<html><body>
According to CoreLogic RP Data research analyst Cameron Kusher, currently private sector housing credit stands at $1.536 trillion; a 7.3% year-on-year increase to January 2016. Mr Kusher said.
 “Housing credit has done nothing but expand over the period shown (refer adjacent graphs).” 
Mr Kusher makes note of the fact that historically, credit is expanding at a slow annualised pace. “Of course this is a function of the fact that with low interest rates households are paying back credit faster as well as the value of outstanding credit is so much higher than in the past. Housing credit has been expanding at annual rate of between 7.0% and 7.5% for the past 15 months,” he says. 
Click to enlarge
<img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.24.21%20PM.png" alt="">
Since January 1991, housing credit data has been split between houses and units with investor housing credit typically increasing at a faster pace than owner occupier credit. Over the past year investor housing credit increased by 7.9% which is its slowest annual pace of growth since February 2014; well down on the recent peak rate of growth of 11.0%pa.
Meanwhile, owner occupier credit growth is recorded at 6.9%pa which is its fastest annual rate of growth since October 2010. Between 1991 and 2015, investor housing credit has increased from 16.0% of total housing credit to 35.8%, highlighting how popular housing investment has become since the early 1990’s. 
Mr Kusher said, “Late in 2014 the Australian Prudential Regulation Authority (APRA) provided guidelines to lenders that annual investor housing credit should not expand by more than 10%pa. These changes were largely implemented from the middle of last year. Given this it would seem there is some scope for lenders to ease their policies on investment lending and lift the level of lending for investment purposes given credit growth is now well below 10% per annum.” 
The latest housing finance data to December 2015 (which tracks the value of new lending) shows that following a large fall over the second half of 2015, investor lending has started to pick-up a little. Meanwhile the value of housing loans to owner occupier has continued to trend higher. 
Mr Kusher said, “Given the tentative signs of a pick-up in investor demand in the housing finance data, investor housing credit growth now well below 10%pa and home values still rising, why wouldn’t investor demand ramp back up?” 
Mr Kusher cites several reasons why investor demand may not rebound and starts with investors. 
“This group is now facing not only higher mortgage rates due to the out of cycle lift in mortgages rates by lenders last year but they are also experiencing an average of 30 basis points higher mortgage rates because they are an investor (due to the higher capital requirements for investment loans implemented by APRA in 2015). Secondly, he notes that the home value growth phase in Sydney and Melbourne is now very mature having run for almost 4 years, perhaps there is some concern as to how much longer it can run.” 
<a href="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.25.14%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/3/Screen%20Shot%202016-03-03%20at%2012.25.14%20PM.png" alt="">
“Elsewhere value growth is and has been moderate with values falling in Perth and Darwin. With potential concerns of a slowing of value growth, rental yields are virtually at historic lows with rental rates unchanged over the year with each acting as a potential disincentive. Alternatively, investors may still be attracted to housing because total returns are still substantially higher than all other asset classes. 
“The Federal Opposition has signalled changes to negative gearing rules and it is unclear as to how investors will react to the policy should Labor be elected. Arguably the proposed changes to negative gearing may bring forward investment purchases due the grandfathering provision included in the Labor policy; but there is also the argument that the uncertainty in taxation policy relating to housing may act as a disincentive to prospective investors. There is still significant mortgage market competition so despite the recent increases in mortgage rates if borrowers are prepared to shop around they can still get extremely competitive home loan rates.” 
“We anticipate that from here there may be a bit of a pick-up in investment borrowing largely because mortgage rates remain low and housing returns are much stronger than most other asset classes. Although a pick-up in investment activity is a possibility, it is unlikely that the annual rate of housing credit growth will return to or breach its 10% pa limit,” Mr Kusher said.
</body></html>

ckusher-ujnxiKuFQs

Will investor housing demand pick-up again? Cameron Kusher

<html><body>
Following recent policy announcements by the Federal Opposition, housing related issues such as affordability have come onto the political agenda. 
Whether Labor’s policies would actually improve housing affordability, especially without supply and infrastructure reforms, remains to be seen. Nevertheless the following piece looks at affordability by analysing median house and unit values into bands across Australia’s suburbs in order to get a deeper look at the cost of housing.
House values tend to be more expensive in capital cities than in regional areas. This is highlighted by the fact that 51.2% of regional suburbs have a median value of between $200,000 and $400,000 compared to 15.4% of capital city suburbs. 
Similarly just 0.6% of capital city suburbs have a median house value of less than $200,000 compared to 13.1% of regional suburbs. There is no value band that shows a clear majority across the combined capital cities however, the 33.1% of suburbs with a median value of between $400,000 and $600,000 is the band with the greatest share of suburbs.
<div>
<h3>Suburb median house value bands, capital cities vs. regional areas, Dec-15</h3>
<a href="/images/2016/03/4/2016-02-29--image1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/4/2016-02-29--image1.jpg" alt="">
Across the unit markets, the greatest share of suburbs both across the capital cities and in regional areas have a median value between $200,000 and $400,000. There is a large difference between the two in that 71.4% of regional suburbs have a median unit value of between $200,000 and $400,000 compared to 41.2% of suburbs in the capital cities. Again when we look at the most affordable suburbs there is a large difference, just 1.7% of capital city suburbs have a median unit value of less than $200,000 compared to 13.3% across regional Australia. 
<h3>Suburb median unit value bands, capital cities vs. regional areas, Dec-15</h3>
<a href="/images/2016/03/4/2016-02-29--image2.jpg" target="_blank"> Click to enlarge</a>
<img src="/images/2016/03/4/2016-02-29--image2.jpg" alt="">
Focusing solely on the data across the capital cities really highlights just how expensive Sydney is relative to other cities.
For houses, 25.3% of Sydney suburbs have a median value of between $1 million and $1.5 million making it the largest single value band for the city. Across the other capital cities the value band with the greatest proportion of suburb median values is $400,000 to $600,000 with the only other exceptions Hobart ($200,000 to $400,000) and Darwin ($600,000 to $800,000).
Sydney, Melbourne and Darwin have no suburbs with a median house value of less than $200,000. In Sydney, 47.8% of suburbs have a median house value of more than $1 million compared to 20.5% in Melbourne, 2.6% in Brisbane, 3.8% in Adelaide and 12.9% in Perth.
<h3>Suburb median house value bands across capital cities, Dec-15</h3>
<a href="/images/2016/03/4/2016-02-29--image3.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/4/2016-02-29--image3.jpg" alt="">
It is a similar story for capital city unit markets with 33.1% of Sydney suburbs having a median unit value of between $600,000 and $800,000 making it the largest band for the city. In most other capitals, the highest proportion of suburbs have a median unit value of between $200,000 and $400,000 with the exception of Melbourne and Perth (both $400,000 to $600,000).
As with house values, no suburbs in Sydney, Melbourne and Darwin have a median unit value of less than $200,000. 8.8% of Sydney suburbs have a median unit value of more than $1 million compared to 0.3% in Melbourne, 0.4% in Brisbane, 0.0% in Adelaide and 0.9% in Perth.
<h3>Suburb median unit value bands across capital cities, Dec-15</h3>
<a href="/images/2016/03/4/2016-02-29-image4.jpg" target="_blank">Click to enlarge </a>
<img src="/images/2016/03/4/2016-02-29-image4.jpg" alt="">
The data shows that particularly in our larger capital cities there is a critical undersupply of affordable housing options (even in the unit market). As a result an increasing number of residents are being locked out of home ownership or are being forced to purchase outside of the cities. Remember that although job prospects are generally better in the larger capital cities the difference in average wages across the capital cities is nowhere near as large as the differences in home values.
Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</div>
</body></html>

Limited capital city housing options under $200,000: CoreLogic RP Data's Cameron Kusher

<html><body>
The housing market appears to be responding to a number of factors which have spurred further growth in home values. 
Official interest rates are at historic low levels which has encouraged borrowing for housing and driven housing debt to record-high levels. 
The low interest rate setting is also seeing significant competition amongst lenders which has resulted in substantial discounts to headline mortgage rates. 
Furthermore, while the total number of homes available for sale is similar to levels a year ago, there has been significantly fewer newly advertised properties listed for sale over the past few months relative to previous years. 
The low number of newly advertised dwellings available for sale has created a sense of urgency for buyers in the market, particularly in Sydney and Melbourne, and resulted in further increases in home values over this growth cycle which has been running for more than four years.
While the banking regulator has implemented policies aimed at slowing investment related credit demand, his has not resulted in a significant cooling in the housing market. The pace of investment related credit growth has slowed from a peak of nearly 11 percent per annum to 5 percent over the most rent 12 months period, however we are now seeing an uplift in lending to investors once more. 
Following the most recent interest rate cut, auction clearance rates have elevated to levels not seen for more than a year, particularly in Sydney, the nation’s least affordable housing market.
Interest rates
On August 2, the Reserve Bank (RBA) decided to cut official interest rates by 25 basis points to 1.5 percent. 
While interest rates were lowered to historic lows, headline variable mortgage rates were generally reduced by much less, with each of the Big 4 banks lowering their mortgage rates by no more than 14 basis points. 
Despite the fact that the interest rate cuts were not passed on in full to mortgage holders, mortgage rates below 4 percent are available for those who wish to move from their current lender.  With most mortgages on a variable rate, any cut to mortgage rates will improve a household’s disposable income.  Furthermore, it has become clear that it will also give them more confidence to increasingly purchase more expensive homes, well in Sydney and Melbourne at least.
Housing debt
Each quarter the RBA publishes ratios of household finances which include the ratio of household debt to disposable income. The latest data to March 2016 shows that the typical level of housing debt is 134.7 percent higher than household disposable income. 
The current ratio is a record-high but it is important to remember that it is a national snapshot and conditions across different housing markets are likely to vary substantially.  Since the current phase of growth in home values commenced in the June 2012 quarter, this ratio has lifted from 119.0 percent.
While the ratio of housing debt to disposable income has increased and is at a record-high, the ratio of housing assets to disposable income has also risen as home values have increased. 
In the June 2012 quarter, the typical value of household assets was 394.4 percent higher than household disposable income.  
By March 2016, the ratio had increased to 470.8 percent indicating a significant increase in the value housing assets.  Again, it should be remembered that this is a national measure and local market ratios are likely to be vastly different especially within areas of very little value growth over that time as well as those areas in which home values have fallen.
Properties listed for sale
Over the four weeks ending August 21 2016 there were 39,676 new (not previously advertised for at least six months) residential properties listed for sale and 229,386 total (includes new and relisted properties) properties advertised for sale. 
The number of newly advertised properties listed for sale was -3.4 percent lower than at the same time last year and new listings have been lower each week year-on-year since early June 2016.  Meanwhile, total listings are -0.9 percent lower than they were a year ago and on a weekly basis have been consistently lower year-on-year since early July of this year.  New and total listings are now starting to increase as we head closer to the beginning of the Spring Selling Season as they do each year.
While the national figures show fewer listings than a year ago, the trends are very different across individual capital cities, particularly in Sydney and Melbourne where home value growth conditions are strongest.
In Sydney, over the past four weeks there were 6,299 newly advertised and 18,951 total properties advertised for sale. Year-on-year, new listings have now been lower than they were the previous year fairly consistently since last November and are currently -20.6 percent lower than they were a year ago. 
Over the past four weeks there were 17,949 total listings in Sydney which was 0.8% higher than a year ago. 
While total listings are slightly higher than a year ago, there is very little new stock being listed for sale.  New listings are arguably more important than relisted properties, especially if the relisted stock has been for sale for a long period of time and vendors aren’t adjusting their price expectations.   Even though spring is just around the corner, there is very little fresh stock being added to the market.
It is a similar story in Melbourne where there were 7,177 new and 25,846 total residential properties listed for sale over the four weeks to 21 August 2016.  The number of new listings was -9.4 percent lower year-on-year and total listings were -0.8 percent lower.  Again, with spring just around the corner there is a relatively low supply of newly advertised properties hitting the market for sale.
Mortgage demand
One of the big challenges the RBA has is the quality and regularity of mortgage data collection. While housing finance data is published each month, owner occupier housing finance commitments are published both on a number and value basis while investor housing finance commitments are only published on the basis of value not the number of loans. 
With the investment segment having become so prevalent, it is a challenge not knowing both the number and value, particularly when investment is so strong in Sydney and Melbourne at a time when home value growth is also so strong. 
Adding to the challenge of interpreting housing finance data is the lack of clarity about how off-the-plan unit purchases are captured in the data.  It is unclear as to whether they are classified as construction of dwellings or purchase of new dwellings. Finally re-classification of large swathes of mortgages from lenders away from investment and toward owner occupiers has made reading the market even more difficult.
The latest housing finance data showed that in June 2016 there was $32.6 billion worth of commitments with the value having increased by 2.3 percent over the month following a 1.8 percent rise in May. 
Although mortgage lending is rising, it remains -2.1 percent lower than its peak in April of last year. 
Over the month, there was $20.8 billion in commitments to owner occupiers and $11.8 billion in commitments to investors.  Both segments of lending rose over the month however, owner occupier lending is -2.4 percent lower than its December 2015 peak while investment lending is -22.0 percent lower than its April 2015 peak.
Owner occupier lending remains quite strong and although investment lending has slowed significantly, there is now scope for it to increase over the coming months.  Without additional details on the number of investment loans it is difficult to know whether the increase is being driven by larger loan sizes, a larger number of loans or a combination of both.
Auction clearance rates
Auction clearance rates are one of the timeliest indicators of the housing market and they tend to be indicative of the broader housing market trends.  It is important to remember that far more homes sell by private sale than by auction and auctions are only a significant proportion of sales in the Sydney, Melbourne and Canberra housing markets.
Auction clearance rates in Sydney last week were at their highest levels in more than a year.  Sydney’s auction clearance rate has been above 70 percent for 18 consecutive weeks and in Melbourne they have been above 70 percent for 7 consecutive weeks.
As already discussed, the supply of homes available for sale, particularly in Sydney and Melbourne, is much lower than it has been over recent years.  This is particularly evident when looking at auction volumes. 
Over 2016 so far there have been 18,619 auctions in Sydney compared to 25,399 auctions at the same point in 2015.  This represents a -26.7 percent decline in the number of auctions in Sydney over the year to-date. 
In Melbourne there have been 23,779 auctions so far this year which is -9.5 percent lower than the 26,282 auctions to the same point last year.  The low volume of auction stock is likely to be resulting in the ongoing strength in clearance rates across each city.  Less stock for sale creates a sense of urgency for those looking to purchase.
So what does this mean for Spring?
It is too early to say definitively what will happen this Spring but I would be very comfortable stating that what happens with property listings will have a substantial influence on the market’s performance over the period. 
Spring is typically characterised by a fairly significant upswing in stock for sale, this is driven by the belief that Spring is the best time of year to sell (that is a topic for another day).  As supply increases, the value growth performance can slow and as we saw last year, auction clearance rates can actually start to dip.  So the amount of stock which becomes available for sale will be an important factor for the strength of the Sydney housing market.
The recent interest rate cut is another important consideration for the market’s performance. Although mortgages and the availability of them, is calculated on the borrower’s ability to repay the mortgage at a much higher interest rate, lower mortgage rates impact households by giving them the option to reduce mortgage repayments and therefore having more money each week in their pocket. 
This is because most mortgages are on a variable rate and changes to the interest rate on their largest commitment (the mortgage) have an immediate impact on household balance sheets. 
With the recent cut to interest rates, it is unlikely to mean that people that could not previously borrow now can, but it does mean that households that previously weren’t considering moving home or buying an investment property may now be more inclined to do so. 
This may result in more confidence from those looking to upgrade their property to list their home which means that they also become an additional purchaser.  If someone is now starting to consider buying an investment property it also means additional demand for housing. 
How many new buyers there are in Spring remains to be seen but it may encourage an increase in demand for purchase and could result in more people looking to sell their home.
The other major consideration, particularly in Sydney and Melbourne, but also across the rest of the country is what the prospects are for additional increases in home values over the short and medium term. 
Combined capital city home values have been rising for more than four years now however, this has largely been driven by Sydney and Melbourne due to their much stronger economies. While the economies in these cities remain strong, the increasing cost of housing due to the four plus years of value growth may be starting to deter buyers.
When you also consider that rents are increasing at record low levels (falling in some areas) and gross rental yields are at record lows, purchasing a property, particularly an investment, is looking less attractive than it has for some time.  Especially when you also factor in the heightened level of housing construction, most of which is inner city units, which is currently underway.
It is going to be interesting to see how all of these factors play out over the next few months and ultimately how the housing market performs.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

Where to for the housing market in Spring? Cameron Kusher

<html><body>
Over recent months the average number of days it takes to sell a residential property has been falling, reflecting the overall improvement in housing market conditions.
The average days on market figure provides valuable insight into the performance of the housing market.  The figure measures the average difference between the date at which a property is listed for sale and the day at which it goes under contract. The figure is only calculated across those properties that sold by private treaty, excluding tenders and auction sales.  When homes are selling quicker it points to stronger buyer demand and vice versa.
Across the combined capital cities, it took an average of 38 days to sell a home in December 2016. This figure was lower than the 41 days a year earlier and is down from high throughout 2016 of 50 days in August 2016. 
Four of the eight capital cities now have an average days on market figure below 40 days while most of the other capital cities are now seeing the days on market figure starting to trend lower.
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.41.37%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.41.37%20AM.png" alt="">
The typical Sydney dwelling sold after an average of 33 days in December 2016 compared to 39 days in December 2015.
Melbourne dwellings took an average of 35 days to sell in December 2015 with the figure falling to an historic low of 29 days at the end of 2016. 
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.43.15%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.43.15%20AM.png" alt="">
Dwellings were taking an average of 57 days to sell at the end of 2016 in Brisbane compared to 43 days a year earlier.  Brisbane is only city in which the days on market figure has trended higher.
Adelaide dwellings were taking 43 days to sell at the end of last year, which is as long as they were taking a year earlier however, the days on market figure has fallen over recent months.
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.44.20%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.44.20%20AM.png" alt=""> 
The typical Perth dwelling was taking 65 days to sell at the end of 2016 compared to 58 days at the end of 2015 however, the days on market figure has reduced over the past few months.
Hobart has recorded a large fall in the days on market figure over the past year, reducing from 47 days in December 2015 to 35 days in December 2016.
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.45.17%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.45.17%20AM.png" alt="">
Dwellings in Darwin were taking an average of 86 days to sell at the end of 2016, up from 74 days at the end of 2015 however, over recent months the figure has begun to fall.
At the end of 2015, the typical Canberra dwelling was taking 47 days to sell compared to 37 days at the end of 2016.
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.46.13%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.46.13%20AM.png" alt="">
The days on market figures will be important to follow throughout 2017.  After the current growth phase has run for more than four and a half years, we are still seeing a rapid rate of sale in Sydney and Melbourne.  Low levels of stock available for sale and many willing purchases continue to drive a rapid rate of sale in Sydney and Melbourne while the rate of sale is improving in most other capital cities. 
The days on market figure will provide a good indication of the strength of individual housing markets throughout 2017.  Keep in mind that the next two months of data (January and February) will show the regular seasonal spike but thereafter the data will be much more representative of the housing market’s performance across each capital city.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

Melbourne properties selling the fastest of any capital city: Cameron Kusher 

<html><body>
GUEST OBSERVER
A retrospective look at median dwelling values across the suburbs of Australia shows the bracket creep that has occurred over the current growth cycle, highlighting the deterioration of more affordable housing across the capital cities over the past five years.
At the end of 2016, 7.6 percent of suburbs nationally had a median house value under $200,000 and 5.9 percent of suburbs had a median unit value below $200,000. 
To put these figures into some perspective, 11.4 percent of suburbs had a median house value of at least $1 million and 3.0 percent of suburbs had a median unit value of at least $1 million.
Over the five years to the end of 2016, there has been a substantial decline in the proportion of suburbs with a median value below $400,000. 
At the end of 2011, 53.5 percent of suburbs had a median house value of less than $400,000 and 69.8 percent of suburbs had a median unit value of less than $400,000. 
By the end of 2016, the proportion of suburbs with a median value of less than $400,000 had fallen to 41.0 percent for houses and 55.3 percent for units.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-1.jpg" alt="">
A five year retrospective look at the individual capital cities highlights the significant shift in the proportion of suburbs with a median value under $400,000, particularly in Sydney and Melbourne.
In 2011, the proportion of total suburbs with a median house value below $400,000 across each capital city was: 21.2 percent in Sydney, 28.9 percent in Melbourne, 40.9 percent in Brisbane, 40.5 percent in Adelaide, 31.1 percent in Perth, 69.2 percent in Hobart, 2.1 percent in Darwin and 1.1 percent in Canberra. 
Units offer a more affordable option highlighted by the proportions of suburbs values below $400,000 at: 38.8 percent in Sydney, 48.2 percent in Melbourne, 81.7 percent in Brisbane, 94.3 percent in Adelaide, 59.8 percent in Perth, 92.7 percent in Hobart, 53.3 percent in Darwin and 44.6 percent in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-2.jpg" alt="">
By 2015, the proportion of suburbs with a median house value below $400,000 had shifted to: 1.2% in Sydney, 12.2% for Melbourne, 31.4% in Brisbane, 29.5% in Adelaide, 15.5% in Perth, 55.7% in Hobart and 0.0% in both Darwin and Canberra. 
For units, the proportion of suburbs with a median value of less than $400,000 in December 2015 were recorded at: 10.9% in Sydney, 34.9% in Melbourne, 64.4% in Brisbane, 87.7% in Adelaide, 37.2% in Perth, 88.4% in Hobart, 51.4% in Darwin and 50.5% in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-3.jpg" alt="">
The proportion of suburbs with a median house value of less than $400,000 at the end of 2016 was recorded at: 0.1% in Sydney, 6.3% in Melbourne, 29.2% in Brisbane, 28.0% in Adelaide, 18.9% in Perth, 52.1% in Hobart and 0.0% in Darwin and Canberra. 
For units the proportions were recorded at: 6.5% in Sydney, 31.8% in Melbourne, 62.7% in Brisbane, 85.1% in Adelaide, 46.4% in Perth, 88.4% in Hobart, 57.6% in Darwin and 45.8% in Canberra.
<a href="https://www.propertyobserver.com.au/images/2017/02/20/Corelogic-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/20/Corelogic-4.jpg" alt="">
Five years ago every capital city except for Darwin and Canberra had at least 20% of suburbs with a median house value of less than $400,000. 
At the end of last year, it was virtually impossible to find houses for less than $400,000 in Sydney, Darwin and Canberra while less than 7% of suburbs had a median house value below $400,000 in Melbourne. 
Across each city there has been a substantial decline in more affordable housing over the past year despite the fact that outside of Sydney and Melbourne there has been only moderate value growth over the period.
Even units have recorded a fairly substantial decline in the proportion of suburbs with a median value of less than $400,000 over the past five years.
At the end of 2016, looking at both houses and units, 20.5% of Sydney suburbs had a median value of less than $600,000 compared to 38.5% of suburbs having a median value of at least $1 million. 
To further highlight deteriorating housing affordability in Sydney, 34.6% of suburbs had a median unit value of less than $600,000 at the end of 2016. 
In each other capital city, a higher proportion of suburbs had a median house value of less than $600,000 than the proportion of suburbs with a median unit value of less than $600,000.
If you are earning a relatively low income in Sydney and are looking to buy a house or unit, you are competing for a rapidly declining pool of housing stock across the city. 
The pool is also declining across the remaining capitals, albeit not at the same pace of decline as in Sydney.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

Sydney's property bracket creep makes for declining housing options: Cameron Kusher

<html><body>
We all know Spring as supposedly the best time to be bringing your home to the market. 
What is often forgotten is that if everyone acts in the same way looking to sell during Spring, there is a lot more competition amongst vendors and it can be more difficult to sell.  In fact, looking at auction markets, the clearance rate quite regularly falls during Spring as volumes rise.
<a href="/images/2016/11/27/chart-1-1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/27/chart-1-1.jpg" alt="">
On a weekly basis throughout 2016, auction clearance rates across the combined capital cities have been recorded at an average of 70.9 percent.  If we compare this to the previous years, the average weekly auction clearance rates were recorded at: 48.0 percent in 2011, 50.4 percent in 2012, 66.2 percent in 2013, 67.8 percent in 2014 and 72.0 percent in 2015.  Over recent years clearance rates have fallen over the final quarter of the year, however, this year there has been no such fade-away in clearance rates.  In comparison to 2015 for example, auction clearance rates were much higher earlier in the year than they have been this year while in 2015 clearance rates faded substantially over the final quarter of the year.
<a href="/images/2016/11/27/chart-2-2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/27/chart-2-2.jpg" alt="">
The average number of properties being put up for auction each week has been lower in 2016 than it has been over recent years.  So far in 2016, there has, on average, been 1,765 auctions each week across the capital cities.  By comparison, average auction counts over recent years have been recorded at: 1,384 in 2011, 1,334 in 2012, 1,733 in 2013, 2,029 in 2014 and 2,170 in 2015.   
Auction volumes so far this year have been similar to those in 2013 however, in 2013 average clearance rates were on average quite a bit lower at 66.2 percent compared to 70.9 percent this year.  If we look at the past three years auction volumes through the final quarter of the year, we can see volumes rising through Spring as the selling euphoria hits.  So far this year, , volumes have risen but they have not hit the heights of 2014 and 2015, subsequently auction clearance rates have so far not faded through the end of the year like they did in 2014 and 2015 and have in each of the previous years highlighted.
A lower volume of auctions overall has certainly been a key driver of why auction clearance rates have been stronger this year.  Importantly, this is not just a feature of the auction market itself, new and total listings in the two largest auction markets (Sydney and Melbourne) are lower than they were a year ago so overall, there is less stock available for sale to choose from.
<a href="/images/2016/11/27/chart-3-2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/11/27/chart-3-2.jpg" alt="">
Focusing on auction statistics for the final quarter of each of the past four years in the regions of Sydney and Melbourne it shows that almost every region in both cities has seen an increase in average auction clearance rates so far in 2016 compared to 2015.  At the same time, average auction volumes are lower than they were last year across all regions of Sydney and Melbourne. 
In Sydney in particular the regions that have had relatively weaker auction clearance rates over recent years have generally so far this year seen proportionally fewer auctions.  This seems to suggest that vendors are getting more selective about using an auction to sell in those areas which are not traditional auction-centric markets.
The combination of fewer overall properties for sale, fewer homes being taken to auction and vendors being more selective around which homes to auction seems to be resulting in much stronger auction clearance rates.  Additional factors over the year such as lower interest rates are also likely to be supporting the market.  If these conditions persist, it is reasonable to expect that for the remainder of 2016 and into 2017 the auction market will remain strong.
<div>
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
 
</div>
<div> </div>
</body></html>

Spring auction clearance rates not fading like past selling seasons

<html><body>
GUEST OBSERVER
The Australian Bureau of Statistics (ABS) released their biennial survey of household income and wealth earlier this week.  
The release has a huge amount of valuable data but at least initially I thought it was pertinent to look at the dwelling tenure data.  
The information is provided from 1994-95 up until the latest release (2015-16).
The tenure data is premised upon who is currently residing in the property, this is important to understand because when we look at the proportion of residents who own without a mortgage for example this doesn’t necessarily represent the total number of dwellings owned outright.  The reason being that some of those properties that are occupied by renters may be owned outright by the person who is renting that property out.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/22/2017-09-18-articleimage1.png" alt="">
  As at the 2015-16 release 30.4% of households were lived in by someone that owned that property outright.  
This figure was lower than the 31.4% in 2013-14 and as the above chart shows it has been steadily trending lower over recent years.
In fact, at the peak throughout the timeframe shown, 42.8% of households had no mortgage in 1995-96.  This is an interesting statistic when you consider than many people suggest that lower mortgage rates result in improved housing affordability.  
In June 1996 the standard variable mortgage rate was recorded at 9.75% compared to a mortgage rate of 5.4% in June 2016.  The ongoing decline in mortgage rates has pushed dwelling values higher and although it has made servicing mortgage debt easier it has not led to a greater proportion of the population living mortgage free.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/22/2017-0918-articleimage2.png" alt="">
  With fewer households owning their home outright, there has been an increase in the proportion of households that live in a home that they own and still carry mortgage debt.  In 2015-16, 37.1% of households had mortgage debt which has increased from 35.8% in 2013-14.
 At its low point over the period highlighted on the chart, 28.1% of households had mortgage debt in 1995-96.  Since 2003-04, there has consistently been a higher proportion of households with mortgage debt than those without.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/22/2017-09-18-articleimage3.png" alt="">
  As the rates of outright home ownership have fallen there has been a rise in the proportion of households which are rented.  
Whereas outright home ownership has continued to fall and ownership with a mortgage has risen, it is interesting to note how the proportion of rental households has actually declined since the last survey.  
The latest data shows that in 2015-16, 30.3% of households nationally were rented compared to 31.0% in 2013-14.  Back in 1994-95 only 25.7% of households were rented.  
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/22/2017-09-18-articleimage4.png" alt="">
  As the prominence of renting has increased over time, the responsibility to provide rental accommodation has increasingly fallen on private citizens rather than the public sector.
At its peak in 1995-96, 6.0% of households were rental properties which were rented from state housing authorities, by 2015-16 this figure had fallen to just 3.5%.  This is an important consideration for governments when considering potential changes to investment policies such as negative gearing.
Governments are clearly not as involved in providing housing as they have been in the past, if private citizens or companies are going to be responsible for providing that housing it is likely they will require some incentives other than just the rental income, escpecially considering how low rental yields are across Australian cities.
The charts presented highlight how home ownership is continuing to decline which is leading to a greater proportion of the population either being in mortgage debt or renting.  
As the population ages this can create challenges especially if an increasing number of Australians are retiring but still carry mortgage debt.  It also highlights that simply building more homes is not necessarily a solution to increasing home ownership rates.  
As we’ve seen over recent years during a housing construction boom first home buyer levels have been at near record-lows and housing investment levels have hit all-time highs.  Arresting the decline in home ownership in Australia will be no easy feat however, the data indicates that simply building more housing won’t necessarily solve the problem particularly if it isn’t at a price point which is reachable for lower and middle income earners.  
We would expect that over the coming years, the rate of home ownership will continue to fall especially given we have seen dwelling values continue to climb since June 2016.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
</body></html>

Home ownership rates continue to fall: Cameron Kusher

<html><body>
The latest housing finance and housing credit data confirm that the level of activity from investors in the housing market is slowing.
Australian mortgage lenders have been rationing credit to the investor segment and lifting mortgage rates and these changes are starting to bite with investor demand now slowing. It remains to be seen if this slowdown lasts or, if once these limits are eased the investor segment of the market comes back to residential property.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/chart-1-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/20/chart-1-4.jpg" alt="">
Since August 2015, Australian mortgage lenders have been charging interest rate premiums for investors.  While standard variable mortgage rates for owner occupiers were recorded at 5.45% in August 2015, the same mortgage type for investors had a mortgage rate of 5.75% or a 30 basis point premium.  Since August 2015, the cash rate has fallen by 50 basis points however, mortgage rates have not shown the same decline. 
At the end of May 2017, standard variable mortgage rates were recorded at 5.3% for owner occupiers and 5.8% for investors.  Despite two 25 basis point interest rate cuts since August 2015, owner occupier mortgages rates are only 15 basis points lower while investor mortgage rates are 5 basis points higher and have a premium of 50 basis points compared to a typical owner occupier mortgage.
The mortgage rate premium for investors appears to finally be biting into the market with weakness in both total investor credit and investor housing finance commitments.  The April 2017 lending aggregates data from the Reserve Bank (RBA) showed that investor credit rose by 0.55% over the month, its lowest monthly increase since August 2016. 
At the same time, April 2017 housing finance data shows there was $12.6 billion in investor housing finance commitments over the month, the lowest value since September 2016.  Since August and September of last year, standard variable mortgage rates for investors have risen by 30 basis points compared to a 5 basis point increase for owner occupiers.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/chart-2-4.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/20/chart-2-4.jpg" alt="">
There are individual states and territories in which a slowdown in mortgage demand by investors will have more of an impact, namely New South Wales and Victoria.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/chart-3-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/20/chart-3-3.jpg" alt="">
Tasmania is the only state or territory where the value of lending to housing investors is currently rising however, in terms of the value of lending to investors, New South Wales and Victoria account for a substantial majority of overall lending. 
This is partly a function of higher housing costs in these two states, nevertheless, New South Wales accounted for 49.3% of all investor lending nationally in April 2017 with Victoria accounting for 27.4%. A pull-back in lending to investors is inherently likely to have more of an impact on the New South Wales (Sydney) and Victorian (Melbourne) housing markets.
<a href="https://www.propertyobserver.com.au/images/2017/06/20/chart-4-3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/20/chart-4-3.jpg" alt="">
The potential impact on the New South Wales and Victorian housing markets of an investor slowdown is further highlighted in the final charts.  Excluding refinances (which are also trending lower) investors accounted for 55.3% of mortgage demand in New South Wales in April 2017 and 46.8% in Victoria.  In all other states and territories investors accounted for less than 40% of mortgage demand in April 2017, with the proportion trending lower over recent months in most regions.
It is anticipated that investor demand will continue to slow over the coming months.  Lenders are continuing to re-price mortgage rates for investors and we are yet to see the full impact of the policy changes designed to slow the level of interest-only lending.  With investor demand likely to continue to fade, it is expected that this will also contribute to a further slowing of the rate of value growth in the Sydney and Melbourne housing markets where investor demand has been significantly greater than it has been elsewhere.
A reduction in the pace of capital gains will add further disincentive to investors.  Considering that rental yields in Sydney and Melbourne are close to record lows, we can assume most investors are focused on the prospects for capital growth and relying on a negative gearing strategy to offset the cash flow losses.  If investors anticipate the prospects for capital gains have dissipated we may see investment demand deflect to those markets where the growth cycle is less mature than Sydney and Melbourne’s and where rental yields haven’t been depleted as substantially.
Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

The housing investment slowdown is upon us (for at least a while)

<html><body>
EXPERT OBSERVER
According to the CoreLogic Home Value Index, dwelling values have recorded some substantial falls over the 12 months to January 2019. Four of the eight capital cities have recorded dwelling value falls while four of the seven rest of state markets have also experienced declines.
<a href="https://www.corelogic.com.au/sites/default/files/inline-images/001%2012%20month%20change%20in%20dwelling%20vales.emf__0.jpg" target="_blank">Click</a> to enlarge.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/001%2012%20month%20change%20in%20dwelling%20vales.emf__0.jpg" alt="001 12 month change in dwelling vales.emf_.jpg" width="1050" height="559" data-entity-type="file" data-entity-uuid="f21356ec-de3e-4809-acaf-7e17f28fcdf4" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="">
Nationally, dwelling values have fallen by -5.6% over the 12 months to January 2019 which is their largest annual fall since March 2009.
Combined capital city dwelling values were -6.9% lower over the past year while combined regional markets saw much more moderate value falls of -0.8%.  
For the combined capital cities, the -6.9% fall is the largest since February 2009 while the -0.8% fall across regional markets is the largest since October 2012. The recent declines in dwelling values are very much a different situation to the one that has played out over the past 20 years.
<a href="https://www.corelogic.com.au/sites/default/files/inline-images/002%2020%20year%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/002%2020%20year%20change%20in%20dwelling%20vales_0.jpg" alt="002 20 year change in dwelling vales.jpg" width="1012" height="542" data-entity-type="file" data-entity-uuid="7ab6cac4-2830-4ad3-b5d0-f34972df29df" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="">
 Over the past 20 years, national dwelling values have increased by 197.4% with the combined capital cities recording stronger total value growth (212.4%) than the combined regional markets (150.3%).  
Looking at the individual capital cities, Melbourne has recorded the greatest value gains over the period (274.6%) while Darwin value growth has been the most moderate (38.4%).  The weak growth in Darwin has been driven by values falling by almost 26% since peaking in mid-2014.  
Across the individual rest of state regions, growth has been strongest in regional NSW (185.6%) and weakest in regional WA (77.5%).  Darwin and regional WA were the only two major regions of the country where values have not doubled over the past 20 years. Within the past 20 years there have been many housing cycles so the following graphs will show how each region has seen values change over the 20 years within five year increments. The five years to January 2004 was the strongest five-year period for value growth over the past 20 years, with national dwelling values increasing by 80.2%.  Over the period, the total growth in values across the combined capital cities (79.6%) and the combined regional markets (82.0%) was remarkably similar.  In fact, it was also the only five-year period in which value growth was stronger in regional markets than in capital cities.
<a href="https://www.corelogic.com.au/sites/default/files/inline-images/003%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/003%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="003 5 years change in dwelling vales.jpg" width="1088" height="579" data-entity-type="file" data-entity-uuid="55120ca7-ddde-48d9-a9d7-54abca62c8ae" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="">
 Over the five years to January 2004, capital city value growth was greatest within Canberra (110.9%) and weakest within Darwin (-3.9%). While values in Darwin fell, the next weakest growth in capital city values was Perth (63.5%).  Across the regional markets, values saw little growth over the five years in regional WA (24.4%) and regional NT (28.9%) while elsewhere value growth was quite strong with values doubling in regional NSW (108.8%). Following the strong value growth between 1999 and 2004, the growth in dwelling values over the five years to January 2009 was generally much more circumspect.  Over the period, national dwelling values increased by 14.9% with a 15.2% rise across the combined capital city markets and a 14.2% increase throughout the combined regional markets.  While the headline figures show little growth, it was quite a different story within different regions with some of the smaller housing markets experiencing big gains.  
<a href="https://www.corelogic.com.au/sites/default/files/inline-images/004%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/004%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="004 5 years change in dwelling vales.jpg" width="1016" height="541" data-entity-type="file" data-entity-uuid="07eba968-8ad9-4b1a-ae57-dacf97b00270" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="">
 Across the individual capital cities, Perth (52.3%) and Hobart (57.1%) recorded the strongest value growth over the five years to January 2009.  Sydney was the weakest capital city market for value growth over the five years with values falling by 4.6%.  In regional markets, regional WA was booming on the back of the mining boom with values increasing by 80.9% over the five years.  Although regional NSW recorded the strongest value growth over the previous five years, it was the weakest market during this period with values falling -3.4%. The five years to January 2014 marks the period following the GFC and saw the mining boom come to an end.  Low interest rates and market stimulus saw values rise 20.3% nationally during the five years.  The growth in values over the period was almost entirely driven by the combined capital cities (25.3%) with very little value growth across he combined regional markets (4.8%).  
<a href="https://www.corelogic.com.au/sites/default/files/inline-images/005%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click</a> to enlarge
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/005%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="005 5 years change in dwelling vales.jpg" width="1041" height="554" data-entity-type="file" data-entity-uuid="25d6caea-fc23-4f56-bdc5-04cb6f5db9fd" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="">
 Across the capital cities, values growth in Sydney (36.5%) and Melbourne (32.3%) was much stronger than elsewhere with Brisbane (5.0%) experiencing the weakest growth.  In regional markets, values declined by -2.0% over the five years in regional Qld while regional NT (30.2%) experienced the greatest increase in values over the period. Over the most recent five years, national dwelling values have increased by 19.4%.  The combined capital cities index has increased by 20.6% while the combined regional market index is 14.9% higher.  
<a href="https://www.corelogic.com.au/sites/default/files/inline-images/006%205%20years%20change%20in%20dwelling%20vales_0.jpg" target="_blank">Click </a>to enlarge.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/006%205%20years%20change%20in%20dwelling%20vales_0.jpg" alt="006 5 years change in dwelling vales.jpg" width="1003" height="534" data-entity-type="file" data-entity-uuid="65a12c3b-534e-469a-8054-05d3fb2a2272" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="">
 Across the individual capital cities, Perth (-15.6%) and Darwin (-24.4%) have recorded large falls while Hobart (35.1%) has experienced the strongest value growth.  In the regional markets, values have fallen in regional SA(-1.1%), regional WA (-22.6%) and regional NT (-7.3%) while regional NSW has recorded the largest value increase (28.2%). While past performance is certainly not an indicator of future performance, the data shows that over the past two decades most regions have seen some substantial increases in dwelling values.  The data also shows that over five year increments, the best regions for growth in a given five-year period are typically the weaker areas for growth over the following five years.  Given substantial growth over recent years in markets such as Sydney, Melbourne and Hobart that may provide some insight into the performance of these cities over the coming years. Of course, the housing market has a number of headwinds that have not been seen for some time.  Throughout most of the past 20 years, credit has been becoming easier to access, since late 2014 credit has increasingly become harder to access.  Furthermore, ongoing strong value growth in Sydney, Melbourne and Hobart has seen housing affordability rapidly deteriorate over recent years.  Finally, economic conditions outside of NSW and Vic have tended to be quite weak over recent years which has curtailed housing demand in these markets.
CAMERON KUSHER is a property research analyst for CoreLogic.
<div>
<div id="cpgAdsenseContainerId"><ins id="aswift_0_expand" data-ad-slot="3195360564"></ins></div>
</div>
</body></html>

The Australian capital cities that saw substantial house price gains over past two decades: Cameron Kusher

<html><body>
Looking at data for the 50 most populous non-capital city council areas, the majority of them have seen house and unit values increase over the 12 months to May 2017. 
The data indicates that after a long period of soft housing market conditions following the financial crisis, housing demand is starting to pick up across many of the larger regional areas. 
Those areas that are continuing to see values fall are in many instances linked to the mining and resources sector.
Of the non-capital city council areas analysed, the Wollongong council area is the most expensive for houses ($730,427) and units ($530,170) as well as having seen the greatest increase in house values and the fourth highest increase in unit value over the past year. 
The Wollongong housing market has seen housing demand rise as demand ripples away from Sydney where affordability constraints are more pressing. 
Additionally, prices are being pushed higher as more people seek out coastal and lifestyle properties.
In New South Wales in particular, regional areas of the state, particularly those reasonably close to Sydney are generally seeing strong value growth. 
This is most likely linked to affordability relative to Sydney as well as Sydney home owners using the equity in their home to purchase investment properties in lifestyle markets.
The regional areas of Victoria, particularly those close to Melbourne, are experiencing value growth however, it is nowhere near the magnitude to which values are growing in those locations close to Sydney. 
Although values are rising, the relatively softer growth can be linked to the fact that values have not risen as sharply in Melbourne as they have in Sydney and subsequently affordability hasn’t deteriorated as severely in Melbourne.
Queensland’s results are somewhat more mixed with the south-east corner generally seeing values rise while elsewhere growth is extremely mild or values have fallen.
Click to enlarge 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/29/2017-06-23--pp1.jpg" alt="">
In fact, the Gold and Sunshine Coasts and Noosa are seeing more rapid value growth than Brisbane is. 
It seems as if a lot of demand across these regions is coming from the accelerating internal migration to Queensland and buyers from Sydney and Melbourne that have substantial equity in their homes and are looking for lifestyle properties.
Of the areas that we looked at, each of the 24 regions we highlighted in New South Wales have recorded value growth for houses over the past year. 
For units, only 4 of the 24 regions have recorded value falls over the past 12 months.
In Victoria we highlighted 10 regional council areas in the analysis. 
Of these regions analysed, two recorded value falls over the year for houses and 2 regions also recorded falls for unit values. 
Greater Shepparton was the only council area of the state which recorded value falls for houses and units.
Of the 13 regions highlighted for Queensland, five have recorded value falls for houses over the past year and seven have recorded declines for units.
Each of the regions highlighted in Western Australia have recorded value falls over the past year for houses and units.
Launceston was the only region analysed in Tasmania and it has seen house and unit values rise over the past year. 
It should be noted while values have increased they have done so at a more moderate pace than those in Hobart.
Overall it seems that housing demand in regional areas of the country is rising. 
While many regions are seeing value increase, the strongest demand appears to be in those areas within relatively close proximity to capital cities, particularly those which are coastal and tap into lifestyle demand.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

Gladstone houses and apartment struggling as regions typically see values rise: Corelogic

<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

Cameron Kusher

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News