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Although dwelling values have started falling in Sydney, the city remains substantially more expensive than the other capital cities.  
In fact, whether you look at the cost of houses or the cost of units, Sydney stands out as being much more expensive.
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The above table clearly highlights how the cost of a house is substantially higher, despite the recent value falls, than the cost of a house across each of the other capital cities.
The chart also highlights the much greater escalation in house values in Sydney and Melbourne over recent years relative to the other capital cities.
 <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/2018/2/26/HOUSE%20VALUE%202.jpg" alt="">
The above table shows the difference in median house values across the individual capital cities currently compared, to five, 10, 15 years ago.
House values are reasonably similar nowadays in Adelaide, Perth, Hobart and Darwin however, that has not been the case historically.  Sydney also stands out as being substantially more expensive than other capital cities.
<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/2018/2/26/HOUSE%20VALUE%203.jpg" alt="">
Another way to look at the difference in housing costs is looking at Sydney’s premium in terms of the value of a house relative to the other capital cities.
Looking at this over time can potentially offer insight into how over/under valued some markets may be.
With Sydney values falling recently most capital cities have seen a narrowing of the gap in house values nevertheless the gaps are currently recorded at:
<ul>
<li>Melbourne – Sydney house values are currently 25.9% higher which is the narrowest gap since late 2013.  The average Sydney house value premium since January 2000 has been 39.5%.</li>
<li>Brisbane – the Sydney median house value is currently 96.9% higher, although the gap has reduced recently, the gap was previously this great in early 2003.  The average premium for Sydney houses compared to Brisbane has been 64.7% which is much lower than the current gap.</li>
<li>Adelaide – the median Sydney house currently costs 128.7% more than the Adelaide median house with a gap this wide never previously seen.  The average Sydney premium over time has been 86.4%.</li>
<li>Perth – Sydney median house values are currently 116.7% greater than those in Perth.  The last time the differential was so great was early in 2004.  The average premium for Sydney houses has been recorded at a much lower 62.1%.</li>
<li>Hobart – Sydney’s median house value is currently 142.7% higher than Hobart’s with the gap having narrowed recently however, before the recent period the last time the gap was this wide was late 2003.  Since 2000, the average premium for Sydney has been 122.7%.</li>
<li>Darwin – a Sydney house typically costs 121.7% more than a Darwin house compared to a long-term average premium of 66.2%.  The last time Sydney’s premium was this large was mid-2004.</li>
<li>Canberra – Sydney median house values are currently 56.1% higher than those in Darwin with the gap previously this large back in early 2003.  Since 2000, the average premium for a Sydney house relative to Canberra has been a lower 36.3%.</li>
</ul>
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 It is a similar story when looking at unit values, with Sydney values falling recently yet remaining much higher than those across the remaining capital cities.  Again, values have increased over recent years in Sydney and Melbourne while there has been minimal change elsewhere.
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Sydney’s current median unit value of $762,509 is noticeably higher than in all other capital cities.  In fact, the median unit value in Sydney is higher than the median house value in all other capital cities except Melbourne which highlights just how expensive housing is in Sydney.
Even in Melbourne, the current median unit value ($572,115) is greater than the current median house value in all cities other than Sydney, Melbourne and Canberra.
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Looking again at the Sydney premium it should be noted that there has been a recent decline in some of the differentials due to the declines in Sydney values.  Nevertheless, the premium for Sydney units relative to other capital cities remain well above long-term average levels:
<ul>
<li>Melbourne – over the long-term the average premium for a Sydney unit has been recorded at 28.5% while the current premium is a slightly higher 33.3%.  Before the recent period, the last time the gap was so large was in early 2005.</li>
<li>Brisbane – Sydney’s median unit value currently sits 98.3% higher than Brisbane’s which is the largest premium since late 2002.  The average premium for a Sydney unit over Brisbane has been recorded at 54.1%.</li>
<li>Adelaide – the median unit value in Sydney is currently 128.5% higher than in Adelaide which is widest differential in values since early 2003.  The long-term average premium for a Sydney unit is 97.9%.</li>
<li>Perth – Sydney median unit values are currently 88.7% higher than those in Perth which is much greater than the average premium of 48.4%.  In fact, the last time the premium was lower than the average was the middle of 2015 and the last time the gap was so wide was late 2003.</li>
<li>Darwin – a Sydney unit typically costs 121.3% more than a unit in Darwin currently which is the widest differential since mid-2004.  The average premium for a Sydney unit has been recorded at 65.7%.</li>
<li>Canberra – over the long-term, the premium for Sydney units to those in Canberra has been recorded at 38.9% compared to 76.8% currently.  Before the recent period, the last time the gap was so wide was late in 2001.</li>
</ul>
With house and unit values starting to decline in Sydney we should see a further fall in the premium that houses and units experience relative to the other capital cities.  Despite an anticipated fall in the Sydney premium, it shouldn’t necessarily be expected that the gap will revert to longer-term average levels.
Over recent years, housing costs in Sydney and Melbourne have become demonstrably more expensive than those elsewhere.  Some drivers of this have included but not been limited to an undersupply of new housing (Sydney more so than Melbourne), high rates of migration to each of these cities, stronger economic performances of NSW and Vic relative to other states and territories and significantly greater employment opportunities in Sydney and Melbourne than in other capital cities.  Although values are starting to fall in Sydney and Melbourne, most of these drivers remain for both Sydney and Melbourne.
In fact migration is picking up into Qld but to-date there has been only moderate increases in values.  
We would expect the Sydney premium to reduce over the coming years as values decline however, we also believe that historical premiums for Sydney relative to other capital cities don’t reflect the likely differentials in the cost of housing going forward.  That is to say we expect that the cost of housing in Sydney and Melbourne will continue to be higher relative to other capital cities than it has been in the past.
Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://www.propertyobserver.com.au/https://www.corelogic.com.au/taxonomy/term/28">here</a>.
 
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Monitoring the housing value gap: Cameron Kusher

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Value growth over the past decade has been characterised by substantial value rises in Sydney and Melbourne while elsewhere capital gains have been materially lower, in fact negative in some regions.
Over the past decade the Australia housing market has been impacted by the Global Financial Crisis (GFC), periods of rising and falling mortgage rates, heightened levels of investment and growing demand for housing from offshore buyers. Additionally, the national economy has transitioned away from a boom in the commodity cycle and major resources related infrastructure projects towards the services sector and housing construction. The market has also seen significant variation in the rates of value growth with Sydney and Melbourne leading the way.  
The first chart shows the cumulative change in dwelling values over the 10 years to January 2018.  Over the period, values across the nation increased by 41.8% however, it is important to note this was heavily influenced by the two largest housing markets, Sydney and Melbourne.  In fact, while nationally dwelling values have increased by 41.8% over the past decade, only Sydney (79.3%), Melbourne (72.4%) and regional Victoria (42.7%) have recorded value growth in excess of that figure.
<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/2018/2/19/K1.jpg" alt="">
Three regions of Australia have seen dwelling values which are currently lower than they were a decade ago.  These regions are Perth (-6.9%), Regional Qld (-5.1%) and regional WA (-29.5%).  Although all other regions have recorded value increases over the past decade, there has been growth of less than 10% over the decade in Darwin (5.4%) and regional SA (4.0%).
In early 2008 the GFC hit and dwelling values began to slide.  Although the periods of decline varied across regions, generally values started to fall early in 2008 with value growth returning in early 2009.   The declines were fairly short and sharp.  The declining housing market was reversed due to two main factors: a swift reduction in mortgage rates and the introduction of government stimulus including additional first home buyer incentives which helped stimulate growth in demand and subsequently values.
<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/2018/2/19/K2.jpg" alt="">
During the GFC downturn, all regions of the country recorded declines with national values falling by -7.9% between February 2008 and January 2009.  Western Australia was particularly hard hit by the downturn with values falling by double-digits in Perth (-11.0%) and Regional WA (-12.2%) while all other regions avoided double-digit value falls.  Value declines during the GFC downturn were relatively minor in Darwin (-1.5%), Regional SA (-2.4%) and Regional NT (-2.2%).
Following the stimulus-led re-inflation of dwelling values post-GFC, as the stimulus was removed from the market values once again started to fall.
First home buyer incentives were removed and the Reserve Bank started to lift interest rates from their generational lows.  Between 2010 and 2012, although timing does vary somewhat across the regions, the national housing market once again experienced value declines.
<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/2018/2/19/K3.jpg" alt="">
Between June 2010 and February 2012, national dwelling values fell by -6.5% with capital cities experiencing slightly larger falls than regional markets.
In this downturn, Qld was hardest hit with Brisbane (-10.6%) and regional Qld (-11.1%) the only regions to record double-digit value falls.  By comparison, Sydney (-3.7%), regional Vic (-3.6%) and regional SA (-3.0%) recorded relatively minor value declines throughout the period.
More recently, softer housing market conditions have become evident with a number of regions starting to see values decline.  The final chart highlights the change between current dwelling values and the historic housing market 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/2018/2/19/K4.jpg" alt="">
Nationally, dwelling values are -0.7% off their peak with the combined capital cities (-1.0%) the main driver of the weakness.  In fact, Brisbane and Hobart are the only capital cities in which values at the end of January 2018 were not lower than their previous peak.  Perth (-10.9%), Darwin (-21.7%) and regional WA (-29.5%) currently have dwelling values which are more than 10% below their previous peaks.
The data presented within highlights that despite most regions of the country having seen dwelling values increase over the past decade, within that decade there have been periods in which values have fallen.  The data presented also highlights how during the value growth periods, growth has very much been slanted towards the Sydney and Melbourne markets.
With dwelling values now falling in a number of regions, it will be interesting to see how rapidly values, fall, what may or may not be done to slow the falls and how the market declines will compare to other periods of decline over the past decade.
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Little value growth outside of Sydney And Melbourne over past decade: Cameron Kusher

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First home buyers should pay attention to market conditions, not the incentives on offer.
According to recently released housing finance data from the Australian Bureau of Statistics, the volume of new loans to first home buyers in New South Wales and Victoria has climbed substantially over recent months as value growth has slowed and even begun to fall in Sydney and Melbourne. 
First home buyers must be vigilant about purchasing homes and not just be lured into buying at the peak of the market because of attractive incentives.
In New South Wales, from 1 July 2017 first home buyers don’t have to pay stamp duty for both new and existing homes for properties up to $650,000.
Stamp duty payable is reduced for buyers paying between $650,000 and $800,000.  In Victoria, if you buy a new or established home from July 1 2017 no stamp duty is payable on homes worth less than $600,000 and stamp duty is reduced for properties worth between $600,000 and $750,000.
The removal of stamp duty has resulted in a substantial increase in first home buyer housing finance commitments. 
Over the six months from July to December 2017 there were 14,279 first home buyer finance commitments in New South Wales and 18,675 in Victoria.  To put this into some sort of perspective, over the six months prior to the new incentives going live there had been 7,891 first home buyer housing finance commitments in New South Wales and 12,683 commitments in Victoria.  This represents an increase in first home buyer volumes over the two six month periods before and after the changes to incentives of 81.0% in New South Wales and 47.2% in Victoria.
Since the stamp duty changes, average loan sizes have increased by 1.3% in New South Wales compared to an increase of 1.1% over the previous six months.  This seemingly suggests that the first home buyers entering the market are not using the removal of the stamp duty barrier to borrow more. 
In Victoria, it is a bit of a different story with average first home buyer loan sizes increasing 7.0% over the past six months compared to a 2.7% increase over the previous six months.  This would seem to suggest in Victoria, the stamp duty concessions are leading to mortgagees borrowing more.
The most concerning thing for any potential first home buyer in the current New South Wales and Victoria markets should be the lure of entering a market which has been growing rapidly for many years.  In fact, recent data for Sydney and Melbourne indicates that values are now declining. 
Across all of New South Wales, values have fallen -2.4% from their August 2017 peak to January 2018 with values -3.1% lower in Sydney and not yet declining in regional New South Wales.  In Victoria, values are -0.1% lower than their November 2017 peak with declines of -0.4% in Melbourne and no declines as yet in regional Victoria.  An important point to note is that the rate of value growth is slowing in regional areas of New South Wales and Victoria although the slowdown is greater in regional New South Wales to-date.
While those declines may sound quite minor, first home buyers are generally most sensitive to changes in interest rates.  Although the cash rate is expected to be on hold until early 2019, the combination of already falling dwelling values and potentially higher mortgage rates in the medium-term, these factors should raise some alarm bells for potential buyers. 
For first home buyers there may be a sense that the removal of stamp duty along with the falling share of investors in the market creates the opportunity for entry however, ideally you do not want to be buying into a market which has only recently entered a downturn. 
The best bet for potential first home buyers may not be to jump at the incentives which are currently available.  With values declining and investor demand continuing to trend lower a better option may be to remain on the sidelines somewhat longer as values potentially continue to slide.  By doing this you potentially avoid going into negative equity immediately, you potentially buy at a lower price and you have time to save an even larger deposit for your mortgage. 
Furthermore, for well qualified borrowers with substantial deposits banks are competing heavily and offering substantial discounts for owner occupiers taking out principal and interest mortgages so if you take time and shop around you may be able to get a really good mortgage rate.
Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://www.propertyobserver.com.au/https://www.corelogic.com.au/taxonomy/term/28">here</a>.
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Market conditions more important than incentives on offer for FHB's

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The days on market metric provides an indication as to how quickly properties sold by private treaty are likely to sell.
The current data at a national and capital city level shows fairly steady days on market however, we are seeing diverging trends across the individual cities. 
At the end of 2017, properties sold by private treaty across the nation typically took 45 days to sell and across the combined capital cities they took 40 days to sell. Both the capital city and national measure has been reasonably steady over recent months however, the days on the market figure for each region was slightly 60 lower a year earlier. In December 2016 it typically took 44 days to 40 sell a property across the nation and 37 days across the combined 20 capital cities 
The trends are changing quite significantly across the individual capital cities. 
<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/2018/2/8/corelogic%201.jpg" alt="" style="font-size: 12.16px;">
Sydney
The typical home took 42 days to sell in December 2017, up from 34 days a year earlier. The 42 days it currently takes to sell is the longest time on market since May 2016 and up from its
Melbourne
Homes in the city typically take 33 days to sell which isupfrom29daysattheendof2016. The29daysattheendof 2016 was also a recent low in days on market for the city.
Brisbane
In December 2016 the typical home took 47 days to sell while a year later they were taking 53 days to sell. The days on market figure has been trending higher since reaching a recent low of 43 days in March 2017.
Adelaide
Properties currently take 41 days to sell which is down from 43 days a year earlier. The typical days on market has been falling over recent months in Adelaide.
Perth
There has been a consistent decline in the days on market figure over the past year falling from 58 days to 53 days. After recently peaking at 75 days in August 2017 there has been a sharp fall over recent months.
Hobart
Properties are currently taking 33 days to sell which is marginally lower than the 34 days a year ago. Homes have been selling quite quickly in Hobart over the past two years as value growth has accelerated. 
Darwin
The days on market figure for the city at 75 days is substantially lower than the 88 days recorded a year earlier and 100 well down on the recent peak of 119 days in March 2017. 
Canberra
At 42 days, properties are taking longer to sell currently 60 than they were a year ago when they took 39 days.
With dwelling values now falling in Sydney and slowing across many cities it is reasonable to expect that over the coming 12 months the number of days it takes to sell a property will trend higher. In particular this is likely to occur in Sydney (where valuesare already falling) and Melbourne given that both cities have experience rapid rates of sale and strong growth in dwelling values over recent years. Vendors in those cities were market conditions are softening will need to be realistic about their pricing expectations; as properties take longer to sell, buyers will be more140 inclined to negotiate on asking prices and vendors may face higher  competition from other properties listed for sale as inventory levels rise. 
On the other hand, markets such as Perth, where housing values have been falling, are now showing a reduction in total advertised stock levels and homes are starting to sell in fewer days which should help to dampen further value falls. 
<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/2018/2/8/c1.jpg" alt="" style="font-size: 12.16px;">
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Vendors need to realise market conditions are softening: CoreLogic's Cameron Kusher

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Despite moderate value declines recently, and with a healthy median dwelling value of $904,041 as at November 2017, Sydney is remains the nation’s most expensive capital city housing market and has kept up this pace consistently, excluding a short period during 2006 and 2007 when Perth surpassed the city. 
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A valuable exercise is to look at how over time, Sydney’s premium relative to the other capital city markets has cycled.
(Note: The accompanying charts show the Sydney premium over time with the red line highlighting the average premium over the length of the period shown on each chart). 
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Overview – capital cities performance compared to Sydney: 
• Melbourne – dwelling values currently sit at $718,325 indicating that Sydney values are 25.9% higher. The Sydney premium is currently the lowest it has been since April 2014. Over the long- term Sydney’s average premium has been 39.2%. 
 <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/2017/12/8/melb7.jpg" alt="">
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• Brisbane – with a median dwelling value of $490,915, Sydney dwellings are currently 84.2% more expensive than Brisbane’s. The long-term average premium is 54.1% and the premium has consistently been higher than this average since September 2014 
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• Adelaide – Sydney dwelling values have, on average, been 180.3% higher than Adelaide’s. Adelaide’s current median dwelling value of $432,126 sees the Sydney premium at 109.2%. Sydney has had an above average premium to Adelaide consistently since November 2014. 
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• Perth – the current median dwelling values for the city is recorded at $463,026 which indicates that Sydney’s current median is 95.2% higher compared to a long-term average difference of 60.8%. The premium for Sydney housing has been above the long-term average since August 2015. 
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• Hobart – with a median dwelling value of $398,093, Sydney’s median value is currently 127.1% higher. The long-term average Sydney premium is 105.0% indicating that the gap has been wider than average since December 2013. 
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• Darwin – Sydney dwellings are currently 108.9% more expensive than Darwin’s median dwelling value which sits at $432,774. Over the long-term the average premium for Sydney dwellings has been recorded at 54.9% with the premium consistently above the long- term average since June 2015. 
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• Canberra – the median dwelling value currently sits at $588,788 which means that Sydney has a value premium of 53.5%. The long-term average premium for Sydney is 33.2% with the premium having been above average consistently since April 2014.
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Just because the Sydney premium is currently above the long-term average for most cities, this doesn’t necessarily mean that we will see a reversion to those long term averages.
We acknowledge that dwelling values are beginning to fall in Sydney after a substantial increase over recent years. Assuming these falls continue, the premium relative to the other capital cities is likely to decline.”
Across most capital cities the current Sydney dwelling value premium is similarly large to what it was late in 2002 after a significant period of growth for the city. Following that growth phase, Sydney values peaked in December 2002 and then fell by 8.2% and didn’t eclipse the previous peak until October 2007. Mr Kusher said, “It is reasonable that we could see similar falls over the coming year(s) which would in-turn narrow the gap between the value of housing in other capital cities relative to Sydney.”
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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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Sydney has consistently kept mantle as nation's most expensive capital city

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

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

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Typically, when analyzing housing markets, the median (the middle value) is the most popular method.
By definition the median provides an idea of what a typical property is either selling for or valued at.
By looking at different valuation percentiles, it delivers a much better idea of the range of housing costs across a geography.
(Note: The 10th percentile value represents the lower end of a housing market while the 90th percentile indicates the most expensive 10% of properties).
<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/2017/11/23/Chart1.jpg" alt=""> 
Across Australia’s combined capital cities, the median dwelling value is $650,930 while the 10th percentile value is $350,723 and the 90th percentile value is $1,455,490.
The difference between the median and the 10th percentile value is -46.1% while the difference from the median to the 90th percentile is 123.6% which results in a range between the 10th and 90th percentile values of 315.0%.
(Note: that the broader this range the more diverse the cost of housing and the narrower the less diversity there is).
<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/2017/11/23/Chart2.jpg" alt="">
Let’s take a look across the capital cities.
Sydney – the 10th percentile value is $563,459 which is -37.8% lower than the median of $905,917. The 90th percentile value is 113.8% higher than the median and 243.7% higher than the 10th percentile value and is recorded at $1,936,633.
Melbourne – the 90th percentile dwelling value is $1,474,777 which is 107.6% greater than the median of $710,420. At $437,519 the 10th percentile value is -38.4% lower than the median while the 90the percentile value is 237.1% higher.
Brisbane – the median dwelling value is recorded at $490,525 while the 10th percentile value is $302,177 and the 90th percentile is $826,860. The 10th percentile value is -38.4% lower than the median while the 90th percentile is 68.6% higher than the median and 173.6% higher than the 10th percentile.
Adelaide – the 90th percentile dwelling value ($746,497) is 73.5% greater than the median ($430,303) and 180.9% greater than the 10th percentile value ($265,730). The 10th percentile value is - 38.2% lower than the median.
Perth – with a median of $462,624, the 90th percentile value at $852,021 is 84.2% higher than the median. The 90th percentile value is 184.7% higher than the 10th percentile value which at $299,293 is -35.3% lower than the median value.
Hobart – the 10th percentile value for the city is $234,337 which is -40.9% lower than the median ($396,393) and the 90th percentile value ($662,519) is 182.7% higher than the 10th percentile and 67.1% higher than the median. sizes and values across the capital cities. 
Darwin – at $640,087 the 90th percentile dwelling value is 46.2% higher than the median ($437,910) and 112.0% higher than the 10th percentile value ($301,889). The 10th percentile value is -31.1% lower than the median value.
Canberra – the median dwelling value currently sits at $582,882 while the 10th percentile value is $381,100 and the 90th percentile value is $919,436. The 90th percentile value is 57.7% higher than the median and 141.3% higher than the 10th percentile value while the 10th percentile value is -34.6% lower than the median.
<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/2017/11/23/Chart3.jpg" alt="">
 
Across the capital cities, the 90th percentile dwelling value in all capital cities except for Melbourne and Canberra is lower than Sydney’s median value highlighting that for the typical Sydney dwelling, purchasers could be buying premium property for a similar cost in most other capital cities.
Another trend to note is that in all capital cities the difference between the median and 10th percentile value is much smaller than the gap between the median and the 90th percentile value.
This indicates that lower value housing stock tends to be closer to the median than the expensive housing stock which tends to be much further away from the median value. It highlights that in most cities while there is extremely expensive housing, there is not necessarily the same supply of extremely affordable housing.
It is interesting to look at the range of housing costs across the city as it reiterates that despite the focus on medians there is a wide variety of housing in different shapes, sizes and values across the capital cities.
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What is the spread in the cost of housing? Cameron Kusher

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Dwelling value growth has slowed as demand from investor’s falls; is this just a coincidence or does it highlight just how reliant the housing market has become on demand from the investor segment?
Over the past five years, dwelling values nationally have increased by 39.3% largely driven by Sydney and Melbourne where values have increased by a much larger amount.  Similarly, over the most recent five years investors have committed to housing finance commitments totaling $695.6 billion.  
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-img1.png" alt="2017-11-15--img1" width="570" height="288">
At their peak in May 2015, investors accounted for 54.8% of new (excluding refinances) mortgage demand which was an historic high.  With investor demand now slowing, falling a further -6.2% in September 2017 and dwelling values falling in the most investor-centric city (Sydney), what impact is the investor slowdown going to have on the broader housing market?  To try and determine, we shall take a look at investor housing demand across each state and territory.
<h3>NSW </h3>
At their peak in May 2015, investors accounted for 63.6% of new mortgage demand which has since fallen to 50.3% in September 2017, its lowest proportion since December 2015 and well below its five year average of 55.6% of new mortgage commitments.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-nsw.png" alt="2017-11-15--nsw" width="570" height="471">
<h3>Vic</h3>
investors currently account for 43.2% of new mortgage demand which is well down from the May 2015 peak of 54.7% and below the five year average of 46.9%.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-vic.png" alt="2017-11-15--vic" width="570" height="465">
<h3>Qld</h3>
Investor activity peaked all the way back in 2007 when investors comprised 49.3% of mortgage demand.  Investors currently account for 34.3% of new mortgage lending which is lower than the five year average of 40.8%.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-qld.png" alt="2017-11-15--qld" width="570" height="461">
<h3>SA</h3>
Investor activity peaked at 47.5% of new mortgage lending in June 2015 and has reduced to 36.9% in September 2017.  Over the past five years, investors have accounted for an average of 39.8% of new mortgage lending each month.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-sa.png" alt="2017-11-15--sa" width="570" height="470">
<h3>WA </h3>
Investor participation peaked all the way back in December 2008 at 49.8% of new mortgage lending.  Over the past five years, investors have averaged 38.1% of new mortgage lending and were recorded at 33.6% in September 2017.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-wa.png" alt="2017-11-15--wa" width="570" height="468">
<h3>Tas</h3>
Over the past five years, investors have averaged 30.3% of new mortgage demand in the state while in September 2017 investors accounted for a slightly higher 33.3% of new mortgage demand.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-tas.png" alt="2017-11-15--tas" width="570" height="470">
<h3>NT</h3>
After peaking at 61.5% of new mortgage demand in June 2014, investors have slumped to just 34.1% of demand in September 2017 which is much lower than the five year average of 49.2%.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-nt.png" alt="2017-11-15--nt" width="570" height="460">
<h3>ACT</h3>
Investors currently account for 38.2% of new mortgage demand which is lower than the five year average of 43.0% and much lower than the historic high of 50.4% all the way back in June 2000.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-15-act.png" alt="2017-11-15--act" width="570" height="464">
The data shows that as mortgage demand from investors, particularly in NSW, has slowed, so too has the rate of value growth.  In fact, Sydney dwelling values are now falling as investor demand continues to fade. Melbourne has also seen value growth slow although not to the same magnitude as Sydney however, investor participation over recent years in Vic has not been as significant as in NSW.  Outside of NSW and Vic, investors have not been the most significant source of new mortgage housing demand over recent years.
A similar trend was evident when credit conditions were tightened after the first round of APRA’s macroprudential policy changes through 2015 and early 2016.
With investor demand continuing to reduce due to tighter credit conditions, low yields and affordability constraints, it is reasonable to expect that this will have the greatest impact on NSW housing markets followed by those in Vic.  Elsewhere, the changing landscape may slow markets a little but other states and territories have largely seen demand over recent years driven by owner occupiers.  If anything, the lack of value growth in these market, superior affordability and less demand from investors may make buying conditions slightly more favourable for owner occupiers.
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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Is the market slowdown driven by investors?

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Core Logic measures housing affordability in four different ways, the methodologies of which are detailed below:
<ul>
<li>The ratio of median dwelling prices to median gross annual household income. Utilising median household income data which has been modelled by the Australian National University Centre for Social Research and Methods (ANU) and median dwelling price data from CoreLogic we determine the ratio of dwelling prices to household income over time. For example, a dwelling price to income ratio of 5 implies that the typical household will spend five times their annual gross income to purchase the typical dwelling outright within the same region. 
</li>
<li>The number of years of gross annual household income required for a 20% deposit. Using the ANU’s modelled household income data we provide a measure of affordability for those households that don’t yet own a home. This analysis looks at how many years of a household’s annual gross income is required to pay a 20% deposit, based on the median priced dwelling. For example, a city where the median dwelling price is $600,000, a 20% deposit would equate to $120,000. If the median household income was $100,000, the deposit would comprise 1.2 years of the gross annual income for the household.  
</li>
<li>The proportion of household income required to service an 80% loan to valuation ratio (LVR) mortgage. This measure is based on mortgage serviceability and is more applicable for households that already servicing a mortgage. Assuming the owner has borrowed 80% of the median selling price (i.e. they had a 20% deposit) and are making their mortgage payments based on the discounted variable mortgage rate for owner occupiers (4.5% as at June 2017), we measure the proportion of annual household income required to service the mortgage. For example, for a region with a median dwelling price of $600,000, the typical loan amount based on an 80% LVR would be $480,000. Based on the current discounted variable mortgage rate and annual household income of $100,000, the household would be dedicating 32.0% of their gross annual household income to servicing the mortgage. 
</li>
<li>The proportion of gross annual household income required to pay the rent. Utilising household income data and the median weekly rent we measure what percentage of household income is required to service their rental payments. For example, a household with $100,000 annual gross income who is paying $600 per week in rent would be dedicating 31.2% of their annual gross household income to pay their rent.</li>
</ul>
The latest data to June 2017 indicates that, despite the cash rate remaining stable at record lows, housing affordability has generally worsened over the most recent quarter. The changes in affordability at a national level are detailed below: 
<ul>
<li>Dwelling price to household income ratio The national dwelling price to household income ratio was recorded at 6.8 in June 2017, with a higher ratio for houses (7.0) compared with units (6.3). The ratio increased over the quarter for houses and units however, 15 years ago the ratios were much lower at 4.5 for houses and 5.1 for units. The measure for houses is currently at an historic high while for units it has moderated slightly from a high of 6.5 in early 2015. 
</li>
<li>Years of household income required for a 20% deposit A 20% deposit was equivalent to 1.36 years of gross household income at the end of June 2017, with the figure recorded at 1.40 years for houses and 1.26 years for units. At the same time in 2002 it took 0.92 years to save a 20% deposit, 0.89 years for houses and 1.02 years for a unit. As the cost of housing has increased and household income growth has slowed it has become increasingly challenging for some segments of the market to raise a 20% deposit which has required a longer period of savings in order to enter the housing market. 
</li>
<li>Proportion of household income required to service an 80% LVR mortgage At the end of 2016-17 financial year it took 36.2% of the median gross annual household income to service a mortgage, with the proportion higher for detached houses (37.2%) and lower (33.7%) for units. Although mortgage rates have fallen over the past year, the ongoing increases in dwelling prices and low level of household income growth means serviceability has deteriorated. Despite the higher reading over the June quarter, mortgage serviceability is currently at similar levels to what was recorded in early 2004, highlighting how lower interest rates have made it easier for home owners to service and pay off their mortgage debt. 
</li>
<li>Proportion of gross annual household income required to rent a home Over the past 15 years there has been very little movement in the proportion of household income required for rent. This highlights that increases in rental costs are constrained by movement in household incomes. At the end of June 2017, 27.6% of the median gross annual household income was required to pay rent with the figures similar for houses (27.2%) and units (27.6%) across the country. The data also highlights that despite historic low interest rates, it generally remains cheaper to rent than to take out a mortgage in many areas.</li>
</ul>
For the purposes of this analysis we have just focussed on two metrics, the dwelling price to household income ratio and the proportion of household income required to service an 80% LVR mortgage.
Dwelling price to household income ratio
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-30-blog_img1.png" alt="2017-10-30--affordabilityblog_IMG1" width="570" height="344">
The above charts highlight how much of the deterioration in housing affordability, based on a dwelling price to household income ratio, is occurring in Sydney and Melbourne. Five years ago Sydney’s ratio was 6.7 times and Melbourne’s was 6.5 times, fast forward to June 2017 and the ratios sit at 9.1 times and 7.5 times respectively.
Over the past five years, median dwelling prices in Sydney have increased by 59.6% and Melbourne prices are 29.9% higher. Meanwhile, Sydney household incomes are 18.4% higher and Melbourne household incomes are up 13.2%.
Outside of Sydney and Melbourne, most other capital cities have actually seen very little change in affordability over the past five to ten years based on this metric. This highlights that while deteriorating housing affordability is viewed as a national problem, Sydney and Melbourne (where 40% of the population live) is very much the focal point.  
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-30-blog_img2.png" alt="2017-10-30--affordabilityblog_IMG2" width="570" height="343">
Proportion of household income required to service an 80% LVR mortgage 
This analysis takes into consideration mortgage rates and the impact of changes in them over time. Keep in mind that this analysis relates more to the cost of servicing a mortgage so is related more so to someone that already owns a property whereas the price to income ratio is more about the cost of entering the housing market.
This analysis highlights that not only is it more expensive to enter the market in Sydney and Melbourne but once you own a home the mortgage currently eats up a much larger chunk of household income than it does elsewhere.
Mortgage rates for owner occupiers are at historic lows however, someone buying under these conditions would still be spending 48.4% of their gross annual household income to service that debt in Sydney and 39.9% in Melbourne. Of course, these figures have been higher peaking at 54.4% in Sydney in March 2008 and at 49.1% in June 2008 in Melbourne.
Importantly, in March 2008 mortgage rates sat at 8.7% and in June 2008 they were 8.85% compared to rates of 4.5% in June 2017. Outside of Sydney and Melbourne the cost of servicing a mortgage is much lower but again, it is important to remember that mortgage rates for owner occupiers are at historic lows and likely to start moving higher at some stage, potentially in 2018 or 2019.
The data presented highlights that housing is expensive across the country and that over recent years housing affordability has deteriorated however, much of that deterioration has occurred in Sydney and Melbourne where the pace of capital gains has far exceeded growth in household incomes.
The latest CoreLogic Home Value Index data shows that dwelling value growth is slowing however, moderate falls are unlikely to result in a significant improvement in housing affordability. As mentioned, despite mortgage rates for owner occupiers tracking at record lows, servicing a mortgages is taking-up a large proportion of household incomes in Sydney and Melbourne. 
Should mortgage rates start to rise without a commensurate rise in household incomes it will mean that households will have to spend an increasingly greater proportion of their household income to service their mortgage. If that was to occur it would likely impact on other areas of the economy, particularly with regards to areas of expenditure such as retail trade.
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Mortgage rates for owner occupiers are at historic lows: 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.

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The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

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

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

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

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

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

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

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

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

Cameron Kusher

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