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EXPERT OBSERVER
Over the past few weeks three of the four major banks in Australia have announced that they are going to be increasing variable mortgage rates. 
While there has been a lot of adjustments to mortgage rates over recent years, the big difference with the latest announcement is that the higher mortgage rates are going to affect owner occupiers. 
Most of the previous mortgage rate changes announced by the major banks have only affected investors and those with interest only mortgages.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/7/KUSH1.jpg" target="_blank">to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/7/KUSH1.jpg" alt="">
Many of the smaller regional banks have pushed mortgage rates for owner occupiers higher over recent months citing higher short-term funding costs. 
Although until now the major banks had resisted making an adjustment to mortgage rates it seems they too have had their hand forced by higher funding costs.  The above chart highlights the cost of short-term funding to banks (the three-month bank bill swap rate) and it clearly shows that the cost of short-term funding has increased.  It currently sits at 2.26% compared to the official cash rate which remains unchanged at 1.5% since August 2016.
Click here <a href="https://www.propertyobserver.com.au/images/2018/9/7/KUSH2.jpg" target="_blank">to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/7/KUSH2.jpg" alt="">
Short-term funding costs have certainly risen recently however, it is also interesting to look at the composition of funding to Australia’s banks. Short-term funding is not an insignificant part of the funding profile (slightly more than 20%), although the share of funding from short-term debt has fallen over recent years as domestic deposits have increased. 
There are other ways to handle higher short-term funding costs rather than lifting mortgage rates but that would likely mean cutting dividends which lenders seem reluctant to want to do or reducing deposit interest rates which would likely see a further reduction in the primary funding source: domestic deposits.
From a housing market perspective the timing of the announcement of higher interest rates is an interesting one. 
After many years of strong value growth, Sydney and Melbourne housing is now well embedded in a downturn.  Tighter credit conditions, higher mortgage rates for investors and interest-only borrowers and reduced affordability have already led to the falls of -5.6% from the peak in Sydney and -3.5% from their peak in Melbourne.  This has occurred so far without higher interest rates for owner occupiers paying off principal and interest however, that is about to change.
The timing of the hikes to mortgage rates is also interesting in that it has been announced right at the beginning of the Spring Selling Season.  Although spring, in my mind and according to the data, is somewhat overhyped as a good time to sell, more stock does typically become available for sale over the period and buying activity typically increases. 
The other usual occurrence at the beginning of spring is that lenders offer enticing mortgage rates to the market to jostle for market share.  By contrast this year, major lenders are announcing higher mortgage rates.
Higher mortgage rates have already driven a slowing of demand for investors over the past year.  Although the magnitude of the mortgage rate increases announced is fairly small (around 15 basis points by each lender) it is likely that the higher mortgage rates will impact on housing market sentiment. Furthermore it may end up further exacerbating the declines which are already occurring in Sydney, Melbourne, Perth and Darwin and the slowing of value growth being experienced elsewhere. 
Overall this move seems likely to lead to a continuation of the currently weak housing market conditions over the coming months and may weaken the market further.  From the lenders perspective, clearly they realise that the housing downturn is becoming entrenched (particularly in Perth and Darwin, but more recently in Sydney and Melbourne) and they are doing what they can to maintain profitability in the face of lower mortgage volumes.
CAMERON KUSHER is a property research analyst for CoreLogic
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Higher mortgage rates likely to prolong the housing market weakness: CoreLogic

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EXPERT OBSERVER
The latest private sector credit data from the Reserve Bank (RBA) confirms that the sagging demand for credit by investors continued in July 2018. Over the month, total housing credit was recorded at $1.78 trillion and increased by 0.4% to be 5.5% higher over the past year. The $1.78 trillion in outstanding credit for housing was split between $1.183 trillion for owner occupiers, accounting for two thirds of outstanding housing credit, and $593.0 billion to investors which accounted for one third of outstanding housing credit, its lowest share since November 2012.
<img src="https://www.corelogic.com.au/sites/default/files/2018-09/20180903_monthly_change_in_housing_credit.jpeg" alt="CoreLogic Monthly Change in Housing Credit" width="2058" height="684">
The 0.4% increase in credit in July 2018 was actually an acceleration from the monthly rate of growth in both May and June. Looking at the split between owner occupiers and investors: owner occupier credit expanded by 0.5% over the month while investor credit grew by 0.1%. The 0.5% monthly increase in owner occupier credit was the slowest rate of growth since June 2015 while the 0.1% monthly increase in investor credit was the strongest growth since March 2018.
<img src="https://www.corelogic.com.au/sites/default/files/2018-09/20180903_annual_change_in_housing_credit.jpeg" alt="CoreLogic Annual Change in Housing Credit " width="2100" height="690">
Of course monthly data can be somewhat volatile and the annual data indicates more clearly the emerging trends in growth of housing credit. The 5.5% in housing credit over the past year was the slowest rate of growth since December 2013. Owner occupier housing credit increased by 7.6% over the past year which is its slowest annual rate of growth since August 2017.Investor housing credit has expanded by 1.5% over the past 12 months which is its slowest annual rate of growth on record (based on data available from January 1991).  
While the monthly data shows a bit of an uplift in housing credit growth, due to an increase in credit to investors, the annual data shows that housing credit expansion is continuing to slow which is a trend that is expected to continue over the coming. As credit availability has been tightened, investor demand has felt the brunt of tighter credit which has contributed to the slowing in credit growth. More recently, smaller lenders and Westpac have increased mortgage rates to owner occupiers which is likely to contribute to a further slowing in owner occupier credit growth and subsequently total credit growth given that owner occupiers account for two thirds of outstanding credit.
With an expectation that housing credit expansion will continue to slow this is likely to contribute to further declines in national dwelling values over the coming months.  The prospects for any reversal of fortunes in the national housing market over the short to medium term, at this point, appear fairly slim.
Cameron Kusher is a research analyst for CoreLogic
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Investor credit rises over the month but trending lower on an annual basis: Cameron Kusher

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EXPERT OBSERVER
Units offer affordable options for many looking to enter the housing market for the first time, down size or simply own a pad close to a city centre. 
I analysed the CoreLogic Settlement Risk data to show the potential number of new units set to be completed over the coming years and just how the numbers look.
Over the next 12 months, an additional 94,471 new units will be completed nationally.
<img src="https://www.urban.com.au/images/2018/8/31/Units%20built%201.JPG" alt="">
This figure represents a 3.5% uplift in total unit supply. Over the next 24 months, the unit supply uplift is expected to be much greater at 251,751 units which is an increase of 9.3% on current supply.
Across the Greater Capital City Statistical Areas (GCCSA), Sydney (76,977) and Melbourne (78,689) are expected to see the greatest increase in unit supply over the next two years.
While the number of unit new units due for settlement is much lower in Brisbane and Adelaide, these two cities are expected to see the greatest percentage increase in new unit supply over the next two years, with CoreLogic data suggesting an uplift of 18.4% and 12.5% respectively.
The top 25 SA3 regions are expected to record the greatest number of new unit settlements over the next two years, Brisbane Inner is expecting an additional 9,732 units over the next two years which translates to an increase in overall unit supply of 29.7%.
Melbourne City is expected to see an 8.1% increase in unit supply over the next two years with an additional 8,040 units while Sydney Inner City is set to add an additional 7,202 units, an uplift of 6.1%.
The top 25 list is dominated by regions of Melbourne which account for 12 of the 25 regions listed while Sydney accounts for nine, Brisbane three and Perth one.
The main difference across the capital cities is that Sydney’s supply of units is set to increase across geographically diverse areas along transport spines while most other cities are seeing the supply increase exclusively within inner city areas.
<img src="https://www.urban.com.au/images/2018/8/31/Units%20built%202.JPG" alt="">
Over the past five years we’ve seen a significant increase in overall unit supply.
At the same time, housing market conditions have deteriorated over the past year, particularly in Sydney and Melbourne, with dwelling values falling and rental growth slowing.
In the face of weakening housing market conditions, both of these cities retain a high volume of unit stock to be completed. As the new supply comes on line over the coming years, it is anticipated that this could lead to further
Cameron Kusher is a research analyst for CoreLogic
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How many units are set to be built over the next two years? Cameron Kusher

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EXPERT OBSERVER
Since the market peaked in July 2017, dwelling values in Sydney have fallen by 5.4%. Melbourne’s housing market peaked a little later than Sydney’s in November 2017 and have declined by 2.9% since their peak.
In this week’s blog, we take a look at how recent periods of value decline in Sydney and Melbourne have played out both across the city as a whole and within the individual SA4 regions. The recent period of decline that will be focused on for Sydney are: post 2003, GFC, 2010 declines and the recent downturn. For Melbourne, the focus will be on the GFC period, the 2010 declines and the current market downturn.
<h5>Sydney post - 2003</h5>
Following the rapid growth in dwelling values at the turn of the century in Sydney the market started to fall in early 2004. From the market peak in December 2003, values declined by -8.2% in total to January 2006. Of course, across the individual SA4 regions of the city declines varied substantially as did the length of time the declines occurred over.  
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.1.jpeg" alt="CoreLogic Decline in Sydney SA4 Dwelling Values Post 2003" width="1430" height="686">
  The South West (-16.4%) and Central Coast (-14.2%) recorded the largest declines in values during the post-2003 housing market downturn in Sydney.  The Northern Beaches (-5.9%) and North Sydney and Hornsby (-7.5%), two of the more expensive areas of the city, recorded the most moderate declines over the period. The length of decline also varied dramatically with regions such as: Central Coast, Blacktown, Inner South West, Outer South West, Outer West and Blue Mountains, Parramatta and South West seeing elongated periods of decline. Conversely, values fell for less than a year in: Eastern Suburbs, Northern Beaches and Ryde.
<h5>Sydney - GFC</h5>
The housing downturn in Sydney during the GFC was a very different experience to the post-2003 downturn. Whereas post-2003 it was the more affordable areas which saw the largest value falls and declines were moderate for the more expensive markets, during the GFC it was premium housing areas that recorded the greatest declines. Unlike the previous downturn, it was fairly short-lived with most regions recording value decline for only 12 months, if not less.
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.2.jpeg" alt="CoreLogic Decline in Sydney SA4 Dwelling Value During GFC" width="1516" height="708">
  The areas in which values recorded the greatest falls over the downturn were the most expensive areas of the city: Eastern Suburbs (-14.0%), Northern Beaches as well as North Sydney and Hornsby (both -10.8%). Although these declines were comparatively large, each of these regions recorded falls for 15 months at the most. The most moderate declines during this downturn occurred in: South West (-2.7%) and Inner South West (-2.9%) with the regions recording values falls for nine months and seven months respectively.
<h5>Melbourne - GFC</h5>
During the housing market downturn in the GFC, dwelling values in Melbourne fell by -9.4% in the space of 12 months. Like the Sydney experience the greatest declines tended to occur across higher valued housing markets while the falls were relatively more moderate across the more affordable regions of the city.
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.3_0.jpeg" alt="CoreLogic Decline in Melbourne SA4 Dwelling Values During GFC" width="1456" height="736">
  During the downturn, the Inner East (-15.9%) and Inner South (-15.5%) regions recorded the greatest falls.  Even though these falls were substantial they occurred over just 12 months in the Inner East and 11 months in the Inner South. The North West (-2.4%) and West (-3.0%) regions of the city recorded the most moderate falls over the period with the declines taking place over five months and eight months respectively.
<h5>Sydney – 2010 downturn</h5>
The GFC decline in values was staved off by aggressive interest rate cuts and housing market stimulus, once interest rates began to rise and the stimulus was removed, Sydney dwelling values started to fall. Ultimately values declined by a cumulative -3.7% between September 2010 and February 2012.
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.4.jpeg" alt="CoreLogic Decline in Sydney SA4 Dwelling Values During 2010 Downturn" width="1504" height="724">
  During the 2010 downturn it was once again some of the most expensive areas of the city which recorded the largest value falls: Eastern Suburbs (-11.1%) and Northern Beaches (-7.7%) while the most moderate falls occurred in more affordable housing markets: South West (-0.9%) and Outer West and Blue Mountains (-1.0%). Values in the Eastern Suburbs and Northern Beaches declined for 20 months while in South West and Outer West and Blue Mountains, values fell for only six months and 11 months respectively.
<h5>Melbourne – 2010 downturn</h5>
As housing market stimulus was wound out of the market in 2010, values in Melbourne fell by -8.4% between November 2010 and February 2012. Like the GFC downturn, the value falls tended to be much greater for the higher value areas of the city.
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.5.jpeg" alt="CoreLogic Decline in Melbourne SA4 Dwelling Values During 2010 Downturn" width="1454" height="714">
  The greatest declines throughout this downturn were recorded in the Inner South (-13.1%) and the Inner East (-12.0%) with values falling in both of these regions for 28 months. Value declines were the most moderate in the West (-7.4%) and Outer East (-7.8%) regions with values declining for a total of 16 months and 19 months respectively.
<h5>Sydney – current downturn</h5>
Sydney dwelling values peaked in July 2017 and over the 12 months to July 2018 they have so far fallen by -5.4%. Unlike previous downturns the areas with the largest falls have been neither the most affordable nor the most expensive areas. Furthermore, values are still rising on the Central Coast.
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.6.jpeg" alt="CoreLogic Decline in Sydney SA4 Dwelling Values During Current Downturn" width="1488" height="736">
  Since the market peak, Baulkham Hills and Hawkesbury (-10.2%) and Inner West (-9.1%) have recorded the greatest value declines. As mentioned, values continue to rise in Central Coast while the South West has also recorded a comparatively moderate fall of -2.1%. Outside of the post-2003 downturn, the South West has consistently recorded relatively minor falls during recent downturn periods.
<h5>Melbourne – current downturn</h5>
Since having peaked in November 2017, dwelling values in Melbourne have fallen by -2.9% to July 2018. Over recent months the rate of decline has been gathering pace and it is the higher value areas of the city in which the declines have been greatest so far.
<img src="https://www.corelogic.com.au/sites/default/files/2018-08/1.7.jpeg" alt="CoreLogic Decline in Melbourne SA4 Dwelling Values during Current Downturn" width="1438" height="760">
In the current downturn, the largest falls to-date have been recorded in: Inner East (-6.3%) and Inner South (-4.5%), these two regions also recorded the largest value falls over the previous two Melbourne housing market downturns. The most moderate value falls during the current downturn have occurred in Mornington Peninsula and West, both of which recorded falls of -0.9%.
While the current housing market downturn has been relatively short so far, there are some lessons that can be learned from previous downturns. The housing market downturns in 2008 and 2010-12 were largely driven by weaker economic conditions that impacted the banking and financial services sectors; consequently it was the premium end of the housing market where values weakened the most due to less demand for high priced homes and more stock in the higher price ranges entering the market. 
The current downturn in Sydney and Melbourne has once again seen the banking and financial services sector impacted, with heightened credit regulation and fallout from the Royal Commission. Weaker conditions across this sector are likely contributing to weaker conditions across the premium housing sector. This trend is being compounded by the surge in first home buyer activity which is supporting housing demand across the more affordable housing price points.  
Downturns in the Sydney market tend to be much more varied in terms of market segments leading the falls and that appears to be the case again now. In Melbourne, each of the downturns have seen the largest falls across the most expensive regions of the city and that appears to be the case again in the current downturn. The great unknown is how long this housing market downturn runs for but it certainly feels as if it has longer to run.
Cameron Kusher is a research analyst at <a href="https://www.corelogic.com.au/news/how-does-housing-decline-compare-previous-downturns-sydney-and-melbourne?utm_source=Newsletter&amp;utm_medium=EmailArticle&amp;utm_campaign=AUSPropertyPulse" target="_blank">CoreLogic</a>.
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2018 housing declines hit Melbourne's inner east and Sydney's Hills district hardest: CoreLogic

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EXPERT OBSERVER
CoreLogic reported that although national dwelling values are falling, the impact is not having much of an affect at the lower end of the housing market with volume of sales under $400,000 continuing to trend lower.
With dwelling value growth having slowed over the 2017- 18 financial year to a decline of -0.8% from an increase of 10.2% over the previous year, it has done little to add to sales of the most affordable properties.
Last week, we noted how there was starting to be fewer seven-figure sales as values decline, this week our analysis shows that the share of sales under $400,000 has continued to decline over the past year.
Nationally, 29.2% of all houses and 34.6% of all units sold over the 2017-18 financial year transacted for less than $400,000.
The share of sales below this price point has fallen from 30.7% for houses and 35.4% for units a year earlier.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%201%20Nat.JPG" alt="">
 
The share of sales below $400,000 has increased slightly over the past few months for both houses and units. An historic low 13.9% of combined capital city house sales and 25.8% of capital city unit sales were under $400,000 over the 2017-18 financial year.
The share of sales below $400,000 has fallen over the year from 16.2% of houses and 27.1% of units. Although capital city dwelling values are falling, there continues to be fewer sales occurring below the $400,000 threshold.
The share of sales below $400,000 is predictably much larger across regional areas of the country than within the capital cities.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%202%20CC.JPG" alt="">
 
Over the latest financial year, 49.6% of all regional house sales and 57.3% of all unit sales were for less than $400,000.
House sales under $400,000 were at a record low and down from 51.6% the previous year while unit sales under $400,000 have increased over recent months but are lower than the 58.0% a year earlier.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%203%20Reg.JPG" alt="">
Very few houses or units have transacted for less than $400,000 in Sydney over the 2017-18 financial year. Over the 12 months to June 2018, 2.5% of houses and 5.8% of units sold for less than $400,000.
The share of house sales under $400,000 was an historic low and has fallen from 3.1% over the previous financial year.
The 5.8% of units sold for less than $400,000 over the year was up marginally from 5.7% over the year to March 2018 but was well down on the 6.7% a year earlier.
<img src="https://www.urban.com.au/images/2018/8/23/Cl%20PP%204%20Syd.JPG" alt="">
 
As Melbourne dwelling values have climbed over recent years there has been a significant decline in sales under $400,000 to the point where almost no houses sell for less than $400,000.
Over the 2017-18 financial year, an historic low 2.7% of Melbourne houses sold for less than $400,000 which was down from 9.5% over the previous year.
The share of unit sales under $400,000 continues to fall and sits at just 21.5% of all sales over the past year, down from 28.0% the previous year.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%205%20Mel.JPG" alt="">
While dwelling value growth has been quite weak in Brisbane over recent years, the share of sales occurring for less than $400,000 has generally trended lower.
Over the past 12 months, an historic low 22.8% of all house sales were under $400,000 which was down from 26.1% over the previous year.
The ongoing weakness in the unit market has seen the share of sales under $400,000 increase from 45.3% a year ago to 46.8% in 2017-18.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%20Bri.JPG" alt="">
 
Adelaide dwelling values have been increasing at a slow pace over recent years and despite the slow growth, the share of sales under $400,000 has continued to fall.
Over the 2017-18 financial year, 36.6% of all house sales and 55.4% of all unit sales were under $400,000.
The 36.6% of house sales under $400,000 was a record low and down from 39.8% of sales a year earlier.
The 55.4% of unit sales under $400,000 was down from 59.1% over the previous year but slightly higher than the 55.2% over the 12 months to April 2018.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%20Adl.JPG" alt="">
Following a number of years of falling dwelling values across Perth, the share of house and unit sales under $400,000 is now beginning to trend higher.
Over the 2017-18 financial year, 26.7% of all house sales were under $400,000 which was the greatest share under this price point since June 2013 and up from 23.8% a year earlier.
51.3% of all unit sales were under $400,000 over the year which was up from 45.6% a year earlier and the highest share since January 2010.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%20perth.JPG" alt="">
While Hobart still has a large share of properties selling for less than $400,000, the strong growth in dwelling values is resulting in a declining share, which is currently at a record low for houses and units.
Over the 2017-18 financial year, 43.0% of all houses and 69.5% of all units sold were under $400,000.
By comparison, a year earlier, 52.7% of all house sales and 78.0% of all unit sales were less than $400,000.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%209%20Hobart.JPG" alt="">
 
Although the Darwin housing market has seen falling values for a number of years, there hasn’t been a significant increase in sales of houses for less than $400,000 but there has been for units.
Over the 12 months to June 2018, 25.4% of all house sales were less than $400,000 which was down from 29.6% over the previous 12 months.
For units, 64.3% of all sales were under $400,000 which was up from 40.9% a year earlier and the greatest share since the 12 months to December 2009.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%2010%20DARWIN.JPG" alt="">
The share of houses and units sold for less than $400,000 in Canberra has fallen over the past year as values have continued to rise.
An historic low 2.4% of house sales were under $400,000 over the year down from 4.4% the previous year. 33.9% of all unit sales were under $400,000 down from 36.3% a year ago.
Perth and Darwin have seen the share of sales under $400,000 increase after a number of years of value declines.
<img src="https://www.urban.com.au/images/2018/8/23/CL%20PP%20%2011%20CNB.JPG" alt="">
 
In closing, with values now falling in Sydney and Melbourne it is unlikely to initially result in an increase in sales under $400,000 however, should it continue for a number of years we may finally see a reversal of the declining trend in sales under $400,000.
Cameron Kusher is senior research analyst at CoreLogic RP Data
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Proportion of homes sold under $400,000 at historic low: Cameron Kusher

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EXPERT OBSERVER
My analysis reveals that over the 2017-18 financial year, annual value growth fell from 10.2% over the previous financial year to a decline of -0.8% this year.
The largest fall in values is occurring for Sydney and Melbourne’s most expensive properties.
This has resulted in the number of sales at, or in excess, of $1 million starting to trend marginally lower across the nation.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%201.JPG" alt="">
As housing market conditions continue to weaken, it is anticipated that there will continue to be fewer sales above the $1 million threshold.
Over the 12 months to June 2018, 16.0% of all houses and 8.8% of all units sold nationally had a price of at least $1 million; the share of house and unit sales at this price point was slightly lower than the previous year when 16.1% of houses and 9.1% of unit sales were at this price point.
The share of $1 million plus sales is also down from the peak of 16.8% for houses in February 2018 and 9.4% for units in October 2017; 24.5% of houses and 10.7% of units were sold for at least $1 million over the 2017-18 financial year.
House sales at this price point were slightly higher than the 24.3% a year ago but down from the recent peak of 25.5% in February 2018.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%202.JPG" alt="">
 
The 10.7% of unit sales for at least $1 million was down from 11.1% a year ago as well as being lower than the 11.5% peak in October 2017.
Across the combined regional markets, 4.7% of all houses sold over the 2017-18 financial year transacted for at least $1 million.
A year earlier, 4.3% of all sales were at that price point however, the share of house sales at or above $1 million has fallen slightly from 4.8% in March 2018.
Four per cent of all units sold over the past year were at least $1 million which was a recordhigh share and up from 3.7% the previous year.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%203.JPG" alt="">
At its peak in March 2018, 50.4% of houses sold over the past year in Sydney transacted for at least $1 million with the figure since falling to 48.8% in June 2018.
The 48.8% share in June 2018 was slightly higher than the 48.6% a year earlier but clearly now trending lower.
Over the 12 months to June 2018, 21.2% of all unit sales were at least $1 million which was both down from a year ago (21.8%) and lower than the October 2017 peak (22.5%).
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%20SYdney.JPG" alt="">
Over the 2017-18 financial year, 29.6% of houses and 8.% of units sold in Melbourne sold for at least $1 million.
The share of house sales at this price point was higher than the previous financial year (27.6%) while for units it was slightly lower (8.1%).
The share of sales of at least $1 million in Melbourne peaked in March 2018 for houses at 30.6% and peaked in January 2018 at 8.6% for units.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%205.JPG" alt="">
A historic high of 9.2% of houses and 3.3% of units in Brisbane were sold for at least $1 million over the 12 months to June 2018.
The share of sales of at least $1 million has risen quite considerably over the year from 8.1% for houses and 2.8% for units a year ago.
 
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%206.JPG" alt="">
Over the 12 months to June 2017, 5.3% of Adelaide houses and 1.8% of units had been sold for at least $1 million.
12 months later, the share of sales within this price point had increased to new record-highs of 5.9% for houses and 2.0% for units.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%207.JPG" alt="">
Despite ongoing declines in values over recent years the share of sales of properties for at least $1 million in Perth has increased over the year.
In June 2017, 10.9% of houses and 3.8% of units sold for at least $1 million compared to 11.1% and 3.7% respectively in June 2018.
The share of houses sold for at least $1 million peaked in April 2018 at 11.3% while the share of unit sales over $1 million peaked at 5.6% in April 2008.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%208.JPG" alt="">
With Hobart dwelling values having surged over the past year there has been a substantial increase in the share of house sales of at least $1 million.
Over the 12 months to June 2018, 3.7% of all houses sold and 1.2% of all units sold transacted for $1 million or more.
The share of house sales of $1 million or more was a record high and up from 2.6% of all sales a year earlier.
The share of $1 million unit sales increased from 1.0% a year earlier but has eased back from a peak of 1.3% in January 2018.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%209.JPG" alt="">
As Darwin dwelling values have fallen over recent years so too has the share of sales of properties for at least $1 million.
At the peak in February 2015, 5.9% of all house sales were at least $1 million while for units, the peak of 3.1% of all sales occurred in August 2015.
Over the past 12 months, 3.8% of all house sales were at least $1 million which was steady over the year while 0.9% of all unit sales were seven figures over the past year compared to 1.4% a year ago.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%2010.JPG" alt="">
Over the 2017-18 financial year, 14.1% of all house sales and 2.5% of all unit sales in Canberra were at least $1 million.
The 14.1% of house sales for at least $1 million was an historic high while the share of seven figure sales of units peaked in March 2016 at 3.1%.
The share of $1 million house and unit sales both increased over the year from 12.0% and 1.9% respectively.
In closing, with dwelling values declining and much more rapid declines across the most expensive housing stock it is reasonable to expect the share of $1 million sales to trend lower over the coming year.
This will largely be driven by weakening in Sydney and Melbourne. Smaller capital cities are also likely to continue to see the share of $1 million sales climb further too.
<img src="https://www.urban.com.au/images/2018/8/16/CL%20PP%2011.JPG" alt="">
Cameron Kusher is a CoreLogic research analyst 
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Expensive home sales volume in decline, with Hobart going against the capital city trend: Cameron Kusher

<html><body>
EXPERT OBSERVER
The combined effect of low rental yields and declining dwelling values has resulted in a rapid reduction in overall returns from housing over the past year.
According to the CoreLogic Total Returns Index, over recent year’s value growth has been much stronger than rental returns, showing that the majority of the returns have been achieved via capital gains rather than rental income.
With dwelling values now falling and gross rental yields close to historic lows, the total returns from residential housing are not looking so attractive and a greater share of returns are coming from the yield component.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%201.JPG" alt="">
National dwelling values fell by -1.6% over the 12 months to July 2018, total annual returns have fallen to just 1.9% and are now at their lowest since June 2012.
The fall in total returns has been substantial given that a year earlier total returns were recorded at 14.2%.
Across the combined capital cities, total returns over the 12 months to July 2018 were recorded at 0.8% - the lowest they have been since May 2012.
Total returns across the combined regional markets were recorded at 6.6% over the past year – again, the lowest they have been since June 2013.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%202.JPG" alt=""> 
A year ago, annual total returns were recorded at 14.8% across the combined capital cities and 12.0% across the combined regional markets.
Over the past 12 months, total returns in Sydney have fallen by -2.5%.
This -2.5% fall in returns is the weakest result since February 2009 and represents a substantial slowdown in annual returns from July 2017 when they had increased by 19.0%.
With dwelling values falling -5.4% in Sydney over the past year it highlights that value changes largely dictate total returns in Sydney.
In regional NSW total returns increased by 6.7% over the past year that was the smallest annual increase since February 2013.
Annual returns in regional NSW have slowed from 17.1% a year ago.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%203.JPG" alt="">
Value falls in Melbourne over the past year have seen a substantial reduction in total returns.
Over the past year, Melbourne recorded at 2.4% reduction that was down from 16.6% a year ago and was also the lowest annual return since October 2012.
Total returns in regional Vic have remained much more stable than those in Melbourne.
Over the past 12 months, total returns in regional Vic have been recorded at 9.8% which was only slightly lower than the 10.4% total returns recorded a year ago.
Value growth is only slightly lower than it was a year ago in regional Vic which is a key contributor to fairly steady total returns.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%204.JPG" alt="">
Over the past year, dwelling value growth has slowed across Qld which has contributed to a moderate reduction in total returns.
Over the year, total returns in Brisbane were recorded at 4.8% which was the lowest return since July 2013 and down from 7.5% a year ago.
Regional Qld total returns were slightly stronger than those in Brisbane were at 5.2% however, they too were down from 9.1% a year ago and the 5.2% was the smallest annual return since October 2012.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%205.JPG" alt="">
The rate of dwelling value growth has slowed over the past year in Adelaide and so too have total returns while the rate of value decline in regional SA has slowed, providing a boost to total returns.
Total returns in Adelaide were recorded at 4.9% over the past year compared to a 6.1% return in regional SA.
In Adelaide, returns have fallen from 9.9% a year ago and are the lowest they have been since June 2013.
Total returns in regional SA have increased from 5.2% a year ago and are the highest they have been since January 2017.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%206.JPG" alt="">
Although values have fallen over the past year in both Perth and regional WA, total returns in each region remain positive.
Over the past 12 months, total returns in Perth were recorded at 1.6%, which was an increase from 1.2% a year ago however, annual returns have eased slightly over recent months.
In regional WA, total returns were recorded at 0.6% over the past year compared to 1.8% a year ago.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%207.JPG" alt=""> 
With strong increases in dwelling values over the past year, Hobart has recoded the nation’s highest total returns at 17.1%.
Although 17.1% represents much stronger returns than all other capital cities it is lower than the 19.7% a year ago and also lower than the recent peak of 20.2% in September 2017.
Regional Tas has also generated comparatively high total returns over the past year of 12.0%.
The 12.0% annual returns are down from 14.1%, a year ago which was the recent peak.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%208.JPG" alt="">
 
There is a big discrepancy between total returns in Darwin and regional NT, which is also reflective of the significant differences in value changes over the past year.
Over the past year, total returns in Darwin were recorded a -0.8% which is down from a positive returns of 2.5% a year ago.
Although total returns are falling, the magnitude of the fall has slowed over the past two months.
In regional NT, total returns were recorded at 12.3%, which was a substantial improvement on the 1.4% annual return a year ago.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%209.JPG" alt="">
Over the 12 months to July 2018, total returns for Canberra dwellings were recorded at 7.0%.
The 7.0% annual return was lower than the 12.8% recorded over the previous 12 months.
As the chart below shows, returns have trended lower over the past year but have begun to stabilize over recent months.
<img src="https://www.urban.com.au/images/2018/8/13/PP%20CL%2010.JPG" alt="">
The most recent data shows that there has been a significant fall in investor mortgage demand.
Over recent years most of this demand has been in Sydney and Melbourne, both of which have seen a significant slowdown in total returns over the past year.
Given the decline in returns and an expectation that returns will continue to shrink as values decline further, it is anticipated that investor mortgage demand will also shrink, particularly in Sydney and Melbourne.
Investors could see renewed interest for housing in other regions of the country where total returns remain positive however, however the returns are anticipated to be far inferior to those recorded over recent years in Sydney and Melbourne.
Cameron Kusher is a CoreLogic Research analyst 
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Returns on residential housing continue to fall: Cameron Kusher

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EXPERT OBSERVER
Over the 12 months to June 2018, nominal dwelling values fell by - 0.8% while in real terms, considering inflation was up 2.1% over the year, dwelling values have declined by a much greater -2.9%.
Nominal values fell over the past year in Sydney, Perth and Darwin however, in real terms values fell across all capital cities over the past year outside of Hobart and Canberra.
Perth is the only capital city where nominal dwelling values have fallen over the past decade, down -4.6%.
<img src="https://www.urban.com.au/images/2018/8/2/PP%20CL%20AUG%202.JPG" alt="">
 
When the change in values across capital city markets over the past decade is adjusted for inflation, the results look very different to the nominal figures.
Real dwelling values have fallen over the past decade in Brisbane, Adelaide, Perth and Darwin, have barely changed in Canberra and have increased by less than 12% Hobart.
At the same time, there has been a significant increase in real dwelling values in Sydney and Melbourne.
<img src="https://www.urban.com.au/images/2018/8/2/PP%20CL%20AUG%202-2.JPG" alt="">
This highlights the deterioration in housing affordability in Sydney and Melbourne and the relatively weak housing conditions elsewhere across the country over the past decade.
With the recent declines in values across Sydney and Melbourne and the slowing of growth or continued declines in most other capital cities, Hobart is the only capital city in which real dwelling values remain at their peak.
Perth and Darwin have had the weakest 10 years for value changes and in these two cities real dwelling values were -29.2% and -29.0% lower than their peak respectively.
The declines in real dwelling values are relatively recent in Sydney and Melbourne, with values lower over the past four and two quarters respectively.
Perth has had the largest real value falls and has been falling for the longest period of all capital cities with the peak occurring in December 2006.
Values have been declining in Brisbane since March 2008 yet the real value falls from peak in the city at (-12.5%) is less than half that of the decline in Perth (- 29.2%).
Darwin has had the steepest decline in real dwelling values with a fall of -29.0% over the 21 quarters since March 2013.
In Sydney and Melbourne dwelling values have only started falling over the past 12 months.
<img src="https://www.urban.com.au/images/2018/8/2/PP%20CL%20AUG%202-3.JPG" alt="">
Although dwelling falls have only been moderate so far, the expectation is that values will continue to fall over at least the coming 12 months.
In real terms this will mean larger declines.
As household incomes gradually trend higher and housing prices trend lower, we can expect to see some improvement in housing affordability.
Improved housing affordability doesn’t guarantee a return in value growth, real values have fallen a long way in Perth and Darwin and values are yet to rebound.
<img src="https://www.urban.com.au/images/2018/8/2/PP%20CL%20AUG%202-4.JPG" alt="">
In previous downturns for Sydney and Melbourne, real value declines have been large and they have taken a long time to eclipse their previous peaks.
After real dwelling values peaked in Sydney in December 2003 they fell by -18.4% to December 2008 and didn’t eclipse their previous peak until June 2014.
In Melbourne, real dwelling values peaked in June 1989 and fell by - 24.3% to December 1995 and didn’t eclipse their June 1989 peak until September 1999.
Value declines in the two largest cities are a relatively new occurrence and given it is occurring from a back-drop of significant increases over recent years it could be many years before we see real dwelling values returning to their previous peak.
Especially when other external factors are considered such as tightened credit accessibility, potentially higher mortgage rates and historic low rental returns as well as the potential for changes to the tax treatment of investment housing.
Cameron Kusher is a property research analyst for CoreLogic
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Larger dwelling value falls are coming: Cameron Kusher 

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EXPERT OBSERVATION
Over the past decade there has been a significant change in house and unit values throughout each of Australia’s largest sub-state regions (best known as SA4).
Our findings found that over the 10 years to June 2018, national dwelling values have increased by a cumulative 43.9% with the combined capital cities recording an increase of 52.6% and the combined regional markets recording growth of 16.6%.
Houses values increased by 46.9% nationally over the past decade with combined capital city values growing at a faster pace (56.2%) than the combined regional markets (20.0%). Of the 88 regions SA4 national regions, 73 areas recorded an increase in dwelling values over the past decade with the remaining 15 recording falls.  No SA4 regions of NSW, Vic, Tas, NT or ACT have recorded a decline in values over the past decade.  Meanwhile, a majority of the WA SA4 regions have recorded declines in values over the past decade.
The region to record the greatest increase in house values over the past decade was the South West region of Sydney where values increased 112.9% over the period.  An additional five SA4 regions have seen house values double over the past decade, they were: Parramatta in Sydney (107.4%), Inner South West of Sydney (106.6%), Outer South West of Sydney (103.3%), South East of Melbourne (102.7%) and the West region of Melbourne (102.3%).
The regions of the country in where house values recorded the largest decline over the past decade were: 
<ul>
<li>Outback (North) in WA (-38.3%)</li>
<li>Outback (South) in WA (-34.0%)</li>
<li>Mackay-Isaac-Whitsunday in Qld (-27.3%)</li>
<li>Central Queensland (-26.8%) </li>
<li>Townsville (-23.6%)</li>
</ul>
Only three capital city SA4 regions, all of which are in Perth, have recorded house value falls over the past decade. 
Value growth in NSW and Vic has been substantially stronger than growth elsewhere.  In fact, the regions of NSW (Riverina) and Vic (North West) that recorded the weakest conditions over the decade have seen value growth well in excess of the best performing WA region (Perth-North West).
Outside of NSW and Vic, the regions with the strongest value growth across the remaining states and territories over the decade were: Brisbane-South (30.2%), Adelaide-West (20.3%), Perth-North West (2.2%), South East in Tas (43.9%), Outback in NT (35.2%) and ACT (30.3%).  
Illawarra in NSW recorded the greatest increase in house values of all regional markets over the past decade with values increasing 86.8%. Illawarra recorded the 15th highest rate of house value growth over the past decade nationally. 
The remaining regional markets that recorded relatively large increases in house values were: 
<ul>
<li>Geelong (79.6%)</li>
<li>Southern Highlands </li>
<li>Shoalhaven in NSW (77.9%)</li>
<li>Newcastle and Lake Macquarie (68.6%) </li>
<li>Bendigo in Vic (63.3%)</li>
</ul>
Looking at unit values, nationally throughout the past decade, units increased by 34.2% which is lower than the 46.9% increase in house values.  Unit value growth in the combined capital cities (42.0%) and combined regional housing markets (0.4%) was similarly lower than that for houses (56.2% and 20.0% respectively).
Of the 88 SA4 regions across the country, 53 have recorded an increase in unit values over the past decade with the remaining 35 recording a fall.
The South West region of Sydney recorded the greatest increase in house values of all SA4 regions (112.9%) and it has also recorded the greatest increase in unit values (98.0%).  While seven regions of the country have recorded a doubling of house values over the past decade, not one region has seen unit values double over the same period.  Only the Outer South West region of Sydney (81.0%) and Sydney’s Eastern Suburbs (78.2%), along with Sydney’s South West have recorded decade unit value growth of more than 75%.  By comparison, over the past decade, 24 regions of the country have recorded house value growth in excess of 75%.
Unit values have recorded the largest declines over the past decade in: 
<ul>
<li>Outback (North) WA (-73.3%), Outback (South) WA (-65.7%)</li>
<li>Darling Downs-Maranoa in Qld (-52.9%)</li>
<li>Central Queensland (-45.8%) </li>
<li>Townsville (-45.6%) </li>
</ul>
For the regions where unit values dropped, 15 were capital city regions with the remaining 20 located in regional areas of the country.  The capital city unit markets that recorded the greatest unit value falls were: Darwin (-26.0%), Ipswich in Qld (-23.5%), Logan-Beaudesert in Qld (-22.1%), Moreton Bay-South (-20.5%) and Perth-Inner (-19.5%).
Outside of NSW, the regions of each state and territory to record the greatest increase in unit values over the past decade were: Melbourne-Outer East (63.1%), Outback region of Qld (28.7%), South East region of SA (41.0%), Wheat Belt region of WA (54.9%), South East region of Tas (63.3%), Outback region of NT (28.7%) and ACT (11.6%).
Outside of the capital cities, the regional markets that have recorded the greatest increase in unit values over the past decade were: South East in Tas (63.3%), Illawarra in NSW (60.2%), Far West and Orana in NSW (55.7%), Wheat Belt in WA (54.9%) and Bendigo in Vic (46.2%).
The growth in house and unit values over the past decade has been characterised as very much slanted to strong growth in Sydney and Melbourne and weaker conditions elsewhere.  
While the last 10 years is not predictive of the future, dwelling values are already falling in Sydney and Melbourne and regional markets are currently outperforming capital cities.  
With housing in a downturn in Sydney and Melbourne and affordability stretched, at this point it seems unlikely the returns of the past decade will be replicated over the next 10 years.
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How have house and unit values changed over the past decade?

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My findings reveal that while capital city dwelling values may well be falling, the market is responding with fewer new listings.
However, total listings remain elevated compared to other recent years when housing conditions were much stronger.
For this analysis, I researched listings across each of the past seven years.
 <img src="https://www.urban.com.au/images/2018/7/27/Listings%20DCs.JPG" alt="">
The x-axis represents the time of year and the y-axis shows the number of properties listed for sale.
This representation of the data allows for a comparison of where listings are at any point in time to the corresponding time in other years.
Another point of note is that the listings data tends to be highly seasonal.
Listings fall dramatically during Christmas and New Year and then pick up through autumn.
They then tend to fall during the Winter and rise substantially coming into Spring, then remain elevated until late in the year.
Listings across the combined capital cities over the 28 days to 22 July 2018 saw 21,849 new properties listed for sale and 108,436 total properties listed for sale.
The number of new listings were -6.7% lower than the previous year and total listings were 7.2% higher.
New listings are lower than they’ve been at this time of year, any year since 2012.
Total listings are higher than they’ve been at this time of year since 2012.
Melbourne (pictured below) – Over the past 28 days there were 6,821 new properties listed for sale and 30,029 total properties for sale. Compared to a year ago new listings are -4.8% lower and tracking at the lowest level for this time of year since 2014. Total listings are 10.5% higher than a year ago and are also the highest they’ve been since 2014.
<img src="https://www.urban.com.au/images/2018/7/27/Listings%20Sydney.JPG" alt="">
Adelaide – Over the past 28 days there were 1,646 new properties listed for sale and 7,798 total properties listed for sale. New listings are -8.5% lower than a year ago and the lowest they’ve been at this time of year any year since 2012. Total listings are -2.8% lower than they were a year ago and the lowest they’ve been at this time of year since 2014.
Perth – With 3,007 newly listed properties over the past 28 days, new listings are -1.0% lower than a year ago and haven’t been this low since 2012. Total listings are somewhat different with 20,618 listings which is 1.7% higher than last year but lower than 2016 and higher than every other year since 2012.
Sydney (pictured below) – There were 5,601 new properties listed for sale over the past 28 days which was -13.1% fewer than a year ago but slightly higher than the number in 2016. There were 26,103 total properties listed for sale which was 21.7% higher than last year and the most for sale since this time in 2012 when CoreLogic was tracking 29,366 properties on the market.
<img src="https://www.urban.com.au/images/2018/7/27/Listings%20Melbourne.JPG" alt="">
Hobart – Over the past 28 days there were 344 new and 951 total properties listed for sale. The 344 new listings was up 8.5% on a year ago and the highest at this time of year since 2013. The 951 total properties listed for sale is -23.6% lower than a year ago and sitting at an historic low level.
Darwin – There were 176 new properties listed for sale and 1,446 total properties for sale over the past 28 days. New listings are -3.3% lower than a year ago and while they are slightly higher than in 2016 they are lower than every other year since 2012. Total listings are -11.8% lower than a year ago and are lower than they have been over each of the past 3 years.
Canberra – Over the past 28 days there were 465 new properties listed for sale which was -18.4% fewer than a year ago and the lowest number of new listings at this time of year since 2016. There were 1,753 total properties listed for sale which was -4.9% lower than a year ago and the lowest at this time of year compared to each year since 2012, except for 2016.
Brisbane (pictured below) – The 3,789 new properties listed for sale is - 3.2% lower than a year ago and the fewest new listings since this time of year in 2012. There are 19,738 total properties listed for sale which is 1.2% higher than a year ago and the highest at this time of year since 2012.
<img src="https://www.urban.com.au/images/2018/7/27/Listings%20Brisbande.JPG" alt="">
Across most capital cities the number of new listings is lower than they were a year ago, this is likely a response to reduced demand for housing currently, as a result potential vendors are holding off bringing stock to market.
At the same time, in softer markets such as Sydney and Melbourne, total listings are much higher than over recent years highlighting that although fewer new listings are entering the market the stock that is for sale is proving more difficult to sell.
The real litmus test for the housing market will be what happens in Spring, particularly in Sydney and Melbourne. If, as usually occurs, new listings ramp-up and a lot more stock becomes available for sale this could create further downwards pressure on values. Don’t be surprised though if with tightened credit and an already weakening housing market that Spring this year is a lot more muted than what we’ve seen over recent years.
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New property listings shrinking in response to market weakness in 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" />

&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

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