1. Apartments outperformed houses in price growth during 2010 for the first time in recent memory. There is evidence of a distinct undersupply of well positioned apartments in Sydney that is likely to be felt in 2012/13 after scarce finance availability during the GFC caused the pipeline of new projects to be shut down. 2. When analysing price growth in residential property, use caution because the figures never strip out the boost to prices provided by renovations. Data on median house price movements nearly always reflects the gross increase alone. 3. Nationally, it is estimated that we are building at least 180 000 too few dwellings per year to cope with future demand. This must place a floor under the value of Australian residential property. 4. In 1983 the average age of Australians was 29. Today it is 37! As the population ages it will demand different things in its housing stock. Baby boomers (46 – 64 year olds) make up 25% of the population but control 55% of the wealth. We suggest that you consider the following things that will appeal to this group; minimising stairs, providing easy access to health and transport facilities plus level walking opportunities in areas with low crime levels. 5. In any year, only about 10 to 15% of properties sold in NSW are sold via an auction. When market conditions become more challenging, an auction may be a seller’s worst choice. Don’t allow agents to pressure you into an auction that you don’t want just because it is easiest for them.