<html><body>
EXPERT OBSERVER
Home owners are holding onto their property for much longer than they were 10 to 15 years ago.
Based on the findings from the CoreLogic May 2019 sales data (the most up to date data), the average hold period has consistently increased since 2005 across both house and units nationally.
Nationally, the average length of home ownership currently sits at 11.3 years for houses and 9.6 years for units, this is an increase of 3.8 years for houses and 2.9 years for units over the past 10 years. (Note: The average hold period figure is based on sales from the past year, using the latest sold date and the previous sold date to establish how many years a property has been held for between each transaction.)
Across the individual capital cities, the average hold period of both houses and units rose over the last 10 years, 5 years and current year, with houses being held longer relative to units across all capital cities.
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%201.JPG" alt="">
Melbourne houses recorded the longest period of ownership over the last year at an average of 12.5 years
Perth units recorded the longest average hold period of 10.8 years.
Darwin houses are typically being held for 9.2 years
Canberra units are held on average for 8.7 years; the shortest average hold period across the capital cities.
Compared to ten years ago, Sydney recorded the longest average hold periods for both houses and units at 9 and 7.3 years respectively, since then Melbourne houses have consistently seen the longest hold period, while results have been varied across the unit market.
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%202.JPG" alt="">
Regional Victoria and Queensland represented the areas with the longest average hold periods across regional Australia, with houses across both regions currently being held on average 11.1 years, while units in regional WA are being held the longest at 10.2 years.
The Northern Territory rest of state region currently has the shortest average hold period at 8.9 years for houses and 8 years for units.
The council areas with the longest average hold period for houses was dominated by regions within Melbourne, Sydney and regional Queensland. Houses in Monash Victoria came in with the longest average hold period at 17.1 years.
While for units, Perth makes up eight of the 20 council regions with the longest hold periods. Armadale (WA) and Swan Hill (Vic) both recorded an equal average hold period of 13.4 years for units.
The East Pilbara council region tops both the house and unit list for the shortest average hold period, with houses currently being held for 7.7 years, while units across the region are being held by half the duration at 3.8 years.
The remaining regions on the ‘houses held’ list are comprised by mostly regional parts of the country as home owners are evidently more likely to sell across these regions compared to their capital city counterpart. 
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%203.JPG" alt="">
Interestingly, the shortest average hold period list for units is dominated by Melbourne with 6 of the 20 council regions making up the unit list. The data suggest that home owners are much more reluctant to sell their property than they were a decade ago which is also highlighted by the ongoing decline in sales transactions.
Other factors at play include: the rising cost of selling and purchasing property, combined with affordability constraints across some Australia’s more expensive capital cities contribute to owners holding onto their properties longer.
It’s expected that this trend will continue over the coming years given such concerns aren’t likely to see much improvement in the near future.
<img src="https://www.urban.com.au/images/2019/9/6/Home%20Ownership%204.JPG" alt="">
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

ckusher-ujnxiKuFQs

Home owners holding onto their homes longer: CoreLogic's Cameron Kusher

<html><body>
EXPERT OBSERVATION
Throughout the 2018-19 financial year, 26.0% of all houses sold nationally were under $400,000 and 32.5% of all unit sales were under $400,000.
Despite the weakening housing market the share of house sales under $400,000 was virtually unchanged from a year ago, down from 26.3% the previous year while the share of unit sales under $400,000 increased from 31.0% over the 2017-18 financial year.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20national%201.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20national%201.jpg" alt="">
Source: CoreLogic 
Across the combined capital cities, 13.9% of house sales over the 2018-19 financial year were under $400,000 and 24.6% of unit sales were under this price point.
The share of house sales under $400,000 was virtually unchanged from the previous year, recorded at 13.8% while the share of unit sales was noticeably lower at 22.3%.
Despite house and unit values falling -8.7% and -5.9% respectively over the year, it is interesting to note that the share of unit sales under $400,000 has increased much more for units than houses.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20combined%20.jpg" target="_blank">Click here </a>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/2019/8/15/sales%20combined%20.jpg" alt="">
Source: CoreLogic 
Across the combined regional markets, 42.8% of all house sales over the past financial year and 54.3% of all unit sales were under $400,000.
Unlike the combined capital cities, the combined regional markets have seen the share of sales under $400,000 record a sizeable decline compared to the previous financial year when 44.1% of house sales and 55.6% of unit sales were below $400,000.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20sydney.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20sydney.jpg" alt="">
Source: CoreLogic 
Over the 2018-19 financial year, 2.3% of all house sales in Sydney were below $400,000 compared to 2.0% over the previous financial year indicating a slight increase.
It was a similar story for units with 5.7% of all sales below $400,000 over the past year compared to 4.4% a year earlier.
Despite the recent declines in dwelling values in Sydney, there has not been any substantial increase in the share of sales below $400,000.
In regional NSW, the decline in dwelling values over the past year has been significant but not as large as that in Sydney.
At the end of the 2017-18 financial year, 29.3% of all house sales and 42.1% of all unit sales were under $400,000.
By the end or 2018-19, the share of sales under $400,000 had reduced to 28.5% for houses and 39.5% for units, indicating that falling dwelling values had led to no increase in the share of sales under $400,000.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20mel.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20mel.jpg" alt="">
Source: CoreLogic 
Although Melbourne dwelling value shave fallen throughout the 20181-9 financial year there has been a further decline in the share of houses and units selling below $400,000.
The share of houses selling for less than $400,000 fell from 3.6% over the 2017-18 financial year to 2.9% over the 2018-19 financial year.
It’s a similar story for units that recorded a fall in the share of sales under $400,000 from 21.9% to 21.2% over the past two financial years.
The ongoing increases in values across regional Vic has resulted in a further decline in the share of sales under $400,000.
Over the 2017-18 financial year, 61.9% of houses and 81.2% of units sold for less than $400,000.
A year later, 56.1% of house sales and 78.5% of unit sales were less than $400,000.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20brisbane%20.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20brisbane%20.jpg" alt="">
Source: CoreLogic 
Although Brisbane dwelling values have recorded a moderate fall over the past year, the share of house sales under $400,000 has reduced while the share of units selling under that price point has increased. Over the most recent financial year, 23.2% of houses and 53.5% of units sold for less than $400,000.
By comparison, over the 2017-18 financial year 25.0% of houses and 51.5% of units sold for less than $400,000.
The share of units selling under $400,000 was last as high as it is currently in 2012-13 financial year.
Despite ongoing falls in dwelling values across regional Qld, there has been virtually no change in the share of sales below $400,000 over the past two financial years.
The share of house sales under $400,000 has held firm, tracking from 41.6% of all sales to 41.7% between the 2017-18 and 2018-19 financial years.
The share of unit sales under $400,000 has increased marginally, from 55.8% to 56.0% over the past two financial years.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20adelaide.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20adelaide.jpg" alt="">
Source: CoreLogic 
Over the 2018-19, financial year houses and units in Adelaide have recorded a reduced share of sales occurring under $400,000.
For houses, the share of sales under $400,000 fell to 35.8% from 39.6% the previous financial year while for units the share fell from 67.9% to 66.1%.
Although overall values have drifted slightly lower over the year, it hasn’t led to an increased share in sales under $400,000.
Although the majority of house and unit sales in regional SA are under $400,000, both have seen a reduced share of sales over the past year.
In June 2018, 80.8% of all house sales and 91.6% of all unit sales were under $400,000 compared to 76.1% and 88.8% respectively in June 2019.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20perth%20.jpghttps://www.propertyobserver.com.au/images/2019/8/15/sales%20perth%20.jpg" target="_blank">Click here </a>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/2019/8/15/sales%20perth%20.jpg" alt="">
Source: CoreLogic 
With ongoing value declines over recent years across Perth, the share of sales under $400,000 for houses and units has increased over the most recent financial year, rising to 31.2% of houses sold from 28.7% the previous year while for units the  share has risen to 55.0% from 50.2%.
The share of house sales under $400,000 in regional WA is relatively unchanged over the past two years falling from 64.7% to 64.5%.
For units, the share of sales under $400,000 has fallen from 83.4% to 78.8%.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20hobart%20.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20hobart%20.jpg" alt="">
Source: CoreLogic 
The ongoing rises in housing values in Hobart has led to a significant decline in sales under $400,000 in recent years.
The share of houses sold under $400,000 is at a record low having fallen from 43.0% over the 2017-18 financial year to 31.8% over the most recent year.
For units the share of sales under $400,000 has fallen from 65.9% to 57.8%.
Regional Tas has also seen a decline in sales under $400,000 as values have increased.
Over the 2017-18 financial year, 77.1% of house sales and 91.0% of unit sales were under $400,000.
By the end of the following financial year, these shares had fallen to 70.3% and 85.8% respectively.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20darwin%20.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20darwin%20.jpg" alt=""> 
Source: CoreLogic 
As dwelling values have continued to fall in Darwin there has been a significant increase in unit sales under $400,000 while any increase in the share for houses has been much more muted.
Over the 2017-18 financial year, 26.8% of house sales and 61.2% of unit sales were under $400,000 compared to 26.0% and 67.4% over the most recent financial year.
In regional NT, the share of sales under $400,000 has increased over the past financial year.
Over the 2018-19 financial year, the share of houses sold under $400,000 was recorded at 39.0% and 77.1% for units.
For the 2017-18 financial year the share of sales under $400,000 were recorded at 36.4% for houses and 74.1% for units.
<a href="https://www.propertyobserver.com.au/images/2019/8/15/sales%20canberra%20.jpg" target="_blank">Click here</a> 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/2019/8/15/sales%20canberra%20.jpg" alt="">
Source: CoreLogic 
In Canberra, the share of sales under $400,000 has continued to trend lower as values have continued to climb (albeit at a slower pace).
Over the 2017-18 financial year, 6.8% of all house sales were under $400,000 compared to 5.0% over the most recent financial year.
For units, the share of sales under $400,000 reduced from 39.6% over the 2017-18 financial year to 36.0% in 2018-19.
The next financial year could look very different to what we have seen over the 2018-19 financial year. 
We’re only in mid-August and we’ve already seen interest rates reduced twice, serviceability floors on mortgages reduced and some recent rises in dwelling values in the largest capital cities.
While a significant rise in dwelling values isn’t expected, there is an expectation of a moderate increase in dwelling values, as a result the 2019-20 financial year is expected to see fewer sales under $400,000 than those recorded in 2018-19.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

Despite falling dwelling values, there’s no big rise in sales under $400,000: Cameron Kusher

<html><body>
EXPERT OBSERVER
When discussing housing affordability, older Australian tend to point to much higher interest rates in the past as being a challenge while for younger Australians, higher property values are seen as the biggest barrier to home ownership. The truth of the matter is it is much more nuanced than this, but on balance I would say it is much harder to break into the housing market now than it has been in the past but it is not due to much higher property values alone. Let’s take a look why.
Although dwelling values have reduced over recent years, housing is in most instances (much) more expensive than it has been in the past. While this is an important consideration it is not the be all and end all.
One of the commonly repeated memes is that interest rates were high in the early 1990s thus making buying a home difficult. What probably made buying a home more difficult at time was the fact that the unemployment rate reached as high as 11.2% compared to the 5.2% today however, once again it is a bit more nuanced than that. When unemployment peaked, the male workforce participation rate was 73.8% which is actually higher than it currently is (70.9%) while the female participation rate was 51.9% compared to the historic high of 61.1% it is currently.
Furthermore, although the unemployment rate peaked at 11.2% in December 1992, the underemployment rate at that time was 7.8% compared to the 8.9% it is currently. Delving a little deeper to look at underemployment for those likely to be saving for a mortgage, the underemployment rate in December 1992 for 15-24 year olds and 25-34 year olds was 13.3% and 6.7% respectively in 1992 compared to 20.7% and 7.2% respectively today.
Although the unemployment rate was much higher in 1992 than it is today, there were fewer females in the workforce. Individuals that had a job were more likely to be getting as many hours as they wanted compared to today’s workers, particularly younger workers, the ones most likely to be trying to save a home deposit. The fact that female participation has lifted so much over recent years also points to the fact that saving for and paying off a mortgage increasingly requires more than one income.
Another factor pointing to entering the housing market being more or just as difficult in the past as it is today is the higher interest rates in the early 1990s. If you had a mortgage at that time that was certainly a somewhat difficult time however, if you were saving for a deposit at that time you were also receiving substantially higher rates of interest on your savings. When standard variable mortgage rates for owner-occupiers hit their peak at 17% between June 1989 and March 1990, 12 month term deposit rates for savers hit as high as 16% but ranged from 14.2% to 16.0%.
Today, standard variable mortgage rates are recorded at 4.94% and 12 month term deposit rates are 1.65%. Both are at historic lows however, the gap between the term deposit and variable mortgage rate is only slightly lower than its historic high and much larger than it was in the past. While a current potential buyer may be looking to save for the mortgage, they aren’t getting the assistance from higher interest rates that they may have in the past.
Inflation is also a key consideration in this discussion. Inflation is at record low levels currently and was much higher in the past. While many people tend to not consider it, higher inflation is typically accompanied by higher interest rates but equally if the cost of everything is increasing more rapidly, it results in the erosion of the real value of a mortgage. Given this, higher inflation should lead to mortgagees being able to pay off their mortgage quicker. While this doesn’t necessarily impact on those people saving for a deposit it does mean that once they take out a mortgage, paying it off is relatively easier with higher inflation than it is with lower inflation.
Saving a deposit for a mortgage has always been difficult. When I first took out a mortgage I was lucky that my parents were able to assist. Equally, when my parents first took out a mortgage in the 1970s they had parental assistance and my children will most likely need assistance from my wife and me.
Unfortunately, not everyone is in a position to receive the same assistance and when you look holistically at the current factors of high property values, insecure employment, low inflation and subsequently low interest rates, I think it is more difficult than it has ever been to save for a mortgage. Supporting this opinion is the fact that the share of households that are renting continues to rise while the share of owner-occupier households both with or without a mortgage continues to fall.
Improving access to potential first home buyers is extremely difficult, with grants tending to push values higher but it is clear something needs to be done. Unfortunately, falling dwelling values have broader repercussions for the economy because so much household wealth is tied to housing. Ideally, after recent value declines we see the housing market show modest gains over the coming years which would continue to gradually improve affordability over time. In saying this, it still doesn’t really address the challenge that saving a deposit continues to be the biggest hurdle and low interest rates look to be in place for a number of years to come.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

Saving for a mortgage deposit is harder than ever before: CoreLogic's Cameron Kusher

<html><body>
EXPERT OBSERVER
Regional area index data for SA4 regions produced by CoreLogic is showing early signs of improving housing market conditions, predominately across Sydney and Melbourne and with some level of improvement in the areas where values previously recorded comparatively large falls.
Over the three months to July 2019, national dwelling values continued to decline, falling by -0.5%, however, the monthly rate of decline has been slowing right throughout 2019 with no change in values throughout the month of July.
<img src="https://www.urban.com.au/images/2019/8/30/SA4%203.JPG" alt="">
<img src="https://www.urban.com.au/images/2019/8/30/SA4%204.JPG" alt="">
The improvement in market conditions was more evident across the combined capital cities, while the combined regional markets have seen the magnitude of declines trend higher throughout 2019.
The improvement in housing market conditions is largely being driven by a slowing rate of decline in values in Sydney and Melbourne throughout 2019 with increases over the past two months.
Melbourne is the only city where values increases occured over the past three months (0.1%) while a several cities recorded slower rates of decline. Dwelling values remained lower than when at their peak across all 46 capital city SA4 regions; the magnitude of declines varied greatly from city-to-city and within the individual capital cities.
While values are now lower than their peak across all SA4 regions, 13 individual regions have either recorded an increase in value or avoided declines over the past three months.
Analysis of the 13 regions where values did not fall over the past three months where in areas that have previously seen comparatively large value declines from their peak. To July 2019, Sydney dwelling values have fallen -14.7% from their peak.
Over the past three months, seven Sydney regions have avoided falls and Baulkham Hills and Hawkesbury (-15.7%), Inner West (- 15.9%), North Sydney and Hornsby (-15.4%) and Sutherland (-16.7%) have each recorded larger overall falls than the Sydney benchmark.
It is a similar story for Melbourne, four SA4 regions have avoided value falls over the past three months, two of which were the Inner East and Inner South which have seen some of the largest overall declines of all Melbourne regions, down - 15.0% and -14.4% from peak respectively. Outside of regions of Sydney and Melbourne, Hobart and Adelaide’s North have also recorded an increase in values over the past three months.
Only 15 of the 46 capital city SA4 regions have recorded falls in excess of 1.0% over the past three months.
<img src="https://www.urban.com.au/images/2019/8/30/SA4%201.JPG" alt="">
<img src="https://www.urban.com.au/images/2019/8/30/SA4%202.JPG" alt="">
Several combined regional markets are not showing the same early signs of a market recovery that was visible for the capital city markets. Furthermore, some regional markets have seen significant overall declines. For the capital cities, Mandurah in Perth experienced the largest overall decline in values (-35.7%), while three regional markets have recorded larger total falls.
Of the 42 regional SA4 areas, 16 have either recorded an increase in values or no decline over the past three months which is greater than the 13 amongst the capital cities.
The reason for the declining regional values, and with little to no real signs of an improvement, is more to do with the fact that most of the larger regional markets continue to record value falls.
What is interesting is that some of the markets that have recorded significant value falls over recent years have actually recorded value increases over the past three months. Most of these are located in Qld: Townsville, Cairns, Central Qld and Mackay-Isaac Whitsunday while Outback SA has seen the largest value increase over the three months despite values being more than 20% below their peak.
Unlike the capital city SA4 regions, two regional markets have managed to avoid declines with values sitting at record-highs. These regions are West and North West Tas and South East SA. The more populous regional markets continued to record value falls over the past three months with areas like Townsville, Cairns, Richmond-Tweed, Toowoomba and Launceston and North East the main exceptions.
Larger regional areas such as Newcastle and Lake Macquarie, Gold Coast, Sunshine Coast, Geelong, Illawarra and Bunbury have continued to see values fall. Overall early signs are emerging to suggest that the housing market has stabilized, however, this evidence is much more prevalent in capital cities than regional markets.
Within the capital cities, the research concluded that improved conditions are mainly being driven by Sydney and Melbourne and interestingly, in many instances it is those areas where values have recorded larger declines over recent years that are showing the largest improvement.
Over the coming months it will be interesting to see if the improvement continues and whether it spreads from Sydney and Melbourne to other capital cities and regional markets.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

Regional markets have seen the magnitude of declines trend higher throughout 2019: CoreLogic's Cameron Kusher

<html><body>
EXPERT OBSERVER
The vendor discount metric measures, for properties that sell below the initial list price, the difference between the original list price and the ultimate sale price. The metric is calculated as a median across a rolling 3 months of data.
Within the past 3 months, housing conditions have started to stabilise but there has been no noticeable reduction in discounting levels. As at July 2019, the median vendor discount nationally, was 5.9% and as the chart shows, discounting has steadied over recent months.
At the same time a year ago, discounting levels were recorded at 4.9% and the last time discounts were as large as they are currently was August 2011. The heightened discounting is reflective of the weaker housing conditions over the past year and the increasing level of discount has recently ceased as housing conditions have improved.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%201.JPG" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%201.JPG" alt="">
The combined capital cities have recorded a slight reduction in discounting levels over recent months.
As at July 2019, vendor discounting was recorded at 6.1%, which was slightly lower than the recent peak of 6.3%. Discounting levels have increased from 5.1% a year ago and haven’t reached their recent heights any time in the past 12 years.
Across the combined regional markets, discounting has increased from 4.7% a year ago to 5.6% as conditions have deteriorated.
Although discounting levels across the regional markets are lower than those in the capital cities, there is no sign of a reduction and the last time discounting was this high was March 2013.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%202.JPG" target="_blank">click here</a>.
 <img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%202.JPG" alt="">
Sydney has seen discounting levels fall from a peak of 7.7% in February 2019 to 6.3% in July 2019.
The recent reduction in discounting mirrors the ongoing improvement in housing market conditions through 2019.
Although discounting levels are reducing, they remain higher than they’ve been any time previously over the past 12 years.
The median vendor discount in regional NSW has increased to 5.5% in July 2019 from 4.4% at the same time in 2018. Although discounting levels haven’t reduced, they have steadied over recent months however, they are at their highest levels since February 2013.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%203.JPG" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%203.JPG" alt="">
The level of vendor discounting in Melbourne has fallen from a peak of 7.1% in February 2019 to 6.5% in July 2019.
The reduction has followed the improvement in housing market conditions over the period. Despite the recent improvement, discounting is much higher than the 4.4% a year earlier and remains higher than it has previously been over the past 12 years.
Although discounting levels remain relatively low in regional Vic, they have continued to climb over the past year and are at their highest level since August 2013.
As at July 2018, vendor discounting was recorded at 3.8% and by July 2019, this had increased to 5.4%.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%204.JPG" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%204.JPG" alt="">
Over the past year, there has been an ongoing increase in the level of discounting by vendors in Brisbane.
As at July 2019, the median discount was 5.0% compared to 4.3% a year earlier.
Although discounting is still quite low, the 5.0% in July 2019 is the largest median discount since April 2013.
The level of vendor discounting in regional Qld has increased from 5.4% in July 2018 to 5.7% in July 2019. The level of discounting has reduced slightly over recent months however, the last time discounting levels were as high as they are currently was August 2013.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%205.JPG" target="_blank">click here</a>.
 <img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%205.JPG" alt="">
As the housing market has seen values fall in Adelaide, the level of discounting has increased.
As at July 2019, the median vendor discount was 5.7% compared to 5.0% a year earlier. At 5.7%, vendor discounting hasn’t been as high as it is currently since August 2013.
In regional SA there has been a slight reduction in the magnitude of discounting over recent months.
As at July 2019, the median discount was recorded at 6.0%, which was slightly higher than the 5.8% discount a year earlier.
The level of discounting in Perth has been elevated for a number of years as housing demand has remained weak and values have continued to decline since mid-2014. As at July 2019, the median vendor discount was 6.9% compared to 6.5% a year earlier. The last time discount levels were this high was early 2009.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%206.JPG" target="_blank">click here</a>.
 <img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%206.JPG" alt="">
In regional WA, the median vendor discount has continued to trend higher over recent years as housing market conditions have deteriorated.
As at July 2019, the median discount was 8.8%, up from 8.3% a year earlier.
The 8.8% discount is the highest in regional WA since the beginning of 2009.
As value growth in Hobart has slowed over the past year, there has been an increase in discounting. In July 2018, median vendor discounting was 3.5% compared to 3.8% currently.
Over recent months, discounting levels have started to reduce again suggesting that buyers and sellers are closer aligned with their price expectations.
As value growth has slowed in regional Tas over the past year, there has been a moderate increase in discounting. A year ago, discounting was recorded at 4.3% compared to 4.6% currently. Mid 2017 was the last time discounting levels were as high as they are currently.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%207.JPG" target="_blank">click here</a>.
 <img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%207.JPG" alt="">
The weak housing market over recent years in Darwin has seen an elevated level of discounting occurring.
As at July 2018, the median vendor discount was already high at 7.7% and it increased to 8.2% by July 2019.
Across regional NT the level of discounting by vendors remains low however, it is currently higher than it was a year ago. In July 2019, median vendor discounting was recorded at 3.9% compared to 2.9% a year earlier. Because of low volume of sales, the level of discounting in regional NT tends to be quite volatile.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%208.JPG" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%208.JPG" alt="">
Canberra has recorded a slight increase in the median vendor discount over the past year however, discounting levels remain extremely low across the city.
A year ago, vendor discounting was recorded at 2.5% compared to 3.1% currently.
The increase reflects the slowing housing market.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%209.JPG" target="_blank">click here</a>.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Median%20Vendor%20Discount%209.JPG" alt="">
The increase in discounting levels over the past year is reflective of the weakening housing market conditions.
Certain capital cities are already showing signs that discounting levels are reducing and with a housing recovery expected to continue, discounts should reduce further.
Of course, lower interest rates and changed lending rules have enabled more buyers in the market and at this point, the volume for stock remains low.
As a result, negotiations in the marketplace are swinging from being in favour of the buyer to being more in favour of the seller and that is likely to also contribute to reduced levels of discounting over the coming year.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

Vendor discounting stabilises as listings trend lower: CoreLogic's Cameron Kusher

<html><body>
EXPERT OBSERVER
The national housing market has just experienced its largest downturn in dwelling values since at least the 1980s.
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.
Since the federal election in May, there have been ongoing signs of improving market conditions.
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.
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.
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.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Recovery%201.JPG" alt="">
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.
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.
This is precisely what is occurring at the moment, specifically in Sydney and Melbourne where housing conditions are improving following a sharp downturn.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Recovery%202.JPG" alt="">
Another way to look at how a housing market recovery starts out with low sales volumes is the auction market.
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.
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.
<img src="https://www.urban.com.au/images/2019/8/23/CL%20Recovery%203.JPG" alt="">
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.
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.
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.
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.
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.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

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

<html><body>
EXPERT OBSERVER
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.
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
<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">
 
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.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic.
</body></html>

Million dollar sales take a dive over the financial year

<html><body>
EXPERT OBSERVER
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.
Over the 2018-19 financial year, total returns from residential property recorded a fall of -3.3%.
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.
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.
The combination of falling values and historically low rental yields have driven total returns into negative territory.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%201.JPG" alt="">
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.
However, combined capital city returns have fallen -4.5% while combined regional market returns remained mildly positive at 1.6%.
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.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%202.JPG" alt="">
Across NSW, total returns fell over the 2018-19 financial year in both Sydney and regional NSW.
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.
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.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%203.JPG" alt="">
In Vic total returns were lower over the most recent financial year in both Melbourne (-6.0%) and regional Vic (4.5%).
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.
Although regional Vic total returns remained positive, the market experienced a substantial slowing from the previous year.
Furthermore, it was the slowest growth in total returns for regional Vic since 2011-12 when they increased by 3.5%.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%204.JPG" alt="">
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.
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.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%205.JPG" alt="">
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.
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.
In regional SA, returns slipped from 5.2% the previous year to 4.0%, which was the smallest returns since 2011-12.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%206.JPG" alt="">
Total returns were negative in 2018-19 across WA with both Perth and regional WA recording their largest annual falls in returns on record.
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.
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.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%207.JPG" alt="">
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.
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.
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.
 <img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%208.JPG" alt="">
Total returns from residential property have softened over the past year across NT.
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.
In regional NT, total returns were recorded at 7.8% in 2018-19, down from 8.5% over the previous financial year.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%209.JPG" alt="">
Canberra recorded total returns of 6.0% over the most recent financial year.
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.
<img src="https://www.urban.com.au/images/2019/7/25/CL%20JULY%2025%20-%2010.JPG" alt="">
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.
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.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

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

<html><body>
EXPERT OBSERVER
The ABS data showed that at the end of the March quarter, household net worth was $10.243 trillion.
While a large figure, household wealth has now fallen for two consecutive quarters and is -0.7% lower year-on-year. The $10.243 trillion in net worth is madeup of $12.701 trillion in assets and $2.458 trillion in liabilities. The recent fall in the value of assets at a time in which liabilities have continued to rise has led to the fall in net worth.
The Reserve Bank (RBA) analyses this data to produce a number of valuable ratios, including: debt, assets and interest payments to household disposable income.
These ratios highlight the impact of high levels of debt at a time in which asset values have fallen but the debt has not fallen at the same pace.
We’ve seen the ratio of household debt to disposable income continue to climb over the quarter, reaching a new historic high of 189.7%. The rise in household debt relative to incomes has certainly slowed; however, it continues to edge higher.
The ratio of housing debt to disposable income is recorded at 140.1% and was unchanged over the quarter. While it was unchanged over the quarter, it remains at an historic high level, highlighting that households remain very sensitive to the cost of mortgage debt.
Turning to the ratio of household assets to disposable income, it was recorded at 927.0% in March 2019. The ratio peaked at 961.7% in December 2017 and has trended lower since. The ratio of housing assets to disposable income peaked at 529.6% in December 2017 and as at March 2019; it was recorded at 483.5%.
The reduction in housing values has coincided with the period in which the ratio of household and housing assets has fallen which is no wonder when you consider housing accounts for around half of the value of household assets. 
It's also important to consider is that while the value of assets are falling there has been no reduction in the ratios of debt to income which highlights that asset depreciation has been greater than debt reduction. As a result, the ratio of household debts to assets is at 20.5%, the highest it has been since December 2014 and the ratio of housing debt to assets is at 29.0%, the highest it has been since June 2013.
Despite the lowest interest rates since the 1960s, the ratio of interest payments to disposable income has trended higher years. As at March 2019 the ratio was recorded at 9.1% and although it has been steady for three quarters, interest payments relative to disposable income has trended higher on an annual basis
Furthermore, the ratio of interest payments to disposable income was last this high in September 2013. It is a similar story for the ratio of housing interest payments to disposable income, which is also trending higher, recorded at 7.6%, which is the highest ratio since June 2013.
With interest rates at generational lows there was perhaps, some expectation that households would use the low rates to pay off some debt however that has largely not occurred. With asset values recently falling the data shows that debt pay off has not been as rapid as the declines leading to a reduction in household wealth.
This data is to March 2019 and by the end of June 2019, there were some tentative signs that the declines in dwelling values were starting to level. While this means that there is likely to be a further decline in household wealth over the June quarter, it also suggests there is unlikely to be a meaningful reduction in household debt levels.
As such, household debt levels are likely to remain amongst the highest in the world. At the same time, the value of household assets remain substantially higher than the value of the debt. The cause for concern will be what happens if economic conditions deteriorate materially, leading to weaker labour market conditions and potentially creating some challenges around servicing such high levels of debt as unemployment rises.
Another medium to long-term consideration is a scenario where interest rates eventually start to rise. Households are generally able to service high levels of household debt while interest rates are at record lows, but eventually (probably not for at least several years) interest rates will rise.
If household debt levels remain high relative to incomes under a higher interest rate environment, the result could be weakness in household spending (as households dedicate more of their income towards servicing their debt) and potentially higher levels of financial stress amongst heavily leveraged households.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

Australian Household wealth falling while debt remains: Cameron Kusher

<html><body>
EXPERT OBSERVER
Since the federal election there appears to have been some strength returning to the housing market.  A number of factors have contributed to this apparent improvement in housing confidence, including:
1.       An unexpected election win to the Coalition.  Typically a change of government wouldn’t have too much of an impact on housing sentiment however, the Labor opposition took to the election some policies which would have influenced the market, particularly the investor segment.  Specifically these were reforms to negative gearing which would have seen this taxation policy reserved for new dwellings only (with grandfathering provisions for current investment property owners) as well as a halving of capital gains discounts.
2.       Two 25 basis point cuts to official interest rates.  Since the election, the Reserve Bank has now cut official interest rates in both June and July by 25 basis points.  While lower interest rates signal a requirement for economic stimulus, for mortgage holders lower rates mean cheaper mortgages if they refinance, a potential to reduce repayment amounts or paying off more of the principal component if they choose to make no changes to their mortgage.
3.       The Australian Prudential Regulation Authority (APRA) has proposed amending guidance on mortgage lending.  Since the inception of macroprudential tools in December 2014, APRA has required lenders to assess the ability of borrowers to repay their mortgage at either an interest rate of above 7% (typically 7.25%) or a buffer of 2% over the loans interest rate, whichever is the larger.  With mortgage rates the lowest they have been since the 1960s the buffer has become restrictive and APRA is now proposing to remove the 7% benchmark and change the requirement to an interest rate buffer of 2.5% above the loans interest rate.
The federal election was held on the 18 May and the result was known that evening.   APRA published their proposal to amend their guidance on mortgage lending on 21 May and was given the go-ahead by APRA on 5 July and the first of the two cuts to the cash rates occurred on 4 June.  The week following the election, auction clearance rates was slightly lower in Melbourne while in Sydney it increased from 56.5% to 62.1%.  Over the weeks following the election, auction clearance rates in Melbourne have averaged 64.4% compared to an average throughout 2019 prior of 53.6%.  In Sydney, auction clearance rates have averaged 62.5% since the election compared to 53.6% prior.  
Importantly, the CoreLogic Home Value Index has been showing moderating declines each month throughout 2019 and although values are still falling nationally, Sydney and Melbourne recorded their first increases since 2017 in June.
Although all of these factors are seemingly positive for the housing market it is important to note that APRA has only just announced that they are actually amending their guidance on mortgage lending. 
Furthermore, from July 1 there were some further changes that will impact on the mortgage lending space, the details of which are below:
1.       The expansion of positive credit reporting. This change will provide lenders with more information on lenders credit history.  Specifically, credit account histories including: type of account, date the account was open, current credit limit and account closed date as well as two years of repayment history of accounts including information on late or defaulted payments.  Given this lenders will have a lot more information about borrower’s credit histories and will seemingly have fewer excuses for providing loans to those that aren’t credit worthy.  By the end of September, lenders will be required to share 100% of specified credit data, providing a more complete profile of borrower debt levels and credit worthiness. 
2.       The adoption of the new Banking Code of Conduct.  While this is not a legally enforceable document, it does set out the standards of practice and service for the banking sector.  It has been significantly amended and according to the Code in some areas, it sets higher standards than the law.  You can see the code here: <a id="LPlnk427005" href="https://www.ausbanking.org.au/wp-content/uploads/2019/06/Banking-Code-of-Practice-2019-web.pdf" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">https://www.ausbanking.org.au/wp-content/uploads/2019/06/Banking-Code-of-Practice-2019-web.pdf</a>
So on one hand you can see the borrowing is going to become somewhat easier as APRA makes the changes it is proposing and mortgage rates have reduced on the back of the two interest rate cuts we’ve had.  On the other hand, the expansion of comprehensive credit reporting gives lenders much more insight into the creditworthiness of borrowers and the new banking Code of Conduct appears to be requiring much higher standards from the banks, as well as executive accountability for conduct as prescribed under the Banking Executive Accountability Regime (BEAR).  Furthermore, banks continue to have a very close focus on living expenses assessment when deciding whether a borrower is credit worthy.
Given all of this, we believe that mortgage credit is going to become a little more accessible however, there will remain a level of conservatism and caution from lenders.  Especially given the Royal Commission that has recently occurred and the fact that they have much more data available to them in order to make decisions about the credit worthiness of borrowers.
CAMERON KUSHER is the head of research for the Australian division of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
</body></html>

What APRA (potentially) giveth does comprehensive credit reporting take-away? CoreLogic's Cameron Kusher

<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