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On the 27th of July, the New South Wales government announced eligible first home buyers could access stamp duty exemptions on new home purchases worth up to $800,000.
New home builds will also see stamp duty discounts available for purchases between $800,000 and $1 million, where the discount reduces with a higher purchasing price. The policy is a temporary, 12-month extension of existing stamp duty concessions from the 1st of August 2020.
Based on housing market trends that emerged from the initial introduction of stamp duty discounts and other first home buyer incentives, there a few trends we may expect to emerge from the new round of stamp duty discounts.
First home buyer demand will increase
Previous research suggests that first home buyer grants and incentives have had a ‘vacuum’ effect, where first home buyer incentives are followed by large, but temporary, spikes in first home buyer activity. This suggests the incentives bring forward purchases that may have happened anyway. The fact that the new stamp duty discounts on offer will only be available for 12 months is likely to exacerbate this effect.
The increase in first home buyer participation over a limited time window may actually lead to an increase in values up to the cut off values for stamp duty concessions. This is because buyer competition could be increased in this segment while added incentives are on offer. Furthermore, the reduced transaction costs associated with stamp duty exemptions mean borrowers have higher purchasing capacity, which may just be added onto the purchase price while first home buyer demand is elevated.
One important mitigating factor is that the demand shock created by COVID-19 may not be enough to increase first home buyer demand.
However, at the very least, first home buyer participation would be higher than it otherwise would have been as a result of the stamp duty discount.
Price ‘clustering’ could move up to the $800,000 mark
Research of sales volumes by price suggests that sales volumes tend to ‘cluster’ just under the cut-off point for complete stamp duty exemptions, so that first home buyers can avoid paying the tax.
CoreLogic sales volume data across NSW shows that there is a bunching of sales between the $640,000 and $650,000 price point between July 2017 and June 2020.
$650,000 was the cut off point for stamp duty exemption for first home buyers in this period. This is demonstrated in the charts on the following page, which show the volume of sales across NSW by value range for the two years before and after the introduction of stamp duty discounts for sales up to $650,000.
While the $650,000 price point seemed to be an anchoring point for buyers before the introduction of stamp duty exemptions, the difference in sales volumes is exacerbated after exemptions are introduced.
The number of sales at $640-650,000 was 32% higher than the band below, and is 49% higher than sales in the value band above. This is a greater divergence than was observed between these value bands in the two years before the introduction of stamp duty exemptions.
As the stamp duty exemption increases to $800,000, this could see a broader range of properties increase in value up to this level. This price inflation would be skewed toward new home builds where the discounts apply.
The incentive to avoid tax could increase turnover now, but dampen it later
An interesting feature of the stamp duty discounts for first home buyers is that they extend to property values worth up to $1 million. This is likely to be beyond the typical first home buyer purchase point across NSW.
Deriving the average borrowing amount by first home buyers from ABS housing finance data suggests that a typical first home buyer purchase price averaged closer to $625,000 between July 2019 and May 2020.
By raising the threshold to $1 million, there is more diversity in the housing stock that first home buyers can access with stamp duty discounts, particularly across Sydney where property values are higher than in other capital cities.
<img src="https://www.urban.com.au/images/2020/7/30/CL%20stamp%20duty%20concessions.JPG" alt="">
But by incentivising first home buyers into a more expensive, and presumably larger home earlier in life, first home buyers may stay put for longer, in order to avoid paying stamp duty on upsizing down the line. This could extend hold periods, thus potentially reducing the amount of turnover that takes place in future.
Overall, the expected impact of this temporary discount in stamp duty should bring forward the purchase of property among first home buyers, and skew more first home buyers to new property. This is good news for those in the construction industry, and, considering the broad range of industry sectors involved in residential construction, there should be a positive flow through to economic activity.
However, considering the potential for higher housing prices, stamp duty exemptions may be limited in helping first home buyers access cheaper housing. 
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The impact of NSW stamp duty discounts: CoreLogic's Eliza Owen

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EXPERT OBSERVER
An emerging narrative around regional dwelling markets is that they may see increased demand as a result of COVID-19.
This is thought to be driven by the way the pandemic has forcibly introduced remote work for knowledge-based or clerical workers. As employers and employees adapt to remote working conditions, physical proximity to a workplace may become a less important factor in home purchases.
In the June 2020 quarter, about 3 months into the engineered economic slowdown, CoreLogic data showed regional centres have seen higher capital growth than the capital city regions.
The charts below show the rolling quarterly growth of Sydney, Melbourne and Brisbane, alongside quarterly growth of nearby major regional centres.
<a href="https://www.propertyobserver.com.au/images/2020/7/16/Owen%201.JPG" target="_blank">Click to enlarge:</a>
<img src="https://www.urban.com.au/images/2020/7/16/Owen%201.JPG" alt="">
This more positive outcome is short term, and is more likely tied to cyclical patterns than changes in demographic trends, which are typically a gradual phenomenon. The charts demonstrate that even though regional centres have not seen price falls in the June quarter, growth rates have seen a slowdown in momentum.
Regional growth rates peaked around late 2019, and could nudge into negative territory later this year without significant improvement to economic conditions or a demonstrated shift in demand side factors like population growth.
Illawarra and Newcastle, and Geelong and Ballarat, also saw a relatively weak upswing compared with the Sydney and Melbourne markets over the second half of 2019.
The relative stability of growth rates mean that these regional centres may not see as deep a downswing in the coming months.
COVID-19 and long term demographic trends
Regional Australia is considered appealing for relatively low levels of density, less congestion, and typically lower price points for property. The median dwelling value for combined regional areas of Australia was $394,570 at June 2020, 38.5% lower than the combined capital city median of $641,671.
One way to assess whether COVID-19 could exacerbate a tree-change or sea-change trend, is to examine population movements before the onset of the pandemic.
ABS internal migration data at the SA4 level sheds some light on this. Areas with the highest levels of net internal migration over 2018-19 (where more people moved to an area from another part of Australia than departed it) are shown below. These include the Capital Region of regional NSW, the Sunshine Coast, Melbourne – West, the Gold Coast and Ipswich.
<img src="https://www.urban.com.au/images/2020/7/16/Owen%202.JPG" alt="">
From these examples, there was already a trend of movement from more suburban or metropolitan areas to regional areas. But two of the highest levels of net internal migration are actually still within capital city bounds. Melbourne – West and Ipswich are technically in greater capital city regions, but see a large number of migrants from the inner city.
This may reflect both availability of developable land transitioning to large greenfield housing estates as well as cohorts such as inner-city renters and first home buyers making the transition to buy in more affordable areas that are still commutable to the CBD.
That is an important trend to consider, because it is a scenario where past migration may have been driven by affordability instead of preference for a regional lifestyle.
If that is the case, a mitigating factor to the draw of regional areas during COVID-19, is that dwellings closer to the city are also becoming cheaper, which may slow migration to the city fringe. But affordability is not the only drawcard of regional Australia. Parts of regional Australia may offer lower levels of population density, which is arguably desirable in the wake of a pandemic.
There have also been recent examples of people departing from higher socio-economic areas to parts of regional Australia.
Over 2018-19, an estimated 1,453 residents form the Sydney - Eastern Suburbs region departed for areas such as the Central Coast, Richmond-Tweed and the Gold Coast.
The normalisation of remote work amid COVID-19 is more likely to bolster regional migration than slow it. But in the wake of the pandemic, the return to an office environment may still be desirable for some employees and employers.
Furthermore, it is important to note that the broad-based impact to housing demand from the pandemic could see prices fall in regional centres over the second half of 2020.
Price falls are unlikely to be as sharp as what will be observed in capital city markets, where more expensive, capital city markets have historically shown more volatility than regional Australia.
ELIZA OWEN is the Head of Research Australia at CoreLogic 
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Can regional housing markets benefit from COVID-19? CoreLogic's Eliza Owen

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Thursday’s lending indicator data from the ABS shows the value of new finance commitments for the purchase of dwellings fell by a record 11.6% over May 2020.
This is the largest single monthly drop in the 18 year series.
In seasonally adjusted terms, it represents a $2.2 billion monthly fall in the value of housing finance, and is $2.0 billion below the decade average level of lending.
But CoreLogic data suggests that the June results could show a partial recovery.
Can CoreLogic sales data tell us what will happen to the housing finance data?
The chart below shows the monthly value of new finance for housing from the ABS, against the number of property transactions estimated by CoreLogic.
The two metrics have moved quite closely together historically. This suggests that when more money is lent for the purpose of buying property, we will typically also see a rise in the number of transactions.
<img src="https://www.urban.com.au/images/2020/7/13/CL%20July%2013.JPG" alt="">
While this is intuitive, there is something curious about the relationship. In some instances, shifts in the direction of sales volume estimates produced by CoreLogic are a month ahead of changes in the direction of new housing finance. The correlation coefficient between the two series is slightly strengthened when the sales volumes are lagged by one month.
The lagging of finance data has been particularly evident in the dramatic disruption that has played out amid COVID-19. CoreLogic sales volumes started rebounding over May, while housing finance saw a record decline.
This could be because of the way sales volumes and finance commitments are dated. CoreLogic sales volumes generally date sales from the sale’s contract date. But housing finance commitments, according to the ABS, are only counted when the following three criteria are met: 
1. A home loan application has been approved; 
2. a loan contract or letter of offer has been issued to a borrower; and 
3. the borrower has accepted the offer.
This means that a housing finance commitment could occur in the month after property is purchased. The lag between the two events could be days, or weeks depending on multiple factors, including the time it takes for a property to be valued, or the time the borrower spends reviewing the loan contract before accepting it.
More recently, anecdotal evidence suggests an additional lag in the housing finance data could be caused by COVID-19 related factors. These include banking staff and processes adjusting to remote working conditions, processing additional forbearance provisions, and a surge in refinancing applications.
Understanding this detail of the data could help us understand whether housing finance numbers will have fallen further in June, or if they would start to recover. Based on the fact that CoreLogic sales estimates rebounded 29.5% over June, housing finance values may actually have bottomed out in May. Other indicators suggest transaction activity has been steadily recovering.
One of these is the change in volume of valuations ordered for property purchases through CoreLogic platforms. Underlying data shows an 11.5% increase in valuations for the purchase of property between May and June. The Early Market Indicators report has continued to show an uplift through July, rising 11.1% in the week ending July 9th.
The number of advertised listings provides another signal for higher sales. While the number of new capital city listings has increased by more than 40% since early May, while the total listings count has reduced by close to 3% over the same period. This implies a new listings to sales ratio of around 1.3. In other words, more homes are being sold than what is being added to the market.
Despite signs of rising transaction activity and finance volumes recently, significant headwinds lie ahead for sales activity. With the re-introduction of the stage 3 lockdown across Melbourne, the impact on sales volumes is two-fold. There is the physical limitation on selling homes that come with social distancing, as well as a more general fall in consumer confidence.
The ANZ-Roy Morgan Consumer Confidence index has declined in the past two weeks of measurement. Declines in consumer sentiment are associated with falls in property tractions. This means that while finance volumes could bottom out in May for the 2019-20 financial year, the potential for another significant fall exists while social distancing policies are required.
By Eliza Owen, Head of Research Australia at CoreLogic 
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What CoreLogic data tells us about the record fall in housing finance: Eliza Owen

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EXPERT OBSERVER
The July CoreLogic index results show the Melbourne property market is the worst capital city performer since the onset of COVID-19. June marked the third consecutive month of value falls across the city. This sees values down -2.3% from the previous quarter, when the market hit a record high. 
The results may be surprising, particularly when considering that the Sydney growth rate, which often moves quite closely with Melbourne property, was less than half this rate in the same period (at -0.8%). Several factors may explain why Melbourne in particular has experienced a more rapid decline.
Melbourne has sometimes ‘led’ cycles, and has often been more volatile
Data suggests that the Melbourne market has experienced a turn in its market before others. This was evident in the most recent upswing, where Sydney and Melbourne saw peak growth rates around November 2019, while other capital cities continued to see a more moderate but accelerating growth rate.
A longer-term view suggests it is not uncommon for Melbourne to outpace capital growth in Sydney, or to see deeper rates of decline.
The divergence is particularly evident through the 2010-2012 downturn, following a substantial over-performance from Melbourne during the post-GFC stimulus fuelled growth phase.
The most recent upswing before COVID-19 also saw Melbourne growth rates peak higher than in Sydney. The Melbourne quarterly growth rate peaked at 6.4%, compared with 6.2% across Sydney.
Cyclically then, it is not unreasonable to see Melbourne values slip at a greater rate than other capital cities.
Research also suggests that property markets where incomes are higher, households are more indebted and investor activity is higher can also be more sensitive to changes in economic conditions. This has been consistently evident in the upper quartile of values across the Melbourne market, which had the strongest value increases amid the last upswing, and are currently showing the largest falls.
High levels of investment are also evident in the Melbourne market, which may be contributing to volatility, though this is present in Sydney too.
ABS finance data shows investor lending has comprised an average 32.3% of total mortgage lending across Victoria for the past 5 years.
This is higher than most other states and territories.
Given that Melbourne has also experienced higher growth rates before the onset of COVID, and may be approaching a trough more quickly, Melbourne may not be the ‘worst performer’ over the entire cycle, but just based on a snapshot view of the past couple of months.
However, there are some key structural factors creating added downward pressure on Melbourne property prices.
ELIZA OWEN is the Head of Research Australia at CoreLogic
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Why is Melbourne property leading the downswing? CoreLogic's Eliza Owen

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EXPERT OBSERVATION
The announcement of the HomeBuilder stimulus from the federal government in early June has been met with a mixture of excitement and criticism.
The scheme grants $25,000 dollars for new home builds and renovations where:
<ul>
<li>The recipient is an owner occupier;</li>
<li>The recipient earns no more than $125,000 per annum as a single applicant or $200,000 for a couple;  </li>
<li>The contract is signed between June 4 and December 31; and</li>
<li>Construction commences within 3 months of the contract date</li>
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For renovations, the existing property value must be no more than $1.5 million, and the renovation must be worth between $150,000 and $750,000. For new builds, the house and land value must not exceed $750,000.
While potential home owners are likely to be keen to take advantage of the scheme, many have noted that the policy largely creates stimulus for those that were planning to build and renovate anyway.
So instead of creating additional demand for construction work, it may just bring construction forward. This side-effect from housing stimulus has actually been seen before – and it has a name: a vacuum effect.
A vacuum effect describes housing stimulus bringing forward a planned decision to purchase property. It reflects a surge in buyer activity soon after housing grants are made available, and a significant drop in activity thereafter.
The implication is that rather than stimulating sustained, new demand, stimulus is simply bringing forward activity to a certain date, where it would likely have occurred over time anyway.
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The term was used by researchers from the City Futures Research Centre, in a publication analysing the impact of past housing stimulus on dwelling markets and first home buyer activity.
The phenomenon is prominent around the first home owner grant in 2000. 
This was a $7,000 grant, designed to soften the blow for first home buyers around an introduction of the GST.
The ‘boost’ to the first home owner grant, which was a temporary, additional $7-14,000 grant in the wake of the Global Financial Crisis, showed a similar outcome.
The image on page 1 shows the number of first home buyer loans secured each month off the back of the introduction of these policies from the retired ABS series 5609.
Despite the first home owner grant being in place since 2000, its uptake is concentrated up to November 2001. Following this, first home buyer participation fell away between 2002 and 2004. It is also evident around the first home owner grant ‘boost’, where the number of loans secured began to fall away before the program ended.
However in both of these instances, It is worth noting that any ‘vacuum’ effect here was likely compounded by a strong surge in dwelling values, which is when first home buyer participation is typically stunted due to affordability constraints. 
The implication for the HomeBuilder scheme is that rather than creating additional demand for property purchases and renovations, the scheme would just bring forward works that were already planned.
This is amplified by the timeframes of the HomeBuilder scheme. The kind of planning and financing that needs to be organised for a six-figure renovation means that it would largely be taken up by those who have already started the process.
Similarly for home owners, and first home buyers in particular, those looking to commit to a property purchase within the next 6 months would already have been saving a deposit and primed to buy.
However, where this policy may create additional construction lies in the fact that it is pivoting decision making from established property to new housing, likely to be skewed towards house and land projects. This is opposed to the first home owner boost (FHOB) in 2008. Even though the grant provided additional incentive for newly built property, 85% of those temporary grants were awarded for established purchases.
The HomeBuilder package may be limited in its ability to deliver new construction work, because it relies on decisions to purchase and renovate property in a highly uncertain economic climate. This is one of the reasons consensus is mounting around social housing being a more efficient use of government expenditure on housing, because it guarantees the upgrade and building of homes through direct expenditure.
Eliza Owen is the Head of Research Australia at CoreLogic
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The ‘vacuum’ effect and its implications for the HomeBuilder Scheme: Eliza Owen

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EXPERT OBSERVER
Amid COVID-19, much attention has been given to weaker rental market conditions. But as with buying and selling property, market conditions vary substantially among regions. 
New data estimates from CoreLogic, calculating the portion of rental stock advertised, shows further variation in the performance of rental markets across different capital cities.  The percentage of rental housing advertised rose over the month of May in Sydney and Melbourne, while declining across the rest of the capital city regions. 4.5% of the total rental stock across Sydney was advertised over May, up from 4.3% in April. The portion of stock advertised across Melbourne saw an even larger jump, from 3.2% of listings advertised in April, to 3.6% of properties over May. While 3.6% may sound small, it represents a total rent listing uplift of more than 3,000 across Melbourne, up to about 27,000 properties for rent over the month. This corresponds to a rise in vacancies, and falling rental prices, particularly in inner-city Sydney and Melbourne.  How is rental stock on market measured?  The calculation of rental stock on market is derived by dividing total rental listings in a month by the estimated rental stock in an area.  An increase in the portion of stock on market suggests higher vacancies and a looser rental market, which would coincide with falling rent prices. However, it could also be a function of a change in the ‘denominator’ – ie, the size of the rental market is reduced while listings are steady.  CoreLogic has a ‘static’ estimate of the portion of properties that are rented. To get a dynamic indication of rental stock, the portion of dwellings estimated to be rentals was interpolated between the rental tenure reported at the 2016 census, and the latest CoreLogic imputation of the portion of rental stock. So it assumes there is a linear movement in the portion of rental properties from 2016 to 2020. A summary of the rental stock on market is presented below. 
<a href="https://www.propertyobserver.com.au/images/2020/6/22/RENTAL%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/22/RENTAL%201.jpg" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2020/6/22/RENTAL%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/22/RENTAL%202.jpg" alt=""> 
Why is stock piling up in Sydney and Melbourne and not elsewhere?  One of the big drivers of demand for rental accommodation is overseas migration. Most people that come to Australia from overseas, whether they are a skilled migrant, a temporary visa visitor or a refugee, will rent when they first come to Australia. ABS data on migration suggests that Sydney and Melbourne received over 70,000 net overseas migrants over 2018-19, which is far higher than the other capital cities. This may be why an increasing amount of properties across the cities are sitting vacant.  Another factor contributing to less rental demand could relate to the predominance of Sydney and Melbourne for foreign student numbers. With foreign student numbers falling by close to 100% compared with a year ago, along with domestic students largely studying from home, rental demand from tertiary students has been depleted.  New South Wales and Victoria have also seen, by far, the largest number of investors relative to other states.  According to ABS housing finance data, almost two thirds (65%) of investment loans over the past ten months were in Australia’s two largest states.  Investor activity contributes to rental supply. When paired with the large number of units that have been built over the past few years, many of which are rentals, and it’s clear that rental supply has increased more in Sydney and Melbourne relative to the other cities.   Higher supply levels against a backdrop of weaker demand is a recipe for lower rents. The steady level of advertised stock across the ACT came amid very little change to advertised stock levels and total rental stock levels. Declines in the rate of advertised rental stock in May across other cities were all due to a decline in the total listings count over the month.  In some areas, this could be a continuation of steady market conditions. The advertised stock levels suggest that rental markets have been gradually tightening in the lead up to COVID-19. 
Perth in particular saw the portion of advertised stock decline over 200 basis points in the year to May, as both total rent listings, and the number of total rental properties declined. It may be the case that investors withdrawing from the market, where the property was sitting vacant for a long time, has helped to tighten rental conditions.  
ELIZA OWEN is the Head of Research for Australia at CoreLogic  
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Rental stock on market data shows Sydney and Melbourne markets loosen over May: CoreLogic's Eliza Owen

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The HomeBuilder scheme announced in early June is intended to boost activity in the construction sector.
Dwelling construction is expected to see a lagged decline in activity off the back of COVID-19, as the recently recovering trend in dwelling approvals began to slip in April, led by a decline in unit approvals.
However, the $25,000 incentive for building a new home, or renovating an established one, comes with a set of extensive eligibility criteria.
Part of the eligibility for the renovation component of the scheme is that properties must be owner-occupied, and not exceed more than $1.5 million in value.
So where are the most owner-occupied properties under $1.5 million? 
Using CoreLogic’s extensive property database, we have put together a count of properties by region. The count of properties are those that we estimate are owner-occupied, and have a high confidence valuation of less than $1.5 million.
The top and bottom 10 regions by number of these properties is listed below.
<img src="https://www.urban.com.au/images/2020/6/9/PP%20CL%20JUNE%2011.JPG" alt="">
The list also includes the median dwelling value for all properties across the region of measurement (not just the owner-occupied properties valued below 1.5 million), and a rough estimate of the portion of all family households that are below the $200,000 income limit for the HomeBuilder scheme.
These additional data points are not factored into the count of properties generated, but provide some context around typical market values and household income.
What to make of the data
The data suggests that the highest number of owner-occupied properties is located in the Melbourne - South East region, which spans from Mount Waverly out to Bunyip. In fact, there are four Melbourne regions that have over 100,000 owner-occupied properties estimated to be valued under $1.5 million.
These regions represent the fringe of the metropolitan area, and include some relatively low income areas compared to the inner-city regions of Melbourne.
The Perth - North West region has the second highest volume of properties. The Perth - North West region spans from part of Glendalough, up to the Yeal Nature Reserve in the north. The ‘Bottom 10’ list of regions reflects one of two characteristics.
For Sydney’s Northern Beaches and Eastern Suburbs, many properties surpass the $1.5 million property value cap to qualify for a renovation grant. For parts of outback and regional Australia, there is just a low population of dwellings.
Even where dwellings fall well below the $1.5 million threshold for a renovation grant, many of these owner occupiers will not take up the homebuilder incentive for renovations.
In fact, CoreLogic estimates there are about 4.4 million owner-occupied properties across Australia with a high confidence valuation below $1.5 million, but the federal government estimates the scheme may only support about 7,000 renovations.
While part of this is the income cap put on the scheme, it is also due to the high value of renovations that is set in the eligibility criteria. The renovations qualifying for the HomeBuilder Scheme must be worth between $150,000 and $750,000.
For areas where dwelling prices and incomes are relatively low, this may lead to owners over-capitalising on renovations, where they cannot recoup the cost of upgrades to the property.
ELIZA OWEN is CoreLogic's <a href="https://www.corelogic.com.au/news/early-market-indicators-show-first-signs-housing-market-slowdown?utm_medium=email&amp;utm_source=newsletter&amp;utm_campaign=20200420_propertypulse" target="_blank">head of research</a>
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HomeBuilder, where are the most owneroccupied dwellings below $1.5 million? CoreLogic's Eliza Owen

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EXPERT OBSERVER
COVID-19 has brought about downside risks for the economy and housing market.
A 0.3% decline in March GDP confirmed a technical recession is underway in Australia, total wages paid fell 5.4% between mid-March and early May, and Australian dwelling market values saw the first month-on-month decline since June 2019. But one surprising sign of stabilising emerged in May.
Home sales have risen, with home owners testing the market, and new listings are rising. In fact, buyer demand is outweighing the volume of new listings.
 Strong absorption of new listings over May
This absorption can be observed across new and total listings data.
CoreLogic counts an advertised property as a ‘new’ listing if it has not previously been seen on the market in the past 72 days.
Total listings are the sum of new and re-listed stock for sale on the market. The count of new and total listings are typically reported in rolling 28-day periods.
In the 28-days to 31st of May, new listings rose 22.4% on the previous period, but total listings fell -2.9%. This means that even as more new stock came onto the market, buyer activity offset the additional stock.
This is an especially important trend to follow at the moment. As Australians face record high levels of housing debt, job and income losses could lead to a rise in urgent or distressed sales. The latest financial stability review outlined that for each percentage point rise in unemployment, there has typically been an 80 basis point rise in the rate of mortgage arrears.
If a large volume of distressed properties are listed simultaneously, this could put downward pressure on property values and make it harder to recoup equity from distressed sales.
This is largely why banks have offered ‘repayment holidays’ on mortgage repayments. APRA data suggests 60% of bank loans and advances are in housing, so a decline in property values affects bank profits and capital.
Another way to assess the uptake of new listings is to consider the ratio of sales to new listings. This measure is found by dividing sales volumes by the number of new listings, and has been used as a leading indicator of property price movements.
The ratio increased from 1.1 in April to 1.3 over May, coinciding with an estimated increase in sales volumes of 20.4% across the combined capital cities over the month. This is the highest sales to new listing ratio in at least 10 years, though sales and listings volumes are still at very low levels.
ELIZA OWEN is CoreLogic's <a href="https://www.corelogic.com.au/news/early-market-indicators-show-first-signs-housing-market-slowdown?utm_medium=email&amp;utm_source=newsletter&amp;utm_campaign=20200420_propertypulse" target="_blank">head of research</a>
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Buyers are surprisingly responsive to rise in May listings: CoreLogic's Eliza Owen

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EXPERT OBSERVER
COVID-19 has brought about downside risks for the economy and housing market.
A 0.3% decline in March GDP confirmed a technical recession is underway in Australia, total wages paid fell 5.4% between mid-March and early May, and Australian dwelling market values saw the first month-on-month decline since June 2019. But one surprising sign of stabilising emerged in May.
Home sales have risen, with home owners testing the market, and new listings are rising.
In fact, buyer demand is outweighing the volume of new listings.
Where is demand coming from
Where is demand coming from? With the economy severely impacted by COVID-19, it is surprising to see such a strong rebound in transaction activity. But there are a few factors that can explain these numbers. The first is that the 20.4% jump in sales volumes in May is off a low base.
Over April, the number of transactions across the combined capital cities market was estimated to be just 16,115. That is the lowest monthly sales volume since 1991 excluding January results.
It is also pales in comparison to the decade average of 24,700 sales per month across these markets. Although a 20.4% uplift is significant, it still only brings sales volumes to an estimated 19,400 over May.
The second is a rise in consumer confidence. The ANZ Roy Morgan weekly consumer confidence index has risen consecutively for the past 9 weeks.
At the week ending 31st of May, the index is 50.5% higher than when it bottomed out in late March.
In fact, the index is now just 9% lower than when Australia confirmed its first case of coronavirus in January. The easing of social distancing policies and low COVID-19 case numbers in Australia mean people may be feeling more confident about the future of the Australian economy, their personal finances, and property purchases.
Finally, the kind of workers most impacted by COVID-19 are those that are less likely to have mortgage debt. Between the 14th of March and 2nd of May, 27.1% of payroll jobs have been lost across accommodation and food services, and 19.0% of jobs have been lost across arts and recreation. In a previous blog, we noted that this would disproportionately affect renters rather than owner occupiers.
Data from the ABS and HILDA suggests the share of households renting that are in food and accommodation services, and are in a more precarious financial situation, is around 40%. This suggests that for now, conditions have been relatively stable in the housing market because those most impacted by the economic slowdown of COVID-19 may be less likely to have a mortgage obligation.
With stability emerging in the property transaction space, it is evident that additional housing stimulus is less urgent among those that can already afford property, and is another case for addressing housing costs for low income earners.
ELIZA OWEN is CoreLogic's <a href="https://www.corelogic.com.au/news/early-market-indicators-show-first-signs-housing-market-slowdown?utm_medium=email&amp;utm_source=newsletter&amp;utm_campaign=20200420_propertypulse" target="_blank">head of research</a>
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Buyer demand outweighing new May listings: CoreLogic's Eliza Owen

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EXPERT OBSERVER
The start of the Perth dwelling market recovery comes at an unfortunate time. In early 2020, the Perth dwelling market had four consecutive months of dwelling value increases, which is the longest stretch of capital growth since 2014.
The Perth dwelling market has a long road to recovery. By the end of April, the house market in Perth was -19.1% below its peak value at June 2014. Unit values have taken a larger hit, down -26.9% below the record high at July 2013.
Prior to COVID-19, most indicators for Western Australia were moving into an upswing. Unemployment had fallen from 6.9% to 5.2%, jobs growth was trending higher, population growth had bounced back to the highest level since 2014, housing supply was contained, and state final demand crept above the decade average.
But instead of momentum continuing from the trend seen at the start of the year, the onset of COVID-19 places it at the cusp of another downswing.
According to the 28-day rolling change in the daily hedonic index, Perth dwelling values have started to fall again. However, value falls have been mild at -0.2%. So far, Melbourne has seen the largest decline in property values in the wake of COVID-19, but even in Melbourne the change is less than 1%.
Weekly payroll data from the ABS, which provides an early preview of labour force conditions, shows job losses across WA have been slightly less severe than that across the rest of the country. The decline in payroll jobs across the state was 5.8% between the 14th of March and 2nd of May, as opposed to 7.3% Australia wide.
Perth has less exposure to industry sectors that have been heavily impacted by COVID-19, with 8.6% of the local workforce employed with the accommodation and food services and arts and recreation services sectors, compared with 9.1% nationally.
Despite heighted economic uncertainty, consumer sentiment levels have been improving. This is in line with a flattening of the curve and relaxation in social distancing policies, especially those specific to housing, new listing numbers are trending higher from their record lows.
Importantly, total listing numbers haven’t trended higher and are at the lowest level in ten years for this time of the year.
The trend towards a rise in new listings and consistently low total listings implies newly listed stock is being absorbed quickly by the market. As of late May, total listings were down 34.7% on where they were at the equivalent period in 2019.
Total listings across Perth counted in the 28 days to May 24th were just 13,962. Though this is a continued headwind to the real estate sector, it may be preserving stability in dwelling values.
What was once a drag on property could be a source of market stability
The strong link between mining and prosperity across WA created boom and bust conditions between 2011 and 2019. This extended to the property market. As mining investment declined significantly following a steel glut in China, job losses and resident departures across the state have left values in a downswing for years.
According to industry reporting, 2020 was the year mining investment would move through a trough, creating more jobs, and subsequent housing demand across WA. In fact, we were already seeing improving labour market and demographic trends through late 2019 and early 2020.
The past few weeks have seen an increasingly optimistic outlook for the mining sector because of a recovery in the Chinese economy. Some high frequency indicators such as coal consumption, traffic congestion and home sales suggest economic activity across China is at 90% of where it was pre-COVID-19.
Unlike recent tensions over trade in beef and barley, China is actually working to reduce barriers to iron ore imports, which is a major source of revenue for WA mining. The reason for rising iron ore demand is that Chinese steel producers expect a rise in government stimulus and infrastructure to spur production (which uses iron ore as an input).
This has contributed to a relatively strong rise in the value of iron ore and plans from some of Australia’s largest miners to boost production. Even without the relatively strong position of mining export commodities, work on mine sites may have been buoyed by long-term contracts and the relatively high liquidity of mining companies.
The mining sector has not been completely untouched by COVID-19. Some operations have been suspended, or capacity has been reduced in an effort to reduce the threat of infection at work sites. This is reflected in mining sector payroll job losses across WA, of 6.4% between the 14th of March and the 2nd of May.
However, mining companies remain optimistic. BHP signalled steel production over 2020 may even be slightly higher than in 2019 if a second outbreak of COVID-19 could be avoided.
Renewed vitality in the mining sector, and the subsequent boost to economic activity, is likely to provide some insulation in demand for the Perth property market. This would make the impending downturn less severe than it may otherwise have been.
Another key factor that should support housing demand across Perth is the sheer affordability of housing. At the end of April 2020, the median value of a house was recorded at just over $465,000 which was the lowest of any capital city.
The blend of affordable housing options and the expectation for more resilient economic conditions is a good recipe for Perth’s housing market to outperform.
ELIZA OWEN is the Head of Research Australia for CoreLogic
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The interrupted upswing in Perth: CoreLogic's Eliza Owen

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Joel Robinson

Elevated amenity anchors daily life at Aeris, Melrose Park

Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

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"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

Eliza Owen

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