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EXPERT OBSERVATION
The Reserve Bank (RBA) has released its financial aggregates data for October 2018.  The housing credit data is of particular interest.  It covers data from all local mortgage lenders and measures the value of mortgages outstanding.  The data is important because it highlights the expansion or contraction in credit.
As at the end of October 2018 there was $1.797 trillion in outstanding housing credit.  Housing was overwhelmingly the largest share of outstanding credit, accounting for 62.1% of total credit.  Looking at the split between owner occupier and investor credit, owner occupiers accounted for 67.0% of outstanding credit while investors accounted for 33.0% which is that cohort’s lowest share since June 2012.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20in%20house%20credit.png" alt="change in house credit" width="1017" height="256" data-entity-type="file" data-entity-uuid="677891bb-3eda-4d6f-b1e4-e67f74329956" 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/change%20in%20house%20credit.png">
 Total housing credit increased by 0.3% in October 2018 which was its slowest monthly rate of growth since July 1984. The monthly expansion in housing credit has been consistently slowing since February 2018 when it expanded by just 0.5% during the month. On an annual basis, housing credit has expanded by 5.1% which is its slowest annual expansion since October 2013. While the slowdown in credit growth was initially being led by investors, credit growth for owner occupiers is now also slowing.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20owner%20occupier%20credit.png" alt="change owner occupier credit" width="993" height="250" data-entity-type="file" data-entity-uuid="a3e4f229-9c47-484f-8c67-6e521303edcf" 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/change%20owner%20occupier%20credit.png">
 Owner occupier housing credit increased by 0.4% in October 2018 which was its slowest monthly growth since April 2015. Owner occupier housing credit increased by 7.0% over the 12 months to October 2018 and that was its annual slowest growth since November 2015. The monthly change in owner occupier credit has been slowing since February 2018 which has slowed annual credit growth form 8.1% to the currently 7.0%.
<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/change%20investor%20credit.png" alt="change investor credit" width="978" height="247" data-entity-type="file" data-entity-uuid="c4f385f9-69ec-4e92-a70e-377e5f39dbf8" 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/change%20investor%20credit.png">
 Investor credit recorded a nominal increase of less than 0.1% in October 2018 which was its smallest monthly change since credit fell by -0.1% in June 2018. The monthly change in investor credit has been minimal for a number of years now which is resulting in the weakest annual expansion in investor credit on record. Over the past 12 months, investor credit has expanded by just 1.3%.
It should be noted that the expansion in credit to investors is certainly being driven by fewer new originations (as highlighted in monthly housing finance commitments data). What is less clear but is also likely to be a factor is the ongoing shift from investors away from interest-only mortgages and towards principal and interest. Note that RBA reports around 70% of interest-only mortgages are to investors. In terms of new interest-only lending, APRA reported in the June 2018 quarter that $15.74 billion worth of new interest only mortgages was committed to which was its second lowest quarterly value any time since March 2008. Furthermore, the total value of outstanding interest-only mortgages has fallen to $461.329 billion, its lowest value since September 2014. As borrowers move from interest-only arrangements in which the principal isn’t repaid, to principal and interest mortgages, outstanding credit to investors is expected to keep falling especially as overall investor and interest-only new lending also continues to fall.
Overall, the reduction in housing credit can be attributed to the tighter credit environment, however a range of other factors are also at play in tempering housing credit, including low consumer sentiment, housing affordability constraints and higher mortgage rates. We expect housing credit growth to remain weak. With fewer transactions in the market and ongoing value declines it is reasonable to expect a further slowing of housing credit demand over the coming months.
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More signs the housing market is slowing further: Cameron Kusher

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EXPERT OBSERVER
As dwelling values and transactions decline and stock for sale mounts properties are taking longer to sell across most regions of the country.
Over the three months to October 2018, properties nationally had a median time on market of 53 days.
As the first chart shows there has been a clear increase in days on market of late, up from 42 days a year ago and a recent low of 38 days in December 2017.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%201.JPG" alt=""><img src="https://www.urban.com.au/images/2018/11/29/DOM%202.JPG" alt="">
Source: CoreLogic
Across the combined capital cities, the median days on market sat at 46 days over the three months to October 2018 compared to 61 days across the combined regional markets.
Across each of these broad regions the days on market figure was higher than during the previous year when it was recorded at 35 days and 55 days respectively.
The capital city days on market figure is now the highest it’s been since March 2016 and across the combined capital cities it is the highest since October 2016.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%203.JPG" alt="">
Source: CoreLogic
Although the median days on market in Sydney and regional NSW has edged slightly lower over recent months, across both regions, days on market is higher than a year ago.
In Sydney, the median days on market was 31 days a year ago and has increased to 50 days currently which is much higher than the recent low of 24 days in April 2017.
Across regional NSW, days on market currently sits at 64 days compared to 52 days a year ago and a recent low of 48 days in May 2017.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%204.JPG" alt="">
Source: CoreLogic
In Melbourne, the median time on market is currently recorded at 38 days and in regional Vic it is recorded at 41 days.
In Melbourne, the days on market is trending higher, it is much higher than the 23 days a year ago and the highest it has been since March 2016.
In regional Vic the days on market figure has been trending lower and is down from 49 days a year ago, highlighting the strengthening of housing market conditions in regional Vic as the Melbourne housing market slows.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%205.JPG" alt="">
Source: CoreLogic
Throughout Queensland, properties are taking longer to sell than they were a year ago.
In Brisbane, the median days on market is currently recorded at 53 days which is the longest it has taken since February 2013 and has increased from 37 days a year ago.
In regional Qld it is typically taking 69 days to sell a home, up from 55 days a year ago with the 69 days the longest it has taken to sell since February 2016.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%206.JPG" alt="">
Source: CoreLogic
As at October 2018, the median time on market for Adelaide was recorded at 42 days and in regional SA it was recorded at 93 days.
As the chart shows, the days on market figure for Adelaide is trending lower and is down from 55 days a year ago.
In regional SA, days on market has begun to trend higher over recent months however, it is lower than the 102 days it was typically taking a year ago.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%207.JPG" alt="">
Source: CoreLogic
Perth properties were typically taking 63 days to sell over the three months to October 2018.
The days on market figure for the city is trending higher and is up from 56 days over the same period in 2017.
In regional WA, the days on market figure has been trending higher over recent months however, it is unchanged from a year ago with the median currently recorded at 82 days.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%208.JPG" alt="">
Source: CoreLogic 
Properties that transact in Hobart are continuing to sell quickly however, there has been a fairly steep rise in days on market over recent months.
Properties in Hobart took 25 days to sell over the past three months, up from just 10 days a year ago and a recent low of 9 days during a number of months over the past year.
Properties are taking much longer to sell in regional Tas at 45 days however, the days on market figure has fallen from 53 days a year ago.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%209.JPG" alt="">
Source: CoreLogic
With the ongoing weak housing market conditions properties take a long time to sell across NT.
The small volume of sales also creates volatility in the days on market figure.
In Darwin, it currently takes 90 days to sell a property compared to 100 days a year ago.
In regional NT, it was taking 66 days a year ago which was a shorter days on market than the 74 days currently.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%2010.JPG" alt="">
Source: CoreLogic 
Over the three months to October 2018, the median days on market for a Canberra property was 43 days.
The days on market for the city was higher than the 37 days it took at the same time last year.
<img src="https://www.urban.com.au/images/2018/11/29/DOM%201.JPG" alt="">
Source: CoreLogic
Across the nation, the data shows that the trend is towards properties typically taking longer to sell.
This is reflective of the weaker housing market conditions whereby dwelling values are falling with growth slowing in most regions, transaction volumes are lower and the overall stock available for sale continues to climb which provides buyers with more choice and less urgency.
With credit conditions much tighter than they have been over recent years accessing finance is tougher which is a major contributor to weaker overall conditions.
As a result of these trends, it is expected that the median days on market figure will continue to trend higher over the coming months as vendors of ’stale’ inventory eventually adjust their price expectations lower or withdraw their property from the market.
CAMERON KUSHER is a property research analyst for CoreLogic.
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Selling conditions weaken as inventories rise and buyer activity fades: Cameron Kusher

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EXPERT OBSERVER
Nationally dwelling values as at October 2018 have fallen by - 3.5% from their peak with much larger falls in Sydney, Melbourne, Perth and Darwin.
The reality is that there has been very little improvement in housing affordability; Sydney and Melbourne in particular are a little cheaper, but remain substantially more expensive than other capital cities.
Although house values in Sydney are now -9.3% lower than their peak, the cost of a house in Sydney is still substantially higher than elsewhere at $960,344. In fact, a house in Sydney is now more than double the median value of an Adelaide and Hobart house.
<a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%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/2018/11/22/corelogic%201.jpg" alt="">
 
Source: CoreLogic
Looking at house values over time is interesting. 
Sydney has consistently been the most expensive capital city housing market however, although at one point, Perth was slightly more expensive (after Perth values surged more than 40% annually at one point in 2006 on the back the resources boom). Relative to other capital cities the Sydney premium is recorded at: 23% for Melbourne, 76% for Brisbane, 105% for Adelaide, 100% for Perth, 101% for Hobart, 88% for Darwin and 44% for Canberra.
<a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%202.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/2018/11/22/corelogic%202.jpg" alt="">
Source: CoreLogic
Despite recent value falls in Sydney, the value gap has not been at such wide levels as it is currently for most cities since late 2003/early 2004. The one exception is the value differential for Melbourne, which over recent years has been substantially narrower than previously.
Similarly, the Melbourne value gap compared to other capital cities (except Sydney) is the widest it has ever been. Historically, the value of houses in Melbourne have been quite similar to those in Brisbane and Perth however, this is no longer the case.
For units, the story is a similar one. Sydney’s median unit value at ($740,394) remains more expensive than median house values in all other capital cities except for Sydney and Melbourne. Similarly, the median Melbourne unit value ($555,517) remains higher than median house values in all other capital cities except Sydney, Melbourne and Canberra.
<a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%203.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/2018/11/22/corelogic%203.jpg" alt="">
Source: CoreLogic
Over time, unit values have saw a consistent trend whereby Sydney has been more expensive than the other capital cities. 
The current premium for Sydney compared to other capital cities sits at: 32% for Melbourne, 90% for Brisbane, 123% for Adelaide, 94% for Perth, 95% for Hobart, 134% for Darwin and 67% for Canberra. 
As was the case for houses, the differential has not been as large as it is currently between Sydney and these other capital cities since 2003/2004. Melbourne was exception where the differential has been reducing over recent years.
With house and unit values falling in Sydney and Melbourne, Mr Kusher expects the premiums to reduce further over the coming months and year(s).
<a href="https://www.propertyobserver.com.au/images/2018/11/22/corelogic%204.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/2018/11/22/corelogic%204.jpg" alt="">
Source: CoreLogic
While this may be the case, any significant reduction in housing costs back to historic premiums would take a long period of declines or flat housing market conditions. Furthermore, it seems unlikely, given the economic strength and populations of Sydney and Melbourne that the value premium of housing in these two cities will revert to historical levels. 
CAMERON KUSHER is a property research analyst for CoreLogic
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Very little improvement in housing affordability despite dwelling decline

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EXPERT OBSERVER
Over the three months to October 2018, more than three quarters (75.4%) of properties that sold transacted for less than their original listed price.
By comparison, over the same period, 7.0% of properties sold for their originally listed price with the remaining 17.6% selling for more than the originally listed price.
Over the past decade, even in periods where dwelling value growth was quite strong, the majority of properties sold nationally continued to sell for less than the original list price, highlighting that even during the boom times vendors will need to be flexible on their price expectations and buyers will seek out room to negotiate.
Since the middle of 2015, which is prior to value growth starting to slow but at a time where credit availability was tightening and transaction volumes were starting to fall, the share of properties selling for less than the original list price has been trending higher.
Geographically the rising trend of a greater share of properties selling with a discount is being driven by the Sydney and Melbourne markets where buyers have endured a long period of low advertised stock levels, rapidly rising prices and intense FOMO (fear of missing out).
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC.JPG" alt="">
As housing market conditions have weakened, buyers have more stock to choose from and far less urgency.
They are gaining more leverage, negotiating harder and a growing proportion of vendors are selling at prices lower than their original advertised price.
Outside of Sydney and Melbourne the trends are quite different, with the proportion of properties selling below the original list price holding reasonably firm.
Hobart, where housing market conditions have been strong relative to the other cities, is the exception, with an ongoing reduction in the proportion of properties selling below the original list price.
Across the combined capital cities, 73.6% of properties sold for less than list price over the past 3 months compared to 21.5% for more than list price.
Between 2013 and 2015 value growth was particularly strong and at that time a relatively high proportion of properties were selling above their list price.
It’s a very different story across the combined regional markets over recent years with very few properties selling above the original list price.
At its peak, 18.1% of properties sold in excess of the original list price, by comparison over the past three months 78.9% sold for less than their original list price and 13.0% sold for more than the original list price.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%202.JPG" alt="">
Sydney has been one of the strongest markets for value growth over recent years however, a big spike in listings and tighter credit conditions has made selling much more difficult.
At one point in mid-2015 more than three quarters of properties sold for more than the original list price.
Fast forward to the current market and 83.3% of properties are selling for less than the original list price compared to 13.3% selling above the list price.
Sydney vendors are now discounting their asking prices by 7.3% on average in order to make a sale, compared with only 5.4% a year ago.
At the peak in October 2015, 25.8% of properties in Regional NSW sold for more than the original list price highlighting that over recent years selling conditions were never quite as strong as those in Sydney.
Over the past 3 months, 82.0% sold for less than the original list price while 9.8% sold in excess of that price.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%203.JPG" alt="">
Melbourne is currently seeing 76.3% of properties selling below the original list price which is the highest share in at least 12 years.
As recently as April last year, when values were rising at a double-digit annual rate, 34.4% of properties were selling for less than the original list price.
By comparison today, only 18.7% of properties have sold over the past three months for more than the original list price and vendors are, on average, discounting their prices by 6.1% to make a sale.
There has never been a particularly large share of properties selling above their original list price across Regional Vic.
Currently, 9.5% sell for the original list price, 77.5% sell below list price and 13.1% sell above.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%204.JPG" alt="">
Brisbane’s housing market has seen very little value growth over the past decade and as a result a majority of properties has consistently sold for less than the original list price.
Over the past three months, 65.7% of properties sold for less than the original list price compared to 28.8% selling in excess of the list price.
Vendors are discounting their asking prices by an average of 5.7% in order to make a sale, which is roughly the same level of discounting relative to the same time last year.
The weakness that has been evident across parts of Regional Qld, especially those areas associated with the mining and resources sector, has seen a significant majority of properties over recent years sell for less than the original list price.
Over the past 3 months; 76.5% of property sales were less than the original list price compared to 17.0% selling for more.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%205.JPG" alt="">
When the Adelaide market was experiencing surging values in 2007 more than 60% of properties were selling above their list price however, over recent years, with housing values holding reasonably steady, very few properties have sold above the list price.
Over the past 3 months; 72.8% have sold below the list price and 21.3% have sold above the list price.
The ongoing weak housing conditions in Regional SA means that in terms of the original list price most purchasers have bought at a discount to that figure.
Over the current period; 86.3% of properties sold for less than the list price and 5.9% sold for more than the list price.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%206.JPG" alt="">
The ongoing weak housing market conditions in Perth over the past decade has meant that the majority of properties have sold for less than the original list price.
At their peak in mid 2011 (a time at which values were declining), 90.2% of properties sold for less than the originally listed price.
Over the past three months; 76.8% of properties sold below list price which is slightly lower than a year ago but still elevated and 19.0% sold in excess of the list price.
Housing conditions in Regional WA have been weaker than those in Perth culminating in almost all properties selling for less than the originally advertised sale price.
Over the past three months; 84.4% sold for less than their list price and only 9.9% sold for more than their list price.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%207.JPG" alt="">
As value growth has strengthened in Hobart, an increasing share of properties have sold for above the initially advertised price.
This is a function of relatively few properties for sale and values rising at an almost double-digit rate over the past year.
Over the past three months; an historic high 74.6% of sales have occurred in excess of the listed price compared to 21.7% below the list price.
As the rate of dwelling value growth is accelerating across Regional Tas, an increasing share of properties are selling in excess of the initially listed price.
Over the past 3 months; 34.8% of properties sold in excess of the list price compared to 55.9% selling below list price and 9.4% selling at list price.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%208.JPG" alt="">
With dwelling values falling for a number of years, very few properties in Darwin sell for more than the originally advertised sale price.
Over the past three months; 86.5% sold for less than the list price and 7.7% sold for more than the list price.
Reflecting the tough selling conditions, Darwin vendors are discounting their prices by an average of 11.7% in order to make sale which is substantially higher than any other capital city.
Regional NT is experiencing stronger housing market conditions than Darwin and subsequently a higher share of sales are occurring above the originally listed price.
Over the past three months; 16.7% sold for more than the list price and 70.8% sold below the list price.
<img src="https://www.urban.com.au/images/2018/11/15/PP%20CL%20CC%209.JPG" alt="">
A much higher share of properties in Canberra are selling at their original list price (14.4%) compared to other regions across the country.
Canberra is also seeing a relatively high proportion of properties selling above the list price (44.3%) although it is trending lower as sales below list price lift to 41.4% of all sales.
The recent decline in sales above the original list price is reflective of the softening housing market conditions across the city.
The data highlights the importance of setting an appropriate asking price on a listed property, and allowing some room for negotiation on the property transaction.
Finding the right balance can be a fine art.
Although the list price is often (not always) known a sale is a negotiation and as this data shows very few properties actually sell for the original list price.
As a result most properties end up selling below their original list price except in very strong markets such as Sydney and Melbourne over recent years and Hobart currently.
The data also shows that in very strong markets, vendors and real estate agents are at times not able to accurately gauge what price a property will sell for with many selling above the list price.
Equally in weak or falling markets a heightened number of properties only sell after the initially targeted sale price is reduced.
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In the last quarter 75% of properties sold for less than their original listed price: Cameron Kusher

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EXPERT OBSERVER
The weakness in housing finance commitments now looks engrained
The Australian Bureau of Statistics (ABS) released housing finance data for September 2018 earlier today and it showed a further weakening of demand for mortgages. Over the month, the total value of housing finance commitments was recorded at $29.1 billion which was the lowest monthly value since August 2014. While the decline in finance commitments over recent times has been primarily driven by investors, owner occupier demand is now also clearly easing.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%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/2018/11/9/housing%20finance%201.jpg" alt=""> 
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Over the month, the $29.1 billion worth of housing finance commitments was split between $19.4 billion to owner occupiers and $9.8 billion to investors. The $19.4 billion worth of commitments to owner occupiers was its lowest monthly value since July 2015 while the $9.8 billion to investors was its lowest monthly value since July 2013. Lending to owner occupiers in September 2018 was -9.4% lower than its monthly peak in February 2018. Housing finance commitments to investors in September 2018 was -33.8% lower than its April 2015 monthly peak.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%202.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/2018/11/9/housing%20finance%202.jpg" alt="">
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In terms of the different types of owner occupier housing finance commitments, each of the four categories recorded a fall over the month while year-on-year, refinance was the only segment that was higher. Importantly, the two largest components of lending to owner occupiers; refinance and purchase of established were -15.9% and -12.9% below their historic peaks in September 2018.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%203.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/2018/11/9/housing%20finance%203.jpg" alt="">
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It is a similar story for investors with demand falling across both new construction and established properties, both of which are lower over the month and year-on-year. In fact the September 2018 value of lending to investors for new construction was -46.9% below its peak while lending for established properties was -35.6% lower.
<a href="https://www.propertyobserver.com.au/images/2018/11/9/housing%20finance%204.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/2018/11/9/housing%20finance%204.jpg" alt=""> 
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As investor demand has faded from the housing market, demand from owner occupier first home buyers had been trending higher. This lift was largely on the back of introductions of stamp duty free or stamp duty reduced purchases for first home buyers under certain price points in NSW and Vic which became available in July 2017. More recently the data is pointing to an easing of demand from first home buyers. In September 2018 there were 8,693 owner occupier first home buyer commitments which was both lower than the previous year (9,618) and the previous month (9,534). In fact the 8,693 commitments was the lowest monthly number since January 2017 (note the data isn’t seasonally adjusted so January is always much lower than other months) other than that you’d have to go back toJune 2017 to see commitments so low (the month prior to stamp duty concession going live in NSW and Vic).
Given the ongoing declines in dwelling values, particularly in Sydney and Melbourne, and the now apparent declines in owner occupier and investor housing finance commitments, it is hard to see a reversal in dwelling value declines or a lift in sales activity any time soon.
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As activity reduces, housing inventory is building up, providing more choice for buyers and little in the way of urgency to make a purchase decision.
The upcoming pause for Christmas and New Year may see some adjustment in the New Year but even that looks unlikely. For the coming months it is expected mortgage demand will continue to fall as will dwelling values.
CAMERON KUSHER is a property research analyst for CoreLogic
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Housing finance commitments: Cameron Kusher

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EXPERT OBSERVATION
Median values and prices are often quoted in the media but what do they actually mean and what are they reflective of?
CoreLogic’s median value is an estimate of the middle value of all residential properties within a market.
The median is useful for understanding the middle of the market, however across the metropolitan area of our cities there is great deal of diversity in housing values.
To try and provide a bit more depth, we are looking at median values across the five largest capital cities and comparing them to values across the capital city SA4 sub-regions. In Tas and NT we are comparing capital city values to regional SA4 values.
<a href="https://www.propertyobserver.com.au/images/2018/11/12/data%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/2018/11/12/data%201.jpg" alt="">
Sydney’s median dwelling value as at October 2018 was $833,876 and the SA4 region closest in median value was the Inner South West at $840,805.
Most of the areas that have a median value lower than that of greater Sydney are located some distance from the city centre while those with higher values are typically the areas closer to the city centre or along the coastline.
The city’s most affordable SA4 region is Outer South West ($602,246) and the most expensive is Northern Beaches ($1,383,461).
<a href="https://www.propertyobserver.com.au/images/2018/11/12/data%202.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/2018/11/12/data%202.jpg" alt=""> 
Across Greater Melbourne, the median dwelling value is recorded at $665,044. The city’s most affordable region is West ($578,922) and the most expensive region is Inner East ($1,127,558).
Outside of the highly desirable Eastern and Inner regions values are remarkably similar across the remaining Melbourne regions.
In fact, only the Inner East, Inner South and Outer East have median values that are higher than that of Greater Melbourne.
<a href="https://www.propertyobserver.com.au/images/2018/11/12/data%203.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/2018/11/12/data%203.jpg" alt=""> 
Brisbane’s median dwelling value is currently $491,925.  While that is substantially lower than Sydney and Melbourne you can see that all of the regions relatively close to the city have current median values which are higher than that.
The most expensive region of the city is the West ($659,554) while the most affordable is Ipswich ($350,511).
Only three SA4 regions of the city actually have a median value which is lower than the city-wide median.
<a href="https://www.propertyobserver.com.au/images/2018/11/12/data%204.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/2018/11/12/data%204.jpg" alt="">
Greater Adelaide’s median dwelling value was recorded at $431,554 as at October making it the nation’s most affordable capital city housing market.
Throughout the city’s four SA4 regions, Central and Hills is noticeably more expensive than the rest and North is noticeably cheaper.
Central and Hills and West are more expensive than the city-wide median and South and North are cheaper.
CAMERON KUSHER is a property research analyst for CoreLogic.
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Housing costs vary widely across capital cities: Cameron Kusher

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EXPERT OBSERVER
The Australian Bureau of Statistics (ABS) released housing finance data for September 2018 earlier today and it showed a further weakening of demand for mortgages.
Over the month, the total value of housing finance commitments was recorded at $29.1 billion which was the lowest monthly value since August 2014.
While the decline in finance commitments over recent times has been primarily driven by investors, owner occupier demand is now also clearly easing.
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Over the month, the $29.1 billion worth of housing finance commitments was split between $19.4 billion to owner occupiers and $9.8 billion to investors. 
The $19.4 billion worth of commitments to owner occupiers was its lowest monthly value since July 2015 while the $9.8 billion to investors was its lowest monthly value since July 2013. 
Lending to owner occupiers in September 2018 was -9.4% lower than its monthly peak in February 2018. Housing finance commitments to investors in September 2018 was -33.8% lower than its April 2015 monthly peak.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/Cam2.jpg" target="_blank">to enlarge.</a>
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In terms of the different types of owner occupier housing finance commitments, each of the four categories recorded a fall over the month while year-on-year, refinance was the only segment that was higher. 
Importantly, the two largest components of lending to owner occupiers; refinance and purchase of established were -15.9% and -12.9% below their historic peaks in September 2018. 
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Click here <a href="https://www.propertyobserver.com.au/images/2018/11/cam3.jpg" target="_blank">to enlarge.</a>
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It is a similar story for investors with demand falling across both new construction and established properties, both of which are lower over the month and year-on-year.
 In fact the September 2018 value of lending to investors for new construction was -46.9% below its peak while lending for established properties was -35.6% lower.
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As investor demand has faded from the housing market, demand from owner occupier first home buyers had been trending higher. 
This lift was largely on the back of introductions of stamp duty free or stamp duty reduced purchases for first home buyers under certain price points in NSW and Vic which became available in July 2017. More recently the data is pointing to an easing of demand from first home buyers. 
In September 2018 there were 8,693 owner occupier first home buyer commitments which was both lower than the previous year (9,618) and the previous month (9,534). In fact the 8,693 commitments was the lowest monthly number since January 2017 (note the data isn’t seasonally adjusted so January is always much lower than other months) other than that you’d have to go back to June 2017 to see commitments so low (the month prior to stamp duty concession going live in NSW and Vic). 
Given the ongoing declines in dwelling values, particularly in Sydney and Melbourne, and the now apparent declines in owner occupier and investor housing finance commitments, it is hard to see a reversal in dwelling value declines or a lift in sales activity any time soon.
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As activity reduces, housing inventory is building up, providing more choice for buyers and little in the way of urgency to make a purchase decision.
The upcoming pause for Christmas and New Year may see some adjustment in the New Year but even that looks unlikely. For the coming months it is expected mortgage demand will continue to fall as will dwelling values.
CAMERON KUSHER is a property research analyst for CoreLogic
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The weakness in housing finance commitments now looks engrained: Cameron Kusher

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Median values reflect an estimate of the middle value of all residential properties within a market.
The median is useful for understanding the middle of the market, however across the metropolitan area of our cities there is great deal of diversity in housing values.
Sydney’s median dwelling value as at October 2018 was $833,876 and the SA4 region closest in median value was the Inner South West at $840,805.
Most of the areas that have a median value lower than that of greater Sydney are located some distance from the city centre while those with higher values are typically the areas closer to the city centre or along the coastline.
The city’s most affordable SA4 region is Outer South West ($602,246) and the most expensive is Northern Beaches ($1,383,461).
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20SYD.JPG" alt="">
 
Across Greater Melbourne, the median dwelling value is recorded at $665,044.
The city’s most affordable region is West ($578,922) and the most expensive region is Inner East ($1,127,558).
Outside of the highly desirable Eastern and Inner regions values are remarkably similar across the remaining Melbourne regions.
In fact, only the Inner East, Inner South and Outer East have median values that are higher than that of Greater Melbourne.
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20MEL.JPG" alt="">
Brisbane’s median dwelling value is currently $491,925.
While that is substantially lower than Sydney and Melbourne you can see that all of the regions relatively close to the city have current median values which are higher than that.
The most expensive region of the city is the West ($659,554) while the most affordable is Ipswich ($350,511).
Only three SA4 regions of the city actually have a median value which is lower than the city-wide median.
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20BRIS.JPG" alt="">
 
Greater Adelaide’s median dwelling value was recorded at $431,554 as at October making it the nation’s most affordable capital city housing market.
Throughout the city’s four SA4 regions, Central and Hills is noticeably more expensive than the rest and North is noticeably cheaper.
Central and Hills and West are more expensive than the city-wide median and South and North are cheaper.
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20ADL.JPG" alt="">
The Inner region of Perth is overwhelmingly the most expensive region of the city while Mandurah is substantially more affordable than all other Perth regions (note it sits on the southern outskirt of the city).
Greater Perth’s median dwelling value is $451,148 and most of the remaining regions of the city have median dwelling values which sit quite close to the city-wide median.
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20PER.JPG" alt="">
 
Greater Hobart doesn’t have any individual SA4 regions within the capital city boundary, so the chart provides a comparison in median dwelling values between Hobart and the other SA4 regions of the state.
Hobart is substantially more expensive than the rest of the state with the West and North West the most affordable.
The relatively affordable housing costs outside of Hobart are driving demand with the three regional SA4 regions of Tas having seen the highest rates of value growth nationally over the past year.
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20TAS.JPG" alt="">
In NT, there are only two SA4 regions; Darwin and NT-Outback. As the accompanying chart shows, outside of Darwin the cost of housing is substantially more affordable.
<img src="https://www.urban.com.au/images/2018/11/8/CL%20OCT%208%20NT.JPG" alt="">
Overall, the data provided offers a more granular insight into how median values in each city compare to smaller regions across each city.
It also reiterates the importance of analysing markets within smaller geographic areas as housing costs or the housing market performance can be vastly different when you look at different areas of a city.
The data also highlights that desirable areas close to the city centre typically have much more expensive housing costs than the broad capital city median.
Although it is clichéd; location, location, location holds true and purchasers still pay a significant premium for well-located properties
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There is more to house prices than the median: Cameron Kusher

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EXPERT OBSERVATION
According to the latest CoreLogic Home Value Index results for October 2018, national dwelling values have fallen by -3.5% over the past year and are -3.5% lower than their peak. 
Although this is a pretty moderate fall it is interesting to take a look at what this means and where values sit historically.  
<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/2018/11/2/national.jpg" alt=""> 
A -3.5% decline in national dwelling values from their peak to October 2018 means that values are now the lowest they’ve been since January 2017.
Given this, if you’ve purchased a property any time since January 2017 it is likely that your property is worth less than you paid for it.
While home owners don’t like to see the value of their assets falling, to put this into perspective values are still 44.8% higher over the past decade and 209.9% higher over the past 20 years.
<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/2018/11/2/sydney.jpg" alt=""> 
In Sydney, dwelling values have recorded their largest annual decline since February 1990, falling by -7.4% over the year to October 2018 and now sitting -8.2% lower than their peak in July 2017.  
The Sydney dwelling value index is currently the lowest it has been since September 2016. 
Although values are currently falling, they are still 81.4% higher over the past decade and 220.1% higher over the past 20 years.
 <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/2018/11/2/mel.jpg" alt="">
Dwelling values in Melbourne peaked in November 2017 and to October 2018 have fallen by -4.9%.
The Melbourne index is now at its lowest level since March 2017.  Over the 10 years to October 2018, values in Melbourne have increased by 74.7% and they are 295.4% higher over the past 20 years.
Based on this data, most home owners are still ahead however, recent buyers are likely to have seen values slip below the purchase price.
 <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/2018/11/2/brisbane.jpg" alt="">
Following a peak in April 2018, Brisbane dwelling values have fallen by -0.3% to October 2018. 
Although falls have only been moderate to date, values are at levels last seen in Brisbane in February 2018. 
A big difference between Brisbane and Sydney and Melbourne is that Brisbane has seen very little value growth over the past decade (16.1%) however, values are 185.3% higher than they were two decades ago.
<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/2018/11/2/adelaide.jpg" alt="">
Adelaide dwelling values sit at record high levels as at October 2018.
Although values are continuing to climb the rate of growth is moderate at just 1.8% over the past year.
Like Brisbane, Adelaide has seen very little value growth over the past decade, up by 23.7% with values 198.6% higher over the past two decades.
 <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/2018/11/2/perth.jpg" alt="">
Perth’s housing market has been in the midst of a correction since 2014 with dwelling values currently -14.2% lower than their June 2014 peak.
Based on index values, current values are the lowest they’ve been since June 2009. 
This means many recent buyers are in a position whereby the current value is lower than what they paid.
Over the past decade, values in Perth are -1.1% lower however, the previous decade was much stronger for value growth resulting in 20 year growth of 159.0%.
<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/2018/11/2/hobart.jpg" alt=""> 
Values have been rising at a rapid rate in Hobart over recent years and although the rate of growth has slowed a little of late, they remain at an historic high level.
Over the past decade, values in Hobart have increased by 42.9% with value growth much stronger over the previous 10 years with an increase of 230.0% over the past two decades.
 <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/2018/11/2/darwin.jpg" alt="">
Darwin has seen a substantial correction in housing values over recent years and as at October 2018, values were -23.6% lower than their May 2014 peak.
The last time dwelling values were as low as they are currently was November 2007.
This means anyone that has purchased over the past decade is likely to have a current home value lower than the purchase price.
This is reflected by the fact that values are -3.1% lower over the past decade.
NT housing data is only available from 1999 so over the 19 years to October 2018, values in Darwin are 77.8% higher.
 <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/2018/11/2/canberra.jpg" alt="">
Dwelling values in Canberra are continuing to rise and sit at historic high levels however, the rate of growth has slowed of late.  
Over the past 10 years, Canberra dwelling values have lifted 35.4% and over the past 20 years values are up 233.6%.
Although values in Sydney and Melbourne are seeing accelerating rates of decline, in the context of the run-up in values over recent years it has not greatly improved affordability. 
In fact in both cities values have only returned to levels seen a couple of years ago.  
CoreLogic expects values to continue declining over the coming months however, it is unlikely that these falls will make any significant improvement to affordability, especially in the absence of real income growth.
Although, if the declines continue for a number of years we could see a more substantial improvement in affordability as per what has occurred in Perth and Darwin following four years of ongoing value falls.
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Home values are falling, but how much is affordability improving? Cameron Kusher

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EXPERT OBSERVER
The latest CoreLogic home value index results show the slowdown in the national market has become more broadly based with the majority of capital city regions recording a fall in dwelling values. 
Over the three months to August 2018, combined capital city dwelling values fell by -1.2%. Throughout the individual capital cities, falls were recorded over the three months in: Sydney (-1.2%), Melbourne (-2.0%), Perth (-1.9%) and Darwin (-0.7%) while values increased in Brisbane (0.1%), Adelaide (0.5%), Hobart (0.1%) and Canberra (0.4%).
When digging a little deeper into the data and analysing value changes across the sub-regions (based on SA4 regions) of the capital cities, it is clear that values are drifting lower across most areas. Of the 46 capital city sub-regions (note that Hobart, Darwin and Canberra are each comprised of a single SA4 region) only 13 have recorded an increase in values over the period with all others recording a fall.
Looking at the data, five SA4 regions of Brisbane and three SA4 regions of Adelaide recorded value increases over the quarter. Even though values are falling across the Sydney metro area, North Sydney and Hornsby and City and Inner South have recorded moderate value increases over the quarter. Not one region of Melbourne has recorded an increase in values over the past three months.
Of the 33 SA4 regions in which values fell over the past three months, Melbourne-Inner East (-3.7%), Mandurah (-3.3%) and Blacktown (-3.0%) recorded the largest falls at a rate of 1.0%/month or more.    Over the three month period, dwelling values in Melbourne fell by -2.0% and the North West region of the city recorded the most moderate value fall of -1.0%.  Similarly in Perth, values were 1.9% lower over the quarter and the South West region recorded the most moderate quarterly fall, down -1.1%.
Click <a href="https://www.corelogic.com.au/sites/default/files/2018-09/20180904_change_in_values_three_months_to_aug18.jpeg" target="_blank">here</a> to enlarge
<img src="https://www.corelogic.com.au/sites/default/files/2018-09/20180904_change_in_values_three_months_to_aug18.jpeg" alt="CoreLogic_Change in values three months to Aug18" width="1134" height="2288">
Cameron Kusher is the head of research at CoreLogic
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How have dwelling values shifted around the capital cities? 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" />

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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.

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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

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