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

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EXPERT OBSERVER
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%.
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Houses values have 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.
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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%).
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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>
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Only 3 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).</div>
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 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%).</div>
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 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.</div>
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 The remaining regional markets that recorded relatively large increases in house values were:</div>
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<ul>
<li>Geelong (79.6%)</li>
<li>Southern Highlands Shoalhaven in NSW (77.9%)</li>
<li>Newcastle and Lake Macquarie (68.6%)</li>
<li>Bendigo in Vic (63.3%)</li>
</ul>
Click <a href="https://www.propertyobserver.com.au/images/2018/7/19/HOUSE%201.jpg" target="_blank">here</a> to enlarge
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<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/2018/7/19/HOUSE%201.jpg" alt="">
Click <a href="https://www.propertyobserver.com.au/images/2018/7/19/HOUSE%202.jpg" target="_blank">here</a> to enlarge
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Click <a href="https://www.propertyobserver.com.au/images/2018/7/19/HOUSE%203.jpg" target="_blank">here</a> to enlarge
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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:
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<ul>
<li>Outback (North) WA (-73.3%)</li>
<li>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%).</div>
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 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%).</div>
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 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%).</div>
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<div>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.</div>
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<div>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.</div>
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<div>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.</div>
<div>Change in unit values over the decade to June 2018 across SA4 regions.</div>
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<div>Click<a href="https://www.propertyobserver.com.au/images/2018/7/19/unit%201%20.jpg" target="_blank"> here</a> to enlarge</div>
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<div><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/2018/7/19/unit%201%20.jpg" alt=""></div>
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<div>Click <a href="https://www.propertyobserver.com.au/images/2018/7/19/unit%202.jpg" target="_blank">here</a> to enlarge</div>
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<div><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/2018/7/19/unit%202.jpg" alt=""></div>
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<div>Click <a href="https://www.propertyobserver.com.au/images/2018/7/19/unit%203.jpg" target="_blank">here</a> to enlarge</div>
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<div><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/2018/7/19/unit%203.jpg" alt=""></div>
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National dwelling values have risen over 4% on average for the past decade: Cameron Kusher

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EXPERT OBSERVER
While overall regional housing markets have recorded greater value growth over the past year (+2.2%) than the combined capital cities (-1.6%), value growth in regional markets is slowing.
This is particularly apparent across some of the more populous coastal markets of NSW. In this week’s Pulse we look at the change in dwelling values over time across the major coastal housing markets outside of the capital cities and provide an update on how they are tracking.
Although dwelling values in across the Illawarra region of NSW increased by 1.4% over the past three months, values have risen by just 1.1% over the past year.  The 1.1% annual increase in values is substantially lower than the 17.6% increase a year ago.  In fact, the annual growth rate over the most recent 12 month period is the slowest since April 2013.  The Illawarra market is showing a similar slowing trend to that which has been experienced in Sydney and values are already -0.3% lower than their September 2017 peak.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg1.jpg" alt="Illawarra" width="727" height="301">
Dwelling values on the Mid North Coast of NSW, which stretches from the Great Lakes region north to Nambucca, have increased by 0.9% over the past three months and are 2.0% higher over the past year.  The 2.0% annual rise in values is much lower than the 9.6% increase a year ago and the slowest annual rate of growth since August 2013.  Although values are still increasing, the growth trend is clearly softening.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg2.jpg" alt="Mid North Coast" width="729" height="292">
The accompanying chart highlights that there is a rapid deceleration in growth occurring in the Newcastle and Lake Macquarie region of NSW.  Over the past quarter, values have increased by 0.1% and they are 4.1% higher over the past year.  Like other regions of NSW, the slowdown in value growth over the past year has been substantial; a year ago the annual growth rate was tracking 15.0%.  Dwelling values in the Newcastle Lake Macquarie region are currently -0.3% lower than their April 2018 peak.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg3.jpg" alt="Macquarie" width="727" height="307">
Although Richmond-Tweed is in NSW, it tends to be more closely linked with the performance of the adjoining Gold Coast housing market.  Values are still increasing, up 0.2% over the quarter and 1.6% higher over the year however, growth has slowed markedly from an 11.5% annual increase a year ago.  The annual rate of growth has bounced slightly higher lately due to a moderate pick-up in value growth over the past quarter.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg4.jpg" alt="Richmond - Tweed" width="734" height="295">
Geelong in Vic has seen the most rapid growth in values of all regional markets in the country over the past year.  Over the period, values have increased by 11.0% and the rate of growth is slightly higher than the 10.7% increase a year ago. It is interesting to note that the quarterly rate of growth in values has slowed over the past three months; while the pace of capital gains remains rapid, there are some early signs that growth conditions are starting to moderate.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg5.jpg" alt="Geelong" width="728" height="291">
The Cairns housing market has seen very little growth in dwelling values of late.  In fact, over the past decade, values have fallen by -5.4% and the market remains -9.2% lower than the January 2008 peak.  Over the past three months, values have fallen by -0.6% and over the past year they are -1.0% lower.  12 months ago, Cairns dwelling values had increased by 0.8% indicating that overall housing market conditions have recorded a subtle slowdown over the past year.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg6.jpg" alt="Cairns" width="722" height="295">
Gold Coast’s housing market has seen value growth slow significantly over the past 12 months.  A year ago, values were rising at the annual pace of 6.5% while over the past year, values have increased by only 1.4%, their slowest annual rate of growth since May 2013.  Values are -0.1% lower over the quarter and were -0.4% lower over the past month.   Although recent growth has not been at the heights seen in regional NSW housing markets and Sydney and Melbourne, the annual rate of value growth peaked at 7.1% in December 2015.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg7.jpg" alt="Gold Coast" width="725" height="295">
The Sunshine Coast is the strongest housing market in Qld for value growth with values rising by 1.1% over the past three months to be 5.5% higher over the past year.  Although values were 5.5% higher over the year, this was a slight slowdown on the 5.9% increase in values over the previous year.  Although values are continuing to climb, it is occurring against a back-drop of quite weak growth over the past decade with values only 12.9% higher over the period.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg8.jpg" alt="Sunshine Coast" width="731" height="298">
The Townsville housing market has been very weak over recent years.  Over the past decade, values have fallen by a total of -26.9% and they are currently -29.8% lower than they were at their most recent peak in December 2007.  The rate of decline in the market has steadied recently with values -0.6% lower over the past three months and -5.5% lower over the past year.  Although the declines are showing signs of steadying, the annual change in values has fallen from no change a year ago.  Once this market does eventually begin to see growth again, it will likely take a long time for values to return to their previous peak levels.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-16-pulseimg9.jpg" alt="Townsville" width="729" height="294">
The Wide Bay region of Qld which includes, Bundaberg, Maryborough, Gympie and Hervey Bay has seen values increase by just 0.3% over the past year.  Like many of the Qld regions listed, values have fallen over the past decade, down 14.2% and they are currently -14.6% lower than their May 2008 peak.  Over recent years, the market has been fairly flat however, the rate of annual growth has slowed from 1.6% a year ago.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-26-pulseimg10.jpg" alt="Wide Bay" width="727" height="294">
 The regions highlighted are many of the most populous regional housing markets and in most instances the rate of value growth, much like we’re seeing in major capital cities, is slowing.  The expectation is that regional markets as a whole will continue to outperform capital cities but we would expect that the rate of growth will continue to ease.  Some of the coastal markets such as Geelong and Sunshine Coast are expected to see values continue to rise while the expectation is that the major coastal markets in NSW will continue to see value growth slow.     This is anticipated slowdown is due to a number of factors.  While tighter credit conditions are having the most visible impact on Sydney and Melbourne, the effect is national, with prospective borrowers facing stricter lending policies.  
Satellite cities such adjacent to Sydney and Melbourne have benefitted from a ripple of demand – with migration away from NSW accelerating and housing prices in Newcastle and Lake Macquarie and Illawarra relatively expensive, the ripple of demand into Sydney’s surrounding areas may be dissipating.  
Conversely, Victoria continues to see rapid pop growth from both overseas and interstate which is likely fueling a continued spillover of demand into the cities peripheral to Melbourne.  
Sea change is likely being boosted by the wealth effect and strong equity from Sydney and Melbourne home owners, as values decline in these cities and credit conditions remain tight, it may be that demand for holiday homes and lifestyle properties starts to ease.
Cameron Kusher is a property research analyst for CoreLogic
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Is value growth slowing in regional coastal markets? Cameron Kusher

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EXPERT OBSERVATION
Almost 90% of individual residential properties re-sold in Australia during the March 2018 quarter attracted a gross profit.
Vendors pocketing a total of $14.819 billion, the majority of which was generated in Sydney and Melbourne.  
The latest CoreLogic ‘Pain and Gain Report’ delivers quarterly insights into the performance of re-sold properties across Australia.
If relatively few properties are re-selling at a loss (pain) it generally indicates a stronger housing market whereas when a higher proportion of properties are re-selling at a loss it indicates weaker local housing market conditions.  
The report’s topline result for the March 2018 quarter is good, the vast majority of properties reselling at a gross profit, however the percentage that did so (89.8%), was actually the weakest quarter for profit making residential re-sales since the three months to October 2013.
By comparison, the quarter previous to that (ending December 2017) saw a more favourable 91.1% of all properties resold for a profit.  
Even a year prior to that, (the quarter ending December 2016), recorded a better result than March 2018, with 90.7% of properties resold for a profit.
Houses Vs. Units
Houses outperformed units across Australia, including across the combined capital city and combined regional markets.  
Melbourne units were 10 times more likely to re-sell at a loss than houses, a trend replicated in Brisbane (nine times) and Canberra (eight times).
Sydney and Hobart are the only regions where a greater proportion of units re-sold for a profit over the quarter than houses.   
While there was a distinct gap between the performances of houses vs. units (houses re-selling at a gross profit were recorded at 91.4%, compared to just 85.7% for units), both houses and units recorded a fall in profit-making re-sales over the March quarter.
Capital Cities Vs. Regions 
Capital city properties being re-sold remain more likely to sell for a profit than those in regional markets, but the gap has narrowed over the past three months.
Over the March 2018 quarter, 91.1% of capital city properties re-sold for a profit (down from the previous quarter’s 92.8% and also down against a year earlier (92.6%).
In fact, the share of profit-making Capital city re-sales over the March 2018 quarter was the lowest it’s been since March 2013.  
Across the combined non-capital city markets, 88.0% of re-sales were at a profit, a slight decline from 88.3% over the previous quarter but up from 87.4% over the same period in 2017. 
Most of the strength in regional markets is being driven by areas close to capital cities such as Sydney, Melbourne and Brisbane, as well as some coastal markets, while mining regions continue to record heightened levels of re-sales at a loss.
Gains
The total value of re-sales gross profits for the March 2018 ($14.819 billion) was driven Sydney and Melbourne (30.6% and 26.1% of total national profits respectively).
Propelling these results are both the higher cost of housing in Sydney and Melbourne, plus strong growth in dwelling values over recent years which have resulted in substantial profits.
As a comparison, these two cities accounted for just 8.8% and 7.8% of the total value of losses nationally over the quarter.  
When analysing regions with the lowest proportion of re-sales at a loss, the data now shows that some of regions surrounding Sydney and Melbourne are recording even fewer re-sales at a loss than the capital cities themselves.  
Pains
For the March 2018 quarter, $428.1 million in realised gross losses were recorded from resales.  
Regions with the highest share of losses nationally were Perth (22.9%) and regional Qld (22.0%). 
Over the first quarter of 2018, the proportion of re-sales at a loss across each capital city was recorded at, 2.4% in Sydney; 4.0% in Melbourne; 10.0% in Brisbane; 8.2% in Adelaide; 28.9% in Perth; 1.6% in Hobart; 35.6% in Darwin and 7.9% in Canberra.   
The instances of loss-making re-sales increased over the March 2018 quarter relative to the previous December 2017 quarter in all capital cities other than Hobart.
When comparing lossmaking re-sales to a year earlier, there were fewer res-ales at a loss in Melbourne, Hobart, Darwin and Canberra, with all other capital cities having recorded an increase. 
Five regions (all of which are linked to the resources sector), recorded at least 40% of all resales at a loss over the quarter.
It should be noted that in many of these regions the share of losses is now lower than at the market peak, however instances of loss remain elevated; a reflection that housing values remain well below their peaks in these areas. 
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Almost 90% of residential resales making a profit: CoreLogic's Cameron Kusher

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EXPERT OBSERVER
The number of settled transactions in the housing market has been trending lower since peaking in 2015.
Nationally, 465,788 settled house and unit sales transacted over the 12 months to May 2018 with the annual number of settled sales -7.7% lower over the year.
<img src="https://www.urban.com.au/images/2018/6/28/CL%20Pulse%20Chart%20Column%201.JPG" alt="">
As shown in the charts, the monthly data points to a declining trend in transactions with settled sales now sitting lower than the decade average.
Over the 12 months to May 2018 Sydney recorded 84,699 settled house and unit sales in Sydney.
Although the monthly data points to a slight rebound in transactions recently, likely the result of a surge in first home buyers since July last year.
Annual sales were -13.5% lower over the past 12 months. House sales were -11.4% lower over the year and unit sales were -16.0% lower.
Monthly sales volumes have consistently been lower than the 10 year average since May 2017.
While there is likely to be some revision as unsettled sales flow through, it remains likely that ultimately sales volumes are lower over the year.
Settled sales transactions have been trending lower for a number of years in Melbourne which is partly to do with high volumes of units under construction but also strong demand and relatively low supply of housing for sale.
With values now falling, the 83,444 settled sales over the past year was -12.9% lower than the previous year.
House sales are 13.2% lower and unit sales are down -12.4%.
As is the case in Sydney, it seems unlikely that once all off-the-plan properties are completed and settled that transaction volumes will be higher than a year ago.
Over the 12 months to May 2018 there were 48,050 settled house and unit sales in Brisbane.
On an annual basis, transaction volumes across the city were -12.1% lower over the year.
House sales have fallen by -8.3% over the year while unit sales have recorded a much greater fall of -19.8%.
Monthly sales volumes have been trending lower for a number of years and are now slightly lower than the decade average.
Volumes, particularly for units, are likely to see some moderate revision over the coming years but are likely to remain lower than they were a year ago.
<img src="https://www.urban.com.au/images/2018/6/28/CL%20Pulse%20Chart%20Column%202.JPG" alt="">
Over the past 12 months, 27,705 settled sales occurred in Adelaide which was 2.5% more sales than over the same period in 2017.
Annual house sales were 0.5% higher over the year while unit sales recorded a much greater 85% increase.
Adelaide is one of only two capital cities in which annual sales were higher over the year and it is also one of the few cities in which monthly transaction volumes are currently above the decade average.
Perth’s housing market has been in a downturn since 2014 however, there are some early signs that transaction are lifting, albeit for a very low base.
Over the past 12 months there were 30,393 settled sales which was 1.4% higher than the previous year with house sales 1.0% higher and unit sales 3.4% higher.
As the housing market slowly shows signs of improvement sales volumes may continue to climb.
Although dwelling values in Hobart are increasing at a much faster pace in Hobart than any other capital city, transaction volumes are falling.
This is largely due to strong demand and little supply of stock available for sale, advertised listings are currently around record lows across Hobart.
Over the past 12 months there was 4,915 dwelling transactions in Hobart which was -7.4% fewer than the previous year with house sales down - 7.3% and unit sales -7.9% lower.
Monthly sales are currently only marginally higher than the decade average.
Darwin has recorded 2,018 dwelling sales over the past 12 months which was -5.8% fewer than the previous year with house sales -7.7% lower and unit sales down - 2.1%.
Like Perth, Darwin has been in a downturn for a number of years but has seen an increase in transactions over recent months with last month’s sales close to the decade average.
Monthly transactions in Canberra are sitting right on their decade average however, the chart shows that sales have been trending lower for over a year.
Over the past 12 months, there were 8,310 settled sales which was -10.0% lower than the previous year with house sales down -3.0% and unit sales -16.5% lower.
With value growth slowing, it is reasonable to expect fewer sales over the short-term.
With dwelling values now falling and tighter credit conditions it is reasonable to anticipate that transaction volumes will continue to trend lower.
For sellers this means they will need to be realistic about their price expectations as buyers become more empowered.
As a result, sellers will need to ensure their marketing strategy is finely tuned and set appropriate prices in order to achieve a sale.
Fewer sales means less turnover, which in turn means less commission and less stamp duty revenue for state governments.
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Housing sale volumes trending lower: CoreLogic's Cameron Kusher

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Looking at data for the 50 most populous non-capital city council areas, the majority of them have seen house and unit values increase over the 12 months to May 2017. 
The data indicates that after a long period of soft housing market conditions following the financial crisis, housing demand is starting to pick up across many of the larger regional areas. 
Those areas that are continuing to see values fall are in many instances linked to the mining and resources sector.
Of the non-capital city council areas analysed, the Wollongong council area is the most expensive for houses ($730,427) and units ($530,170) as well as having seen the greatest increase in house values and the fourth highest increase in unit value over the past year. 
The Wollongong housing market has seen housing demand rise as demand ripples away from Sydney where affordability constraints are more pressing. 
Additionally, prices are being pushed higher as more people seek out coastal and lifestyle properties.
In New South Wales in particular, regional areas of the state, particularly those reasonably close to Sydney are generally seeing strong value growth. 
This is most likely linked to affordability relative to Sydney as well as Sydney home owners using the equity in their home to purchase investment properties in lifestyle markets.
The regional areas of Victoria, particularly those close to Melbourne, are experiencing value growth however, it is nowhere near the magnitude to which values are growing in those locations close to Sydney. 
Although values are rising, the relatively softer growth can be linked to the fact that values have not risen as sharply in Melbourne as they have in Sydney and subsequently affordability hasn’t deteriorated as severely in Melbourne.
Queensland’s results are somewhat more mixed with the south-east corner generally seeing values rise while elsewhere growth is extremely mild or values have fallen.
Click to enlarge 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/29/2017-06-23--pp1.jpg" alt="">
In fact, the Gold and Sunshine Coasts and Noosa are seeing more rapid value growth than Brisbane is. 
It seems as if a lot of demand across these regions is coming from the accelerating internal migration to Queensland and buyers from Sydney and Melbourne that have substantial equity in their homes and are looking for lifestyle properties.
Of the areas that we looked at, each of the 24 regions we highlighted in New South Wales have recorded value growth for houses over the past year. 
For units, only 4 of the 24 regions have recorded value falls over the past 12 months.
In Victoria we highlighted 10 regional council areas in the analysis. 
Of these regions analysed, two recorded value falls over the year for houses and 2 regions also recorded falls for unit values. 
Greater Shepparton was the only council area of the state which recorded value falls for houses and units.
Of the 13 regions highlighted for Queensland, five have recorded value falls for houses over the past year and seven have recorded declines for units.
Each of the regions highlighted in Western Australia have recorded value falls over the past year for houses and units.
Launceston was the only region analysed in Tasmania and it has seen house and unit values rise over the past year. 
It should be noted while values have increased they have done so at a more moderate pace than those in Hobart.
Overall it seems that housing demand in regional areas of the country is rising. 
While many regions are seeing value increase, the strongest demand appears to be in those areas within relatively close proximity to capital cities, particularly those which are coastal and tap into lifestyle demand.
Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Gladstone houses and apartment struggling as regions typically see values rise: Corelogic

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EXPERT OBSERVER
We check-in on the regional areas of the country and look at how values have increased over the past year and where they sit relative to previous peaks.
Over the 12 months to April 2018, dwelling values across the combined regional markets have increased by 2.4% compared to a -0.3% fall in values across the combined capital cities.  Although values in regional areas are continuing to rise, the rate of annual growth has slowed from a recent peak of 6.4% in June 2017, although the rolling quarterly rate of growth has shown an accelerating trend over the past six months.
Based on the ‘Statistical Area level 4’ (SA4) geography, there are 42 regions across Australia outside of the capital cities.  Of these 42 regions, 25 have recorded an increase in dwelling values over the past year while the remaining 17 have recorded falls.  Each SA4 region in Western Australia recorded a fall in values over the past year while all of the regional areas of Tasmania and the Northern Territory saw values increase over the past year.
Change in values across regional SA4 markets as at April 2018
<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/2018/6/4/REGIONAL%20.jpg" alt="">
Geelong recorded the greatest increase in values across regional Australia over the past year with values rising by 9.8%.  At the other end of the scale, the Mackay-Isaac-Whitsunday region of Queensland recorded the greatest value falls, down -9.4%. Generally speaking, values in regional Australia are growing quickest in those regions relatively close to major capital cities while weakness persists in those regions linked to the mining and resources sector.  While dwelling values are lower in most mining related areas over the past twelve months, many areas have seen a noticeable improvement in the rate of decline relative to previous years.
While regional dwelling values are continuing to climb, albeit at a slower pace, values across a number of these markets remain below their historic peaks.  Of the 42 regions, only 16 regions have dwelling values that are currently at historic high levels.  The Outback (North) region of Western Australia has dwelling values that are currently furthest away from the previous peak level, down -59.6% from October 2012 when values hit a record high.    Focusing on those regions in which values remain below their peak, regions linked to the mining and resources sector typically have current dwelling values which are furthest away from their peak.  Seven SA4 regions across the country currently have values which are down at least 20% from their peak and all of them, except Bunbury in Western Australia, are directly linked to the mining and resources sector. Each of these seven regions have continued to record a decline in dwelling values over the past year.  Although many of these regions are showing signs they are beginning to recover, it will likely be a long way back to their previous historic peaks.
Although regional markets are continuing broadly to see dwelling values increase, the rate of growth has slowed in a number of major regions.  In fact, 12 months ago Illawarra was the best performing regional market for value growth with values 17.4% higher over the year compared to growth of just 2.7% over the past 12 months.  While no regional market recorded annual growth in excess of 10% over the past year, four regions had a year ago (Illawarra, Southern Highlands and Shoalhaven, Richmond-Tweed and Geelong).  Only 13 of the 42 regional markets have recorded stronger value growth over the past 12 months compared to the previous 12 months.  
While value growth is anticipated to remain stronger in regional markets than in capital cities over the coming year, it is expected that those regions close to Sydney in particular, will continue to experience a slowdown in their rate of value growth as interstate migration outflows trend higher and jobs growth becomes more broadly spread outside of New South Wales and Victoria.  Regional markets nearby to Melbourne, Hobart and Brisbane are the most likely to experience an uptick in value growth thanks to strong migration flows and more affordable housing costs.  Additionally, lifestyle markets are well positioned to see growing demand from cashed up baby boomers who have seen a substantial wealth injection from housing value growth in Sydney and Melbourne. 
CAMERON KUSHER is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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Geelong ranks the strongest regional housing growth market: CoreLogic's Cameron Kusher

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EXPERT OBSERVATION
The latest private sector credit data from the Reserve Bank (RBA) shows that the expansion of housing credit continues to slow with both owner occupier and investor credit growth tracking lower in April. 
The RBA recently released private sector credit figures for April 2018 and the data reiterates the ongoing slowing of demand for housing credit. Over the month, housing credit expanded by 0.4% which, when rounded, was the slowest monthly expansion in housing credit since June 2013. Over the past 12 months, housing credit has increased by 6.0% which is its slowest annual increase since March 2014. The first two charts show how in 2008 and 2013, when dwelling values were falling, the expansion of credit also slowed.
<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/2018/6/12/credit%201.jpg" alt="">
<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/2018/6/12/credit%202.jpg" alt=""> 
Housing credit expansion is slowing for both owner occupiers and investors. Over the month, owner occupier credit increased by 0.6% while investor credit expanded by just 0.1%. Over the month, owner occupier credit expanded at its slowest monthly rate since December 2016 and investor credit expanded at its slowest pace since March 2016. In the recent housing market downturns, it has typically been investor credit growth that has slowed much more than owner occupier. Given that investors have been a substantial driver of housing demand over recent years, it is reasonable to expect that investor credit growth will slow further from here as values in the most investor-centric markets (Sydney and Melbourne) continue to fall.
On an annual basis, it is clear that the slowdown in investor credit growth is entrenched, while owner occupier housing credit has also slowed, but is holding firmer. Owner occupier credit expanded by 8.0% over the past year, its slowest annual expansion since January 2018 while investor credit grew by just 2.3% which is its slowest rate of annual growth since September 2016.
 <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/2018/6/12/credit%203.jpg" alt="">
<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/2018/6/12/credit%204.jpg" alt="">
As at the end of April 2018 there was $2.827 trillion in credit outstanding to Australian authorised deposit-taking institutions (ADIs), Of this $2.827 trillion, $1.755 trillion or 62.1% was to residential housing with a further 32.5% to business and 5.4% for other personal credit. Although it has only occurred over the past two months, after trending higher for many years, the share of total credit that was for housing has edged lower. In previous housing market downturns, the share of outstanding credit to housing has fallen. Given this, the expectation is that the share of total credit for housing will continue to decline over the coming months as values continue to fall.
 <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/2018/6/12/crediet%205.jpg" alt="">
The slowdown in housing credit growth is being driven by a range different factors. Firstly, the Australian Prudential Regulation Authority (APRA) introduced a 10% speed limit on investor credit in December 2014 which has resulted in a slowing of investor credit growth. Although APRA have announced that this cap will be removed shortly it is unlikely that investor credit growth will accelerate in a meaningful way. Secondly, loan serviceability is now being calculated across the board based on an interest rate of at least 7% which has made accessing credit for some more difficult. APRA has also implemented a cap on interest-only lending of 30% of all new mortgages, this has led to a substantial drop in demand for this product which was largely used for investors. Finally, lenders are now typically charging premiums of 60 basis points on interest rates for investors compared to owner occupiers with premiums typically in excess of 100 basis points for investors with interest-only loans.
Although the 10% speed limit is set to be lifted from July 1st, the likelihood of a rebound in housing credit remain low. The 30% cap on interest-only lending has a much more broad based dampening effect on investor activity. Add to this the fact that APRA is now focusing more on minimising debt to income ratios higher than 6 and maintaining a focus on keeping low deposit lending to a minimum and banks are stepping up their scrutiny on borrower expenses and incomes. The net effect is likely to be further tightness in housing credit which will continue to constrict housing market activity and reduce prospects for price appreciation.
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Housing credit growth tracking at slowest pace since mid-2013: Cameron Kusher

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EXPERT OBSERVATION
The Australian Bureau of Statistics (ABS) has released building approvals data for April 2018. Looking specifically at dwelling approvals, there were 18,701 houses and units approved for construction in April 2018.
The number of approvals is remarkably resilient considering that dwelling values are falling and there has been a significant volume of new housing approved over recent years.
In fact, building activity data for the December 2017 quarter showed there was a record high 46,359 dwellings approved for construction that had not yet commenced.
Since December 2017 a further, 77,634 dwellings have been approved for construction, it will be interesting to see just how many actually are built in the short-term given the backlog which already exists awaiting commencement.
<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/2018/5/31/pluse%201.jpg" alt=""> 
In April 2018, the 18,701 dwelling approvals were split between 10,618 approvals for houses and 8,083 approvals for units. The 18,701 approvals was the lowest monthly number of approvals since December 2017 however, house approvals were 0.7% higher over the month while unit approvals were -11.6% lower.
The 10,618 house approvals was actually the greatest monthly number of approvals since April 2015 while the 8,083 unit approvals was the fewest since December 2017. House approvals in April 2018 were just -2.2% lower than their recent cyclical peak while unit approvals were -31.9% lower than their peak.
 <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/2018/5/31/pluse%202.jpg" alt="">
Taking a closer look at units the data shows that approvals for high rise and townhouses fell over the month while low-rise unit approvals increased moderately. The chart also highlights the magnitude of the surge in high-rise approvals over recent years.
Historically the number of high-rise units and townhouse approvals has been fairly similar however, over recent years high-rise units have well and truly dominated the landscape.
With high rise unit projects becoming harder to make stack-up and presales more difficult as values fall, it’s expected that going forward there will be fewer high-rise approvals and potentially an uplift in medium density approvals such as low- rise units and townhouses.
 <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/2018/5/31/pulse%203.jpg" alt="">
The above chart shows a six month trend of the monthly house approvals data across each capital city. The charts show a clear declining trend in house approvals across Sydney, Brisbane, Perth and Adelaide. At the same time, approvals have remained steady over recent months in Melbourne and Darwin and have started to lift in both Hobart and Canberra.
 <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/2018/5/31/pulse%204.jpg" alt="">
On average over the past six months there have been far more units approved for construction in Sydney, Melbourne and Canberra and far more units approved in each of the other capital cities.
Although unit approvals have eased back of late, they remain close to historic highs in Melbourne and remain well above long-term average levels in Sydney, Brisbane, Adelaide and Canberra.
After years of booming unit approvals and a more moderate lift in house approvals, the recent falls in unit approvals comes at a time in which house approvals are climbing. As the data has shown, the recent declines in unit approvals are being led by high-rise units approvals which have surged to record levels over recent years.
Difficulty with getting finance and the necessary presales to proceed with large scale projects is likely to mean that moving forward houses and lower-density unit projects are likely to be the preferred options for developers.
That’s not to say that high-rise projects still won’t occur but they aren’t expected to be occurring at the magnitude seen over recent years.
Of course just because a dwelling is approved for construction doesn’t mean it will get built immediately.
The building activity data for the end of 2017 showed a record high volume of dwellings approved for construction but not commenced. If anything we would anticipate the number of dwellings in this category to increase further over the coming quarters, especially given the ongoing weakening of the Sydney and Melbourne housing markets.
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Building approvals remain resilient in face of falling dwelling values: Cameron Kusher

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EXPERT OBSERVATION
In a recent letter to all Australian authorised deposit-taking institutions (ADIs) entitled ‘Embedding Sound Residential Lending Practices,’ APRA indicated that lenders need to limit lending at very high debt to income levels.  
The actual wording of the comment was, APRA expects ADIs to commit to developing internal risk appetite limits on the proportion of new lending at very high debt to income levels (where debt is greater than 6 times a borrower’s income), and policy limits on maximum debt to income levels for individual borrowers.  
This doesn’t suggest that there is any hard limit on loan to income (LTI) ratios above 6 times but it does suggest that there will be less appetite for mortgages which are in excess of 6 times incomes.
Utilising gross household income data that has been modelled by the Australian National University (ANU) Centre for Social Research and Methods we can take a look across the individual capital cities at what the impact of limiting debt to income ratios to six times would be.  
The following charts look at annual gross household incomes with a comparison to median values at the end of 2017.  Incomes are elevated six times for comparison to median prices.  
The high median value relative to incomes implies the typical Sydney household would probably be targeting properties across the lower quartile of values rather than around the middle of the valuation range. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg1.png" alt="2018-05-25--blogimg1" width="1102" height="480">
 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg2.png" alt="2018-05-25--blogimg2" width="1102" height="480">
Six times the median gross household income in Sydney is calculated at $688,764.  
The median house value in Sydney is $1,058,306 and the median unit value is $774,124.  
What this means is that if a buyer wanted to purchase the median house under this scenario they would need a deposit of $369,542 and for the median unit they’d need a deposit of $85,360. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg3.png" alt="2018-05-25--blogimg3" width="1102" height="480">
 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg4.png" alt="2018-05-25--blogimg4" width="1102" height="480">
At the end of 2017, Melbourne’s median house value was $832,735 and the median unit value was $574,052.  At the same time, the median gross household income was $1,553/week with six times this annual income was recorded at $605,787.  Based on these figures, at 6 times income, borrowers in Melbourne can still afford the median unit but would need a deposit of $226,948 to be able to borrow below six times their income for the median house.
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg5.png" alt="2018-05-25--blogimg5" width="1102" height="480">
  
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg6.png" alt="2018-05-25--blogimg6" width="1102" height="480">
Unlike Sydney and Melbourne, households on the median income in Brisbane can still afford to borrow enough for the median valued house or unit.  The borrowing power for someone on the median income is $608,830 which is lower than both the median house ($531,248) and median unit ($383,752) value.   
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg7.png" alt="2018-05-25--blogimg7" width="1102" height="480">
 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg8.png" alt="2018-05-25--blogimg8" width="1102" height="480">
The typical household in Adelaide can still afford the median house and unit.  As at December 2017 the median house cost $458,806 and the median unit $331,325.  Based on the median gross household income of $1,277/week someone on this income could borrow up to $498,161.  
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg9.png" alt="2018-05-25--blogimg9" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg10.png" alt="2018-05-25--blogimg10" width="1102" height="480">
  Based on the median household income for Perth, someone borrowing six times their annual income could borrow $616,088.  Based on this figure, a borrower purchasing the median property would be comfortably below six times their annual income whether they’re purchasing a houses ($484,562) or a unit ($408,488). 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg11.png" alt="2018-05-25--blogimg11" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg12.png" alt="2018-05-25--blogimg12" width="1102" height="480">
   A borrower in Hobart on the gross household income ($1,248/week) borrowing six times their annual income could borrow up to $486,823.  The $486,823 figure is lower than the median house ($424,251) and median unit ($335,289) value for Hobart. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg13.png" alt="2018-05-25--blogimg13" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg14.png" alt="2018-05-25--blogimg14" width="1102" height="480">
 Median household incomes in Darwin are quite high at $2,200/week.  Based on a borrower’s ability to borrow six times the household income, the median household could borrow up to $858,063.  Median house value ($469,083) and median unit values ($356,992) are significantly lower than $858,063. 
<img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg15.png" alt="2018-05-25--blogimg15" width="1102" height="480"><img src="https://www.corelogic.com.au/sites/default/files/2018-05/2018-05-25-blogimg16.png" alt="2018-05-25--blogimg16" width="1102" height="480">
  Like Darwin, Canberra also has relatively high median household incomes at $2,170/week.  Someone borrowing six times the annual income would be able to borrow up to $846,358 which is significantly higher than the median house and unit values which are recorded at $669,642 and $431,048. Of course median values don’t tell the whole story, as many properties are valued below as there are above however, it is valuable in providing a guide for what impact limiting high loan to income lending would have.  
In Sydney the median household can’t afford the median house or unit if there was a LTI limit of 6 times and in Melbourne the median household can’t afford the median house.  Were hard limits on LTI to be implemented it would have a much bigger impact on Sydney and Melbourne than any other areas of the country.  Any limit would still have some impact on households outside of Sydney and Melbourne, not to mention those that are purchasing properties additional to their principal place of resident.
Also keep in mind that these figures are only looking at a single scenario.  In most instances a lender will not allow a borrower to borrow 100% of the value of a property and if a borrower has a deposit of less than 20% they will need to pay lenders mortgage insurance (LMI).
So far there is no indication of a hard cap on LTI ratios.  What is clear is that APRA would like to see high LTI lending dialled back and that will have an impact on some borrowers, particularly those purchasing more expensive properties and/or those that have multiple properties.
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What would lending caps of six times your income look like?

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Joel Robinson

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 52-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 52-storey tower, which has just shy of 250 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

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One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

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There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

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A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

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"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

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The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

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The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

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Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

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While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

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That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

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Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

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The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

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The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

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Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

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After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

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Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

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The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

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Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

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Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

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ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

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For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

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Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Cameron Kusher

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