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A lot of emphasis is put on clearance rates each week – particularly in Melbourne and Sydney (the two main capitals of Auction sales), however few people really understand what the clearance rate represents. The broad assumption is that “sold at auction” equates to sold “under the hammer” and a high clearance rate means the market is “flying” while low clearance rates depict the opposite. However, it’s not quite so simple.
The clearance figure released on a Saturday afternoon factors in every property that has sold “under the hammer” and also sold via post-auction negotiation. The difference between the number of homes that sell out in the public arena and those that sell via negotiation always tends to fall in favour of the latter. In other words, in our experience, more homes sell via negotiation.
Without attending every auction individually it’s impossible to assess which have sold via post-auction negotiation or reached their reserve with heated competition outside the property – however, it gives a snapshot of the number of homes which have sold on the day as a direct result of the auction’s marketing campaign.
A lower clearance rate can be a combination of many factors, such as high vendor expectation or low buyer activity. It can also be influenced by larger than usual number of listings being auctioned on a particular day resulting in a lower-level buyer competition around those that don’t stand out from the crowd.
Conversely, a lower number of properties auctioned on any weekend can have the reverse effect and produce a higher clearance figure than would be typically expected. It’s important to understand the clearance figure only relates to a small proportion of the market, because most homes are sold via private treaty (the ratio is approximately 70% private sale, 30% auction sale). It also only applies to the metropolitan market, as properties in outer-metro or regional areas generally aren’t marketed for auction.
The other problem with clearance figures is that their accuracy relies on independent agent reporting, which can obviously be manipulated when not audited. Selling agents are required to work in the best interests of their vendor. Therefore they will naturally not disclose prices if asked not to do so. Some are also less likely to report an auction as passed in on the day if lengthy negotiations are still ongoing with buyers who attended the auction (including those who chased up the reserve price post auction in the hope of securing a bargain). Therefore, if the property is sold via post-auction negotiation, there can be a delay in figures being reported.
Sometimes during an auction when there is not much heated competition, the vendor may decide to alter the reserve price, thereby encouraging the agent to pass the property. After all, without this additional negotiation, the vendor will only obtain a figure one bid higher than the under-bidder. The vendor is perfectly entitled to do this.
 
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Obviously the attraction of listing a property for auction is the hope heated competition will push the price over and above expectation. An auction campaign is generally a short four-week process – typically three weeks of marketing, with the auction taking place during the fourth week. It often results in a successful sale because by all intense purposes, it puts pressure on buyers to act within a short time frame. Also – under auction conditions – once the property is sold, the sticker goes up! There is no cooling-off period, no subject to finance – the buyers must do due diligence prior to auction day.
However, when vendors list a property, they also understand that the auction is essentially a three-stage process during which the property can sell before auction, under the hammer, or post auction. Those properties that fail to sell under the hammer or via post-auction negotiation generally sell within two weeks as a direct result of marketing. As any selling agent will tell you, once an auction has failed, there are usually numerous calls from buyers wanting to know the reserve price, assuming that the “failed” auction will result in added pressure for the vendor to sell and reduce price expectation.
So how important is it to monitor the clearance rate? When the RBA assess house price movements it takes into account a broad range of data collected from suppliers such as RP Data-Rismark, APM and the ABS. It also monitors monthly movements and clearance figures. If there is any doubt about the accuracy of reported clearance figures – or whether there should be some differentiation between properties that sell under the hammer, compared with those that sell via negotiation – it’s worth noting the graph on the RBA website, which shows a very close correlation between month –to-month price growth and clearance rates.
<img src="/images/stories/cashmoreaugust2.jpg">
The fact that both clearance figures are low and overall turnover is low indicates perfect conditions for those wanting to step in. However, caution prevents most buyers acting against the herd mentality and purchasing while there is apparent doom and gloom flattening expectation and providing better buying conditions.
This is understandable – after all, to the average Australian, the family home is not just a place for shelter, it’s one of the biggest purchases they’ll make in a lifetime, and their future security. For this reason, caution must always rule the heart and buyers cannot afford to enter the market on a whim without plenty of due diligence. However, if you are planning on purchasing, waiting for certainty to set in and the spring market to kick off is not necessarily the best answer.
We should however avoid making broad statements about real estate because the Aussie market is fragmented – despite the 12-month “correction”, some suburbs have continued to outperform overall flat conditions – and some have yet to fall. Each property has its own intrinsic quality, and part of purchasing well is understanding the long term value of what you’re assessing. 
You’d be woefully ignorant if you still live under the conception that purchasing real estate is a simple as paying the price listed on the price tag. There is more than one number involved in any negotiation and assessing a property’s worth takes into account a number of factors.
The agent is only interested in meeting vendor expectation. The buyer is only interested securing their dream property for the lowest price possible. The valuer only cares about market value... and so on. Therefore, if you want to place yourself ahead of the competition, employing a savvy negotiator with plenty of experience to understand these fractions is a step in the right direction.
Catherine Cashmore is senior buyer advocate for JPP Buyer Advocates – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.jpp.com.au/">www.jpp.com.au</a>
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There's more to clearance rates than meets the eye

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It seems we’re in for a “spring of discontent”. The release of the long-awaited carbon tax details were intended to produce an element of certainty. It’s been spruiked as a simple effective plan ensuring pollution is reduced “at the lowest cost to the economy”, with a large spoon of sugar for us “ordinary folk” designed to sweeten the pain and lessen any complaints. The question is simply one of trust. As any good sales rep understands, you don’t sell the product, you sell trust. And let’s be honest – with questions and retaliations flying from the right and left, we’re doing little more than swimming against a tide of economic uncertainty.
There’s a good degree of wisdom behind the saying “seeing is believing”, because until the model has been tested, tax cuts granted, bank accounts debited and credited, no one is going to fully grasp the implications of this policy or believe the spruiked outcome. The economic model produced by Treasury already has a large question mark because there has been little, if any, consultation with companies in control of dictating price rises, and now we find the results were modelled on a $20 per ton estimate, not the $23 per ton reality. The truth is, no one really knows how much prices will rise – and more importantly, it seems the majority have little trust in those who sit at the controls.
It’s inevitable that the cost of building will increase, and as a consequence, be passed onto the purchaser.   HIA has estimated an increase of roughly $6,000 to the average house-and-land package – and this doesn’t begin to factor in providing internal facilities such as fridges, furnishings and other such essentials. Even with the tax benefits, first-home buyers will be hit hard. It’s been suggested that prices may increase in Canberra’s market as staff recruited to administer the new “tax” place extra demand on the inner city ring supply. Across the rest of the market affordability and consumer sentiment will continue moderate price rises, and as a consequence the rental sector will likely continue to fall under high demand. Gross yields across Australia have already risen to 5% (according to RP Data), and predictions point to a further increase.
However, whether fear and uncertainty will keep us in the atmosphere of what has widely been spruiked as a “buyer’s market” is questionable. Lending to home buyers rose 4.4% in May after a 4.6% rise in April, agents are starting to report dwindling stock supplies, and the seasonal change from winter to spring will likely result in a greater optimism as the traditional buying season commences. It could be the first light on the horizon for vendors, many of whom have been forced to moderate expectation if they wanted to sell during the first half of 2011.
The arguments surrounding the carbon dioxide tax, should not focus on the scientific evidence, but rather the policy changes we’re facing. Although everyone has a desire to reduce harmful emissions and create a better world for future generations, we have a natural adherence to authoritative dictation on how we should conduct our lives. It’s fair to suggest that any reduction in carbon emissions will result in some element of short-term pain and therefore not be popular – but the question mark should be over how much pain our largest employer (small business) can take.
The RBA has already indicated that interest rates will most likely remain flat, indicating we’re suffering tighter economic conditions than previously expected as we lead into the second half of the year, however none of this is likely to provide much assistance to home buyers.
Our worm’s-eye view is hardly going to present us with the answers we require, however we’ve had flat interest rates since December 2010, continued low rates of unemployment, strong growth in the wage sector, and the effects of the commodities boom will soon be felt. Although we’re not looking at sharp price rises any time soon, and caution will prevail, rising rents and population increases in the inner- and middle-ring suburbs of our most populous cities will keep the property wheel turning – and over the long term, prices rising.
We’re already starting to see small upswings in the property market as the shift between supply and demand gradually moves in favour of the seller. With education and guidance it’s possible to purchase well in any market, however it’s always preferable to enter in while negotiation is taking place behind closed doors, rather than in the public arena of “deepest pockets wins”.
There will be some interesting times ahead.
Catherine Cashmore is a senior property adviser and buyer advocate for <a href="https://www.jpp.com.au" title="JPP" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy in Melbourne. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiate more than $100 million worth of property each year for clients.
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Now is the spring of our discontent

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You can analyse as much statistical data as you like, and in many cases twist it to argue any point you want to make, but ask the average home buyer if he or she is finding it any easier to purchase property, and I doubt the answer would be an out-and-out yes.
Bear in mind a home buyer is not like an investor. Investors can pick and choose the areas they search in. They don’t have to warm to the “feel” of a home. They can be walking distance from any café, not their favoured one. They can purchase close to any good school, not the one their children attend. Investors don’t need to buy until a good opportunity presents itself, and for this reason they can step in and out of the market at will while targeting those “need to sell” vendors. In such cases, there are often multiple properties that tick the right boxes, and we’re currently in a perfect market atmosphere to take advantage of them.
However, home buyers rarely have such a luxury. When home buyers purchase property it often follows months of searching through limited suburbs of choice for a property with the particular idiosyncrasies to suit individual tastes. More often than not, when a home buyer finds a “dream home”, there are half a dozen other people who have targeted it as well and the vendor is less than willing to compromise.
If we do a rough breakdown of the dominant players currently in our marketplace, they fall into two main camps. About 30% are investors (who can step in and out of the market as they see fit) and 60% are home buyers (single first home buyers make up a smaller less influential demographic and therefore are not included in this example). Most investors target apartments close to the CBD, which are both low-maintenance and easy to tenant. However, the dominant demographic of home buyers are either young couples looking for a family home or current owner-occupiers looking to upgrade. They also tend to fall in the $600,000 to $800,000 price range (or in the case of upgraders, the $1 million plus price point.)
On top of this we have a largely a discretionary market. Most vendors don’t “need” to sell – especially if they can’t get their price. They’re happy to sit and wait for better times, and this has an effect on how much further we can expect prices to drop. Indeed, if there were really a widespread belief of a housing “crash”, vendors would be settling for any number they could get, and this is simply not happening
It’s OK releasing reports of high numbers of stock on market that give the impression of oversupply, but without a breakdown of where and what type of stock this bumper crop represents, it’s impossible to draw conclusions about its effect on our current home buyer demographic. In fact, with simple reasoning, it’s fair to conclude if turnover is down and prices are not falling at a rate to signify underlying economic concern outside of cautionary sentiment, it’s more likely that those homes currently representing the largest supply in the market place are simply not suiting the major current home buyer demographic.
This comes as no surprise when you consider the major bulk of development has been concentrated on going up rather than out. In Melbourne for example, there has been approval of more than 20,000 high-rise apartments over the last two years, mostly in the CBD. Whether these developments will be completed is debateable, however it points to an abundance of accommodation largely aimed at the investment/rental market (particularly overseas investors).
In fact, a recent ANZ report entitled Australian Property Research – Growing pains for the Inner-Melbourne apartment market the ANZ bank warned of impending volumes of high-rise accommodation that could top around 5000 to 7000 by 2013.  Such is the concern over the short term potential of these types of developments that it can be extremely hard to get finance without a very low LVR. Check with individual lenders if this is a concern.
Although most buyers have been forced to accept apartment living if they want to stay in inner-city ring suburbs, given the choice, Australians have always preferred larger floor space. In fact, Australian houses lead the world in growth per capita. Furthermore, while apartments tend to appeal to young single home buyers – particularly first-home buyers – they do not fulfil the needs of the largest current home-buying demographic actively shopping in the marketplace.
Detached family accommodation close to schools and transport is in anything but oversupply, and considering on top of this the cost of new homes is set to increase, supply is not accumulating fast enough to meet demand. Therefore, it doesn’t matter how much stock is on the market, if that stock doesn’t suit home buyers’ needs, it can hardly be called a “buyer’s market” and in the current climate, would probably be better termed an “investor’s market”.
Catherine Cashmore is a senior property adviser and buyer advocate for <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.jpp.com.au" title="JPP" target="_blank">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy in Melbourne. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiate more than $100 million worth of property each year for clients.
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Market perfect for investors, not home buyers

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
The stream of extreme bullish and bearish views regarding the real estate market adopts the guise of a political contest.
Those of us working in the industry are constantly accused of talking up the market for our own ‘greedy’ ends. On the other end of the spectrum are the ‘bubble’ doomsday pundits, who are so determined to see our market suffer an American style crash and shoot down the drain, they hang onto any bit of negative data they can lay their hands on.
The real truth is neither bearish nor bullish, but in many respects overwhelmingly predictable.
Most Australians recognise the beauty and quality of lifestyle we’re privileged to experience in comparison to many other countries. It’s the reason our major cities top the list of the world’s most liveable destinations.
However, debate is rife concerning our rapidly increasing population, simply because our infrastructure in major metropolitan areas is woefully over-capacity. We don’t have enough accommodation in the areas where people want to live, so is it any wonder we continue to see inner-city property cycles of unsustainable booms, followed by flat periods of pain and grief, for potential buyers who can’t afford a foot in the door?
Real estate has always seemed unaffordable and overpriced to first-home buyers – a simple search through newspaper archives will teach you this.
However, as the metropolitan belt tightens, it’s fast becoming a split between ‘those who can’ and ‘those who can’t’. In short, any single person on an average wage fighting to save a deposit will find they’re limited to regional locations with sparse amenities, or high-rise inner-city rabbit hutches which banks are not all that keen to lend on.
Is it any wonder fewer first home buyers are entering the market? The incentive to scrimp and save for a deposit is only there when the reward is achievable.
Prime Minister Julia Gillard, and Sustainable Population Minister Tony Burke, recently commented that Australia's most densely populated cities, Sydney and Melbourne, have reached their ''carrying capacity''.
This could have been a political ploy to gain kudos in the polls – after all, there’s huge consensus to cap Australia’s population, but it would be interesting to debate how we intend to achieve this.
Australia is one of the least densely populated countries in the world. It’s not good enough to protest that much of the land isn’t arable when we’ve already proved our ability to adapt to different terrains and climates. Although we may be able to slow our growth, we can’t single-handily stop it any more than we can single-handily stop climate change! People are going to keep coming, and a consistent fertility rate alone will see a population of 29 million by 2050.
Therefore, unless we look outside the square and find real, feasible options for an increasing number of buyers who can no longer afford to purchase, we’ll see tremendous pressure on rental accommodation and our market will become an investor’s domain.
Increasing stock supply is not the ‘simple’ answer to this equation, if it is to be located where commuting time will outweigh any savings made.   Increasing inner-city density is well and good, however, as any first home buyer knows, banks place strict criteria on the type and size of property they’ll lend against.
Many of the Manhattan-style high-rise developments (supposedly built to ease home buyer pain) don’t come close to filling the necessary criteria.
At about $290,000 – the average loan for a first home buyer – it’s all but impossible to purchase something in a metro location that will provide a decent stepping stone for future advancement.
Anyone experienced in property investing knows the number one consideration for home buyers is proximity to public transport. Schools are also high on the list.
We have to face the stark reality that our population cannot be ‘capped’, but neither should we feel like factory-farmed chickens squashed into metropolitan areas where housing is reserved for ‘those who can’.
By 2013 Australia will be the only continent without any high speed rail! A high-speed network linking regional locations would see commuting times to the nearest CBD from as little as 20 minutes and open a wide range of affordable options for homebuyers.
Unless we start understanding extra roof space is not the answer to sustainable population without serious commitment to improving transport systems, we can expect the house hunting-pain of ‘those who can’t’ to get progressively worse.
Catherine Cashmore is senior buyer advocate for <a target="_blank" href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients.
 
 
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How rapid population growth divides prospective buyers

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If you’re waiting for someone to fly a flag when we hit the bottom of the market, think again: life doesn’t afford such luxuries. By the time people realise the market has bottomed out, it’s because it’s started on the upward curve and opportunity has passed! A bit like the gold rush; as soon as word gets out, the herd mentality kicks in, and it’s a difficult force of nature to resist.
So what is happening with our market? Some would suggest this is a typical market cycle. However, look a little deeper and a rather different picture is painted.  Market downturns are usually accompanied by various factors such as interest starting to flatten out, job insecurity, high unemployment, poor wage growth, population decline, large supplies of stock, and all manner of other triggers in different areas of the property market.
However, Australia isn’t suffering any of these. In fact, on the face of it, the picture looks enviably rosy.
 
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<li>Turnover in Melbourne is not markedly down. It’s trailing a little from this time last year, however, compared to 2008 and 2009 we’re ahead, indicating a steady stream of buyers and sellers. </li>
<li>Unemployment has been below 5% since last year, and although some areas are suffering more than others, the general outlook is excellent. </li>
<li>Our interest rates, although not low, are not high either – and no one would argue our population is falling.</li>
<li>The RBA has happily announced we’re saving more, and paying down our debts, and despite continuous complaints against the cost of metropolitan real estate, the debt servicing ratio is just 21%. Indeed, more than half of us are apparently paying down our loans faster than we need to.</li>
<li>Furthermore, wage growth is relatively firm, and household income was growth strong in the March quarter, according to the RBA</li>
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Nevertheless, the face is often very good at contradicting what’s emotionally within, and if truth be known, confidence is anything but robust.  We don’t need an interest rate hike – the RBA is doing a good job of making us err on the conservative side with a mere hint at it.
We all know bills are going to increase, but by how much is annoyingly uncertain.  And furthermore, anyone with investments in the stock market will be looking closely at the current international tremors and not liking the aftershocks.
We’ve all heard the news surrounding the Greek economy and its effect on Europe; America on the point of further demise; and possible warnings of a ‘hard landing’ in major players our side of the Pacific which could, some suggest, contribute to a ‘commodity crash’. However, if you think we’ve started on a downward-sloping curve, be warned: you may miss the boat.
We have a largely discretionary market. The evidence above suggests most vendors don’t ‘need’ to sell – especially if they don’t get their price.  They’re happy to sit it out and wait for better times.
Mortgage brokers have reported a large increase in the number of pre-approvals, hinting that there are plenty of buyers hovering in the starting blocks. The supply-demand argument continues to be a testy debate, but however many houses are built in the outer suburbs of our best performing cities, in far off lands away from the convenience of public transport and amenities, or high-rise, small one and two bedroom apartment blocks which are hardly an attraction for home buyers (nor fit into the typical first home buyer price range, or meet lending requirements). Stock located in areas where people want to live is certainly not in abundance.
Therefore, it’s unreasonable to suggest that real estate will keep dropping in price in the top third of suburbs of those areas driven fundamentally by supply/demand. However, outer-suburban locations, and poor high-rise accommodation heading into oversupply, may sing a different tune altogether and continue to suffer low demand.
With this in mind it’s important to note how dangerous it is to paint the whole real estate market with sweeping statements of downturns – or upturns. Every area must be assessed on its merit – hence many suburbs have shown a rise in median value over the first quarter, while other areas have dropped back to 2008 levels.
In short, the only thing we’re waiting for before the market swings upwards once again is the spark that’s going to inject confidence and an element of security into buyer psychology. However, waiting for that spark is not a wise thing for any investor to do if they want to purchase at the bottom! Have we hit the bottom yet? No one can make that call quite so soon – but if we haven’t, it’s not far away.
 
Catherine Cashmore is senior buyer advocate for JPP Buyer Advocates – the largest dedicated buyer advocacy service in Victoria. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiates more than $100 million worth of property each year. <a href="https://www.jpp.com.au/">www.jpp.com.au</a>
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Waiting for 6 o’clock on the property watch? You may be too late

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Are we starting to see more distressed vendors than may have been reported? Australia-wide, the delinquency rate has climbed from about 1.4% to 1.79%. It might be low in comparison to Europe and America, but it’s a figure the Reserve Bank should be paying close heed to because it seems there are other distressed vendors flying under the radar and trying to bail out before they get to the delinquency stage.
The average time Australians stay in their homes is 7.5 years (according to RPData) – although in the established suburbs of Melbourne close to the water and city it’s 9.1 years. However, there seem to be increasing numbers of vendors selling prime real estate after only one or two years of residence – something I’m seeing more and more often when I research the sales history of homes. In many cases these homes are struggling to sell, with days on market stretching into months as vendors try to achieve their “wish price” (a return on investment) in a flat conditions. These are often people who purchased when interest rates were low, and now rates have climbed, find themselves labouring to make the repayments.
Investment in real estate is long-term game plan, so trying to get a return on price one or two years down the line is a gamble no one should take, or be forced to take. Therefore in a flat market, with the possibility of interest rate rises brimming on the horizon, paying the right price and ensuring that decision by purchasing the right property is not only important, it’s crucial. Pay too much in the first place and you’ll get no short-term capital growth. Choose a “lemon” and if you need to sell in a soft market, reducing the price will be the only way to do so.
So how do you know you’re paying the right price? Just because the papers are screaming “buyer’s market” and the agent is giving you a “discount” on the asking price, that doesn’t mean a “bargain”. Drawing comparables against the weekend results in the paper won’t always help, as they only list exact addresses for auction sales, and many of those are now “undisclosed”. In fact, sales results won’t help you much at all unless you’ve been monitoring the market closely and assessing the individual properties listed – and furthermore, how do you know someone else didn’t over-pay on the property you’re comparing against? I was recently asked to help with a report into vendor discounting. This is the amount the vendor discounts throughout the sales campaign in order to sell. It wasn’t hard to find examples, however it was much easier to find examples of advertised prices (private sale) that had been exceeded.
There are three numbers in real estate – what the vendors want, what the market is willing to pay, and what a property’s reasonable market value is against comparable sales. Unless you’ve got a handle on all three you can’t negotiate effectively. If you’re a current buyer who has little experience negotiating and find yourself judging a property’s value based on the quoted range, or “reserve” price, rather than a solid base of knowledge, beware! Selling agents know all the tricks to con a buyer into paying more, from touting they have other offers on the table to convincing them the “distressed” vendor has “a very reasonable” reserve.
And what about choosing the right property? Well, even in flat markets with well-publicised drops over any one year, there are those properties that buck the trend - the roses amongst the thorns – in locations with unique aspects that drive owner-occupiers to stretch budgets. And these are the very properties investors need to target if they’re going to prosper during boom-and-bust cycles.
A suburb-by-suburb look through Melbourne highlights a few of these areas that are withstanding current conditions. Take, for example, Kew, located south east of Melbourne’s CBD. Made up of roughly 70% owner-occupiers, it’s already had a 29% jump during the first quarter in median value and a steady 74% year-to-date clearance rate, according to the REIV. Although this doesn’t guarantee every home in Kew will buck the downturn, you can be pretty sure that if you own a good well-positioned property that suits the buyer demographic of the area, it’s going to attract attention.
I would never advise someone to purchase a property unless they are fully committed to a long-term game plan, however I would strongly advise the essential need to get experienced advice before you risk becoming a distressed vendor.
Catherine Cashmore is a senior property adviser and buyer advocate for <a target="_blank" title="JPP" href="https://www.jpp.com.au">JPP Buyer Advocates</a> – the largest dedicated buyer advocacy in Melbourne. With extensive experience in all matters regarding real estate, JPP successfully purchases and negotiate more than $100 million worth of property each year for clients.
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Distressed vendors flying under the radar

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

Catherine Cashmore

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