<html><body>
GUEST OBSERVER
Auction volumes are set to increase slightly this week with 3,232 capital city auctions currently being tracked by CoreLogic this week compared to 3,207 auctions last week.
Auction volumes are set to rise this week in Melbourne, with 1,561 auctions scheduled. There are slightly fewer auctions scheduled across Sydney this week, with 1,126 homes set to be taken to auction. Auction activity is set to be higher than the corresponding week last year (2,989).
<h1 class="title">
Capital city auctions this week:
</h1>
<div class="entry">
<ul>
<li>Sydney: 1,126</li>
<li>Melbourne: 1,561</li>
<li>Brisbane: 190</li>
<li>Adelaide: 150</li>
<li>Perth: 72</li>
<li>Canberra: 110</li>
</ul>
Glen Waverley in Melbourne is the busiest individual suburb for auctions across the nation this week, with 24 residential homes set to go under the hammer. Followed by Reservoir (23), St Kilda (21), Richmond (20) and Hawthorn (19), all of which are in Victoria.
Summary of last week’s results:
<a href="/images/2016/12/08/20161208-Capital-City-Stats.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/08/20161208-Capital-City-Stats.jpg" alt="">
Capital city auction clearance rates remained strong last week for the first week of Summer, final results show 72.3 per cent of auctions were successful. However, the number of properties taken to auction last week fell across the capital cities with 3,207 auctions held, down from 3,398 the previous week.
<a href="/images/2016/12/08/20161208-Capital-City-Timeseries.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/08/20161208-Capital-City-Timeseries.jpg" alt="">
Last week saw Melbourne’s final clearance rate increase to 77.3 per cent, from 76.1 per cent the previous week, while for Sydney, final results show that the clearance rate for the city fell from 77.1 per cent the previous week to 75.2 per cent last week. Auction numbers decreased over the week in both Melbourne and Sydney, down to 1,416 and 1,182 from the previous week’s 1,616 and 1,262 respectively.
Across the smaller auction markets, performance was mixed last week, with clearance rates improving in Adelaide and Perth, while Brisbane, Tasmania and Canberra’s clearance rate fell.
The Hunter region was the busiest non-capital city region last week, with 73 auctions; however Geelong recorded the strongest clearance rate at 86.1 per cent.
<a href="/images/2016/12/08/20161208-Subregions.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/08/20161208-Subregions.jpg" alt="">
 Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</div>
</body></html>

ckusher-ujnxiKuFQs

Auction volumes set to increase slightly: Cameron Kusher

<html><body>
After a long period of soft housing market conditions post the 2008 GFC, we’re seeing a pick-up in housing demand across regions, according to CoreLogic research analyst Cameron Kusher.
Buyers are looking outside the capitals for "more affordable options,” he said after analysis of the 50 most populous non-capital city council areas.
“While a majority of the regions are showing an upward swing, areas linked to the mining and resources sector are continuing to see values fall.”
Of the non-capital city council areas analysed, areas close to Sydney are seeing the strongest growth in New South Wales.
As an example, the Wollongong council area is the most expensive for houses ($730,427) and units ($530,170).
The area also recorded the greatest increase in house values, and now holds the fourth highest increase in unit value over the past year.
“Places like Wollongong are on the rise as demand ripples away from Sydney where affordability constraints are more pressing.”
Regional areas in Victoria which are close to Melbourne are experiencing value growth, however, Mr Kusher said.
“It is nowhere near the magnitude to which values are growing in those locations close to Sydney.”
“Although values are rising, the 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,” he said.
For Queensland, the results are more mixed with the south-east corner generally seeing values rise, while across the remainder of the state, growth is extremely mild or values have fallen.
Stripping the spotlight from Brisbane, CoreLogic confirmed that the Gold Coast, Sunshine Coast and Noosa are now seeing more rapid value growth than for Brisbane.
“It seems as though much of the demand across these regions is coming from an acceleration in internal migration to Queensland, and where buyers from Sydney and Melbourne are using substantial equity earned to secure lifestyle properties in the state.”
<a href="https://www.propertyobserver.com.au/images/2017/06/22/Screen%20Shot%202017-06-22%20at%2011.42.30%20am.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/2017/06/22/Screen%20Shot%202017-06-22%20at%2011.42.30%20am.jpg" alt="">
Of the areas observed by CoreLogic, each of the 24 regions 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, of the 10 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.
Mr Kusher said, “Overall, we’re seeing housing demand in regional areas of the country is rising.
“While many regions are seeing values 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>

Regional areas showing home values rising: Cameron Kusher

<html><body>
GUEST OBSERVER
The CoreLogic Stratified Hedonic Index breaks the market into three segments: the most affordable 25% of properties, the middle 50% and the most expensive 25%.
The data shows over the past year the most expensive quarter of the market has recorded the greatest value growth.
Over the 12 months to August 2017, the most affordable 25% of residential properties nationally have recorded value growth of 2.9% compared to growth of 8.0% across the middle 50% of suburbs and 11.4% growth across the 25% of most expensive suburbs. 
The national chart highlights that across all market segments the annual rate of value change has started to slow over recent months.  Importantly, the chart also highlights that when there have been housing market downturns it has typically been the most expensive properties that have been hardest hit while more affordable dwellings have been more resilient to downturns. 
<h3 class="text-align-center">Annual change in dwelling values across market segments, National</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-11-image1.png" alt="">
Over the period shown, August 1987 to August 2017, the thirty year period has seen values across the most affordable 25% of properties rise 1,517% compared to increases of 580% across the middle 50% of suburbs and 432% across the most expensive 25% of suburbs.  This highlights how affordability has deteriorated substantially at the more affordable end of the housing market.
The second chart shows the change in values across the three broad segments throughout the combined capital cities.  Over the 12 months to August 2017, the most affordable 25% of properties have recorded growth of 4.6% compared to 9.3% growth across the middle 50% of properties and a 12.2% change across the most expensive 25% of the market.  Like the national figures, in the event of a housing market downturn it has been the more expensive housing which has tended to see the greater value falls.
<h3 class="text-align-center">Annual change in dwelling values across market segments, Combined Capital Cities</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-11-image2.png" alt="">
The third chart looks at the growth performance across regional housing markets where the change in values has been much more moderate over recent years than that across the capital cities. 
The 25% of most affordable properties in regional Australia have recorded value increases of 2.5% compared to a 4.6% change across the middle 50% and an 8.4% increase in the most expensive 25% of properties. 
Over recent years, growth in the affordable segment in regional Australia has been the strongest performed suggesting that demand has been for more affordable housing. 
However, as the regional markets have picked-up over the past couple of years, it has been the top 25% of suburbs that have outperformed. 
This is likely to indicate demand for luxury housing outside of the capital cities has risen.
<h3 class="text-align-center">Annual change in dwelling values across market segments, Combined Regional Markets</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-1-image3.png" alt="">
The final chart shows the annual change in dwelling values across the three market segments throughout the capital cities.  Melbourne and Darwin are the only capital cities that have recorded the greatest change in values over the year across the most affordable suburbs and the slowest growth across the most expensive suburbs. 
In all other capital cities, either the middle 50% of suburbs or the top 25% of suburbs have recorded the fastest rate of value growth over the year.  In Melbourne, this is possibly due to the fact that Sydney and Melbourne are the strongest economies in the country and are jockeying to attract talent.  Melbourne has a significant competitive advantage over Sydney in terms of being able to offer more affordable housing and the data seems to suggest that lower priced housing is a big driver which has led to a surge in values across the lower and also middle segments of the market. 
<h3 class="text-align-center">Annual change in dwelling values across market segments, individual capital cities, to Aug-17</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/14/2017-09-11-image4.png" alt="">
The stratified hedonic index offers another interesting look into the performance of the national housing market looking at how different segments are performing.  If the current housing market slowdown continues and turns into declines, watch for whether the most affordable sector of the market is relatively stronger performed than the more expensive segment.  With record high levels of household debt and significant first home buyer incentives over recent years the trends in a future downturn could be different to what has been seen in the past.
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>

Premium housing values rise fastest over past year

<html><body>
GUEST OBSERVER
CoreLogic’s Accumulation Index looks at the total returns from the housing asset class factoring in the change in the value of the dwelling and the gross rental return from the property.
The CoreLogic Accumulation Index shows that nationally, the total returns from the housing asset class over the 12 months to August 2017 were 13.2%.  Because the return is calculated from value change as well as the gross rental yield, you tend to find that houses have a superior value growth performance while units offer superior rental returns.  
Over the past year, total returns for houses nationally have been recorded at 13.5% compared to a 12.0% return for units.  Over the 10 years to August 2017, the annual total returns for housing nationally have been recorded at 8.8%, split between 8.9% for houses and 8.5% for units.
<h3 class="text-align-center">Annual total returns from the housing asset class, National</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image1.png" alt="">
Total housing returns have generally been superior in capital cities to regional markets however, in the 2008 and 2010-11 downturns, returns slumped by a greater magnitude in the capital cities.  Over the past decade, combined capital city annual total returns have been recorded at 9.3% with returns of 9.5% for houses and 9.0% for units.  Over the 12 months to August 2017, total returns have been recorded at 14.0% for houses and 12.3% for units.  Like the national chart, the recent data for the combined capital cities shows that total returns have started to slow.
<h3 class="text-align-center">Annual total returns from the housing asset class, combined capital cities</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image2.png" alt="">
Regional markets are also beginning to see total returns slow however, the returns over recent years have generally not been as strong as those across the combined capital cities.  Over the past 12 months, total returns have been recorded at 11.7% for houses and 10.2% for units.  Over the past decade, annual total returns for housing outside of the capital cities have been recorded at 7.0%, 7.2% for houses and 5.6% for units.
<h3 class="text-align-center">Annual total returns from the housing asset class, combined regional markets</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image3.png" alt="">
Hobart has recorded the strongest annual growth of all capital cities over the past year and it also has some of the highest rental yields which has meant it has had the strongest total returns.  Total returns for houses over the past year have been above 10% in each of Sydney, Melbourne, Adelaide, Hobart and Canberra.  For units, double-digit total returns have been achieved over the past year in each of Sydney, Melbourne and Hobart.  Units in Darwin were the only capital city property type to achieve negative returns over the past year.
<h3 class="text-align-center">Annual total returns from the housing asset class, individual capital cities, to Aug-17</h3>
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/20/2017-09-18-image4.png" alt="">
With capital growth now appearing to have peaked and rental yields at record lows it is reasonable to expect a further moderating of total returns over the coming months.  
The other important thing to consider when looking at total returns is the calculation of the rental income.  Although rents are increasing in many areas, the assumption in a gross rental yield calculation is that the property is occupied for 52 weeks of the year.  In some parts of the country this is increasingly difficult to achieve and it can eat into the investment returns.
The total returns data, particularly for the past decade, shows why housing investment has been so popular and hit record highs.  
Returns have been fairly consistent and less volatile than equities however, the ongoing strength and the evidence of a recent slowdown should give investors pause for thought.  
With mortgage rates starting to increase for investors, record-high levels of new housing supply and value growth slowing, housing investors shouldn’t assume that the types of returns seen over recent years will continue to be replicated going forward.
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>

Total returns from housing are starting to ease: Cameron Kusher

<html><body>
Earlier this week the Australian Bureau of Statistics (ABS) released their Residential Property Price Indexes for the June 2017 quarter.  
The data confirmed what the CoreLogic Home Value Index has already told us, the rate of growth in the housing market is slowing, particularly so in Sydney.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage1.png" alt="">
  Over the June 2017 quarter, the ABS Index shows combined capital city dwelling prices increased by 1.9% while the CoreLogic Home Value Index showed an increase of a lower 1.6%.  
As the above graph shows, the results of both indices are closely aligned.  The CoreLogic data is already available to August and shows a further cooling in the rate of growth over the three months.  
Given this we can expect the trend towards slower growth to hold over the September 2017 quarter.  In fact, the daily movements in the CoreLogic series is suggesting Sydney values trended slightly lower over the first 20 days of September.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage2.png" alt="">
  On an annual change basis both indices also indicate a slowing of the rate of growth.  Over the 12 months to June 2017, the ABS reports combined capital city dwelling prices rose by 10.2% while CoreLogic data shows capital city dwelling values increasing by 11.1%.  Over the 12 months to August 2017, CoreLogic data shows that dwelling value growth has slowed to 9.7% and it is expected that the ABS data once available will also show a similar slowing.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage3.png" alt="">
  Sydney is showing clearer signs of a slowdown than other capital cities and that is evident in the above chart.  Over the June quarter, the ABS showed a change of 2.3% compared to the CoreLogic series which showed a lower 1.6% change.  The CoreLogic data to August shows increasing evidence of the Sydney market cooling with values having increased by a much lower 0.3%.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage4.png" alt="">
 
 The annual series also show signs of softer growth in Sydney with ABS data recording a change of 13.8%, over the 12 months to June down from 14.4% in March.  While the CoreLogic series recorded an annual change to June of 16.4% compared to 15.5% in March. Meanwhile, the latest data for August shows that annual growth in Sydney dwelling values has slowed to 13.0%.
Click to enlarge
<img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage5.png" alt="">
  The above chart shows the annual change in values across each index over the 12 months to June 2017.  Despite being two different methodologies you can see that the rates of change across both metrics are quite similar.  They show strong growth in Sydney, Melbourne and Hobart, reasonably strong growth in Canberra, moderate growth in Brisbane and Adelaide and ongoing declines in Perth and Darwin.
Click to enlarge 
<img src="https://www.urban.com.au/images/2017/09/29/2017-09-21-blogimage6.png" alt="">
 The CoreLogic Hedonic Index provides a much more timely and granular view of housing market conditions (both geographically and across product types) and the trends are interesting.  It shows a substantial slowdown in growth in Sydney and a more moderate slowing in Melbourne.  It indicates that growth has accelerated in Hobart and has accelerated marginally in Canberra and Brisbane.  
Adelaide values are increasing at pretty much the same rate as they were in June while the declines in Perth and Darwin are greater, quite significantly so in Darwin.
Overall the data highlights the value of having a selection of indices with which to analyse the market.  
It also shows how valuable more timely measures are.  
When you are analysing Australia’s single largest asset class, timely insights are extremely important to allow those participants in the housing market to be able to make accurate decisions in as close to real time as possible.
It’s also a timely reminder that there is no single ‘Australian’ housing market.  
While headline growth rates provide a macro-view on the market, each capital city and region of the country is showing its own unique housing market dynamic which is influenced by local demographic and economic trends as well as supply factors.
Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
</body></html>

Rate of growth in the housing market is slowing

<html><body>
Over the last financial year (2016-2017), CoreLogic found that combined capital city dwelling values increased by 9.6% which was actually greater than the 8.3% rise over the 2015-16 financial year.
According to research analyst Cameron Kusher, combined capital city dwelling values have now increased over five successive financial years however, prior to these increases there were successive financial years in which values fell (-1.4% in 2010-11 and -3.6% in 2011-12).
He said, “Across the individual capital cities the growth story over recent financial years has been vastly different.”
In most capital cities, the rate of value growth over the past financial year was superior to that over the previous year. The exceptions were Brisbane and Darwin. A number of cities recorded their greatest increases in values in a number of years highlighting that the rate of growth has been accelerating.
<a href="https://www.propertyobserver.com.au/images/2017/07/14/Screen%20Shot%202017-07-14%20at%2010.15.18%20am.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/2017/07/14/Screen%20Shot%202017-07-14%20at%2010.15.18%20am.jpg" alt="">
Mr Kusher said, “Two of the primary factors influencing the rebound in capital gains during the most recent financial year was the increase in investment activity after 2015/16 which saw investment activity slow on the back of changed prudential policies implemented by APRA, as well as successive rate cuts in May and August last year that added further incentive to property buyers.”
With a new round of macroprudential policies announced at the end of March this year, Mr Kusher said, “It’s likely there will be a similar, if not more pronounced slowdown in investment activity across the housing market.”
“Coupled with affordability constraints and higher mortgage rates, we expect the 2017/18 financial year will record a less substantial rate of capital gains that what was seen in 2016/17.”
How the capitals performed over the 2016-2017 financial year: 
Sydney – dwelling values increased by 12.2% over the past year and it was the fifth successive year in which values rose. Value growth was slightly higher than the 11.3% over the previous financial year.
Melbourne – values have now increased for five successive financial years with each of those years progressively seeing a faster rate of value growth. Over the past year, values increased by 13.7% which was their greatest increase over a financial year since 2009-10.
Brisbane – a 2.0% increase in values over the past financial year was down on the 5.3% the previous year. Brisbane values have increased over each of the past five years however, last year was the slowest rate of growth since 2012-13.
Adelaide – the 2.4% rise in values over the past year eclipsed the 2.1% increase the previous year and marked the fifth consecutive financial year in which values increased.
<a href="https://www.propertyobserver.com.au/images/2017/07/14/Screen%20Shot%202017-07-14%20at%2010.15.51%20am.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/2017/07/14/Screen%20Shot%202017-07-14%20at%2010.15.51%20am.jpg" alt="">
Perth – dwelling values have fallen over each of the past three financial years however, the rate of decline has slowed from -4.7% in 2015-16 to -1.3% in 2016-17. At no other time over the past 20 years have values fallen over three successive financial years in Perth.
Hobart – the 6.8% increase in dwelling values over the past financial year was the greatest increase in values over a financial year since they rose by 8.5% in 2005-06.
Darwin – dwelling values have fallen for three successive financial years. The -7.0% fall in values over the year was the largest annual decline since values fell by -12.6% over the 2010-11 financial year.
Canberra – values rose by 9.6% over the last financial year which was the greatest rise in values over a financial year since 2009-10 when values increased by 13.3%.
<a href="https://www.propertyobserver.com.au/images/2017/07/14/Screen%20Shot%202017-07-14%20at%2010.16.02%20am.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/2017/07/14/Screen%20Shot%202017-07-14%20at%2010.16.02%20am.jpg" alt="">
</body></html>

How did the capital city housing markets perform over the financial year? Cameron Kusher

<html><body>
GUEST OBSERVER
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
At a national level, the six month average trend shows that the number of dwelling sales is starting to trend slightly higher. 
Of note is that settled sales peaked all the way back in July 2003, a time at which the population was around 4.7 million lower than it is currently. 
While the national population increased by almost 4.7 million persons between June 2003 and December 2016, a commensurate lift in transactions has not occurred. 
This is likely due to a number of reasons including the impost of stamp duty which discourages transactions, higher prices which lead to greater commission on sales and no real incentives for people to downsize homes when their children leave or they reach retirement. 
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%209.49.56%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%209.49.56%20AM.png" alt="">
Across the individual capital cities the number of sales and the transaction trends are somewhat mixed. 
Sydney – annual sales volumes are -0.9% lower year on year however, they have been trending higher from a recent low in April 2017.
</div>
</div>
<div class="layoutArea">
<div class="column">
Melbourne – transaction volumes are slightly higher than their recent low however, annual settled sales are -7.6% lower than they were over the 12 months to July 2016. 
Brisbane – annual sales volumes are -9.7% lower over the past year and the number of transactions is clearly continuing to trend lower across the city. 
Adelaide – over the past year, the number of sales throughout the city was only -0.9% lower than over the previous year and the trend data indicates fairly stable transaction volumes. 
Perth – settled sales are substantially lower than their peak and annual sales have fallen by a further -1.1% over the past year however, monthly data points to a recent stabilisation in transaction activity. 
Hobart - the city has seen a substantial lift in transactions over the past 12 months with annual sales 10.9% higher over the past year. 
Darwin – on an annual basis, sales volumes have increased by 10.7% and they have shifted higher off an historic low base. 
Canberra – settled sales are slightly lower over the year, down -1.4% however, there has been a moderate lift in transactions recently.
<a href="https://www.propertyobserver.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%209.50.53%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/03/Screen%20Shot%202017-08-03%20at%209.50.53%20AM.png" alt="">
 
The settled sales insights highlights that although some regions are seeing transactions rise they remain well down on historic high levels. 
The relatively lower volume of transactions across markets experiencing positive population growth highlights the ongoing inefficiencies in the housing market which discourage transactions. 
These inefficiencies (detailed earlier) also have an economic impact as the high cost of exiting and entering the housing market is likely to impact on labour mobility as home owners may choose not to move for employment because of these high costs. 
Note: Property transaction are an important component of the housing market, particularly for participants such as real estate agents and mortgage brokers that rely on turnover for their commission. Furthermore, transactions are an important source of stamp duty revenue for state governments. 
It is important to note the way in which property transactions are recorded. All data is based on settled sales which means off-the- plan sales are counted once the property settles. Upon settlement, which can be several years after the contract date, off-the-plan sales are recorded at their contract date which means recent years of sales will be subject to revision. 
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.
 
</div>
</div>
</div>
</body></html>

Number of dwelling sales starting to trend higher

<html><body>
GUEST OBSERVER
It seems that lenders were already scaling back their appetite for investment lending as early as January this year, with the value of housing finance commitments for investment purposes falling by almost 6 percent in February; the largest fall in lending for investment purposes since September 2015. 
While this is only one month of data, it is likely that investment lending has moved, or is moving through the peak of the cycle.
The February 2017 housing finance data which was released today by the Australian Bureau of Statistics (ABS). 
The data showed that in February 2017 there was $32.9 billion worth of housing finance commitments which was -2.7 percent lower over the month but 3.5 percent higher compared to the value in February 2016. 
To highlight how much lending is going to housing it is interesting to note that five years earlier, $20.4 billion worth of housing finance commitments was recorded in February 2012.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-1-1.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/2017/04/12/chart-1-1.jpg" alt="">
The $32.9 billion of housing finance commitments in February 2017 consisted of $20.0 billion to owner occupiers and $12.9 billion to investors. 
The value of lending to owner occupiers has changed very little over the past eight months and was -0.5 percent lower over the month and -2.3 percent lower year-on-year. 
The value of lending to investors fell by -5.9 percent in February but is still 14.0 percent higher year-on-year. 
The -5.9 percent monthly fall in the value of lending to investors was the largest monthly fall since September 2015 and is a dramatic change in direction for investment lending which has been trending higher since January 2016.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-2-1.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/2017/04/12/chart-2-1.jpg" alt="">
Owner occupier housing finance commitments are split into four types: construction of dwellings ($1.8 billion), purchase of new dwellings ($1.0 billion), refinancing of established dwellings ($6.2 billion) and purchase of established dwellings ($11.0 billion).  Construction of dwellings and purchase of new dwellings rose over the month and were also the only commitment types higher year-on-year. 
Lending for refinances in particular have been in a steady decline since December 2015, at that time there were $7.3 billion in commitments over the month with the $6.2 billion in February 2017 tracking -15.6 percent lower. 
This does seem a little counter-intuitive given that since December 2015 there has been substantial repricing of mortgage rates since that time and investors have returned to the market which could have involved refinancing of their owner-occupied properties to fund the investment.
<a href="https://www.propertyobserver.com.au/images/2017/04/12/chart-3-1.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/2017/04/12/chart-3-1.jpg" alt="">
Lending to investors slowed markedly in February 2017 with the two components: new construction ($1.0 billion) and established dwellings ($11.9 billion) each recording a fall over the month. 
Lending for construction was -13.6 percent lower in February while lending for established dwellings fell by -5.2 percent. 
The decline in housing finance commitments predates the new policy announcement from APRA to lenders a week ago notifying them of changes to lending policies, in particular for interest-only lending which is popular amongst investors. 
Although the letter was only recently published, the discussions about the lending policy changes have probably been ongoing with lenders for a number of months and may help to explain the fall in investor lending in February. 
Over the next few months it will be interesting to see the direction of lending to investors, if it falls like it did after April 2015, it could lead to a slowdown in the rate of value growth in the housing market although there is little evidence of this occurring as yet.
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/2017/04/12/chart-4-1.jpg" alt="">
The above chart shows the value of lending for new housing compared to the value for existing housing, note that refinances are excluded from this data.  New housing is defined as: owner occupier construction of dwellings, owner occupier purchase of new dwellings and investment construction of dwellings which totalled $3.9 billion in February 2017 compared to $22.9 billion for existing housing. 
New housing accounted for 14.5 percent of total housing finance commitments over the month. Even though we are in the midst of a housing construction boom there has been no substantial increase in the value of finance commitments for new housing over recent years. Keep in mind though that there are substantially more established properties than new with the 9.8 million dwellings nationally only increasing by 1.8 percent over the past year.
The next few months of housing finance commitments data will be interesting to follow to see if the softness in investor demand continues.  Also with many lenders repricing mortgage rates since February there may be an increase in refinance activity which has been slowing since the end of 2015. 
Overall the nature of the mortgage market is changing with higher interest rates and a fresh round of macroprudential controls recently implemented. The next few months should provide insight into whether these tools can ultimately slow some of the current exuberance being shown by investors.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
</body></html>

Investor lending slows in February before the APRA crackdown was announced

<html><body><div title="Page 1">
<div>
<div>
<div>
Household finance data released by the Reserve Bank (RBA) each quarter looks at the ratios of household debts and assets to disposable income. The latest RBA update shows that while households debt is growing, asset wealth is simultaneously increasing. 
<div title="Page 1">
<div>
<div>
<div>
According to the RBA, the ratio of household debt to disposable income was recorded at 193.7% at the end of June 2017 and now sits at a record-high having increased by 2.0% over the quarter and by 3.9% over the year.
According to CoreLogic research analyst Cameron Kusher it was not surprising to see that most of this debt is housing related; the ratio of housing debt to disposable income is recorded at 136.4% having increased by 1.4% over the quarter and 3.9% over the year.
Kusher said, “Clearly, household and housing debt has increased over time relative to disposable incomes. Of note is that since the financial crisis, the rate of escalation has slowed.”
Further data from the RBA reveals that of the 136.4% ratio of housing debt to disposable income, 103.2% is held by owner occupiers with the remaining 33.2% held by investors.
At the end of June 2017 the ratio of household assets to disposable income was recorded at 935.6% and the ratio of housing assets to disposable income was 516.5%, both of which were record highs. Over the past year household assets and housing assets have increased by 6.6% and 7.8% respectively, well in excess of the increase in household and housing debt.
<a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher1.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/10/05/Kusher1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/05/Kusher2.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher3.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/05/Kusher3.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher4.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/10/05/Kusher4.png" alt="">
By comparing the ratios of assets and debt the RBA also produces ratios of household and housing debt to assets. Mr Kusher said, “The data reiterates that although debt levels are high, at this stage debt is well supported by assets which are valued substantially higher.”
Over recent years the ratios of household and housing debt to assets has actually been falling. In June 2017, the ratio of household debt to assets was recorded at 20.7% and the ratio of housing debt to assets sat at 26.4%.
According to Kusher, a big contributor to the declining ratio of debt to assets over recent years has been the ongoing fall in interest rates to their current lows. At the end of June 2017 the ratio of household interest repayments to disposable income was 8.7% and for housing it was 7.1%. Lower interest rates also mean that where there is a debt, debtors have the ability (if they choose) to maintain previous repayments which in turn means additional debt is repaid as interest rates fall.
He said, “The latest household finance data from the RBA highlights that Australian households are heavily indebted, largely due to housing. While debt levels are high, the value of household and housing assets are, at this stage, considerably greater than the level of debt.”
“Of course, if household and housing asset values begin to fall in the future, the accompanying debt may not fall at the same rate and that remains the main concern with the ongoing increase in household and housing debt.
“Although Australia survived the financial crisis with much less damage than many other countries, of note was the fairly sharp rise in the ratio of household and housing debts to assets over that period. A more sustained downturn could potentially see a much greater increase in these ratios as asset values fall but the debt against these assets remain,” Mr Kusher said. 
</div>
</div>
</div>
</div>
 
</div>
</div>
</div>
</div></body></html>

Household debt growing slower than asset wealth as both hit record highs

<html><body>
Building activity data for the June 2017 quarter was published by the Australian Bureau of Statistics earlier this week. The data contains additional insight to the housing construction sector, tracking quarterly dwelling commencements, completions and counts of dwellings under construction. The data is showing a softening in commencements as approvals have slowed but still heightened levels of completions and dwellings under construction. 
<h3>Dwelling commencements</h3>
Over the June 2017 quarter, seasonally adjusted data showed that 28,087 new houses and 24,380 new units commenced construction nationally.  The number of houses commenced was 3.3% higher over the quarter but -7.1% lower than a year earlier while unit commencements were down -0.8% over the quarter and -6.6% lower over the year.     Year-on-year new house commencements were lower in each state and territory, recorded at: -3.5% in NSW, -7.2% in Vic, -3.1% in Qld, -10.6% in SA, -12.2% in WA, -7.0% in Tas, -29.1% in NT and -37.9% in ACT.   Year-on-year new unit commencements were higher in NSW (3.3%), Vic (3.2%), SA (35.0%) and Tas (153.1%) and they were lower in Qld (-30.4%), WA (-40.5%), NT (-40.9%) and ACT (-17.7%).
Commencements for houses picked up over the quarter but are lower across all regions over the year.  Meanwhile unit commencements are trending lower in most states and territories with notable exception of NSW, Vic and Tas.  NSW and Vic have been home to the two strongest housing markets over recent years (Sydney and Melbourne) and are seeing the largest increases in population fuelling housing demand.  Meanwhile, dwelling values in Tasmania’s largest city (Hobart) are rising at the fastest rate of any capital city while stock levels are very low so it seems a supply response is occurring.
<h3>Dwelling completions</h3>
Seasonally adjusted data nationally shows that over the June quarter there were 28,251 houses and 25,090 units completed nationally.  Interestingly these figures are fairly closely aligned to commencements so what was completed was effectively replaced as having started construction.  Over the quarter, new house completions were down -1.2% and new unit completions were -10.2% lower.  Year-on-year new house completions were -9.0% lower and new unit completions were down -5.2%.   State and territory data which isn’t seasonally adjusted shows that year-on-year, new house completions rose in NSW (8.6%), Qld (18.3%) and ACT (73.3%) while completions were lower in Vic (-12.8%), SA (-3.7%), WA (-45.3%), Tas (-29.8%) and NT (-44.2%).   New unit completions increased over the year in Vic (11.1%), Qld (13.7%) and ACT (29.6%) and were lower in NSW (-20.4%), SA (-41.6%), WA (-22.3%), Tas (-40.0%) and NT (-69.9%)
Completions remain at high levels however, they have eased back a little.  Given that there remains a high volume of stock under construction (as we will analyse shortly) it’s anticipated that completions are likely to remain elevated for some time.
<h3>Dwellings under construction</h3>
At the end of the June 2017 quarter, there were 216,242 dwellings under construction nationally.  Although the number of dwellings under construction is down from its historic high of 224,314 in September 2016, it is still at an extremely elevated level.  As a comparison, the long-term average number of dwellings under construction at the end of a quarter is 106,774 and even over the past 10 years the average has been recorded at 153,545.  In June 2017, there were 62,409 new houses and 151,510 new units under construction nationally.  Again, both are well above the long-run averages of 48,329 and 38,964 respectively.   Looking at the data across the states, at the end of the quarter the number of new houses under construction was recorded at: 17,845 in NSW, 21,401 in Vic, 8,605 in Qld, 4,726 in SA, 7,669 in WA, 1,227 in Tas, 276 in NT and 660 in ACT.  By comparison, the long-term average number of houses under construction across the states is recorded at: 13,566 in NSW, 15,186 in Vic, 7,250 in Qld, 3,681 in SA, 7,455 in WA, 1,548 in Tas, 544 in NT and 938 in ACT.  All states and territories except for Tas, NT and ACT currently have more new houses under construction than the long-term average.   The number of new units under construction is where there is generally a substantial deviation from the long-term average.  Across the states, at the end of the June 2017 quarter the number of new units under construction was recorded at: 64,470 in NSW, 43,240 in Vic, 27,420 in Qld, 4,230 in SA, 6,360 in WA, 391 in Tas, 495 in NT and 4,904 in ACT.  Tas is the only state or territory with fewer new units currently under construction than its long-term average which is recorded at 431.  Across the remaining states, the long term average number of new units under construction is: 17,162 in NSW, 10,854 in Vic, 7,897 in Qld, 1,955 in SA, 3,382 in WA, 445 in NT and 1,235 in ACT.  The current number of new units under construction in NSW (+276%), Vic (+298%), Qld (+247%), SA (+116%) and ACT (+297%) is well in excess of double the long-term average.
The volume of new housing stock under construction remains at dizzying heights, albeit not quite as high as a few quarters ago.  The surge in stock under construction is being driven by units which by nature take longer to build and deliver more stock in a single project than houses. Interestingly, the number of units under construction has slowed in Vic and Qld but continues to climb in NSW.  This is probably to do with the fact that many property purchasers in NSW can simply no longer afford houses (particularly in Sydney) so units become their only housing purchase option. 
<h3>Conclusion</h3>
Although dwelling approvals have eased from their record high levels, over recent months they have been fairly steady.  They seem to have settled at a level which is well above long-term average levels.  While this means that commencements won’t be as strong going forward they are likely to remain high relative to historic levels.  There is a significant number of new dwellings (particularly units) under construction which means that completions are likely to remain elevated for some time. Once they do fall we would expect them to stabilise at a level well above the long-term average.  With the national population increasing rapidly, these people need to be housed so although housing construction is unlikely to remain as strong as it has been recently, we do expect that a substantial volume of housing construction is likely to continue to take place.
</body></html>

Pipeline of housing stock has peaked but pending supply remains well above long term average levels

<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