<html><body>
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. 
</body></html>

pchatterjee-seVgoiQgz5

The impact of NSW stamp duty discounts: CoreLogic's Eliza Owen

<html><body>
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 
</body></html>

Can regional housing markets benefit from COVID-19? CoreLogic's Eliza Owen

<html><body>
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 
</body></html>

What CoreLogic data tells us about the record fall in housing finance: Eliza Owen

<html><body>
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
</body></html>

Why is Melbourne property leading the downswing? CoreLogic's Eliza Owen

<html><body><div class="page" title="Page 1">
<div class="section">
<div class="layoutArea">
<div class="column">
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>
</ul>
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.
</div>
</div>
</div>
<div class="section">
<div class="page" title="Page 2">
<div class="section">
<div class="layoutArea">
<div class="column">
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
</div>
</div>
</div>
</div>
</div>
</div></body></html>

The ‘vacuum’ effect and its implications for the HomeBuilder Scheme: Eliza Owen

<html><body>
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  
</body></html>

Rental stock on market data shows Sydney and Melbourne markets loosen over May: CoreLogic's Eliza Owen

<html><body>
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>
</body></html>

HomeBuilder, where are the most owneroccupied dwellings below $1.5 million? CoreLogic's Eliza Owen

<html><body>
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>
</body></html>

Buyers are surprisingly responsive to rise in May listings: CoreLogic's Eliza Owen

<html><body>
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>
</body></html>

Buyer demand outweighing new May listings: CoreLogic's Eliza Owen

<html><body>
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
</body></html>

The interrupted upswing in Perth: CoreLogic's Eliza Owen

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.

Joel Robinson

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]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

Eliza Owen

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News