Property Of The Week: 79A Blencowe Street, West Leederville, WA

Modern and chic, this statement home sees a striking combination of raw industrial style, flexible floor plans and intelligent features within one of Perth’s enviable inner-city suburbs.

Generously sized for comfort, the 3-bedroom, 2-bathroom, 2-bedroom two storey home offers streamlined living nearby to Perth’s picturesque Lake Monger.

Street appeal is immediate through the striking façade with low maintenance garden while entry to the home – via the extra-wide hallway to a massive light filled void – reveals soaring ceiling and an open plan layout.

Here, a custom kitchen is complete with Miele appliances, Smeg stovetop and oven and boundless cabinetry.

The meals area flows to the expansive downstairs living room and continues through glass doors to the outdoor alfresco area. The backyard offers space to entertain while enjoying the custom concrete pool.

A further, separate downstairs office/lounge adds to the home’s flexibility.

Upstairs an activity room provides a third indoor living area – ideal for a parents’ retreat.

Also here, a main, capacious bedroom offers a true retreat from the rest of the home and is fitted with a modern ensuite. The additional bathroom is well equipped with a hob-less shower, soaking tub and double vanity.

Planted in a convenient, sought-after locale, the residence is nearby to Subiaco, Lake Monger, Cowden Park and public transport.

The listing is with The Agency’s Paul Tonich (+61 478 180 765), $1,625,000; theagency.com.au

Future Returns: Investing In The Cannabis Industry

Several years ago Morgan Stanley did a poll of over 1,000 high-net-worth investors to see if they’d invest in legal cannabis. A full 65% said they were not likely to invest if cannabis were legalised in the next 12 months.

But Matt Bottomley, equity research analyst at Canaccord Genuity in Toronto, doesn’t hear this same level of objection to the industry today, and for good reason. “At the end of the day, I think the U.S. cannabis sector at maturity is probably US$80 billion to US$100 billion in sales,” he says.

The stigma once associated with cannabis has dropped off dramatically, and within the past month states including New York and Virginia, as well as Mexico, have either legalised it or announced plans to do so.

“You’re going to see it slowly, over the next years and decades transition from a more traditional consumer-packaged goods market,” Bottomley says. Presently, leading U.S. companies “are kind of doing everything in every market,” he says—from growing to producing, up to creating edibles and even operating retail in some markets. As legalisation expands across the world, big pharma may look to get in on it, changing valuations.

Big-name companies trading in the U.S. such as Canopy and Tilray see their stock prices appreciate when pro-legalisation stories hit the news. But because cannabis is still a Schedule I drug, meaning tightly regulated by the government, Bottomley says, “the fundamentals are not necessarily going to flow down to those types of companies.”

Meanwhile, leading American companies like Curaleaf or Trulieve trade on Canadian junior exchanges, less easily accessed by the overall U.S. retail investor market. He thinks there’s a tremendous amount of capital yet to come into this space. Many companies, he adds, are underserved by institutional investors as well.

“Over the long term if you pick the right horses in the sector, there’s still quite a lot of growth to be had.”

Here are three things Bottomley says to keep in mind when investing in the cannabis sector.

Take Stock of Your Risk Profile

Investors entering the cannabis market have to consider their risk thresholds. “All of our buys on cannabis stocks to date are all speculative buys, and we do have holds and sells as well,” Bottomley says.

The sector can be home to wild price swings where for weeks at a time stocks go in one direction, before pivoting and going the other way. If they consider a 2%-to-3% move in a day outside their risk threshold, it might not be for them. Especially because the “wild directions” stocks move in aren’t necessarily tied to company performance.

Bottomley says it also requires a lot of patience. “You really have to be comfortable about where you are on that growth curve and how far ahead of markets opening up—you want to invest your incremental dollar to get ahead of what could eventually be a very large push upward.”

Valuation is Relative

Cannabis is a sector where policy announcements about the future of legalisation can cause stocks to move in the same direction, but investors can’t let that alone sway them. Even if every cannabis stock is moving up or down, and the shift seems uniform, Bottomley advises exercising caution.

Not every cannabis company has exposure to the same markets or regions. When looking at companies in the cannabis space, he says it’s necessary to see how they’re situated in markets relative to their peer group.

He offers the example of a Canadian company trading at 30 or 40 times its forward profitability metrics, or Ebitda (short for earnings before interest, taxes, depreciation, and amortization), but that lacks access to the U.S. market or other growth drivers.

“I prefer buying a company that’s trading at a lower multiple than that, but actually has that exposure,” he says. “That’s the first thing that I look at when I’m putting a rating to any of these companies that I cover.”

Understand the Management Team

For Bottomley, management teams and their philosophies are particularly important in the cannabis industry. “We’ve seen a lot of good case studies for huge success stories and a lot of case studies where things haven’t gone so well,” he says.

Prior to Covid-19, Bottomley went on a lot of site visits, meeting management teams. What benefits investors long term, he says, are companies that aren’t too aggressive with mergers and acquisitions, don’t overpay for assets and focus on core markets where they have competencies and market share. But this also means having good infrastructure, like call centres to support patients for medical cannabis companies, or adequate supply for and quantity of retail locations to gain market share.

“Management teams can be fairly aggressive with respect to their messaging,” Bottomley says, “and that’s fine if you can back it up, but I think that’s something investors have to be particularly careful of when they’re choosing which operators they want to back.”

Google Earnings Smash Sales Records

Google’s parent company shattered sales records for the first quarter, fueled by a surge in digital ad spending that has strengthened the tech heavyweight even as regulators try to curtail its power.

The robust earnings reflect advertiser anticipation that the reopening of the economy will coincide with a gusher of business activity, as well as Google’s prominent place at the center of digital commerce.

The pandemic provided a jolt to Alphabet Inc.’s advertising business as more people shifted their lives online during a stay-at-home year, turning to Google search to find takeout meals and grocery-delivery options while clicking through videos on the company’s YouTube platform. Brands responded by shifting ad spending from print, television and in-store promotions to find customers across the Google universe.

Alphabet reported first-quarter sales of $55.31 billion, an increase of 34% from a year earlier when advertising sales plunged as the coronavirus crippled the global economy. Profit more than doubled, with per-share earnings far exceeding analysts’ expectations.

The company posted $31.88 billion in sales from its signature products, including search, Gmail and maps, a 30% increase that reflected the way brands are spending to reach people online. YouTube pulled in $6 billion, increasing 49% from a year earlier.

Total profit reached almost $18 billion, soaring 162% from the previous year.

Google said it would repurchase an additional $50 billion in shares, fulfilling the wishes of investors who had been monitoring the company’s swelling cash reserves.

Alphabet shares gained more than 4% in after-hours trading.

“Google has the wind at its back now,” said Sean Stannard-Stockton, chief investment officer at Ensemble Capital, a Burlingame, Calif., firm with $1.5 billion in assets under management that counts Alphabet among its largest holdings. “It didn’t just glide through Covid. It’s really well positioned and is even stronger,” he said.

As the world’s digital ad leader, Google has been positioned to benefit from a broad wave of online ad growth sweeping across the economy. Smaller rival Snap Inc. last week reported a 66% increase in revenue on strong user growth and increased advertising, while Verizon Communications Inc. posted a 26% increase in ad sales.

The digital-spending surge has helped Google continue to deliver sales growth even as its share of the American search-advertising market slips. The company’s market share of search last year fell to 57% from 61% a year earlier, while rival Amazon.com Inc. increased its share to 19% from 13% over the same period, according to eMarketer, a research firm.

Regulators remain the largest obstacle to Google’s business success. Last year, the Justice Department and a separate coalition of states brought antitrust lawsuits alleging the company has struck secretive agreements to favor its search-engine and advertising businesses and thwart competitors.

The cases could force Google to spin off pieces of its business or cede its perch in search to rivals.

In addition, antitrust lawsuits have been filed by Epic Games Inc. over Google’s Play app store and the publisher Daily Mail over its digital advertising auctions.

Google has said it operates in a competitive market and people use its search service because they choose to, not because they are forced to. It says its Play store operates under policies that are fair to developers and its ad-tech business competes in a crowded marketplace with several alternatives for publishers.

The company continues to spend heavily to ensure Google remains the default search engine on iPhones and other devices. The toll fees, known as traffic-acquisition costs, rose 30% to $9.71 billion during the first quarter from a year earlier.

Google also has been spending to diversify beyond its core ad business with a cloud-computing service that challenges Amazon and Microsoft Corp. The company has been trumpeting a bevy of billion-dollar deals in recent months that lifted sales at the division 46% to $4.05 billion in the quarter.

The company has wooed new clients by packaging its offerings with benefits across its dominant advertising and search businesses. On Monday, it announced an eight-year, $1 billion-plus contract with Spanish-language broadcaster Univision Communications Inc. that it won in part by including YouTube and search elements.

The practice, known as bundling, has drawn criticism from lawmakers who say it undermines competition, but Thomas Kurian, Google’s Cloud chief executive, has said the company is simply responding to consumer needs.

On Monday, Apple Inc. released a software update that will give users the option to prevent apps from tracking their use on iPhones and other devices. The change is expected to pressure Google to implement similar privacy measures on its Android operating system, the world’s largest. Such a maneuver would upend Facebook Inc.’s business, which uses the data collected across mobile devices to target ads to users.

Because of its digital-advertising dominance, Google will have to walk a fine line in introducing privacy restrictions of its own on its mobile operating system. It has drawn criticism from privacy advocates and ad-tech competitors alike over a plan to stop selling ads on individuals’ browsing across multiple websites. Privacy advocates say its plan to group individuals in advertising cohorts doesn’t go far enough, while rivals consider it anticompetitive.

The speed bumps from privacy aren’t expected to slow Alphabet’s moneymaking machine. The company’s search engine has a lock on 92% of world-wide traffic, its Maps offerings have an 89% share of navigation and YouTube accounts for 73% of the online video world.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: April 27, 2021.

Rents Increasing At Fastest Rate In 14 Years

It’s not only homebuyers feeling the pocket pinch with rental rates surging by 3.2% nationally.

According to Corelogic’s Rental Review for the March 2021 quarter, the drivers of growth are diverse with the regions, Darwin and Perth collectively driving much of the increase.

Across combined regional markets, rents rose 4.1% in the first quarter of 2021 according to the report. Elsewhere rents in the combined capitals increased 2.9% by comparison.

Regional units recorded the highest quarterly rental growth of 4.8%, compared to the 2.0% rise in capital city units.

Further, capital city house rents were up 3.3% while regional houses rose by 4.0% during the period.

Darwin has shown the strongest growth in rental rates over the quarter, up 8.2% and 7.0% respectively.

Across the spectrum, Melbourne recorded the weakest growth in rents over the three months to March with house rents up 1.6%, while unit rents were unchanged over the quarter.

CoreLogic’s Research Director Tim Lawless, says “While housing rents are rising at the fastest pace since 2007, the headline reading hides the sheer diversity of rental conditions around the country. At one end of the spectrum we have Perth and Darwin where annual rental growth is well into double digits and accelerating. At the other end is Melbourne and Sydney where rents are down over the year.

“Although rents are generally rising, housing values have been rising at a faster rate which has seen rental yields compress across most of the capital cities. The exceptions are Perth and Darwin where rents have risen at a faster pace than housing values, driving a rise in yields. The opposite is true in Sydney and Melbourne where rental yields are plumbing new record lows,” added Mr Lawless.

Tesla Posts Record Earnings at Start of Turbulent Year

Tesla

Tesla Inc. posted a record quarterly profit despite supply disruptions, fueled by rising deliveries and increasingly broad-based demand for electric vehicles.

The Silicon Valley car maker has enjoyed booming sales, driven by both its popular Model Y compact sport-utility vehicle and sustained demand in China. The company also has benefited from the wider embrace of plug-in cars as governments across the world push to phase out gasoline-powered vehicles, in some cases through subsidies.

“We’ve seen a real shift in customer perception of electric vehicles, and our demand is the best we’ve ever seen,” Chief Executive Elon Musk said Monday on an investor call.

Tesla on Monday said revenue in the first quarter jumped around 74% from the same period a year earlier to US$10.4 billion. The company generated a US$438 million net profit, up from $16 million a year ago. Wall Street on average expected the company to report sales of about $10.5 billion and net income of around $509 million for the January through March period, according to analysts surveyed by FactSet.

Tesla said it delivered 184,877 vehicles in the first three months of the year, more than double the number during the same period a year earlier. The company, which delivered nearly half a million vehicles in 2020, reaffirmed it expects that figure to rise more than 50% this year.

The company’s strong financial start to the year comes as it faces challenges on other fronts. Federal auto-safety officials are investigating the fatal fiery crash of a Model S sedan earlier this month in Texas. Neither of the victims was found in the driver’s seat, local officials have said. The National Highway Traffic Safety Administration’s probe of the wreck is one of more than two dozen investigations of crashes involving Tesla vehicles.

The crash left questions about whether or how the vehicle could have been operating without anyone in the driver’s seat.

A Tesla executive said the company was working with local and federal authorities to investigate what happened.

The car’s steering wheel, he said on the call, was found to be deformed, “leading to the likelihood that someone was in the driver’s seat at the time of the crash.” All the seat belts, post crash, were found to be unbuckled, he said. Tesla wasn’t able to recover data from the car’s memory device.

Tesla conducted a study along with authorities in which the company tried to replicate the likely crash scenario, the executive said. The company said that a driver assistance feature that helps with steering didn’t engage in the test, while another feature, adaptive cruise control, only activated when a driver was buckled in and traveling at above 5 miles per hour.

Mark Herman, the constable whose precinct the crash happened in, declined to comment on Tesla’s statement that someone likely was in the driver’s seat at the time of the crash, saying that the incident remained under investigation.

Tesla has also faced parts shortages that led the company to briefly shut down its Fremont, Calif., factory in February. Rivals such as General Motors Co., Ford Motor Co. and Volkswagen AG have had to idle some production capacity because of a global semiconductor shortage.

“We were able to navigate through global chip-supply shortage issues in part by pivoting extremely quickly to new microcontrollers,” the company said in a note to shareholders, adding that it also was devising new software for chips made by new suppliers.

Mr. Musk said the past quarter “had some of the most difficult supply chain challenges that we’ve ever experienced.” Those go beyond computer chips, he said. China production was held back because key engineers couldn’t travel there because of Covid-19 related quarantine restrictions, he said. Some of the effects are likely to last in the current and following quarter, he said.

Tesla said it had successfully lowered the cost of making cars, helping offset a decline in the average price of its vehicles.

The company’s bottom line also benefited from several factors not directly linked to car sales. Its financial results have been aided by the sale of regulatory credits to rival auto makers that need them to comply with emissions-related rules. Such credits brought in $518 million in the most recent quarter, up from $354 million during the year-earlier period. Tesla has previously said it doesn’t expect such sales to be a material part of its business.

The company also said it saw a positive earnings effect from the sale of bitcoin in the period. Tesla bought $1.5 billion worth of the cryptocurrency in the first quarter and sold 10% of that, Chief Financial Officer Zach Kirkhorn said. The company is now accepting bitcoin as payment for products sold in the U.S.

Mr. Kirkhorn said the company opted to invest in bitcoin when it was looking for a place to store cash it didn’t immediately need as a way to preserve liquidity while also earning a return. “It is our intent to hold what we have long-term and continue to accumulate bitcoin from transactions from our customers as they purchase vehicles,” he said on the investor call.

Tesla’s success in popularizing electric vehicles transformed the company into the world’s most valuable car maker. Its success also spurred legacy car makers and startups alike to develop competing models, some of which are showing early signs of eroding Tesla’s market share.

In the U.S., for example, Tesla vehicles accounted for roughly 70% of the all-electric vehicles sold in the first quarter, according to the research firm Cox Automotive Inc. That is down from about 82% during the same period a year earlier.

Tesla’s stock soared more than eightfold last year. It is up roughly 4.5% in 2021 after advancing 1.2% on Monday ahead of results. The stock retreated more than 2% in after-hours trading.

Global demand for electric vehicles continues to increase, though, and Tesla is adding production capacity to keep pace. The company said it remains on track to begin producing vehicles this year at its new car plants near Austin, Texas, and outside Berlin, its first in Europe. Tesla has expanded capacity at its first overseas plant in Shanghai and began delivering China-made Model Y vehicles this year after kicking off with the Model 3 sedan in 2019.

China has been a growth engine for Tesla, helping to lift the company to its first full-year profit last year. But the company has hit a rough patch in the market recently. Chinese authorities summoned Tesla in February over consumer quality complaints. The government also restricted the use of Tesla vehicles by military personnel as well as employees at key state-owned companies over data-security concerns.

Earlier this month, a single protester with a disputed claim about the safety of Tesla’s vehicles drew widespread attention across the Chinese internet, which is closely controlled by the government.

Tesla has apologized for its treatment of some customers in China and said it would do better. Mr. Musk said last month that Tesla would be shut down if it used its vehicles to spy, which he said was “a very strong incentive for us to be very confidential.”

Tesla also reaffirmed that it expects to deliver its first semitrailer trucks to customers in 2021, two years after initially planned. Mr. Musk said in January that the company didn’t have enough battery cells to go into production with the vehicle.

 

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: April 26, 2021

Outdoor Lighting Ideas To Turn Your Yard Into A Luxury Resort

Last summer, those of us charmed enough to have a backyard to call our own tended our gardens and zhushed our patios with new furniture, maybe even springing for an outdoor rug. When it came to exterior lighting, however, most people aimed no higher than a swag of Edison-bulb string lights and a feebly flickering hurricane candle.

“Outdoor spaces sometimes get overlooked after the sun goes down,” said Memphis interior designer Sean Anderson, alluding to such lame attempts at illumination. This spring, however, as we prepare to host en plein air again, why not tackle outdoor lighting—especially if you’ve upgraded everything else? Beyond a wish to enjoy their private plot at night, homeowners light landscapes “so that when you’re inside the house you can see the garden and not just a black hole,” said Ive Haugeland, founding principal of Shades of Green, a landscape architecture firm in Sausalito, Calif.

The best way to banish murky shadows is to borrow the sort of layered lighting scheme found in professionally designed living rooms. In simplest terms, you want three tiers. Start with the highest level, via lofty lanterns or up-lighting that draws eyes skyward or even chandeliers (yes, weatherproof versions exist; see “Worth Wiring”). Next fill in the midrange with sconces, illuminated plants or sculptures and tabletop portable lanterns. And don’t forget low-level illumination—that is path, understep and underseat lighting.

The cumulative effect should be subtle, not stark, “that feeling of fireflies on a summer night, that sense of discovery,” as San Francisco designer Ken Fulk put it. “The default has previously been an overly lit space.”

At a residence in San Francisco, Ms. Haugeland recently hung two outdoor-rated glass chandeliers beneath a minimalist pergola. To provide eye-level glow, she uplit the knotty trunks of century-old olive trees, then set low LED lighting into step risers for safer sauntering after dark. The chandeliers are “a little over the top, so they’re very fun and playful and what you don’t expect to see outside,” said Ms. Haugeland.

Solar-powered outdoor fixtures are still too dim to rely on, said the landscape architects we polled. A reasonably sized fixture can’t house enough photovoltaic cells to produce anything but a sickly glow. Meanwhile, the latest low-voltage LEDs not only last a long time, they can be easily and cheaply wired. “[In the] 1980s and into the ’90s, landscape lighting was run using high-voltage electricity,” said Washington, D.C., landscape architect Joseph Richardson, who recently uplit the river birch trees surrounding his own Arlington, Va., home. “It meant fixtures were very large and very bulky, and the cost was extreme. You had to run buried conduit plastic pipes through the yard, and if someone were to hit that with a shovel they could be electrocuted.”

Today’s LED fixtures suck as little as 3 watts as opposed to the 35 watts that incandescents fed on, Mr. Richardson said. That means “you can use low-voltage wiring—a small wire that lays on top of soil under mulch,” said Megumi Aihara, founding partner and principal of San Francisco’s Spiegel Aihara Workshop. “You can install [that] after a garden is built, and it would not hurt you if you touched those wires.” (Note: The designers we interviewed recommended hiring a professional electrician or landscape firm to at least install your main transformer, which converts your home’s 120-volt juice to 12-volt power.)

To light her North Carolina yard (pictured on D1) designer Gray Walker turned to low-voltage specialists Outdoor Lighting Perspectives (OLP) of Charlotte. A brick walkway behind her house leads to a small eight-sided gazebo. “You’ve got your path lights to illuminate the ground and then I like to lift the eye up,” said Ms. Walker. Uplit oak trees and Japanese magnolias create a “wonderland” of branches. The path passes a trio of gurgling columnar fountains that are highlighted to provide midlevel illumination, while other lights shine on shrubs, casting shadows on the brick exterior of her Georgian-style home. “This adds a bit of texture and dimension to the wall,” said Mari Zaragoza, production coordinator at OLP. “It was important to not keep everything in the same level, to create as much depth and texture as possible.”

Ms. Walker’s gazebo quietly commands attention at night. Two upturned accent lights shine thin lines of light through its slatted roof for a “glowing effect,” said Ms. Zaragoza. “We really thought this created a natural focal point without it being too overdone.”

Low-voltage lighting helped Ms. Aihara execute a multilevel scheme in a Los Angeles yard (pictured, above). Perforated metal tubes diffuse light throughout the canopy of deciduous trees, and cast modest pools on the deck and the greenery that surrounds it. Another one of Ms. Aihara’s tricks: Dek Dots from Dekor lighting. “They’re small, half-inch LED dots,” she said. “During the day, they disappear, and at night they twinkle on the ground.”

Don’t wish to deal with running any kind of electrical wiring? You can easily find options that plug into an outdoor socket but are far more aesthetically ambitious than string lights. Examples include articulating floor lamps and hanging lamps like Lightology’s Garota Plug-In Pendant (see “No-Pro Lamps”).

Even better: lights that you can cart around as freely as a flashlight. “We’re noticing an increased interest in rechargeable, free-standing lights that run on LED bulbs and batteries,” said Greenwich, Conn., landscape architect Janice Parker. Check out the cartoonish mushroom lamps from Hay at the MoMA Design Store as well as braided-rope lanterns by Talenti. Both double as tabletop and path lighting. Ms. Parker hangs portable LED lanterns from tree branches or decorative hangers. “You can easily move them around as needed, and guests can use them if they want to go for a stroll.”

Other landscape architects are eschewing visible fixtures altogether, hiding strips of LEDs under stair treads, for example. In the courtyard of a Berkeley, Calif., home, design firm Delaney + Chin tucked wet-location LED tape under a white stone bench as well as in the ground to shine a wash of light along the bottom of a corten steel wall. The goal, as Ms. Parker put it, is to achieve lighting “that you do not perceive as coming from fixtures but naturally from the moon.” Roderick Wyllie of Surfacedesign, a landscape architecture firm in San Francisco, recommends placing fixtures at least a foot away from the plant or architectural element they’re meant to highlight to avoid harsh, unflattering “hot spots.”

Such toned-down design lets us see and appreciate the nighttime sky, notes Mr. Wyllie. Many municipalities are embracing dark-skies policies intended to curb light pollution and lessen the impact on birds, the bugs they eat and other fauna, said Matthew Bromley, a landscape designer in Bedford, N.Y. “We can be impactful without being garish or feeling like we’re in Las Vegas.”

You may not need as many path lights as you think, for example. Mr. Richardson said one of the habitual mistakes homeowners make when they tackle lighting themselves is spacing path lights too closely. “It almost gives you a runway effect,” he said, adding that you can ensure navigability without committing overkill. “I try not to space [them] any closer than maybe 12 feet apart.”

Another interior technology that has moved outdoors: dimming. “There are times when you may want outdoor lights brighter or dimmer for whatever reason,” said Mr. Fulk. Perhaps you wish to bring the lights up slowly as the sun retires. He reports a growing demand for this flexibility. Similarly, multiple designers said their clients love that many LEDs can be tweaked—even transformed into a rainbow of hues—from their smartphones using programs from Lutron Homeworks and Savant.

As with LEDs inside your home, colour temperature, or Kelvin ratings, matter. A bulb on the high end of the Kelvin range, near 6500, will emit a cooler, bluer light. Lower kelvins translate to warmer, softer whites. For outdoor use, Dan Spiegel, who’s also a founding partner and principal at Spiegel Aihara Workshop, advises selecting lightbulbs with lower colour temperatures, around 2700 Kelvins.

Whether you hire professionals or do it yourself, Mr. Richardson recommends starting slowly. You can add extra light sources later. “Once you take the fixture out of the packaging and stick it in the ground it gets harder to return.” For her part, every time Ms. Walker pulls into her driveway at night, she appreciates the effort she’s put into her lighting, she said, from the gazebo to the glow-guided path. “It just makes me feel like I live in a little jewel box.”

NO-PRO LAMPS

Six rechargeable or plug-in lights you can layer into a three-tiered scheme yourself

Low

From left: Hay PC Portable Lamp, approx. $122, store.moma.org; Talenti Tribal Lamp, approx. $1544, Cantoni, 972-934-9191

Medium

From left: Inda Copenhagen Table Lamp, approx. $1100, Burke Decor 888-338-8111; Pedrali Giravolta Floor Lamp, approx. $510, shopdecor.com

High

From left: Simple String Lights, approx. $577, westelm.com; Garota Plug-In Pendant, approx. $1300, lightology.com

 

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: April 23, 2021.

Decline Sydney And Melbourne Clearance Rates

Auction clearance rates in the dominant markets of Sydney and Melbourne dipped at the weekend.

The number of listings also fell significantly in most capitals compared to the previous weekend, with the exception of Adelaide where listings surged to the highest number (111) of the year.

The Sydney home auction market produced another relatively strong result of 85.1% sell through. However, the clearance rate was down on the previous weekend (86.2%), and well below March’s record results.

Sydney auction numbers were also lower at the weekend – possibly impacted by the ANZAC Day holiday – with 672 homes listed compared to 785 the previous weekend. Saturday saw the lowest offering since early March, with the exception of Easter.

Sydney recorded a median price of $1,449,000 for houses sold at auction at the weekend, 7.1% lower than the $1,560,000 reported the previous weekend.

Elsewhere, Melbourne’s auction clearance rate fell for the third consecutive weekend to 79.0%, down on last weekend’s 79.7% and the lowest recorded for the year.

A mere 835 homes were reported listed for auction on Saturday in Melbourne, well below the 1062 auctioned the previous weekend, and the lowest non-holiday offering since February.

Melbourne recorded a median price of $975,000 for houses sold at auction on the weekend, 2.5% lower than the $999,900 recorded a week earlier.

Green Is Good: Prices Higher in Sydney’s Leafy Suburbs

Sometimes the grass is, in fact, greener.

The value of parks, trees and backyards is bolstering property prices in a number of “green suburbs” in Sydney according to data from Corelogic.

It comes as the post-COVID-19 world shifts towards a renewed focus on healthy, urban living with many cities nationally increasing parkland, cycle lanes and more.

Greenspace refers to public or private land that is completely or partly covered with grass, trees, shrubs or other vegetation. In Sydney, that looks like parks, community gardens, cemeteries, school yards, playground and vacant lots.

New findings from Corelogic suggest that there has been a direct increase in housing value premiums in suburbs across Sydney where the average of green or open space is higher.

Highest proportion of public greenspace

Average house sale price 2019 Average unit sale price 2019 Average % public greenspace
Heathcote – Waterfall $912,937 $622,500 80.50%
Berowra – Brooklyn – Cowan $1,007,297 $738,500 78.10%
Terrey Hills – Duffys Forest $2,185,206 $585,000 75.00%
Asquith – mount Colah $1,065,767 $660,995 66.30%
Menai – Lucas Heights – Woronora $998,368 $738,072 64.10%
Bayview – Elanora Heights $1,871,173 $1,718,333 57.80%
Woronora Heights $1,095,702 $976,250 57.40%
Turramurra $1,924,818 $993,229 57.00%
Helensburgh $941,500 $726,368 56.20%
Manly Vale – Allamie Heights $1,795,322 $722,182 52.70%

^Source: Corelogic

“Our case study has revealed a positive correlation between housing values and greenspace,” Corelogic head of research Tim Lawless said.

“As Australia’s climate change strategies and domestic policy evolve over the years ahead, the market’s readiness to value ‘greenness’ as a tangible property feature may strengthen.”

“In areas where greenspace was scarce, such as the Eastern Suburbs and Inner City, private greenspace had a far stronger relationship with price,” Lawless added.

However, when compared to European cities, the correlation between greenspace and housing prices was low due to Sydney’s larger volume of greenspace.

For example, Sydney currently has 46% public greenspace while Amsterdam has 13% and London 33%.

The Newest Status Symbol For Homeowners: Trophy Trees

For decades, Walter Acree operated a modest landscaping business in Deerfield Beach, Fla. A self-described rebel, he mowed lawns in his bare feet, his then-long hair falling around his shoulders. Then, a few years ago, he stumbled into a lucrative niche business: helping South Florida’s superrich find trophy trees—the latest in status symbols for the most well-off Americans.

“I’m kind of unique,” said Mr. Acree, now the owner of Green Integrity’s, a tree relocation and landscaping firm. “Not a lot of people do what I do.”

Mr. Acree, 61, a so-called tree broker, regularly drives his wealthy clients around South Florida in search of the perfect tree for their garden, whether it is a giant kapok, an enormous canopied oak, a baobab, a ficus or a banyan. Together, they scope out trees in other people’s gardens and outside local businesses, then approach the owners with an unsolicited offer.

Then, it is Mr. Acree’s job to find a way to transport the tree to his client’s property. Sometimes, that involves using a long flatbed truck, a barge or even a 300-ton crane. Mr. Acree has also developed his own technique, which he calls “arbor division,” for moving the largest trees. It involves slicing the tree vertically into several parts using 6-foot-long saws with specially hardened blades, transporting the individual pieces to the site, then reassembling the tree with steel aircraft cable, ratchet straps and bolts.

Walter Acree, owner of Green Integrity’s, a company based in South Florida that uses an arbor dividing system to relocate large specimen trees. PHOTO: ZAK BENNETT FOR THE WALL STREET JOURNAL

Mr. Acree’s business has been flourishing for more than five years, but it went into overdrive this past year as hoards of ultrahigh-net worth home buyers piled into the South Florida market amid the Covid crisis. While trophy trees are a nationwide trend, Miami tree-brokers have particularly benefited because of the area’s diversity of available trees. The city’s system of canals also makes it easier to transport trees by boat without having to cut back tree canopies.

Mr. Acree said that in recent years he has worked to install massive trees on properties owned by celebrities such as the singer Enrique Iglesias. He recently gave an estimate of about $250,000 to relocate a tree for a wealthy homeowner on Miami’s Indian Creek Island.

Landscape architects dealing with big names said they are seeing nondisclosure agreements hit their desks like never before as the superrich seek privacy in their horticultural endeavors. Tim Johnson, a partner at Fernando Wong Outdoor Living Design in Miami, said it is as a sign they are hitting the big time.

“It’s the busiest the business has ever been and we’re doing things at a scale that is just remarkable,” he said, noting that his firm recently had several clients purchase the houses next to theirs just so they can tear them down and build a bigger garden.

A few years ago, Mr. Johnson had a client who beat out basketball great Michael Jordan in a bidding war over a 45-foot canopied oak tree, which Mr. Johnson deemed the ideal tree. The deal for the oak closed in the low six figures.

“You want a tree that’s balanced,” Mr. Johnson said. “With this tree, it was perfectly proportioned and had a lot of character. The way the branches went off in both directions. This was the perfect oak tree.”

The absurdity of the situation isn’t lost on Mr. Acree. He said his wealthiest clients are finance and business types whose wealth dwarfs that of movie and music stars. “If they want it, it will happen,” he said with a laugh.

Once, he got into a debate with Mr. Iglesias over which way a tree he was installing on his property should face; Mr. Acree thought the curve of the tree should bend away from the house, as it would in the natural world, but Mr. Iglesias wanted it bent toward the house. Against his own judgment, he did it Mr. Iglesias’s way. A short while later, the singer called to have him rotate it back, he said. A representative for Mr. Iglesias didn’t respond to requests for comment.

The appeal of transporting a trophy tree is easy to explain, said Raymond Jungles, a Miami-based landscape architect. For one, a big tree helps mitigate the scale of a very big house. A unique or particularly old tree, like a piece of art, is also a great conversation piece. Lastly, it means high-net-worth buyers don’t have to wait for a newly planted tree to grow on their site.

“Older people especially don’t really want to wait a long time to see a tree. They want it right away, they don’t want to wait 20 years,” he said. “And now the younger people with money, they don’t want to wait either, usually.”

The most significant trees can range in price from tens of thousands to hundreds of thousands of dollars, depending on their look and how difficult they are to access.

“If it’s in a backyard and there are power lines all over the place and I’ve got to get supercranes in there to get it, then I can’t pay as much for it,” said Mr. Acree. “If the tree is on the water where I can pull up to it with a barge and take it to another house that’s on the water, then that tree is worth a whole lot more.”

Mr. Acree said trees like the one he installed on Indian Creek Island, a large banyan, are particularly challenging as his workers aren’t permitted to bring large equipment over the bridge onto the island. All the equipment has to be brought in by barge.

Some tree owners are more willing than others to sell to wealthy buyers. Mr. Acree said some are skeptical of the offer and think he’s trying to rip them off. Others have a sentimental attachment to the tree.

“Sometimes they wouldn’t sell it for a million dollars,” he said. “Sometimes their grandmother planted it or they planted it for their dad or something. Those you never get.”

The search for the perfect tree occasionally leads homeowners farther afield.

Los Angeles real-estate developer Michael Chen said it took 18 months of obsessive searching and planning before he finally installed the perfect centerpiece for a $65 million spec house he was building in Beverly Hills: he calls it the “tree of life.”

The large 150-year-old olive tree, imported from Tuscany, stands at the center of the house, encased in a glass courtyard, surrounded by a shallow reflecting pool and positioned against a book-matched marble backdrop. It took 15 workmen and a 110-ton crane to hoist the tree about 60 feet into the air and lower it into the house safely. He said a street in the tony Trousdale Estates area of Beverly Hills had to be closed while the move took place.

“I was thinking, ‘If that thing drops it would just blow up the building,’ ” Mr. Chen recalled. “Everyone’s nervous. Of course, there’s a lot of risk.”

After working with a pair of tree curators in California, and unsatisfied with the selection of trees available locally, a grower in Tuscany helped him identify the perfect one, a 15-foot tree with foliage in the shape of a heart with two wings that open up like an angel.

“I said, ‘This is it. Nothing else,’ ” Mr. Chen said. “It’s like the ‘Lord of the Rings’ tree.”

He had it shipped to northern California in a large shipping container and then transported via flatbed truck to a parking lot he leased near the site. Hired police escorts accompanied it to the home site. A crew dug a 6-foot deep hole beneath the home’s courtyard to accommodate the tree’s huge roots. Some of Mr. Chen’s workers questioned whether it would survive the journey. “All of that for one tree,” he said with a laugh.

In all, he estimated that while the tree itself cost only about $17,000, the cost of getting it where it needed to be set him back an additional $40,000.

New York-based landscape designer Deborah Nevins said she has also seen homeowners go to great expense and effort for the tree of their dreams. Once, a client helicoptered in a large magnolia for their garden because a tractor trailer couldn’t make it around a turn in the winding roads of Beverly Hills where the house was located.

She said the tree, which was stored in a wooden box, was attached to the aircraft using straps and chains and then lowered onto the site. “Thankfully, no one dropped it in the wrong place,” she said.

These are sometimes techniques pioneered by horticulturists at major corporations. Walt Disney Co. used to relocate some of the more unusual trees on its park properties by drilling through the center of the trunk and inserting steel rods. The rods were then used as handles for hoisting the tree by crane to its desired location. The company once spent close to $1 million to relocate a 55-foot, 85-ton tree at Walt Disney World.

To move a giant tree—one that is more than about 18-feet wide—homeowners are typically required to get a permit to carry a superload, which often means paying for a local or state police escort depending on local regulations and where the tree needs to go, Mr. Acree said.

Often, they are moved in the middle of the night when the roads are quiet. Disasters can happen. Once, Mr. Acree said a colleague caused a huge traffic jam on a major highway outside Fort Lauderdale and took out a power line because he hadn’t pared back a tree’s foliage enough before hitting the road. He was dragging utility poles behind him.

“I said to him, ‘Why didn’t you stop?’” he said. “He said he thought [the poles] would come off.”

Mr. Jungles said tree-brokering can be a slippery business and some tree-brokers don’t take enough care to ensure the safe delivery of trees and properly prepare their roots for transplant. Some also try to get away with transporting trees without the proper permits. Reputable tree brokers typically offer insurance for trees, ensuring their survival for at least a year after the move, he said.

But there are still no guarantees, especially if workers don’t adequately prepare the roots of the tree for replanting. Mr. Jungles said he once advised a client to pay $25,000 for a lignum vitae tree for his property. A week after he moved it to the site, it died.

“It broke my heart,” he said, noting that it also hurt his own pocketbook as he felt bad and refunded the client.

Mr. Johnson said criticism that these processes put trees at risk is sometimes misplaced, since they are often rescuing trees that would otherwise be cut down. His firm recently brought in a 90-foot tall kapok for the Four Seasons Hotel at The Surf Club in Miami that had previously been owned by a local sugar company in Central Florida. Some local residents complained that it was wrong to cut down a perfectly healthy tree so that it could be replanted at the luxury project.

“When we planted it, people accused us of tree abuse but actually it was going to be cut down,” he said. “The business owner was worried it was going to fall over and crush them in a hurricane. Its canopy was a magnificent hurricane catcher.”

That is not such a concern for the Surf Club, because they can afford to closely maintain the canopy, he said.

Mr. Acree said he has a strong record of keeping trees alive. He said he came up with his technique of cutting up the tree before transport years ago after some particularly demanding clients insisted that the trees on their site be delivered with their canopies intact rather than stripped back to the trunk. They didn’t want to wait for them to sprout back later.

“I called everyone I could and they said ‘There’s no way you’re going to do this,’ ” he recalled. “They just didn’t think trees would live because no one had really done that before.”

He’s since transported hundreds of trees using the technique. He said cutting the trees vertically, leaving each piece with a portion of the root and foliage, transforms them into separate organisms. While the bark around them grows back as one, inside they are effectively separate living trees.

Andre Radandt, the former chief executive of Bolthouse Farms, recently tapped Mr. Acree to transport a ficus tree for the garden of a megamansion he was developing in Miami and it was cut into thirds. Over the course of about six months, Mr. Radandt said the tree repaired itself.

The tree became a defining feature of the property, which has since sold for US$29 million.

“It certainly paid for itself, so to speak,” Mr. Radandt said of the ficus.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: April 22, 2021.

Prestige Property: 20 Linlithgow Road, Toorak, VIC

 Toorak, Melbourne’s blue-chip locale is filled with a heady array of historic homes and modern mansions, yet few compare to the 950sqm contemporary masterpiece listed here.

Sprawled across a 1270sqm block, replete with low maintenance garden, the Stephen Jolson designed residence boasts 4-bedrooms, 3-bathrooms, 6-car parking across three levels in one of Toorak’s most prestigious positions.

The striking sculptural façade of cantilevered solid concrete ‘blades’ and tall window walls are the most salient features of the home.

Inside, it conceals lavish interiors highlighted by Australian Bluestone walkways, American Oak floors, and a hydronic underfloor heating system.

Arriving via the circular drive and grand bronze porte cochere entry one emerges into voluminous gallery-like spaces that provide sophisticated living, dining, and entertaining.

A central light atrium extends throughout all three floors while northern light pours in through walls of glazing that unfold to the entertaining terrace.

Elsewhere, the Statuario marble kitchen with separate scullery and bar is fitted with Miele appliances, three Vintec wine fridges and a Sub-Zero fridge and freezer.

The casual open living and dining areas include a hidden home theatre, descender TV and gas fire.

The first floor finds a library with yet another kitchenette, study or fifth bedroom while a central bathroom accompanies four retreat-style bedrooms including the palatial master suite with twin deluxe walk-in robes. Also here, a study, stunning open ensuite replete with marble benchtops,  a freestanding stone bath and private terrace all enjoying panoramic valley views.

Downstairs sees a lounge with granite bar, concealed kitchenette, gym, steam room and bathroom complementing the jaw-dropping 20-metre indoor lap pool.

Throughout the home is fitting with smart technology including full CBUS home automation, enjoys access via private lift, boasts an oversized three-car garage (with parking for a further three vehicles) while enjoying Toorak’s conveniences moments from Toorak Village, High Street Armadale and Melbourne’s most esteemed private schools.

The listing is with RT Edgar’s Antoinette Nido (+61 419 654 856) with a price guide of $15.5m-$17m; rtedgar.com