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Detached houses have now superseded units as the best performers across the capital city property markets. Up until recently unit values were showing a much stronger performance.
Across Australia’s combined capital cities over the 12 months to October, houses grew in value by 8.2% as opposed to units at 5.9%.
There’s a commonly held view that house values appreciate at a more rapid pace than unit values due to the underlying land value however, this has not necessarily been the case throughout most of the past five years.
<img src="/images/stories/2013/11/28/kusher-nov-28-one.gif" width="470" height="228" alt="kusher-nov-28-one">
These results show that capital city values over the past five years to November 2013 increased at an average annual rate of 3.7% compared to growth of 4.0% per annum across the unit market. If we look at the two previous five-year periods we see that growth in house values outstripped unit values.
Between October 1998 and October 2003, house values rose by 15.0% each year compared to unit value growth of 11.1%. Between October 2003 and October 2008 house values increased at an average annual rate of 4.9% compared to 3.6% for units.
<img src="/images/stories/2013/11/28/kusher-nov-28-two.gif" width="470" height="233" alt="kusher-nov-28-two">
Strong growth in house values over the preceding two five-year periods highlights a time when houses were typically favoured over units. However, with current mortgage rates extremely low, buyers are potentially stretching themselves financially in order to purchase a detached house rather than a unit.
It will be interesting to see if the higher level of growth reverts to units in Sydney and Melbourne over the coming year as selling prices rise and affordability becomes more challenging for detached housing.
Once we see start to see a rise in interest rates, we may also see the dynamics shift.
<img src="/images/stories/2013/11/28/kusher-nov-28-three.gif" width="470" height="228" alt="kusher-nov-28-three">
Based on these results, one of the reasons why value growth has been more closely aligned between houses and units over the past five years comes down to affordability factors.
The median selling price for a unit has consistently been between 10 and 15% lower than that of a house since early 2006.
Although this may not sound significant, the current difference is 14.8% which equates to $80,000 across the combined capital cities which is much more than a year’s average wage.
Dwelling approvals data shows that over recent years, there has been a sharp escalation in the proportion of approvals for higher density product as opposed to houses. I expect this trend to continue, largely due to the lower prices of units and increasing demand for people to live in inner city areas which are close existing transport infrastructure.
<img src="/images/stories/2013/11/28/kusher-nov-28-four.gif" width="470" height="217" alt="kusher-nov-28-four">
Based on dwelling approval data over the 12 months to September 2013, 42.4% of all dwelling approvals were for units as opposed to houses. Although houses account for the majority of dwelling approvals, the proportion of unit approvals has increased from:
• 38.9% in 2012
• 33.2% in 2007
• 34.2% in 2003
• 29.6% in 1993.
Dwelling approvals data over the past 12 months across the capital cities shows that higher density living in our major capital cities will be a central feature into the future. More than 50% of all approvals in Sydney, Melbourne, Brisbane, Darwin and Canberra were for units as opposed to houses over the 12 months to September 2013.
Although many people have aspirations of owning a house as opposed to a unit, in reality it’s becoming more and more difficult. Added to this is that  affordable housing tends to be quite a distance from CBD area. As a result we are seeing a rising prevalence of higher density construction in our major capital cities, particularly within inner city areas.
Current market conditions may lead to stronger demand from both investors and tenants and subsequent stronger levels of value growth for units as opposed to houses over the coming years.
 
<hr>
 Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
 
 
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Detached houses overtake units as the best performers in capital city markets

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The current value growth phase across Australia’s combined capital cities is nowhere near as strong as other growth phases over recent times.  Although home values are rising, they are doing so at a much more moderate pace than during previous growth phases. 
Home values are higher now than they have been in the past however, a different market characteristic now is that investors represent a much greater portion of the market. This could potentially heighten the risks associated with a downturn in the current growth phase.<img class="aligncenter size-full wp-image-2766" alt="chart 1" src="https://blog.rpdata.com/wp-content/uploads/2013/12/chart-1.jpg" width="470" height="168" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
19 months ago, the combined capital city housing market reached a low point following a -7.7% fall in home values.  Since that time, capital city home values have recorded total value growth 10.3% to November 2013.  In comparison, over the 19 months from the beginning of 2001 home values rose by 31.3%.  From the start of 2007, home values were 13.7% higher 19 months later from the beginning of 2009 home values were 19.8% higher 19 months later.  So as you can see, home value growth in this phase has been much more moderate, however, home values are also higher.
Interestingly, values were still growing after 19 months in 2001/02 however, values had begun to fall by this point in 2007/08 and 2009/10.  In 2007/08 the market was beginning to plunge into the financial crisis and aggressive interest rate cuts were not yet enough to stimulate higher demand and subsequent higher home values.  In 2009/10 low interest rates and the First Home Owners Grant Boost (FHOGB) stimulated the growth in the housing market however, once the stimulus was removed and interest rates started to rise we saw the rate of value growth fall and eventually turn negative.
In the current growth phase we have not as yet seen interest rates rise and there has been no other external stimulus such as the FHOGB, and values are still rising after 19 months.  A feature of the market in this growth phase compared to the previous three growth phases highlighted is that a greater proportion of demand is being made up by investors; of course investors were a part of the market in the previous growth phases however, owner occupiers held greater prominence than they do currently.
So is this market being fuelled purely on investment speculation?
Not quite. Currently, there is a comparatively higher proportion of investment activity in the market when compared to the previous growth phases.  Over the 19 months from January 2001, investors accounted for a month-to-month average of 32.2% of the value of total housing finance commitments. 
From January 2007 investors accounted for a month-to-month average of 34.8% of all housing finance commitments and from January 2009 they accounted for a month-to-month average of 32.7%.  From May 2012 to September 2013 (latest data available) investors have accounted for a month-to-month average of 35.9% of all housing finance commitments.  The level of investor activity throughout the current growth phase is not abnormally high but it is certainly elevated compared to the previous three growth phases analysed. 
Across this growth phase investment levels are not abnormally high they are escalating.  In September 2013, investment finance commitments made up 37.3% of all housing finance commitments which were the highest proportion since May 2004 (37.5%).
<img class="aligncenter size-full wp-image-2767" alt="chart 2" src="https://blog.rpdata.com/wp-content/uploads/2013/12/chart-2.jpg" width="470" height="166" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
As I see it there are two potential pitfall of the current heightened level of investment in this market growth phase.
Firstly, data suggests that investment activity is highest within New South Wales, Northern Territory and the Australian Capital Territory.  Anecdotal evidence suggests that offshore investment activity is particularly strong in Victoria. 
If we assume that the state-wide data is a proxy for the capital city markets, we gain some valuable insight into the characteristics of investors.  In Sydney, home values have already risen by 15.9% from their May 2012 low. In Melbourne home values are now 8.6% higher than their low in May 2012.  Darwin values are 15.9% higher than their low in January 2012, while in Canberra, values have increased by just 3.1% from their January 2012 low.  Values are still trending higher in Sydney and Melbourne. In Darwin value growth has moderated while in Canberra values are falling. 
My point is that if investors are chasing capital growth, in all likelihood and based on timing, they have already missed the best opportunity.  If investors are focused on rental return, yields have trended lower across each of these cities over the past year.
<img class="aligncenter size-full wp-image-2768" alt="chart 3" src="https://blog.rpdata.com/wp-content/uploads/2013/12/chart-3.jpg" width="470" height="166" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Secondly, a potential future weakness for the market is that some investors may not necessarily be ‘committed’ to the asset class.  Meaning that if value growth was to slow or start to fall are these investors invested in residential property for the long haul, or will they choose to exit the asset class just as quickly as they have entered? 
My opinion is that if they aren’t committed then there is potential risk associated in the future where a significant supply of investment grade units may come to market when investors may be looking to exit poor performing assets.
One final risk of course is a rise in the unemployment rate.  Official government forecasts are calling for unemployment rates to peak at 6.25% by the middle of next year.  To date, the unemployment rate has been trending higher at a fairly moderate pace and was recorded at 5.7% in October.  If this rate was to rise to 6.25%, it would be the highest unemployment rate since September 2002 (higher than any time during the financial crisis). 
If we were to see investors look to exit their investment properties such as they did in 2008 in line with an escalation in mortgage arrears, we could see weakening home values much like what occurred in 2008.  
<img class="aligncenter size-full wp-image-2769" alt="Chart 4" src="https://blog.rpdata.com/wp-content/uploads/2013/12/Chart-4.jpg" width="470" height="168" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Overall there are always risks associated with the housing market, or any market for that fact.  We have no doubt that the Australian Prudential Regulation Authority (APRA) are regularly analysing these risks and liaising with the banking community to ensure these potential risks don’t turn into a reality for the market.

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Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
 
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What lies beneath: Investor driven growth cycle heightens underlying risks

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The Australian Bureau of Statistics (ABS) released national population projections earlier this week.  The data looks at the projected growth in the national population from 2012 through to 2101 and the data provides a fascinating insight into the potential future of Australia over the coming years and decades.
The projections look at three different scenarios which can be read about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3222.0Main%20Features52012%20(base)%20to%202101?opendocument&amp;tabname=Summary&amp;prodno=3222.0&amp;issue=2012%20(base)%20to%202101&amp;num=&amp;view=" target="_blank">here</a>.  For the purposes of this post we are utilising ‘Series B’ or the medium level projections.  Based on this series, Australia’s population was estimated to be 22,721,995 persons in 2012, by 2101 the population is projected to be 136% higher at 53,564,333 persons.  Under this scenario we would see the national population from 2012 having doubled by 2071.  Keep in mind Australia was first settled by Europeans in 1788 so it took 224 years to get to the 2012 population and it projected to double in just 59 years.
Projections are also provided at a state and capital city level from 2012 through to 2061, at which time the national population is projected to be 41,513,375.
<img width="470" height="234" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/state-by-state.jpg" alt="state by state" class="aligncenter size-full wp-image-2741">
The above table details the estimated population as at June 2012 and the percentage of the national population across each state and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.  At a state level, the proportion of the national population is projected to fall in New South Wales, South Australia, Tasmania and Northern Territory.  The proportion is projected to remain static in Victoria and rise across Queensland, Western Australia and the Australian Capital Territory.  Western Australia (2.0%), Queensland (1.5%) and the Australian Capital Territory (1.4%) are projected to record the greatest average annual rate of population growth while Tasmania (0.2%), South Australia (0.7%) and New South Wales (0.9%) are projected to record the lowest growth rate.
Of course these are just population projections and are no way set in stone however, it does seem inevitable that the population of the country will expand substantially (even based on the low series of assumptions) over time.  The big question remains where and how will we house all of these additional citizens? Based on the data provided in the release it seems that a significant majority of the population will continue to live within our capital cities.
<img width="470" height="205" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/cap-city-by-cap-city-580x253.jpg" alt="cap city by cap city" class="aligncenter size-large wp-image-2742">
The above table details the estimated population as at June 2012 and the percentage of each state’s population across each capital city and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.
There are quite a few interesting points to take from these long-term projections.  Firstly, by 2061 Sydney will no longer be the nation’s most populous city and Brisbane will no longer be the nation’s third most populous city.  Melbourne will overtake Sydney as the most populous city in 2053 and Perth will overtake Brisbane as the third most populous city in 2028.
The proportion of Australian’s living within a capital city is already quite high at 66.1% however, this is projected to increase to 73.4% by 2061.  Think about that, out of a projected population of 41.5 million, almost three out of every four Australians will live in a capital city.  If we focus on the four most populous capital cities, 57.3% of Australians currently live in Sydney, Melbourne, Brisbane or Perth.  Based on the population projections, by 2061 65.8% of the total national population will live in Sydney, Melbourne, Brisbane and Perth.
Should this scenario actually come to fruition it will create significant challenges for each of these cities.  Obviously housing is a challenge which immediately comes to mind, how and where these people can be housed and what it would mean for property values.  Over time the capital city areas do expand however, for a city such as Sydney that is surrounded by water and national parks the scope to expand is quite limited. No wonder the inner city areas are undergoing such rapid densification.
Elsewhere you can continue to grow the urban sprawl but there must be a consideration around how people travel around the city and commute to their jobs.  Transport infrastructure is typically already insufficient, without appropriate investment levels how much worse would it be by 2061?  Of course, for some, purchasing a home in a capital city is already out of reach; how do governments ensure that a greater number and proportion of capital city residents doesn’t just lead to further escalation of property values?
Of course these figures are in no way set in stone however, it does appear that the country’s population will continue to grow which will pose myriad challenges.  In my opinion the greatest concern is the projection of a greater centralisation of the population to our capital cities and more pointedly the four most populous cities. 
As mentioned, in each of these cities there are already affordability barriers for certain home buyer cohorts and investment in transport infrastructure has not been sufficient.  In my opinion we should be looking to a decentralisation of the population rather than encouraging more and more people to the capital city.  Not only do regional markets tend to have lower house values, in many instances they offer a superior lifestyle than that which is available within our major capital cities. 
The biggest challenge of course is employment in regional areas however, with the advent of high speed internet and major infrastructure projects such as the National Broadband Network (NBN) we will hopefully see the nature of work change with more telecommuting taking place and less focus on physically being located within an office. 
Alternatively, many businesses do not necessarily need to be located within a major capital city.  Perhaps governments could incentivise major businesses to locate their headquarters or major offices outside of Sydney, Melbourne, Brisbane or Perth.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
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How will Australia cope with the housing demands of a doubled population?

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In the capital cities, two out of every three properties sold were for less than $600,000 (68.8%), while in the non-capital markets, nine out of every ten properties sold transacted for below that price point.
As values increase, I expect to see a natural bracket creep in prices.
<img src="/images/stories/2013/11/21/kusher-nov-21-one.gif" width="470" height="235" alt="kusher-nov-21-one">
We are also seeing an increase in buyer demand at the more expensive end of the market, likely driven higher by profits being made in the share market as well as more upgraders choosing now as a time to step up a notch on the property ladder.
While across the combined capital cities where most home sales over the past year occurred at a price point below $600,000 (68.8%), at the same time in 2012, 72.1% of all sales occurred at a price below $600,000. Over the past 12 months, just 5.0% of capital city properties sold for less than $200,000 compared to 4.0% in 2012.
<img src="/images/stories/2013/11/21/kusher-nov-21-two.gif" width="470" height="232" alt="kusher-nov-21-two">
Property sales across the remaining price brackets:
– $200,000 to $400,000 (29.9% currently vs. 33.6% last year)
– $400,000 to $600,000 (33.9% vs. 34.5%)
– $600,000 to $800,000 (15.8% vs. 14.2%)
– $800,000 to $1 million (6.9% vs. 6.1%)
– $1 million to $2 million (7.1% vs. 6.2%)
– Greater than $2 million (1.5% vs. 1.4%).
There was a significant decline in the proportion of homes selling at more affordable price points where over the 12 months to August 1995, 95.4% of all capital city home sales were below $400,000.
Across the major capital cities the proportion of sales ranged from 90.5% of all sales in Sydney to 98.5% of all sales in Adelaide. There was a significant decline in the proportion of these sales across each major capital city where it was most significant in Sydney with just 25.1% of all sales below $400,000.
<img src="/images/stories/2013/11/21/kusher-nov-21-three.gif" width="470" height="233" alt="kusher-nov-21-three">
In Melbourne, the figure was 36.2% followed by: Brisbane (43.7%), Adelaide (62.8%) and Perth (27.1%). In the four largest capital cities, the majority of property sales over the past year have been at a price point above $400,000.
Over the 12 months to August 1995 just 0.5% of all capital city home sales were at a price above $1 million compared to 8.6% over the most recent 12 months. As a comparison, back in August 1995, the figures for the proportion of sales in excess of $1 million across the major capitals were:
– Sydney 1.3%
– Melbourne 0.3%
– Brisbane 0.2%
– Adelaide 0.4%
– Perth 0.1%
Over the most recent 12 months, sales in excess of $1 million accounted for 14.3% of all sales in Sydney, 8.3% in Melbourne, 3.6% in Brisbane, 2.3% in Adelaide and 7.6% in Perth. The proportion of sales in excess of $1 million was at a record high across Sydney over the past year but below the peak elsewhere.
The data highlights the challenge of purchasing relatively lower priced housing within major capital cities given that the majority of sales are occurring at prices above $400,000 across most capital cities.
<img src="/images/stories/2013/11/21/kusher-nov-21-foru.gif" width="470" height="235" alt="kusher-nov-21-foru">
Clearly, buyers with a limited budget who are looking to purchase in the capital cities may need to change their search criteria and investigate more affordable markets outside of capital cities. The downside to this is that the challenge in many regional areas can be finding local employment or commuting back to the capital cities for work.
Nevertheless, for some buyers regional markets may be their only realistic option for which to enter into home ownership given the cost of housing in most capital cities.

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Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
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Buying affordable housing in capital cities is getting harder and harder

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Data released by the Australian Bureau of Statistics earlier this week showed that the average size of Australian homes has started to trend lower over recent years. However, there are some surprising results at an individual state level.
Sydney is the most expensive capital city in the country and the New South Wales results act as a good proxy for that city. Despite the fact that Sydney is the most expensive city, the average size of a new house in New South Wales over last financial year was 266.20 square metres; the largest average floor area of any state.
<img class="aligncenter size-large wp-image-2699" alt="avg floor area of new houses" src="https://blog.rpdata.com/wp-content/uploads/2013/11/avg-floor-area-of-new-houses-507x580.jpg" width="350" height="401" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Despite the fact that New South Wales residential property is typically more expensive than other states, they continue to build the largest new homes. Across the other states, the average floor area of new homes were recorded at: 243.0 square metres in Victoria, 239.6 square metres in Queensland, 203.90 square metres in South Australia, 234.5 square metres in Western Australia and 200.30 square metres in Tasmania. 
The average floor area in New South Wales is much greater than all other states while the floor area in Victoria, Queensland and Western Australia are quite similar.  Typical new home sizes in South Australia and Tasmania are significantly lower than those across the other states.
<img class="aligncenter size-full wp-image-2700" alt="land table" src="https://blog.rpdata.com/wp-content/uploads/2013/11/land-table.jpg" width="470" height="354" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
You can’t build a house unless you have a vacant block of land to construct the home on.  The median land prices across the states as at June 2013 were recorded at: $204,000 in New South Wales, $189,000 in Victoria, $190,000 in Queensland, $150,000 in South Australia, $229,100 in Western Australia and $100,000 across Tasmania. 
This data highlights that the cost of vacant land in South Australia and Tasmania is significantly lower than that across the other states.  Not only are South Australian and Tasmanian new houses much smaller than those across the other states, the cost of purchasing the vacant land is also significantly lower.
Another component to consider is the typical size of the vacant land and how that impacts both the size and type of home that can be built but also the cost of purchasing the land.  Across the states, the median land sizes are recorded at: 700 square metres in New South Wales, 570 square metres in Victoria, 696 square metres in Queensland, 496 square metres in South Australia, 480 square metres in Western Australia and 933 square metres in Tasmania.
Outside of Tasmania, lot sizes in New South Wales are the greatest of all states.  Tasmania which has comparatively cheap land has a much larger typical lot size whereas; South Australia has a comparatively small lot size.
<img class="aligncenter size-full wp-image-2701" alt="income table" src="https://blog.rpdata.com/wp-content/uploads/2013/11/income-table.jpg" width="470" height="333" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
Of course there are other factors outside of just the cost and size of land which determines the size of homes.  Specifically it is important to consider incomes, according to data released in the 2011 Census, median household incomes in South Australia and Tasmania are much lower than those across the other states.  This obviously has an impact on the price at which residents can purchase homes.
<img class="aligncenter size-full wp-image-2702" alt="people per dwelling" src="https://blog.rpdata.com/wp-content/uploads/2013/11/people-per-dwelling.jpg" width="470" height="279" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;">
If we also look at the average number of people per household along with the average number of bedrooms per dwelling we see that there is an excess supply of bed rooms.  In all states we have a greater number of bedrooms than we do persons per household, keeping in mind that most couples will share a bed.  Given this, we don’t actually need as much space as we have in most homes. 
Certainly some younger families will buy larger homes than they need to cater for their growing needs but the broader trends show we have an excess supply of units.  Builders, developers and price sensitive purchases probably need to consider foregoing an extra bedroom in order to reduce the cost of houses.
Overall, it seems somewhat counter-intuitive that the states where housing is most expensive they continue to build much larger new houses while the more affordable states build smaller homes.  Smaller homes and potentially smaller lot sizes would help to improve the affordability of homes in the more expensive states. 
From a potential buyers perspective they probably need to reassess just how much space they need when they are considering their purchase.  Of course, a reduction in the cost of land which could be aided by quicker development approvals, greater supply of land and reduced development fees and charges would also help reduce the cost of housing.
 
<hr>
 Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
 
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Land costs are high, but that's not stopping the construction of McMansions

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A summary of properties currently listed for sale around the country indicates that there are a higher number of properties now on the market than at any other period across 2013.
The heightened volume of stock on the market could provide future challenges, should the amount of advertised properties continue to grow.
At an individual capital city level, new house listings are growing with an increase of 3.1% from last year. For units, the number of new listings is 6.8% higher than a year ago.
<img width="470" height="234" src="/images/stories/2013/11/08/kusher-nov-8-chart-one.gif" alt="kusher-nov-8-chart-one">
By looking at total listings available for sale, the results show that there is clearly a deficiency for houses when compared to last year with listings -15.6% lower compared to units which recorded a 3.5% rise.
Across individual capital cities, new house listings are lower than a year ago in Adelaide and Hobart and new unit listings are lower in Brisbane, Adelaide and Darwin. Total listings for houses are also lower than they were a year ago in all cities except Perth and Darwin and total listings for units are lower than a year ago in Sydney and Brisbane, but higher elsewhere.
Stepping outside of these broad trends, the sharp rises in properties available for sale in both Perth and Darwin is worth noting. However, something to keep in mind is that in late 2012 and early 2013 both cities enjoyed their strongest capital growth conditions. The latest RP Data Rismark results to October show that both cities recorded recent falls in home values.
<img width="470" height="243" src="/images/stories/2013/11/08/kusher-nov-8-chart-two.gif" alt="kusher-nov-8-chart-two">
Number of houses listed for sale:
• Sydney (15,535) is lower than house listings in both Melbourne (21,492) and Brisbane (15,566)
• Melbourne also has a higher total number of units available for sale (12,135) than those in Sydney (9,013).
• RP Data listings results highlight that the total supply of stock available for sale is lower than at the same time last year.
Cconsidering that sales volumes are around 20% higher than at the same time last year it’s no wonder that we are seeing upwards pressure on home values.
Lately we’ve seen listings start to climb and it will be interesting to see how this unfolds and whether they remain elevated into 2014, or, if we see moderation such as that recorded at the start of 2013.
The charts address the number of unique new and total residential properties listed for sale at a national level where over recent months it can be seen that there has been a trend towards a higher number of new and total property listings.
<img width="470" height="248" src="/images/stories/2013/11/08/kusher-nov-8-chart-three.gif" alt="kusher-nov-8-chart-three">
Currently there are 49,920 new properties listed for sale and 267,114 total properties listed.
• New property listings are at their highest level since the week ending 9 December 2012 and total listings are at their highest level since the week ending 23 December 2012.
• Although both new and total listings are currently at heightened levels, new listings are only 0.5% higher than at the same time last year while total listings are -10.2% lower than a year ago. Over the past four weeks, there were 30,997 new capital city properties listed for sale and 117,426 total property listings.
• 62.1% of all new listings were in the capital cities compared to just 44% of total listings. This is reflective of the stronger overall housing market conditions within capital cities and the subsequent fact that homes are selling quicker in these regions. Compared to the same time last year, new property listings are 3.5% higher and they are at their highest level since the final week of November last year.
• The number of properties available for sale is higher than it has been throughout 2013. The heightened volume of stock on the market could provide future challenges, should the amount of advertised properties continue to grow.


<hr>
 Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
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More homes on the market than at any point this year

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For those of us that live and work in the inner city areas of our capital cities, we think that public transport infrastructure is a must across the city.  The reason being that it is essential for those of us in suburbia to be able to travel to and from the city in an efficient and timely manner, notwithstanding the fact that so many of us still drive.  But I question whether or not public transport is actually that important.
According to data from the end of June 2013 from the Property Council of Australia, the total floor space across the CBD office markets is 17,263,536 square metres.  If we were to assume that the typical office has a workspace ratio of say 20 square meters for every one worker, this would mean that if these offices were fully occupied they would house 863,177 workers.  If we include the nearby fringe areas, which I have defined as: Brisbane Fringe, North Sydney, St Kilda Road, Southbank, West Perth, Crows Nest/St Leonards, Adelaide Fringe and East Melbourne, there is an additional, 4,396,603 square metres of office space.  Again assuming a 1:20 ratio these offices if fully occupied would house 219,830 workers.  Between the CBD and fringe office space, if we assume one worker for every 20square metres of floor area, there is enough space for 1,083,007 office workers nationally.
At the moment, office vacancy rates are quite high across the country, sitting at 10.1% across the CBDs and 10.2% across these fringe office markets.  Based on these figures and our ratio assumptions there are 775,945 workers within our CBD markets and 197,484 workers within the fringe areas.
Of course not everybody that works in the CBD or fringe areas works in offices there will be a mixture of retail, services, industry etc that also offer employment in these areas which would also increase the overall working population in these areas.
If we look at the labour force data from June 2013 we see that at a national level, there were 8,138,418 persons employed full-time and 3,519,841 persons employed part-time for a total of 11,658,258.  Of course the nature of part-time employment is such that jobs are at times shared so given this I will assume that half of the part-time positions are travelled to each day (reflective of job sharing) resulting in my total employment figure of 9,898,338 persons.
Based on this 9,898,338 persons figure and the current occupied CBD and fringe office space, these inner city area offices are providing employment for just 9.8% of the nation’s workforce.  Now of course most of those people that live outside of the respective capital cities are not going to travel to the closest CBD for employment (yes there are some exceptions) so it is beneficial to analyse the proportion of the capital city workforce that travels to the inner city area for employment.
Demographic data to June 2012 showed that 15,015,290 persons lived within a capital city which equated to 66.1% of the nation’s population.  Now we know that unemployment tends to be slightly higher outside of capital cities however, if we assume simplistically that 66.1% of the 9,898,338 persons are employed within a capital city that provides a capital city employment figure of 6,542,801 persons.  Based on this figure, 14.9% of all capital city jobs are situated in a CBD or fringe office markets.  As I mentioned, there are other forms of employment in these area other than just that within an office.  Given this, let’s assume that a further 5% of the total capital city employment is located within either the CBD or the fringe areas taking the figure to 20%, leaving four out of every five employed persons not being employed in the inner city area and therefore not having to travel centrally each day.
Of course there are those that need to travel centrally that aren’t workers that would rely on public transport, this includes: students, shoppers, tourists and those who require government services that are located within these areas.  We would estimate that overall, this proportion of population is quite small.  Outside of this, although users of public transport may not necessarily be travelling all the way into the inner city areas of the capital cities, they do utilise it to travel to other working and retail nodes along the transport system.  Despite this, a majority of the population is unlikely to be relying on public transport to reach their destination each day with even fewer using it to tavel to the inner city areas for employment.
The implications of this is quite significant, although the roads and public transport are undoubtedly congested, a large proportion of the population are simply not commuting centrally on a day-to-day basis.  It also means that public transport is only benefitting a small proportion of the overall community.
From a future development perspective this also has some repercussions.  It is clear that in our larger capital cities there is a significant focus on densification of the inner city areas and those along transport spines.  Although this is the case, demand for these higher density inner city properties is likely to be strongest amongst those who actually work centrally.  In fact, it is probably fair to say that for those who do not work centrally that higher density housing in the inner city areas would likely be highly undesirable.
The push for higher density in the inner city means that you can squeeze more residents into a smaller area.  From government’s perspective it also means that you can rely on existing infrastructure which tends to be most abundant in inner city areas rather than having to provide new infrastructure such as that which is required when development takes place on the outskirts of the city.
Nevertheless, it certainly appears that public transport infrastructure such as rail lines and busways connecting suburbia to the inner city areas only benefits a small overall proportion of the population.  Of course, of the estimated 20% of people that travel to central areas of the capital city, you only have to look at the roads of a morning to see that for many the preferred way to commute continues to be via the private car.
The other aspects of public transport to consider are the cost and the coverage.  The overall cost of public transport is expensive and acts as a deterrent for many to use on a more regular basis.  I live in Brisbane and to travel just one zone costs $4.80 if you don’t have a go card.  The trip to the city from my house is only two zones which is $5.60 by paper ticket and $3.95 if I use a go card .  I live relatively close to the city centre however, if I lived four zones away and purchased a paper ticket the cost is $7.50, if you have a go card the cost reduces to $5.13.
In my opinion, those costs are extremely excessive.  Yes it is probably slightly cheaper than the cost of running and maintaining a car on a week-to-week basis however, the differential is likely to be minimal.
My overall conclusion is that public transport is not as important as many of us believe it to be, particularly for those of us that believe we all need to have public transport to commute to work in the inner city.  This analysis shows that the majority of the working population actually don’t work in the central areas which tend to be the areas best serviced by public transport.
The main reasons that public transport it is not as important are due to: public transport being over-priced, services are generally irregular and unreliable and the services do not effectively cater to the overall needs of the wider community with the main focus of the service to transport people from the suburbs to the central areas of the city.  If the system was expanded, run on a more regular basis and made more affordable, I am sure that it would be more widely used, especially if it was more cost effective and efficient than using a private vehicle.  Sadly, at this stage it is generally a long way from delivering these benefits.
 
<hr>
 Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
 
 
 
 
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Is public transportation infrastructure really that important?

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After analysing the latest CPI data released by the Australian Bureau of Statistics (ABS) and how inflation affects property capital, the results can be significantly different.
Across all capital cities values remain lower than at their previous peaks. At a combined capital city level, inflation adjusted values are now -6.5% lower than their previous peaks compared to being 0.7% higher if unadjusted.
According to the RP Data-Rismark Home Value Index, capital city home values were 0.7% higher than their previous highs in September however, when you adjust for inflation, RP Data’s capital city index remains -6.5% lower than the previous peak.
<img src="/images/stories/2013/10/31/kusher-oct-31-one.gif" width="470" height="234" alt="kusher-oct-31-one">
The RP Data-Rismark results show that cities such as Sydney and Canberra are higher than their previous peaks in non-adjusted terms, whereas they remain -3.3% and -6.6% lower when adjusted for inflation. This fact highlights exactly why the impact of inflation on home values is important and often overlooked.
<img src="/images/stories/2013/10/31/kusher-oct-31-two.gif" width="470" height="234" alt="kusher-oct-31-two">
Over recent years, the housing market has been characterised by higher levels of volatility and subsequently lower levels of home value growth. Conversely, inflation has continued to occur at a time when home value growth in most cities has failed to maintain pace. As a result, the cost of most other goods and services in the economy has risen at a faster pace than home values.
At a combined capital city level, inflation adjusted values peaked at the end of the September 2010 quarter, which is at a similar time to the non-adjusted figures. The major difference was that inflation-adjusted figures saw a turnaround in value growth over the past couple of quarters whereas the non-adjusted figures have been increasing since June 2012. 
<img src="/images/stories/2013/10/31/kusher-oct-31-three.gif" width="470" height="235" alt="kusher-oct-31-three">
The quarter in which inflation adjusted values peaked across each capital city, the quarter in which they reached a recent trough, the peak to trough value falls and the increase in values from the respective market troughs. Most confronting figure is how long it has been since there has been any ‘real’ value growth in some of these cities.
Sydney values peaked all the way back in the first quarter of 2004, Brisbane values peaked in the first quarter of 2008, Perth values peaked in the third quarter of 2007 and Hobart values peaked in the final quarter of 2007. In Melbourne, Adelaide, Darwin and Canberra the value peaks have been much more recent.
<img src="/images/stories/2013/10/31/kusher-oct-31-four.gif" width="470" height="237" alt="kusher-oct-31-four">
In addition, the ABS data also highlights that the costs associated with most goods and services has increased at a faster rate than the increase in home values over recent years. Housing is relatively more affordable especially considering how low mortgage rates are currently.
It is no surprise that home values have grown off the back of low interest rates although, it has been mainly contained to Sydney, Melbourne and Perth. Over the coming months, it will be interesting to see if value growth in these cities can be maintained as we foresee some potential affordability constraints entering these markets given the rapid rate of value growth. Conversely, it will be interesting to see whether some of the markets that have seen larger value corrections such as Brisbane, Adelaide and Hobart start to see an improvement in value growth conditions.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
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How does adjusting for inflation affect property prices?

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Recent national dwelling approvals data by the Australian Bureau of Statistics shows that with interest rates at their lowest levels in 53 years, dwelling construction approvals are now higher than their long-term average levels.

This latest news will please the RBA where Governor Glenn Stevens recently stated that with interest rates at extremely low levels, dwelling construction is starting to fill the void.
The RBA was keen to see an increase in dwelling construction, not just higher home prices. Governor Stevens also commented that the RBA was hopeful that dwelling construction could pick up some of the economic void as mining investment went past its peak. The good news for the RBA is that what they desired is exactly what is coming to fruition.
<img alt="kusher-oct-25-one" height="213" width="470" src="/images/stories/2013/10/25/kusher-oct-25-one.gif">
Lower interest rates and incentives to ‘buy new’ are fuelling a higher number of dwelling approvals, which ultimately leads to construction which in turn provides a substantial multiplier effect for the domestic economy.
Based on the ABS results, the best response to the lower interest rate environment in terms of dwelling approvals was seen within New South Wales, Queensland, South Australia and Western Australia.
While approvals in Victoria trended lower, the number of approvals across the state was significantly higher in previous times than those in other states and has recently recorded a significant decline.
<img alt="kusher-oct-25-two" height="237" width="470" src="/images/stories/2013/10/25/kusher-oct-25-two.gif">
This result is not necessarily a bad thing given the fact that the housing supply deficiency is lower in Victoria and there have been looming concerns about excessive levels of construction within inner Melbourne and across the outer fringe of the Melbourne metro area.
Across the states there have been early signs of a revival in dwelling approvals. The annual number of dwelling approvals as at August 2013 was 22.6% higher in New South Wales, -3.0% lower in Victoria, 12.2% higher in Queensland, 9.6% higher in South Australia and 31.8% higher in Western Australia.
With month-to-month dwelling approvals data so volatile, it’s important to look at the trend where based on today’s accompanying charts, it can be seen that approvals are beginning to trend higher.
Based on a rolling 12 months average figure, there were 13,589 approvals in August 2013 which was 11.7% higher than in August 2012. The August 2013 approvals figure of 12,163 was the most recent low.
<img alt="kusher-oct-25-three" height="234" width="470" src="/images/stories/2013/10/25/kusher-oct-25-three.gif">
The RP Data-Rismark September Home Value Index confirmed that capital city home values have increased by 8.7% from their recent low. Given this and based on percentages, the rebound in approvals was stronger than the lift in home values.
A lift in dwelling approvals is more important than a lift in home values. It would be fair to say a higher rate of dwelling approvals is much more beneficial to the Australian economy than a lift in home values. Unfortunately without the additional demand created through higher home values and sales it is less likely that developers would take on the risk of building more homes.
The rolling 12 months average dwelling approvals figure shows that approvals are now 1.9% above their 20 year average. The issue here is that for most of the past 20 years, the supply of new dwellings has been insufficient. This result is probably not actually a good benchmark; no doubt the RBA would like to see approvals continue to climb further from this point.
<img alt="kusher-oct-25-four" height="238" width="470" src="/images/stories/2013/10/25/kusher-oct-25-four.gif">
The ABS dwelling approvals data is the sharp rise in the proportion of approvals for medium and high density housing. He found that over the past 12 months, 41.6% of all approvals were for units where just five years ago, only 33.2% of all approvals were for medium and high density properties.
The shift towards a higher proportion of unit approvals is a change that may be difficult to accept for potential home owners but will no doubt be an ongoing feature of the market over coming years.
As long as governments continue to show a reluctance to expand urban footprints, particularly within our major capital cities coupled with population increases in these areas, there will subsequently be additional demand for housing.
It is clear that instead of supplying a greater number of detached homes there is a general preference, particularly in some of our larger cities, for densification of inner city areas. This is not necessarily a bad thing, especially considering that this development of inner city areas will reduce the requirement for new infrastructure.
 
<hr>
 Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
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Low interest rates push construction approvals higher than long-term average: Cameron Kusher

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While whole of year data on premium housing markets by RP Data indicates a lull in activity at the top end at the beginning of this new growth phase in the property cycle, an analysis of activity across the most recent quarter suggests that conditions may be lifting.
Premium housing markets have generally recorded a larger correction in values than other price segments with the recovery rate to-date below par. However, recent results show that premium housing markets are once again beginning to outperform the broader housing market.
<img src="/images/stories/2013/10/18/kusher-oct-18-one.gif" width="470" height="238" alt="kusher-oct-18-one">
The September 2013 RP Data-Rismark Stratified Hedonic home value results showed that across the most expensive 25% of suburbs, capital city home values increased by 4.5% over the 12 months As a comparison, the most affordable 25% of suburbs recorded annual value growth of 6.2%, while the middle 50% of suburbs saw values rise by 6.4%.
While the results indicated that capital growth across the premium suburbs fell behind when compared to other market sectors over the past 12 month measure, recent quarterly figures provides evidence that the tide may be turning for Australia’s more expensive housing markets.
The premium market, comprising of the most expensive 25% of capital city suburbs, recorded quarterly value growth of 4.1% compared to 3.6% across the middle 50% of suburbs and 2.8% growth across the most affordable suburbs.
Previous growth and correction phase data shows us that the premium housing market is usually the slowest to respond during the early phase of the growth cycle and it appears that this has once again been the case – we have also seen the largest correction occurring in home values over the past few years within the premium housing market.
<img src="/images/stories/2013/10/18/kusher-oct-18-two.gif" width="470" height="208" alt="kusher-oct-18-two">
Several factors contribute to driving demand for premium housing. Higher priced sector of the market has seen the largest correction in values coupled with low mortgage rates where now, these homes become somewhat more attainable for purchasers.
A positive shift in equity markets which is evident in the 19.0% increase in the S&amp;P/ASX 200 index over the past year has boosted household wealth coupled with a rise in consumer confidence.
Finally, we have seen early indicators of an improvement in business conditions with survey-based results and retail trade showing tentative signs of improving in recent times.
<img src="/images/stories/2013/10/18/kusher-oct-18-three.gif" width="470" height="199" alt="kusher-oct-18-three">
A further look in the dynamics of the market shows that between house and unit value growth within capital city premium suburbs, the annual growth in house values is noticeably stronger than unit values.
Premium house values have increased by 4.8% and unit values by 2.3% over the past twelve months. This makes the rate of growth over the year across both premium housing types the weakest for capital growth across the broad price segments.
Over the most recent three months, premium house values are 4.2% higher and unit values are 2.9% higher. The quarterly value growth for premium houses is greater than both the affordable (2.6%) and middle (3.6%) markets whereas premium unit values have underperformed both the affordable (3.9%) and middle markets (3.4%).
<img src="/images/stories/2013/10/18/kusher-oct-18-four.gif" width="470" height="198" alt="kusher-oct-18-four">
Based on our findings, the premium market is experiencing increasing levels of value growth however, it is largely contained to detached houses rather than units.
Across the individual capital cities, the annual rate of value growth across the premium suburbs has been weakest across all major capital cities and product types except for Melbourne houses where the value growth has been stronger than growth for the most affordable suburbs.
Over the past quarter, growth in house values has been stronger than the other sectors for houses in Melbourne and Perth and equal strongest in Sydney.
In Brisbane in Adelaide, house value growth over the quarter has been weakest within the premium suburbs. For units, growth has generally continued to be weakest across the premium sector. The exceptions were seen in Perth where value growth was strongest, and in Brisbane where value growth was stronger than that across the most affordable sector of the market.
Overall, after a lacklustre performance in the more affordable sectors of the housing market, the premium sector is starting to see a stronger growth performance.
While picking up pace, the growth across premium suburbs has largely been limited to detached houses and is very much evident within the Sydney, Melbourne and Perth where the growth cycle has been stronger than other cities
Recent high levels of auction clearance rates, particularly in Sydney and Melbourne have certainly pushed the premium housing market along.
While picking up pace, the growth across premium suburbs has largely been limited to detached houses and is very much evident within the Sydney, Melbourne and Perth where the growth cycle has been stronger than other cities.
Recent high levels of auction clearance rates, particularly in Sydney and Melbourne have certainly pushed the premium housing market along. Of course auctions are only a small overall proportion of the market however, higher priced and unique properties which are typically taken to auction are more a reflection of the performance of the premium housing sector.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
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Premium housing market outpacing other segments: Cameron Kusher

Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Cameron Kusher

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