<html><body>
<p>EXPERT OBSERVER</p>
<p>In previous instances when value growth has slowed or started to fall in Sydney and Melbourne the experience has often been that value growth has ramped-up in other capital cities. This makes sense given that as affordability deteriorates in certain areas of the country people start to turn their attention elsewhere.  </p>
<p>This week’s blog takes a look at the comparative value of housing in other capital cities and nearby markets relative to in Sydney and Melbourne.</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg1.png" alt="Dwelling value premium in Sydney relative to other capital cities" width="584" height="191"></p>
<p> <br>Sydney is the nation’s most expensive capital city housing market currently with the median dwelling value in June 2018 recorded at $870,554. The premium for the median dwelling value in Sydney relative to the other national capital cities is: 21% for Melbourne, 76% for Brisbane, 98% for Adelaide, 89% for Perth, 99% for Hobart, 101% for Darwin and 48% for Canberra. With dwelling values in Sydney now falling, the premium is reducing however, the cost of housing in Sydney relative to other capital cities is generally significantly higher than the long-term averages. In fact only Melbourne (42%) and Hobart (103%) have a current differential which is lower than the long-term average.</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg2.png" alt="Dwelling value premium in Sydney relatice to Regional NSW areas" width="592" height="194"></p>
<p> <br>Of course, people that potentially migrate out of Sydney don’t necessarily only choose to go interstate, they may also migrate intrastate. The above chart highlights the value differential over time between Sydney and those regions adjoining the city as well as the Capital Region (adjoining Canberra) and Richmond-Tweed (adjoining South-East Queensland). The premium for Sydney dwellings compared to those in the other regions highlighted is currently: 105% for Capital Region, 176% for Central West, 113% for Hunter Valley exc Newcastle, 29% for Illawarra, 52% for Newcastle and Lake Macquarie, 64% for Richmond-Tweed and 47% for Shoalhaven. Although values have increased in regional NSW over the past year, the rate of growth has slowed substantially, particularly within Illawarra, Newcastle and Lake Macquarie and Southern Highlands and Shoalhaven. These three regions have been seeing strong value growth over the past five years and they are also the only three regions in which the value differential is lower (substantially so) than the long-term average.</p>
<p><a href="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg3.png" target="_blank">Click</a> to enlarge</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg3.png" alt="Dwelling value premium in Melbourne relative to other capital cities" width="590" height="193"></p>
<p> <br>Looking at the value differential between Melbourne and other capital cities, except Sydney, Melbourne’s median dwelling value of $716,774 is higher than all other capital cities. The premium for Melbourne is currently recorded at: 45% for Brisbane, 63% for Adelaide, 55% for Perth, 64% for Hobart, 65% for Darwin and 22% for Canberra. The value differential for Melbourne to all these capital cities is greater than the long-term average. In fact, notwithstanding the recent slight reductions due to Melbourne value falls, the value gap between Melbourne and Brisbane, Melbourne and Adelaide and Melbourne and Darwin is the largest it has ever been.  </p>
<p><img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg4.png" alt="Dwelling value premium in Melbourne relative to Regional Vic areas" width="590" height="193"></p>
<p> <br>The above chart looks at the dwelling value premium for Melbourne relative to the major regional areas adjoining the capital city. Melbourne retains a significant premium in terms of housing costs relative to these areas. What is very different to what was shown in the chart for Sydney and Regional NSW areas is that outside of Geelong, the housing cost premium in Melbourne remains well above the long-term average. This suggests that while value growth has been rippling out of Melbourne to Geelong for some time, it has only just started to spill-out into the other three regions recently.  The current premium for Melbourne dwellings relative to the other regions is: 99% for Ballarat (80% long-term average), 100% for Bendigo (74% long-term average), 29% for Geelong (40% long-term average), 123% for Latrobe-Gippsland (89% long-term average). </p>
<p>There are some explainable reasons why dwelling values in Sydney and Melbourne have risen so substantially over recent years. These include but are not limited to: strong rates of migration to the cities, dramatically increased foreign investors, low mortgage rates, increased demand from investors and much stronger economic conditions than elsewhere in the country. The latest data shows a pull-back in net overseas migration, slowing interstate migration to NSW and Vic, foreign investment has reduced, fewer local investors and reduced availability of credit for housing despite still low mortgage rates. Sydney and Melbourne still have comparatively strong economies but we have started to see the economic performance elsewhere improve. Sydney and Melbourne have also seen a dramatic reduction in housing affordability over recent years as dwelling values have increased much faster than household incomes. The value gap between Sydney and Melbourne and other regions doesn’t necessarily mean that value growth will pick-up elsewhere where dwelling values are much lower. However, if other areas of the country can improve their economic performance, the lure of much more affordable housing may be enough of a lure to see an increasing number of Sydneysiders and Melbournians to migrate away from these two cities to other areas of the country.</p>
<p><em>Cameron Kusher is a property research analyst for CoreLogic</em></p>
</body></html>

ckusher-ujnxiKuFQs

Value differential of different capital cities in Australia over the years: Cameron Kusher

<html><body>
<p>Over recent weeks, auction clearance rates across the nation’s two largest housing markets (Sydney and Melbourne) have been significantly lower than they were 12 months ago however, they haven’t necessarily been all that much lower than the previous years.  While comparing auction volumes and clearance rates to a year ago is valuable, it is much more valuable to look at how these metrics compare across a number of years.</p>
<h3>Melbourne</h3>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg1.png" alt="2017-11-27--melbourneweeklyauctionclearancerates" width="570" height="214"></p>
<p>Auction clearance rates in Melbourne are currently substantially lower than they were a year ago.  In fact, the clearance rate of 66.9% last week was the lowest since July of last year.  Although clearance rates are lower than they were a year ago, they are at fairly similar levels to what was being recorded at the same time of year in 2013, 2014 and 2015.  The chart really highlights just how much stronger the auction market in Melbourne was a year ago relative to other recent years.</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg2.png" alt="2017-11-27--melbourneweeklyauctionvolumesoverrecentyears" width="570" height="214"></p>
<p> <br>The volume of properties being taken to auction, particularly over recent months, has generally been higher than over recent years.  By comparison, in 2016 when clearance rates were much higher than they have been this year, the number of properties being taken to auction was relatively lower than over recent years.  The higher number of properties being taken to auction is likely to be having some impact on the weaker clearance rates this year relative to last however, volumes are also much higher currently than they were in 2013, 2014 and 2015 a time at which clearance rates were fairly similar to current levels. Given this, clearance rates are actually holding up quite well considering much higher volumes of auctions.</p>
<h3>Sydney</h3>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg3.png" alt="2017-11-27--sydneyweeklyauctionclearancerates" width="570" height="214"></p>
<p>Auction clearance rate in Sydney have been at their lowest levels since 2012 over recent weeks and have been on a steady decline throughout 2017.  If you exclude the low volumes in January, last week’s auction clearance rate of 54.8% was the cities lowest clearance rate since December 2015.  Clearance rates have not been consistently as low at this time of year since 2012.  Clearance rates are substantially lower than they were a year ago and are also slightly lower than they were two years ago when APRAs first round of macroprudential policies were significantly impacting Sydney housing demand.  If the previous round of macroprudential policies is a guide we can expect a further weakening of clearance rates over the coming weeks.</p>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg4.png" alt="2017-11-27--sydneyweeklyauctionvolumesoverrecentyears" width="570" height="214"></p>
<p> <br>Unlike Melbourne, Sydney is not seeing a substantially higher number of properties being taken to auction compared to recent years.  In fact over recent weeks there has been an equivalent number of auctions across the city to volumes last year when clearance rates were much higher than they are currently, while there have been fewer auctions than in 2015 when clearance rates were similarly weak.  </p>
<p>There has been clear evidence over recent weeks that auction clearance rates have softened in Sydney and Melbourne.  The falling clearance rates in Sydney are occurring on similar volumes of auctions to recent years but matches the recent declines in dwelling values.  In Melbourne, auction clearance rates have slowed and there has also been a moderate slowdown in value growth.  The big difference in Melbourne has been that auction volumes have been much higher so it is difficult to know if the weaker clearance rates are because of the market overall or due to their being too much stock being put up for auction each week. Keep in mind that clearance rates typically soften through Spring as auction volumes increase so we may have to wait until 2018 to truly understand what is driving the apparent weakness in the Melbourne auction market.</p>
<p><em>Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/"><span class="s2">here</span></a>.</em></p>
</body></html>

What is driving the clearance rate weakness in Sydney and Melbourne? Cameron Kusher

<html><body>
<p>CoreLogic's September quarter regional area insights has once again confirmed The Illawarra region in New South Wales as the country’s standout regional performer by recording the largest annual increase in home values of 13.0 per cent for houses and 17.0 per cent for units.  </p>
<p>In contrast, Townsville stood as the only region where values for both houses and units fell over the year to September.  Based on overall transaction activity, the Gold Coast region experienced the biggest fall with dwelling sales down -8.7 per cent over the year to August 2017. <br> <br>For rental rates, the Gold Coast saw the largest increase in advertised rental rates for houses, up 6.0 per cent ($30/week) over the year to September 2017, followed by Richmond-Tweed houses at 5.6 per cent ($25/week). Townsville and Bunbury were the only two regions to see rental rates fall over the 12 months to September 2017. </p>
<h3>New South Wales </h3>
<ul>
<li>Of the three regions analysed for this report (Newcastle and Lake Macquarie, Illawarra and Richmond-Tweed), all experienced home values growth over the year to September 2017; the largest increase was within the Illawarra region, where house and unit values increased by 13.0 per cent and 17.0 per cent respectively, followed by Newcastle and Lake Macquarie.  </li>
<li>In terms of sales activity for the three NSW regions, volumes fall over the year to August 2017 with The Illawarra region experiencing the biggest fall in sales activity with transactions down -5.4 per cent, or 323 fewer homes selling when compared to August 2016. Rental rates increased across all three regions.  </li>
<li>Houses in the Richmond-Tweed region saw the largest increase with rental rates up 5.6 per cent, followed by houses in the Newcastle and Lake Macquarie region (5.0 per cent).  </li>
</ul>
<h3>Queensland </h3>
<ul>
<li> Dwelling sales fell in four of the five regions over the year to August 2017 with the largest fall seen across the Gold Coast, where sales volumes are down -8.7 per cent, followed by Townsville (-6.3 per cent), Cairns (-5.3 per cent) and the Sunshine Coast (2.6 per cent). Across the Wide Bay, sales are in line with one year ago.  </li>
<li>Townsville was the only region to see home values fall, while the Sunshine Coast region saw the largest increase in house values (7.1 per cent), and the Gold Coast region saw the largest increase in unit values (6.9 per cent) values.  </li>
<li> Across the Queensland rental market, the Gold Coast region recorded the largest increase in rental rates for houses (6.0 per cent), while Townsville saw rental rates fall over the year.  </li>
</ul>
<h3>Victoria</h3>
<ul>
<li>Sales activity was down -1.9 per cent across Geelong, while the Latrobe-Gippsland region saw a slight increase (1.8 per cent) in the amount of homes transacting over the year to August. Both regions saw home values increase over the 12 months to September, with values increasing by 8.8 per cent for houses and 6.1 per cent for units in Geelong, compared to the Latrobe-Gippsland region, where house and unit values increased by 4.8 per cent and 1.9 per cent respectively.  </li>
</ul>
<h3>Western Australia </h3>
<ul>
<li>Bunbury region saw house values increase by 2.6 per cent over the year to September 2017, while unit values fell -4.4 per cent. Sales volumes across the region fell -3.9 per cent over the 12 months to August, with current activity -14 per cent below the five year average. Rental rates in the Bunbury region fell -3.6 per cent for houses and -9.1 per cent for units when compared to September 2016. </li>
</ul>
<p> <br>Across all three quarters in 2017 (March, June and September) The Illawarra region has consistently recorded the largest annual increase in home values each quarter, followed by the Newcastle &amp; Lake Macquarie and Richmond-Tweed regions.  <br> <br>Cairns has seen minimal movement in home values, while Townsville has recorded a negative annual increase in home values each of the quarters. Townsville and Bunbury were the only regions to see rental rates fall over the 12 months to March, June and September for both houses and units, while Wide Bay units remained unchanged over the same period. <br> <br>Overall, our latest data points to an increase of value growth in regional markets, particularly those which are located adjacent to capital cities. As people are priced out of certain capital cities, buyers now appear to be looking to these adjacent regions.</p>
<p>Home owners in Sydney and Melbourne have seen a substantial rise in housing equity over recent years. Subsequently, we are seeing some evidence that these buyers are starting to look for holiday and investment properties in certain regional markets which is also providing an impetus for some of the value growth we are currently seeing. </p>
</body></html>

Townsville the weakest region for both house and unit prices: CoreLogic

<html><body><div title="Page 1">
<div>
<div>
<div>
<p>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. </p>
<div title="Page 1">
<div>
<div>
<div>
<p>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.</p>
<p>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.</p>
<p>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.”</p>
<p>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.</p>
<p>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.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher1.png" target="_blank">Click to enlarge</a></p>
<p> <img src="https://www.urban.com.au/images/2017/10/05/Kusher1.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher2.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/05/Kusher2.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher3.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/05/Kusher3.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/05/Kusher4.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/05/Kusher4.png" alt=""></p>
<p>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.”</p>
<p>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%.</p>
<p>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.</p>
<p>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.”</p>
<p>“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.</p>
<p>“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. </p>
</div>
</div>
</div>
</div>
<p> </p>
</div>
</div>
</div>
</div></body></html>

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

<html><body>
<p>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. </p>
<h3>Dwelling commencements</h3>
<p>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.  <br> <br>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.<br> <br>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%).</p>
<p>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.</p>
<h3>Dwelling completions</h3>
<p>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%.<br> <br>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%).<br> <br>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%)</p>
<p>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.</p>
<h3>Dwellings under construction</h3>
<p>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.<br> <br>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.<br> <br>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.</p>
<p>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. </p>
<h3>Conclusion</h3>
<p>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.</p>
</body></html>

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

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<div title="Page 1">
<div>
<div>
<div>
<p>Despite a surging population and record high levels of new construction, a lower proportion of housing stock is selling. </p>
</div>
</div>
</div>
</div>
<p>The analysis, paired annual settled sales data with dwelling counts over time to show that the proportion of total housing stock turnover on an annual basis. </p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>The analysis found that over the 12 months to September 2017, just 5% of the national housing stock transacted; the lowest proportion of stock-turnover since April 2012 when it was at an historic low of 4.9% of stock transacted. Over the nine years of data available, an average of 5.5% of the national housing stock transacts in a given year.</p>
<div title="Page 1">
<div>
<div>
<div>
<p>Across the combined capital cities, a record-low of 4.7 percent housing stock transacted over the past year which was well down on the 5.6% average. Across the combined regional markets, 5.6% of housing stock transacted which was slightly higher than the 5.5% average. In both the capital city and regional housing markets stock turn-over is slowing. </p>
<p><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/2017/10/26/Total.jpg" alt=""></p>
</div>
</div>
</div>
</div>
<div title="Page 1">
<div>
<div>
<div>
<p>Housing turnover is impacted by supply and demand factors. From the demand side of things the contributors are the rate of population growth, growth in household incomes, levels of investor demand and accessibility to credit. </p>
</div>
</div>
</div>
</div>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>From the supply side the factors include the level of new housing construction and how much stock is actually available for sale at any given time. Other factors include the costs associated with buying and selling properties as well as government policies such as incentives for first home buyers.” </p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Across the states and territories, the trends are interesting: </p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>NSW: In Sydney an historic low 4.7% of housing stock transacted over the past year and in regional NSW the figure was 5.9%. In each region turnover has slowed. </p>
<p><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/2017/10/26/NSW.jpg" alt=""></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Vic: Historic low 4.4% of Melbourne housing stock turned-over throughout the past year compared to 4.9% of regional Vic stock. Both of the regions are seeing a fall in turnover.</p>
<p><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/2017/10/26/Vic.jpg" alt=""></p>
<div title="Page 1">
<div>
<div>
<div>
<p>Qld: Stock turnover is well above record lows in Brisbane (5.8%) and regional Qld (5.8%). Brisbane turnover is only slightly below average (5.9%) while regional Qld turnover is at average levels. </p>
<p><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/2017/10/26/QLD.jpg" alt=""></p>
</div>
</div>
</div>
</div>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>SA: Turnover is fairly steady in SA recorded at 5.7% in Adelaide and 5.8% in regional SA. In each region turnover is slightly above long- term average levels. </p>
<p><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/2017/10/26/SA.jpg" alt=""></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>WA: After a large fall over recent years, turnover has stabilised at a record low in Perth (3.6%) and has increased slightly from record lows in regional WA (4.2%). </p>
<p><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/2017/10/26/WA.jpg" alt=""></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Tas: In Hobart, 5.9% of housing stock sold last year compared to a long-term average of 5.4% annually and in regional Tas 6.1% of stock sold compared to a long-term average of 5.3% </p>
<p><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/2017/10/26/Tas.jpg" alt=""></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>NT: 4.2% of housing stock transacted over the past year in Darwin and 4.7% of stock in regional NT. There has been a significant fall in turnover across the state as dwelling values have fallen.</p>
<p><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/2017/10/26/NT.jpg" alt=""></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p>Canberra: Over the past year, 4.8% of housing stock sold which is an historic low level. </p>
<p><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/2017/10/26/Canberra.jpg" alt=""></p>
<div title="Page 1">
<div>
<div>
<div>
<p>The figures are stark given just how little of the Australian housing market actually sells in any given year.</p>
<p>A big driver of the low level of turnover over the past year has been relatively low levels of stock for sale, particularly in our largest capital cities and the high costs associated with stamp duty when buying a property.</p>
<p>The impost of stamp duty discourages turnover as we have recently seen with the removal of stamp duty for first time buyers under certain price thresholds in NSW and Vic.</p>
</div>
</div>
</div>
</div>
<div title="Page 1">
<div>
<div>
<div>
<p>Once removed there has been a surge in housing finance commitments by first home buyers.</p>
<p>The final consideration for the low turnover is the high cost of housing in Australia, because the cost is high it is a significant consideration for households as to whether or not to purchase a property. </p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span style="font-size: 12.16px;"> </span></p>
<p><span style="font-size: 12.16px;"> </span></p>
</div>
</div>
</div>
</div>
<p><span style="font-size: 12.16px;"> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div>
<p><span style="font-size: 12.16px;"> </span></p>
</div>
</div>
</div>
</div>
<p><span> </span></p>
</div>
</div>
</div>
</div></body></html>

Dwelling construction surges yet housing turnover falls

<html><body>
<p>EXPERT OBSERVER</p>
<p>The national housing market has just experienced its largest downturn in dwelling values since at least the 1980s.</p>
<p>The fact that values nationally fell by less than 10% speaks to the ongoing strength of the housing market over the past 40 years which has culminated in Australia being one of the most expensive places in the world in which to buy property.</p>
<p>Since the federal election in May, there have been ongoing signs of improving market conditions.</p>
<p>This has been driven by a number of factors including: an unexpected win by the Coalition in the federal election which removed uncertainty about changes taxation policies relating to investment, two 25 basis point cuts to interest rates, tax cuts for low income earners and an easing of some of the previous lending restrictions that were in place.</p>
<p>While there are clear signs of improving conditions, many point to the fact that the very low volume of sales in the market indicate that the recovery is not real or unsustainable.</p>
<p>While that could very well prove to be true if/when stock levels rise, the truth of the matter is that in a downturn, sales volumes typically fall and subsequently, the early stages of a housing recovery are usually characterised by low volumes of sales.</p>
<p><img src="https://www.urban.com.au/images/2019/8/23/CL%20Recovery%201.JPG" alt=""></p>
<p>The above chart shows the monthly volume of settled sales for dwellings nationally, together with the rolling three month change in dwelling values nationally. The dotted line represents 0% change, so anything below means that values are falling and anything above is indicative of growth. What becomes quite clear from the data is that when values are declining, sales volumes typically fall and increasing values typically leads to higher volumes.</p>
<p>What is also evident is that the market doesn’t respond immediately, when values start rising, initially at least, it isn’t necessarily occurring in concert with a rise in sales volumes. Even recent examples in the 2009 and 2011 market recoveries show this to be the case.</p>
<p>This is precisely what is occurring at the moment, specifically in Sydney and Melbourne where housing conditions are improving following a sharp downturn.</p>
<p><img src="https://www.urban.com.au/images/2019/8/23/CL%20Recovery%202.JPG" alt=""></p>
<p>Another way to look at how a housing market recovery starts out with low sales volumes is the auction market.</p>
<p>Coming out of the Global Financial Crisis (GFC), values nationally started to lift in January 2009. Equally, the above chart shows how auction clearance rates bounced however, this bounce occurred with very low volumes of auctions taking place.</p>
<p>Equally, the housing recovery which started in early 2012 saw a relatively low number of auctions occurring right through until early 2013. It is a similar story right now with auction clearance rates having bounced higher since the middle of May, yet the volume of properties going to auction remaining quite low.</p>
<p><img src="https://www.urban.com.au/images/2019/8/23/CL%20Recovery%203.JPG" alt=""></p>
<p>Finally, you can only really take to auction or purchase what is available for sale. One of the major reasons why transaction volumes remain so low is because there is very little actually available for sale. The number of new listings nationally (new listings are anything not previously advertised for sale over the past 6 months) are the lowest they’ve been at this time of year for many years and are -18.9% lower than they were last year.</p>
<p>Total listings are also lower than they’ve been at this time of year for many years and are -4.4% lower than they were a year ago.</p>
<p>Auction volumes have certainly fallen much more than volumes in the general market however, as housing market conditions have softened, vendors have become much more selective about which properties are appropriate to be taken to auction.</p>
<p>Notwithstanding that, as we have seen in the past you can’t say that an increase in dwelling values is not sustainable just because the volume of stock either selling or going to auction is low.</p>
<p>Ultimately, you can only transact that which is actually available for sale and at this point there is not a lot of stock available for sale. Of course as we enter spring that may change and a higher volume of stock for sale may prove to snuff out any increases in housing values but at this stage the improving trend is quite real.</p>
<p><em>CAMERON KUSHER is the head of research for the Australian branch of CoreLogic</em></p>
<p><em>Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.</em></p>
</body></html>

The signs of a market recovery: CoreLogic's Cameron Kusher

<html><body>
<p>EXPERT OBSERVER</p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The latest data from the Australian Prudential Regulation Authority (APRA) on property exposures data from authorised deposit-taking institutions (ADIs) shows that the tougher lending policies of recent years continue to reduce mortgage risks. </span></p>
<p><span><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/2019/6/21/new-mortgage-annual-change.jpg" alt=""></span></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Over the March 2019 quarter, APRA reports that there was $72.395 billion in residential mortgages to households, which was -17.9% lower than the previous quarter and down -16.5% on the March 2018 quarter. </span></p>
<p><span>As the chart shows the value of lending to investors and owner-occupiers is falling. </span></p>
<p><span>Over the quarter the value of lending to owner-occupiers was -17.6% lower and it was down -15.2% year-on-year. Lending to investors was -18.7% lower over the quarter and -19.6% lower year-on-year. </span></p>
</div>
</div>
</div>
</div>
<p><span><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/2019/6/21/value%20and%20share%20change.jpg" alt=""></span></p>
<div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>The heightened level of interest-only lending has been seen as a key risk in the market and new interest- only lending has fallen over the quarter both on a value and share of total basis. </span></p>
<p><span>Over the quarter there was $10.785 billion in interest-only lending which was the lowest on record. </span></p>
<p><span>As a share of total lending, interest-only was also at a record low of 14.9% which is a far cry from its peak at 45.6% in June 2015. </span></p>
<p><span>As a proportion of the total portfolio of outstanding loans, interest-only now accounts for a record low 23.3% which is down from a peak of 39.5% in June and September 2015.</span></p>
<p><span><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/2019/6/21/quartlery%20new%20lending.jpg" alt=""></span></p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>Interest-</span><span>only lending isn’t the only are</span><span>a in which there has been a reduction riskier lending. The value of low documentation loans, other non-standard loans and loans approved outside of serviceability all fell over the quarter in terms of both value and their share of total lending. </span></p>
<p><span>In fact at 0.1% of total lending over the quarter, both other non-standard loans and low documentation loans were at an historic low share of mortgages while the 4.3% of loans that were approved outside of serviceability was the lowest share since December 2017.</span></p>
<p><span><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/2019/6/21/new%20lending%20LVR.jpg" alt=""></span></p>
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
<p><span>While most areas of riskier lending recorded a reduction over the quarter, there was a slight increase in the share of new mortgages written with a loan to value ratio (LVR) of more than 80%. Over the quarter there was $15.772 billion worth of new mortgages with an LVR of more than 80%. </span></p>
<p><span>Although that was the lowest value on record, that is more a function of reduced overall demand for mortgages. The share of mortgages with an LVR in excess of 80% was recorded at 21.8% over the quarter which was its highest share since March 2017. The share of higher LVR loans is still well below its peak of 37.6% in March 2009 and most new borrowers have more than 20% equity in the property they are purchasing. </span></p>
<p><span>Nevertheless, it is a little surprising that given the current tight credit conditions and falling dwelling values that there is an increased willingness to lend to borrowers with less than a 20% deposit. </span></p>
<p><span>Overall, the data reflects the ongoing improvements in mortgage quality and the shift towards reducing the build-up of risk in the mortgage market. We would expect the current conditions to continue over the next quarter. Thereafter it will be interesting to see what happens given that there has been an interest rate cut and it looks as if APRA will be relaxing some of the serviceability limits in place on mortgages. </span></p>
<p><span>On the other side of things, comprehensive credit reporting is being implemented which is likely to mean even more scrutiny on borrowers debts and subsequently increased pressure on lenders to write high quality mortgages. </span></p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
<p><em><span>CAMERON KUSHER </span> is the head of research for the Australian branch of CoreLogic</em></p>
<p><em>Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.</em></p>
<p><span> </span></p>
</div>
</div>
</div>
</div>
</body></html>

Lenders continue to reduce the risks in their mortgage books

<html><body>
<p>EXPERT OBSERVER</p>
<p>A combination of housing values trending lower and sluggish rental conditions, CoreLogic research out today looks at the total investment return trends across Australia’s capital cities and broad regional markets.</p>
<p>Over the 2018-19 financial year, total returns from residential property recorded a fall of -3.3%.</p>
<p>Returns were down from the previous year and it was the only financial year since at least 2005/06 that total residential property returns were negative.</p>
<p>To put that in context, housing returns last year were worse than those recorded during the financial crisis and during the 2010- 12 housing downturn.</p>
<p>The combination of falling values and historically low rental yields have driven total returns into negative territory.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%201.JPG" alt=""></p>
<p>Looking at the national figures in the context of the combined capital cities and combined regional markets shows that returns have reduced over the year across both regions.</p>
<p>However, combined capital city returns have fallen -4.5% while combined regional market returns remained mildly positive at 1.6%.</p>
<p>For the combined capital cities it was the weakest returns on record and the first negative annual return, while across the combined regional markets it was the weakest annual return since 2008-09.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%202.JPG" alt=""></p>
<p>Across NSW, total returns fell over the 2018-19 financial year in both Sydney and regional NSW.</p>
<p>For Sydney, it was the second consecutive financial year in which returns have fallen however, it was a larger -6.7% fall compared to the previous year and the largest fall of any time since 2005-06.</p>
<p>In regional NSW total returns were - 0.5% lower over the past financial year and it was the first time over the period that total returns recorded a decline.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%203.JPG" alt=""></p>
<p>In Vic total returns were lower over the most recent financial year in both Melbourne (-6.0%) and regional Vic (4.5%).</p>
<p>For Melbourne it was the first financial year in which returns were negative since 2011-12 and it was the largest fall in total returns on record.</p>
<p>Although regional Vic total returns remained positive, the market experienced a substantial slowing from the previous year.</p>
<p>Furthermore, it was the slowest growth in total returns for regional Vic since 2011-12 when they increased by 3.5%.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%204.JPG" alt=""></p>
<p>Although total returns throughout the 2018-19 financial year remained positive in Brisbane and regional, Qld there was a substantial reduction in returns across both regions.</p>
<p>Over the year, total returns in Brisbane were recorded at 1.7% the lowest they have been since the 2011-12 financial year and it was the same story in regional Qld with the 3.2% return the lowest since 2011- 12.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%205.JPG" alt=""></p>
<p>Although returns from residential property remained positive over the 2018-19 financial year in SA, both Adelaide and regional SA recorded a slowing of total returns.</p>
<p>Over the year, Adelaide’s total return was 4.1%, which was the smallest return since 2011-12, and down from 6.1% the previous year.</p>
<p>In regional SA, returns slipped from 5.2% the previous year to 4.0%, which was the smallest returns since 2011-12.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%206.JPG" alt=""></p>
<p>Total returns were negative in 2018-19 across WA with both Perth and regional WA recording their largest annual falls in returns on record.</p>
<p>Over the year, total returns in Perth recorded a fall of -5.3% and although returns have fallen over three previous financial years, it was the largest decline on record.</p>
<p>In regional WA, returns declined -5.0%, which was also a larger fall than over any of the three previous financial years in which returns were negative.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%207.JPG" alt=""></p>
<p>Both Hobart and regional Tas maintained positive total returns over the 2018-19 financial year however, it was a significant reduction of returns in Hobart.</p>
<p>Hobart’s return was recorded at 8.1% over the year, down from 17.4% the previous year and its smallest annual return since 2014-15.</p>
<p>In regional TAS the total returns was 11.4%, which was slightly lower than the 13.2% the previous financial year however, returns remained higher than the 10.2% over the 2016-17 financial year.</p>
<p> <img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%208.JPG" alt=""></p>
<p>Total returns from residential property have softened over the past year across NT.</p>
<p>Darwin recorded a decline in total return of -3.0% over 2018-19 which was a larger fall over the previous year but not quite as large as the -3.6% fall in 2015-16.</p>
<p>In regional NT, total returns were recorded at 7.8% in 2018-19, down from 8.5% over the previous financial year.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%209.JPG" alt=""></p>
<p>Canberra recorded total returns of 6.0% over the most recent financial year.</p>
<p>The total return in Canberra has fallen over the year from 9.4% and the 6.0% return is the lowest since 2013-14. Canberra, along with Adelaide and Hobart are the only capital cities in which total returns have not been negative over any of the financial years shown.</p>
<p><img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%2010.JPG" alt=""></p>
<p>With early signs that the rate of decline in housing values has slowed in Sydney and Melbourne and rental yields rising across most regions of the country, the outlook for total returns over the coming year looks a little stronger at a national level.</p>
<p>As always, there will be diversity with most regions of the country outside of Sydney and Melbourne yet to show signs of an improving housing market. We may see an improvement in returns in the two largest capital city housing markets while returns continue to weaken elsewhere.</p>
<p><em>CAMERON KUSHER is the head of research for the Australian branch of CoreLogic</em></p>
<p><em>Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.</em></p>
</body></html>

Housing returns slump over the 2018-19 financial year: CoreLogic's Cameron Kusher

<html><body>
<p>EXPERT OBSERVER</p>
<p>Over the 2018-19 financial year the number of settled property sales fell substantially, down -17.2% from the previous year. Because of the significant difference in sales year-to-year when we are analysing the market performance, especially in terms of sales across price points, looking at the shifts in market share provides a much more accurate picture.</p>
<p>Over the 12 months to June 2019, 12.5% of all houses and 8.0% of units sold nationally transacted for at least $1 million. The share of million dollar house sales was down from 14.7% a year earlier and was also well down from its peak of 15.0% of all sales in March 2018. For units, the 8.0% share over the past year was lower than the 9.4% a year earlier. The fall in million dollar sales over the past year reflects the overall weaker housing market conditions and the fact that higher valued properties have typically recorded the greatest value falls.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_National.PNG" alt="Annual Million $ Sales_National.PNG" width="576" height="186" data-entity-type="file" data-entity-uuid="29e13edb-5eec-47e0-97c6-b5b613674f3c" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_National.PNG"></p>
<p> </p>
<p>Throughout the combined capital cities, 18.4% of all houses and 9.8% of all units sold over the 2018-19 financial year sold for at least $1 million. The share of million dollar house sales was down from 21.9% a year earlier as well as being below the peak of 22.3% of all sales in March 2018. The 9.8% of million dollar unit sales was down from 11.5% a year earlier and was the lowest share since October 2016.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Capital%20Cities.PNG" alt="Annual Million $ Sales_Combined Capital Cities.PNG" width="577" height="185" data-entity-type="file" data-entity-uuid="c9e71fd5-5fad-4eeb-8176-907a038dc747" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Capital%20Cities.PNG"></p>
<p> </p>
<p>Far fewer properties sell for at least $1 million in regional markets as opposed to capital cities. Over the 2018-19 financial year, 4.1% of all houses and 3.3% of all units sold in regional Australia transacted for at least $1 million. While the share of million dollar house sales was marginally lower over the year (down from 4.5%), the share of unit sales was marginally higher than the 3.2% a year earlier.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Regional%20Markets.PNG" alt="Annual Million $ Sales_Combined Regional Markets.PNG" width="573" height="187" data-entity-type="file" data-entity-uuid="020089ea-48e7-4cf0-8947-e13a8ef1bdb7" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Combined%20Regional%20Markets.PNG"></p>
<p> </p>
<p>While a substantial volume of houses and units sold in Sydney are at least $1 million, the share has seen a steady fall over recent years as dwelling values have declined. Over the 2018-19 financial year, 30.2% of all house sales were at least $1 million which was down from 34.2% a year earlier and the smallest share since October 2014. For units, 18.9% of sales were at least a million dollars of the 2017-18 financial year compared to 16.4% over the latest financial year. The 16.4% of unit sales $1 million or greater was the smallest share since the 12 months to January 2016.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Sydney.PNG" alt="Annual Million $ Sales_Sydney.PNG" width="600" height="190" data-entity-type="file" data-entity-uuid="fde8b0f5-7cc3-45b1-ba38-6765cc33f8ea" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Sydney.PNG"></p>
<p> </p>
<p>Like Sydney, Melbourne has recorded a slump in million dollar sales over the past year as values have continued to fall. Over the 2017-18 financial year, 29.0% of all house sales and 7.8% of all unit sales were at least $1 million. Over the past financial year, the share of million dollar sales had reduced to 23.1% for houses and 6.5% for units. The larger falls across higher value housing markets and tighter credit conditions have clearly limited transactions at prices above $1 million.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Melbourne.PNG" alt="Annual Million $ Sales_Melbourne.PNG" width="598" height="188" data-entity-type="file" data-entity-uuid="9fc21a83-94ff-4cdf-9ef7-0c1fd7b939d1" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Melbourne.PNG"></p>
<p> </p>
<p>Over the 2018-19 financial year, 8.7% of all houses and 3.8% of all units sold in Brisbane transacted for at least $1 million. Brisbane values have fallen over the past year and as such there has been a slight fall in million dollar sales which were down from 8.8% and 4.0% respectively over the previous year. As the chart shows the fall in million dollar sales has been much more moderate than the decline in these sales across Sydney and Melbourne.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Brisbane.PNG" alt="Annual Million $ Sales_Brisbane.PNG" width="601" height="183" data-entity-type="file" data-entity-uuid="e765ec35-4e8c-453b-8599-bf579c566407" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Brisbane.PNG"></p>
<p> </p>
<p>5.9% of all houses and 1.4% of all units sold over the 2018-19 financial year in Adelaide, transacted for at least $1 million. The share of house sales of at least $1 million is currently at an historic high and has increased from 5.2% a year ago. The 1.4% of units sold for at least $1 million is unchanged from 12 months ago but the share has fallen slightly over recent months.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Adelaide.PNG" alt="Annual Million $ Sales_Adelaide.PNG" width="597" height="187" data-entity-type="file" data-entity-uuid="1818e06a-8eab-4a01-8e62-fe96f9f74b65" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Adelaide.PNG"></p>
<p> </p>
<p>Although the Perth housing market has seen a substantial decline in values since the middle of 2014, the share of million dollar sales has actually not fallen significantly. Over the 2018-19 financial year, 10.0% of all house sales and 4.1% of all unit sales were at least $1 million. The 10.0% of house sales was down from 10.6% a year earlier and the 4.1% of unit sales was up from 3.9% a year earlier.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Perth.PNG" alt="Annual Million $ Sales_Perth.PNG" width="609" height="187" data-entity-type="file" data-entity-uuid="897bcaf0-f09a-491f-80c9-91226731ab27" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Perth.PNG"></p>
<p> </p>
<p>Although dwelling values have continued to climb over the past year in Hobart, there has been weaker conditions at the top-end of the market resulting in the share of million dollar sales falling over recent months. Over the 12 months to June 2019, 3.9% of all houses sold in Hobart were at least $1 million which was higher than the 3.7% a year earlier but down from the recent peak of 4.1%. The share of units sold for at least $1 million has fallen from 3.0% at the end of the 2017-18 financial year to 2.4% at the end of the latest financial year.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Hobart.PNG" alt="Annual Million $ Sales_Hobart.PNG" width="622" height="205" data-entity-type="file" data-entity-uuid="2e707c02-72bc-4493-b895-00f421ef7aa0" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Hobart.PNG"></p>
<p> </p>
<p>The ongoing decline in Darwin dwelling values since 2014 has resulted in a much smaller share of house and unit sales occurring within the million dollar price point. At the end of the 2018-19 financial year, 2.4% of all house sales and 0.6% of all unit sales were at least $1 million. The share of million dollar house sales is down from 3.0% a year earlier and is at its lowest share since June 2013. The share of million dollar unit sales is unchanged over the year.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Darwin.PNG" alt="Annual Million $ Sales_Darwin.PNG" width="583" height="181" data-entity-type="file" data-entity-uuid="f5e8f398-e452-40de-9d22-88e067f09e7b" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Darwin.PNG"></p>
<p> </p>
<p>Although Canberra dwelling values continued to increase throughout the 2018-19 financial year, the share of million dollar sales has dropped over the year. The share of $1 million house sales has fallen from 12.3% a year ago to 11.5% over the current year. For units, the share of sales has fallen to 2.0% of all sales from 2.3% a year earlier.</p>
<p><img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Canberra.PNG" alt="Annual Million $ Sales_Canberra.PNG" width="601" height="194" data-entity-type="file" data-entity-uuid="1cab45de-0f45-42a4-85f4-2d0e371ea2a6" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Annual%20Million%20%24%20Sales_Canberra.PNG"></p>
<p> </p>
<p>Over recent months we have started to see some stabilizing of housing market conditions. The data also shows that the largest improvement is occurring across the most expensive properties. Assuming this continues over the remainder of the current financial year the share of million dollar sales, particularly in Sydney and Melbourne, may increase over the coming year.</p>
<p><em>CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.</em></p>
</body></html>

Million dollar sales take a dive over the financial year

<p data-end="256" data-start="0"><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.</p>

<p data-end="446" data-start="258">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.</p>

<p data-end="645" data-is-last-node="" data-is-only-node="" data-start="448">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>.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>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.”</p>

<p data-end="626" data-start="350">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.</p>

<p data-end="928" data-start="628">“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.”</p>

<p data-end="1147" data-start="930">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”.</p>

<p data-end="1510" data-start="1149">“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.”</p>

<p data-end="1510" data-start="1149"><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" /></p>

<p>&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.</p>

<p>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.</p>

<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">
<p data-end="305" data-is-last-node="" data-is-only-node="" data-start="0">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.</p>
</section>


Joel Robinson

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

<p style="text-align:start">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;</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;</p>

<p>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.</p>

<p>The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>“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;</p>

<p>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.</p>

<p>“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.</p>

<p>“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.”</p>


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

<p>Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.</p>

<p>“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.</p>

<p>The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.</p>

<p>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.</p>

<p>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.</p>

<p>One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.</p>

<p>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.</p>

<p>The developer is also exploring the potential for additional affordable housing outcomes.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.</p>

<p>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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>“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.</p>

<p>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.”</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.</p>

<p>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.</p>

<p>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.</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>


Cameron Kusher

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News