed this past week to a few cents on the dollar. That appears to have shaken confidence in the largest stablecoin, Tether. Prices for Tether, or USDT, dipped to 95 cents for a few hours on Thursday, then rebounded to nearly a dollar.

The episode could shake the foundations of crypto. Stablecoins are the bedrock of trading and lending activities, providing liquidity to individual traders, funds, and market makers on both centralized exchanges and decentralized finance, or DeFi, networks. More than 90% of trading volume in crypto occurs in stablecoins, according to CoinMarketCap. Without stablecoins doing their job—holding their dollar pegs through periods of extreme turmoil—the crypto market may face a loss of confidence, affecting trading activity and prices for tokens ranging from Bitcoin to Dogecoin.

“USDT de-pegging is alarming for all cryptocurrency markets,” says Clara Medalie, research director at Kaiko, a crypto data firm.

This isn’t just a concern for traders and firms in the $1.3 trillion crypto market. Regulators worry that if stablecoins take off as privately issued digital money, they could pose risks to broader markets and monetary policies. A run on a stablecoin could, in theory, lead to heavy selling in assets held as reserves for coin issuers, such as commercial short-term debt. Stablecoins could also substitute for the dollar in international commerce and cross-border payments—making it harder for governments to keep tabs on monetary policies and capital flows.

“The outstanding stock of stablecoins is growing at a very rapid rate, and we really need a consistent federal framework,” U.S. Treasury Secretary Janet Yellen told the Senate Banking Committee on Tuesday, partly in reference to TerraUSD.

Bitcoin’s high volatility and drawbacks as a medium of exchange opened a door for stablecoins to step through. Tether and USD Coin, or USDC, have soared in issuance over the past few years. They’re now worth a combined $130 billion, making them the third- and fourth-largest cryptos, behind Bitcoin and Ether.

“Once you’re in the ecosystem, stablecoins allow you to act as though you have U.S. dollars, when really you own crypto,” says Stéphane Ouellette, CEO of crypto derivatives broker FRNT Financial.

The coins serve numerous purposes: Traders use them to maintain liquidity between transactions and to buy other cryptos; they also play a key role in market-making and are widely used by hedge funds and other proprietary trading firms. Tether, in particular, is the most systemically important; it’s the basis for thousands of “pair trades” on exchanges and DeFi platforms, along with “smart contracts” for lending and borrowing cryptos.

Demand for stablecoins is so high as collateral for trading and borrowing that yields top 8% on many DeFi platforms and centralized sites—and even touched 20% for TerraUSD.

There’s also profit in stablecoins, and it’s attracting banks, payment companies, and fintechs to the space. The bank Silvergate Capital (ticker: SI) aims to revive the stablecoin project originally started by Meta Platforms’ (FB) Facebook, part of a broad push into crypto banking and brokerage products. Visa (V) is offering settlement services in USDC. The company backing USDC, Circle Internet Financial, is trying to go public via a special-purpose acquisition vehicle, or SPAC, called Concord Acquisition (CND). Recent investors in Circle include BlackRock (BLK) and Fidelity Investments.

The New Crypto Dollars

Like every other cryptocurrency, stablecoin transactions are recorded on blockchains such as Ethereum. While transaction fees may be steep, the coins are well suited for peer-to-peer transfers that bypass traditional banking systems, cutting out intermediaries. That’s one reason they’re often used for remittances or cross-border payments. Soon after Russia invaded Ukraine, Kyiv began welcoming crypto donations in three tokens, including Tether.

There are basically two kinds of stablecoins: asset-backed and algorithmic. Tether and USDC are the two largest asset-backed coins. The companies backing the coins aim to maintain their pegs by holding reserves equivalent to their outstanding issuance. Every time a dollar’s worth of the coins is minted, the companies are supposed to buy a dollar’s worth of reserves; when the coins are redeemed, those reserves may be sold.

Algorithmic coins like TerraUSD are more complex. They aim to maintain their pegs through arbitrage and incentive mechanisms involving other cryptocurrencies. When the price deviates from a dollar, traders can profit through a swap with another token. That is supposed to prevent the price of the stablecoin from deviating much above or below a dollar.

Breaking the Buck

TerraUSD relied on a complex mechanism of minting and burning another token, LUNA, to maintain its dollar peg. A cascade of selling in TerraUSD destabilized its peg, however, and crashed prices for LUNA.

Crypto entrepreneur Do Kwon, based in Korea, had tried to shore up LUNA and TerraUSD with plans to purchase up to $10 billion worth of Bitcoin as collateral through the “Luna Foundation Guard.” Before the crash, the foundation held $3.5 billion in Bitcoin.

The selling pressure arose from withdrawals on a DeFi lending protocol called Anchor that offered yields of 20% on TerraUSD deposits. Roughly $14 billion worth of TerraUSD was deposited in Anchor before the crash. Less than $200 million is left.

“I understand the last 72 hours have been extremely tough on all of you—know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this,” Kwon said on Twitter on Wednesday. “As we begin to rebuild [Terra], we will adjust its mechanism to be collateralized.”

Still, the Luna Foundation Guard may be running out of money. Its reserves are down to less than $90 million worth of cryptos, and it holds no Bitcoin in its wallet. The crash also took a toll on the Terra blockchain, which briefly shut down on Thursday “to prevent governance attacks,” according to Terra’s Twitter feed. The world’s largest crypto exchange, Binance, also suspended trading in TerraUSD and LUNA.

Some crypto participants say that while the episode has been painful, it signals that the market is actually functioning. “The market flushed out a weakly designed system, and the speculators that were behind it took a financial hit,” says Ryan Selkis, CEO of crypto data firm Messari.

Yet the crash had contagion effects. Luna’s stockpiling of Bitcoin rippled across other cryptos. Traders expecting a meltdown in TerraUSD appear to have sold Bitcoin, contributing to the token’s declines. That, in turn, weakened demand across crypto markets, which lost more than $400 billion in market cap as scores of tokens declined by more than 20%, including Bitcoin, Ether, Cardano, and Solana.

USDT hasn’t emerged without a black eye, either, underscoring how contagion from one crypto can spread to others and the broader market.

In theory, USDT shouldn’t deviate far from its peg. Tether Ltd., the company backing the token, says USDT is “backed 100%” by reserves at a one-to-one ratio, and promises that investors can always redeem its tokens for an equivalent amount of real money. If a hedge fund were to send the company one million USDT tokens, for instance, the company would send the fund $1 million, even if the price differs on secondary markets.

The token also relies on arbitrage mechanisms with market makers and trading firms to hold its peg. If the price of USDT falls by even a fraction of a penny on exchanges like Coinbase or FTX, institutional traders can buy USDT at a discount and redeem it with the company, profiting off the spread, or difference, to a buck.

Those mechanics do appear to have worked. The coin was at about 95 cents on the dollar at 3:30 a.m. in New York on Thursday, but by 9 a.m. it was above 99 cents.

Why did the price get so low? Overnight selling pressure before banks opened for business may have contributed—leaving a gap between selling on the secondary market and redemptions with Tether. Moreover, Tether redeems tokens only with “eligible contract participants” such as proprietary trading firms, and it isn’t automatic.

Some market participants say USDT’s loss of dollar peg wasn’t a deal breaker for the token. “The market is functioning, and it’s expected to see minor de-risking of other stablecoins following the Terra de-peg,” says John Kramer, director of trading at market maker GSR.

Ouellette, who deals in Tether through his derivatives firm and a separate hedge fund, describes the situation as a “little spooky,” but adds that it looked like typical “arbitrage friction,” exacerbated by hedge funds that had tried to attack USDT and profit off a decline.

Still, Tether hasn’t inspired confidence with its limited disclosures and reserve practices. Based in the British Virgin Islands, Tether issues a periodic “assurance opinion” on its reserves from a Cayman Islands auditor. The last one was from December. In it, Tether said that 84% of its reserves were in cash and equivalents, Treasuries, short-term deposits, and commercial paper. The rest consisted of $4.1 billion in “secured loans”; $3.6 billion in “corporate bonds, funds, and precious metals”; and $5 billion in “other investments,” including “digital tokens.”

The company said Thursday that it had reduced its holdings of commercial paper by 50% over the past six months, and now holds the majority of its assets in Treasuries.

Still, Tether has run into legal troubles, settling charges last year with New York state and the Commodity Futures Trading Commission over its reserves and disclosure practices.

“Unlike algorithmic stablecoins, Tether holds a strong, conservative, and liquid portfolio,” a Tether spokesperson tells Barron’s. Tether has maintained its stability “through multiple black-swan events” and never refused a redemption, the spokesperson adds. Tether added in a statement that “it is business as usual” and was processing more than $2 billion in redemption requests “without issue.”

Crypto Rules Are Coming

The volatility in stablecoins may only build momentum to bring some rules and supervision to the space.

The Biden administration, for one, wants coin issuers under federal supervision, potentially even carrying FDIC deposit insurance. Biden called on Congress to pass supervisory rules for stablecoins in a recent executive order on crypto.

Congress is also working on a variety of rules for stablecoins; a draft bill in the Senate would establish a process for banks and credit unions to issue stablecoins, among other measures. Sen. Patrick Toomey (R., Pa.) recently introduced a framework for regulating “payment stablecoins,” though it wouldn’t address algorithmic coins, which are looking far less stable than asset-backed coins.

U.S. regulators and lawmakers have expressed several concerns. One is about the liquidity and quality of issuers’ reserve assets—whether they can readily meet redemption requests in a panic scenario. Another growing concern is contagion to broader financial markets if there’s a run on a major stablecoin like USDT.

Many trading firms hold large amounts of USDT for market-making and liquidity. Those institutions need to be confident that USDT is fully backed and that they’ll be fully repaid in dollars when redeeming large amounts. “I don’t know too many institutional market participants that are concerned about the reserves in Tether,” says Selkis.

Yet if those trading firms were to lose faith in Tether, they may quickly try to sell their holdings on secondary markets. Without a government backstop like the Fed or Treasury Department, USDT would be at the mercy of the market, potentially causing shockwaves to other cryptos and trading at brokerages from Coinbase Global (COIN) to PayPal Holdings (PYPL).

“If you’re a regulator, I think what they’re worried about is not that the crypto community goes poof; it’s that the losses at Coinbase then feed to PayPal and then feed to a bank,” says Bryan Routledge, a professor of finance at Carnegie Mellon University.

Stability Is All Relative

If anyone might emerge stronger from this, it’s Circle, the company backing USDC. Based in the U.S., Circle says its reserves now consist of cash and Treasuries, fully backing every token.

CEO Jeremy Allaire said on Thursday that the company had issued $1 billion in USDC over the prior 24 hours, which he attributed to a “flight to quality” as investors sought issuers that were fully backed and transparent. “There are others that have chosen not to participate in a regulatory framework,” he said. “Naturally, there are more questions about that.”

Circle, of course, is trying to be a model citizen as it aims to go public. Its revenue model centres partly on generating income from reserve assets and lending activities. Rising interest rates should boost the yield on its reserves. The firm is awaiting regulatory approval for its SPAC merger from the Securities and Exchange Commission. Allaire said he expects the merger to be completed later this year.

Circle probably won’t be profitable for at least another year, though. It’s projecting adjusted operating profits of US$76 million in 2023, assuming that USDC in circulation reaches $190 billion, with 30,000 institutional accounts and $50 billion in lending volume. More shocks to the crypto ecosystem would probably derail those plans, and Circle’s profits.

Reprinted by permission of Barron’s. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 13, 2022.

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Interior designer Thomas Hamel on where it goes wrong in so many homes.

Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.

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An expansive waterfront property with global designer flair.

By Terry Christodoulou
Fri, Jul 1, 2022 2 min

It’s bold to refer to any property in absolutes, but here Portovenere Estate represents Clontarf’s grandest waterfront statement and its most coveted residence.

Designed in the 1960s, the two-storey, 7-bedroom, 8-bathroom and 5-car parking pile is set on an impressive 3015sqm waterfront plot. Since its inception, the home has had no expense spared in its contemporary reimagining.

Within, the home sees a global interpretation of design elevated by bespoke luxurious finishes from all over the world at every turn.

It starts from before you enter the front door — here an imported Ghizzi and Benatti fixtures from Italy. Once inside, one notices the heated marble and Savadi timber flooring that sweeps through the multiple living and entertaining zones including the family room, formal and casual dining.

Here in these living zones is a combination of designer furnishings and chandeliers from Fendi, Versace and Articolo and a made-to-order Ravens 11 ping-pong table — all of which is available as an option when purchasing the home.

Elsewhere the home’s kitchen is replete with Manhattan calacatta marble and is fitted with Gaggenau appliances and Sub-Zero refrigerators. The butler’s pantry is almost equally luxurious with Miele commercial appliances found here.

Further, the home’s multiple bathrooms are, too, fitted with Ceraba mosaic tiles and Gessi luxury tapware and shower systems.

Throughout the home’s many bedrooms, each is fitted with a timber veneer bedhead design, while the master bedroom sees a Madrona Burl veneer back panel and is complete by its own expansive ensuite (with a spa) and walk-in robe.

Both levels of the home feature outdoor space built to entertain fitted with outdoor BBQ appliances, pizza oven and Janus et Cie furnishing. Further outdoor amenities include the L.A Lakers half-court basketball court, mini soccer field and elevated podium pool.

Back inside, the home is fitted with a number of mod-cons including a poker table, in-home cinema, wine cellar, gym, salon and study with home automation and security managed by a Savant smart system.

A sandstone adorned rooftop entertaining terrace tops off the heady list of amenities that this residence holds, offering stunning views across the waterside suburb and beyond. All levels are accessed via a KONE lift.

The home is also privy to completely contained staff quarters suitable for an in-house au pair.

The property is listed with Monika Tu (+61 409 898 888) of Black Diamondz Property Concierge with a price guide of $35m -$38m; blackdiamondz.com.au

The city-fringe locale continues to boom with its prized mansions and natural amenities

By Sue Wallace
Thu, Jun 30, 2022 5 min

From stately historic mansions to expensive new builds with underground garage space for 20 cars, Medindie, the exclusive inner northern suburb of Adelaide,  has always been a well-heeled location with buyers lining up to own property bearing the blue-ribbon address.

Many keen buyers and investors are prepared to wait years for a grand Victorian mansion or a more contemporary sprawling home to come on the market in the area. Such properties tend to move fast. Stunning mansions with impressive facades, sweeping lawns, manicured gardens, tennis courts and swimming pools are located on expansive 1-acre landholdings that cannot be developed or subdivided, making them even more attractive to buyers.

The suburb is home to many historic dwellings including Willyama, built in 1883 by prospecter Charles Rasp, who discovered the rich ore deposits at Broken Hill in New South Wales, and The Briars, built in 1856 for George Hawker, which became a hospital.

Robe Terrace is the suburb’s star attraction, lined with attractive mansions including The Elysian, a modern residence which smashed the state’s residential sales record after selling in excess of $10 million last year. Pretty Victorian villas, contemporary terraces, townhouses and cottages are also sought after, but it’s those grand mansions that are the drawing card.

Medindie offers quality inventory at all levels and attracts families looking for a long-term hold and professionals after a “lock and leave” lifestyle seeking a comfortable base while in Adelaide.

It appeals to medical professionals wanting to be close to major hospitals as well as farmers based in the north of the state wanting a weekender close to the CBD, North Adelaide and Adelaide Oval, a sports and entertainment venue

Nature lovers and fitness fans enjoy the Adelaide Park Lands, known as Australia’s biggest backyard, while the River Torrens Linear Park Trail is a spectacular 30-kilometer nature walk.

It is also on the doorstep of vibrant cosmopolitan precincts including Prospect Road, Walkerville Terrace and O’Connell Street, which showcase charm and convenience.

There is direct access into the city centre, Adelaide Zoo and the Botanical Gardens, plus it’s an easy walk into Rundle Street precinct for shopping.

Adelaide real estate agent Stephanie Williams of Williams Luxury Real Estate said Medindie exudes glamour and prestige with some jaw-dropping homes.

“As well as stunning properties, there are some new properties with show off features such as underground accommodation for 15 to 20 cars and mind-blowing cellars,” she said.

The suburb is a 10-minute drive north from the city center and a 20-minute drive to Adelaide International Airport.

Boundaries

Medindie is adjacent to the Adelaide Park Lands, north of North Adelaide, and is bounded by Robe Terrace to the south, Northcote Terrace to the east, Nottage Terrace to the north and Main North Road to the northwest. It is close to Adelaide’s central business district and surrounded by parklands.

Price Range

According to Kaytlin Ezzy, CoreLogic research analyst, Medindie houses recorded a median value as of April of A$2 million with top-tier values ranging from $2.38 million to $3.47 million. Compared to the nearby Prospect-Walkerville, Medindie’s median value is 62.6% higher, equivalent to a value gap of approximately $771,863, and nearly double (91%) the median value of the greater Adelaide region ($1.05 million).

Ms. Ezzy said the trend in Medindie’s house values has been positive over the past few years, rising 30.1% over the year to April and 57.2% over the past five years. This has resulted in the median value rising from $1.27 million in April 2017 to $1.54 million in 2021 before rising $463,644 over the past year resulting in a current median value of just over $2 million.

Medindie continues to be one of South Australia’s most prestigious suburbs and is home to generations of families who have resided there for centuries as well as newly wealthy buyers, according to Ms. Williams.

“Once they buy there, they remain, as it is an extremely tightly held location, offering unsurpassable exclusivity and prestige—significant mansions and luxurious estates and properties with prominent land holdings have encouraged affluent families to invest in this area for generations,” she said.

Housing Stock

There is a very pronounced short supply of luxury properties on the market in Medindie, where there is a variety of architecture from historic Victorian styles to modern contemporary housing.

There are attractive villas, terraces, townhouses and cottages that are also sought after.

Ms. Williams said lifestyle estates and family homes always sell within their scheduled sales campaigns whether via expressions of interest, auction, or private treaty.

This six-bedroom, four-bathroom luxury home in Medindie is currently under contract.WILLIAMS LUXURY

“Covid has changed the buying patterns of the luxury market in particular with wealthy clients changing their priorities to more home-based activities, with health and wellness being a major priority,” Ms. Williams said. “The desire for swimming pools, tennis courts, beautiful established gardens, wellness retreats and home offices being more popular than ever before. Luxury homes have never been in greater demand.”

Statistics show Medindie has 394 residential homes for sale compared to the nearby suburbs of Norwood, which has 1,901 residential homes on the market, and St. Peters, which has 870 residential homes for sale.

What Makes It Unique

Buyers are attracted to Medindie for the magnificent adjacent parklands, its proximity to central Adelaide and larger-than-average block sizes.

It is also the only suburb within a short stroll of the exclusive girls-only Wilderness School.

Luxury Amenities

Medindie is surrounded by shopping locales, including the Rundle Mall and Rundle Street in the city, which offer a wide range of luxury boutiques, including the David Jones department store. It is also very close to fashion-forward Melbourne Street and cosmopolitan O’Connell Street, the North Adelaide Shopping Village, and the shops along super-trendy Prospect Road.

Grocery stores in North Adelaide include Cibo Espresso, The Flying Fig, Coffee Gods Café, Romeo’s Foodland and The North Adelaide Village.

Top restaurants include The Lion Hotel, a South Australian icon that is directly across the Parklands, and North Adelaide has the Gin Long Canteen, Ruby Red Flamingo and Marrakech. The nearby Adelaide CBD has a vast range of excellent restaurants including Soi 38 known for its Thai cuisine, Italio-American inspired Fugazzi Bar and Dining Room, Osteria Oggi, Japanese-inspired Erato Teppanyaki, Arkhe on The Parade where chef Jake Kellie from Michelin star Burnt Ends in Singapore stars, and Orso on Kensington Road that has a following for its seafood and pasta.

Private schools include the Wilderness School, St. Peters College, Prince Alfred College and St. Andrews School. Nearby public schools include the new Adelaide Botanic High School, North Adelaide Primary School, Walkerville Primary School and Prospect Primary School.

Who Lives There?

Property tycoons, farmers, bankers, medical specialists, successful IT professionals and socialites all call Medindie home.

Outlook

Ms. Williams said the market in Medindie continues to be incredibly strong, with buyer demand for this esteemed suburb at an all-time high and showing no signs of slowing down.

“We are continuing to experience a very high level of buyer inquiry for homes for sale in the area and some homes are selling off-market without reaching the paper or any online platforms,” she said.

“The suburb has always performed extremely well from a capital growth perspective and consistently features in the top 10 performing suburbs in South Australia. The average house price in Medindie over the past 12 months is A$2.68 million, which is an incredible growth of 82.4% during this time.”

Ms. Essy said while still reporting strong quarterly growth compared to the national trend (5.6%), capital appreciation across the Adelaide house market has started to ease.

“With the cash rate starting to rise and consumer confidence continuing to trending downwards, it’s likely the housing market is inching toward a downswing, with the higher end of the market typically showing more volatility both in the upwards and downwards phase of the cycle,” she said.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 18, 2022.

In the year to May, an additional 497 markets joined the million-dollar club.

By Kanebridge News
Tue, Jun 28, 2022 2 min

A record number of Australians spent $1 million or more to purchase a home in the past 12 months according to CoreLogic’s annual Million Dollar Markets report.

Over the year to March 2022, CoreLogic collected 596,733 sales nationally up 19.8% from the 497,923 recorded over the previous year. Of those sold this year, 23.8% sold for $1 million or more.

In the year to May, an additional 497 markets 450 houses and 37 unit markets) joined the million-dollar club bringing the total markets to 1367 or 30.4% of house and unit markets analysed in May to a median value of $1 million or more.

“High consumer sentiment, tight advertised supply, and low-interest rates fuelled strong home value growth throughout 2021, resulting in a new record high annual growth rate of 22.4% over the 12 months to January,” said CoreLogic Research Analyst Kaytlin Ezzy.

“Despite values having risen across all capital cities and rest of state areas annually, we have seen a divergence in growth conditions across markets over the year to date.

“Since January, dwelling values across Sydney and Melbourne have started to decline, while values have continued to rise across South Australia and Queensland. More recently, Canberra, which had previously recorded many months of consecutive growth, recorded its first falls in dwelling values in some years in May.”

Sydney suburbs made up 26.3% of the new million-dollar markets with more than half of all Sydney sales over the 123 months to May transacting at or above $1 million.

In Sydney, 448 house and 104 unit markets have a current median value of $1 million dollars or higher, an increase of 26.6% from the previous year.  The new million-dollar markets are largely concentrated in the city’s South West (30) and Outer South West (15) as well as the Central Coast region (20).

In the year to May, 51.9% of transactions in Sydney sold for $1 million or more. Bellevue Hill in Sydney’s Eastern Suburbs is the most expensive house market, both across Sydney and nationally, with a current median value of $8,024,682.

Elsewhere, in Melbourne 212 house and 11 unit markets had a median value at or above $1 million in May majority of which are located in Melbourne’s Inner (39), Inner South (42), Inner East (30) and Outer East (30).