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GUEST OBSERVER
The announcement by the Minister for Housing and Planning, Anthony Roberts, that housing completions have reached a record high is good news for housing supply but the approvals trend is downwards.
The record 34,121 housing completions for metropolitan Sydney is good for housing supply.
This is the highest figure since May 1971 when 35,886 homes were completed. The high completion numbers come from planning approvals from two years ago so it is important to also monitor current approvals.
The large component of high density apartments in the current housing completion numbers at 72 percent indicates a continuing swing to urban living in locations close to jobs and transport nodes. It is important that this trend continues but the Urban Taskforce is concerned that the Greater Sydney Commission’s District Plans will make it more difficult to develop housing in urban centres and on industrial land.
The housing approval numbers for Sydney have dropped from a high in September 2016 of 57,723 year to date to 54,722 in December 2016. Our concern is that this drop of 3,000 housing approvals seems to be a continuing trend which is supported by the January Australian Bureau of Statistics figures for housing approvals.
To enable a continuing pipeline of new housing for Sydney the Urban Taskforce has asked its members for details of large housing projects that are caught up in the planning system. We have received details of over 40 projects representing around 40,000 new homes that are locked in the planning system that could be fast tracked.
Today’s strong housing completion numbers are heading in the right direction but they are still below the average needed over 20 years according to Department of Planning projections. We really need over 40,000 new homes annually over the next few years to balance the previous lean years.
The NSW Planning system is seen by many industry experts to be slower and more complex than that in Victoria or Queensland and the new Planning Minister has an opportunity to simplify the system to ensure a continuing pipeline of housing approvals comes on line.
Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

Record housing completions is good news but the trend is downwards: Chris Johnson

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<img src="https://counter.theconversation.edu.au/content/72644/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Sound is everywhere. In urban areas, it forms part of how we feel about and negotiate various social settings. 
The space we focus on here is the retail environment. Based on interviews with shoppers about the kinds of music and sounds encountered, we are examining how and why the acoustic dimension can either heighten or diminish the shopping experience.
When successful, music in retail spaces stimulates positive corporeal and other sensory responses in shoppers. The other side of the coin is that a majority of interview participants reported unpleasant musical experiences in retail situations. 
Interviewees who liked to hear music when shopping reported that it added a sense of rhythm to what they were doing. It made the experience feel more dynamic or lively than otherwise might have been the case. 
Some shoppers reported being so energised by the music that they worried they might engage in conspicuous behaviour such as dancing, singing and other conduct not usually found in retail settings. One participant said she was so responsive and captive to music in the shops that she feared being considered a “public weirdo” by retail staff and other shoppers.
Those who had negative responses to music included consumers who sensed that the music played in certain stores was “discriminatory”. This was because it seemed aimed at particular gender or age groups that excluded them.
Volume was another important source of disquiet. The greater the volume, the greater the imposition these shoppers felt. 
Some shoppers avoided altogether “noisy” or “loud” retail spaces. Others reported getting through the shopping experience faster than they would have liked. And some resorted to the “privatisation” of their aural experience by using personal musical devices.
<h2>In what ways does music offend?</h2>
But why should music and sound be contentious in retail settings? There is a long history of people using music and sound to augment the experiences of events like festivals, community and religious celebrations, as well as markets and fairs.
One possibility is that consumers are concerned that retail atmospheres are designed to manipulate them into buying things through music and other forms of sensory conditioning, such as lighting, smell, temperature and colour schemes. However, this doesn’t really explain why some consumers reported feeling dislocated or not “at home” in retail environments. 
Music and sound can often offend shoppers for other reasons, we suggest. Following the insights of microsociologist Erving Goffman, we think the acoustic environment of retail shopping is a complex “interaction order”, which is more fragile than we realise. 
We contend that music and sound can impinge upon what Goffman termed the “territories of the self”. This refers to the physical and mental space that the individual expects others will provide to them. Thus, music that is perceived as “noisy”, “loud” or “annoying” – as reported by the interview subjects – threatens the boundaries that the individual seeks to protect, and expects others will observe.
Unlike vision or touch, sound is much more difficult to control or protect oneself one from; sound spills across thresholds and enters into situations where it is unwelcome. 
Equally, when interview subjects reported annoyance at retail environments starting to resemble nightclubs or pubs, they were highlighting concerns about what Goffman called “frame disputes”. Music can counteract “situationally appropriate” framing, if the shopper comes to feel that the acoustic environment is not providing the right scripts, cues or definition of the situation.
<h2>Can and should retailers stop the music?</h2>
So how might retailers respond to the kind of “territorial offences” that some of our interview subjects identified? 
Some have reacted to the frictions generated by sound, and other types of sensory overload, by introducing “quiet hour shopping”. As one Adelaide lifestyle website reported, at Frewville Foodland:
"The lights will be dimmed, music and pager messages switched off, volume of the ‘beeps’ on the check-outs lowered, there will be no coffee grinding and strong smells will be reduced where possible."
We applaud attempts to creatively redesign the shopping experience and to provide consumers with sensorially enriched retail environments. However, we would caution against simplistic understandings of the impacts of sound on the retail experience; nor do we condone seeing music and sound as something that should be avoided. 
It is true that humans possess a limited capacity to process auditory information. At worst, this leaves scope for exploitation in the form of sonic torture and sonic weaponry. But it is also true, as our respondents reported, that music and sound can enrich experiences by enhancing the mood, tempo and liveliness associated with certain activities. 
The last thing we want is for all retail spaces to sound the same. As experimental composer and Zen Buddhism practitioner John Cage noted:
"There is no such thing as an empty space or an empty time. There is always something to see, something to hear. In fact, try as we may to make a silence, we cannot."
We tend to be annoyed because, when we bump into them in the supermarket aisle, sounds don’t say “excuse me”. However, if Cage is right and there is no such thing as a silent retail space, we might as well as learn to share supermarket aisles with sounds beyond our control and sounds not on our playlists.
Michael Walsh is assistant professor of Social Science, University of Canberra and can be contacted <a href="https://theconversation.com/profiles/michael-walsh-147733" target="_blank">here</a>.
Eduardo de la Fuente is senior lecturer in Creativity and Innovation, James Cook University and can be contacted <a href="https://theconversation.com/profiles/eduardo-de-la-fuente-161803" target="_blank">here</a>.
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Contested spaces: you can’t stop the music – the sounds that divide shoppers

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The birthplace of the modern Australian merino sheep is for sale, with the Wanganella, Peppin­ella and Boonoke sheep stations in southern NSW being offered at $330 million.
It is a Riverina pastoral ­empire that dates back to the 1880s under the FSF Falkiner group stewardship.
Confirmation came in The Australian that it has been quietly put on the market by its five owners lead by stockbroker Colin Bell.
The $330 million price secures a portfolio of 18 farms covering 226,000ha centred around ­Deniliquin, Hay and Coonamble 
Bell said ­Chinese companies were among prospective buyers.
He said the holdings were being sold because all its five part-owners — Bell and his two brothers Andrew and Lewis Bell from the Bell Financial group, Bell managing director Alastair Provan and US hedge fund manager Ray Dalio — were older than 70.
“We are selling all of the company or a share of it, but the properties will not be split up and sold separately,” Bell said.
“We are being selective about who we approach — they have to be high-value individuals or companies both here or overseas with an interest in Australian agriculture — and what we are selling here is a profitable business, not just individual farms.”
AFA released its financial results last week, showing the group had sales of $55m in 2015-16 and recorded a pre-tax profit of $25m.
Mr Bell said the group as a whole produced wool, cattle, sheep, stud rams, cotton, rice, cereal and pulse crops.
The paper reported it includes 11,000ha of high-value ­irrigated land used for rice and cotton, 60,000 megalitres of water entitlements from the Murrumbidgee and Murray river systems, 100,000 merino wool sheep and the homestead on Boonoke.
There is a covenant that stops the historic Wanganella and Boonoke sheep stations being sold separately or their sheep studs being ­dispersed.
Bell said it would take more than 50 years to put ­together a conglomerate of such quality as AFA’s holdings, with the combined business offering economies that have seen it make a profit 13 years out of the past 16.
“This is so different from Kidman with just its cattle,” Mr Bell said. “We don’t have to sell, and we are in no rush to sell; we will only be selling it as a (combined) business — these are all scale and ­trophy properties.”
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Boonoke, Peppinella and Wanganella for sale but only in one line

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<img src="https://counter.theconversation.edu.au/content/73514/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Politicians and the powerful property lobby continue to argue that building more houses is the solution to Australia’s chronic affordability problems. 
But a “supply-side solution” – as propounded by NSW Premier Gladys Berejiklian as well as Prime Minister Malcolm Turnbull and Treasurer Scott Morrison – will only work if affordability is just a supply-side problem. Evidence suggests this is not the case. In fact, our analysis shows that Australia is almost a world leader in rates of new housing production. 
<h2>How Australia compares</h2>
One way to assess Australia’s supply performance is to compare it with other developed countries. The graph below compares the number of dwelling completions per 1,000 persons across 13 countries, for the years 2010 and 2015. On this measure, Australia’s new housing production is second only to South Korea’s. 
Australia delivers two-thirds more homes per 1,000 persons than the US and four times more than the UK. When we measure supply as a proportion of existing stock, Australia again ranks second with a rate double that of the US. 
<a href="https://www.propertyobserver.com.au/images/2017/03/08/image-20170307-14934-1kxhows.PNG" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/08/image-20170307-14934-1kxhows.PNG" alt="">
OECD questionnaire on affordable and social housing; World Bank population growth and total population figures, Author provided
A slightly different approach takes into account population growth. This involves measuring dwelling completions per head of new population. Here Australia’s performance sits in the middle of the pack. 
We are delivering just over 0.5 dwellings per head of new population compared to more than 2 in South Korea. This rate is, however, still ahead of the UK and comparable to the US. Again, that suggests inadequate supply is not the major cause of the affordability crisis.
<a href="https://www.propertyobserver.com.au/images/2017/03/08/image-20170307-14973-17a1ooc.PNG" target="_blank"> Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/08/image-20170307-14973-17a1ooc.PNG" alt="">
OECD questionnaire on affordable and social housing, World Bank population growth and total population figures, Author provided
<h2>State comparisons of supply</h2>
At a national level, supply seems pretty healthy. But there are significant state variations. This might, on the surface, be used to explain different patterns of price growth.
The table below shows that New South Wales has produced fewer new homes per 1,000 people than Australia overall over a 30-year period. The difference was particularly marked between 2005 and 2015. 
<a href="https://www.propertyobserver.com.au/images/2017/03/08/image-20170307-14932-1egbg6z.PNG" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/08/image-20170307-14932-1egbg6z.PNG" alt="">
<div class="enlarge_hint"> </div>
State comparisons of new housing supply. ABS building activity Australia cat. 8152; ABS Australian Demographic statistics Cat 3101, Author provided
However, higher supply output in the other states has certainly not created affordable markets. In NSW, the last two years have delivered significant supply growth yet prices have continued to rise just as fast. So why do prices rise with supply growth? 
<h2>Demand drives supply</h2>
In a market-driven housing system, price stimulates new housing supply. In Australia new supply has responded relatively quickly to price rises (despite the continuous rhetoric from the property lobby about planning). 
But there is always some lag due to the time it takes to secure necessary approvals and physically construct property. There is no such lag with demand meaning there is often a sustained mismatch between the two – positive or negative. 
In a rising market, development becomes more profitable and land values rise, meaning greater returns for all concerned. Potential future capital gains stimulate investment activity. Price rises also allow owner-occupiers to trade up as the equity in their own dwelling increases. 
In such circumstances, increased levels of housing supply do little to satiate demand created by population growth and the appetite of investors. 
Western Australia has had an incredible level of housing completions over the last 30 years, as shown in the table, with 2014 and 2015 particularly strong. In the last 12 months, dwelling commencements have collapsed by more than 25%. Prices have been falling slowly for almost three years driven by the contraction in the resources sector and strong levels of new supply.
However, even under these conditions, WA housing affordability shows little sign of improving for those on low incomes. The market still cannot deliver housing for those at the bottom end of the market.
The housing market is simply unable to deliver housing that is affordable to those on lower (and, increasingly, moderate) incomes because there is a minimum cost of delivering housing that meets minimum community standards. This is made up of the land price, the physical construction costs of the dwelling, and the profit required for taking on the development risk.
This is why market intervention and subsidy are essential to deliver options for those on low incomes.
<h2>Targeted interventions are needed</h2>
Two strategies are needed to deliver affordable housing to the lower end of the market.
First, demand-side measures need to be better targeted to stimulate investment in new supply, particularly affordable rental housing, rather than simply fuelling demand.
Second, any government serious about improving affordability needs to put more resources into the community housing sector. This could be funded in two ways: partly by taxing the windfall gains from development and partly by reallocating existing demand-side subsidies. 
The community housing sector can operate counter-cyclically. This means it can maintain housing supply even when house prices stagnate or fall – which is good for the economy.
A bigger community housing sector is the supply solution Australia really needs. The bond aggregator model currently working its way through consultation offers some hope of delivering this expansion.
Targeting supply to deliver housing for those on low incomes and reining in demand-side incentives that fuel prices will make some difference to affordability for those most affected. 
There was some encouragement over the weekend. Scott Morrison discussed the rental market and social housing as part of the affordability solution. This was a welcome change from trotting out the tired old supply arguments and threatening to fuel demand through more home ownership incentives. 
Let’s hope the treasurer follows through and delivers some much-needed “whole of housing market” thinking in the May budget.
<a href="https://theconversation.com/profiles/steven-rowley-201914" target="_blank">Steven Rowley</a> is director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin University.
<a href="https://theconversation.com/profiles/nicole-gurran-759" target="_blank">Nicole Gurran</a> is professor - Urban and Regional Planning, University of Sydney.
<a href="https://theconversation.com/profiles/peter-phibbs-27130" target="_blank">Peter Phibbs </a>is chair of Urban Planning and Policy, University of Sydney.
All are authors for The Conversation.
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Australia’s almost a world leader in home building, so that isn’t a fix for affordability

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As hard as it is for first home buyers to secure their place on the Sydney property ladder, it is important not to exaggerate the effect of their absence.
Investors are instead taking up the listings at the cheaper end, so the market is ticking over.
Sitting on the sidelines also means the first timers aren't mugs, overpaying in the current boom, and so will escape the hurt of the higher interest rate shock when it eventually hits.   
First home buyers have typically played a volatile role in our housing market. They can rush in and can also be quiet for lengthy periods.
There was an amazing spike in activity after the global financial crisis with government incentives thrown at first timers bringing forward any number of years of demand ahead of schedule.
Not surprisingly the numbers for the subsequent few years have been subdued, indeed at the lowest level since data has been collected.
Of course renewed wider stamp duty concessions could always be used to attract first home buyers back into the marketplace especially if they were also applied to established homes rather than just new homes.
The state government has saved billions by limiting concessions to new house/new apartment first time buyers since 2012. 
My biggest concern regarding market inactivity is with two other key buying demographic age groups.
These are the growing families who are increasingly staying put to build up or out on their suburban blocks.
And then there are the reluctant downsizers.
Both demographics are creating roadblocks for the orderly flow of market listings, and no doubt contributing to the escalating trend of less stock on the market, which means prices keep going up quicker than normal.
The elderly staying put means their four and five bedroom homes are long under utilised, sometimes for decades.
Their reluctance to move isn't solely due to the desire to keep the happy family memories intact.
They actually want housing options such as single level patio garden homes that are few and far between in their desired neighbourhoods.
Additionally they are not that keen on paying stamp duty on any downsized property.
They are old enough to recall the tax has been at current 4.5 percent level since the 1986 Unsworth government. The median stamp duty was $1500.
Last year’s 15 percent increase alone in the median Sydney property price means they as downsizing buyers will need $33,000 duty for a $850,000 median price acquisition. 
If Premier Gladys Berejiklian is smart she will introduce a postponed partial payment option catering for each of these demographics.
The cost of these deferments will likely be offset by higher sales activity.
The government is after all eyeing another record $7 billion annually to be collected from residential stamp duty.
This article first appeared in the Daily Telegraph.
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Stayput families and downsizers blocking flow of market listings

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<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/06/MAB_RESIZE.jpg" alt="" width="397" height="123">
SPONSORED POST
Since its inception 20 years ago, Docklands has been a continuously evolving part of Melbourne, expanding the CBD grid west past Spencer Street and towards the water.
NewQuay has always been on the leading edge of innovative development in Docklands, attracting residents, tourists and businesses alike.
NewQuay now stands poised for a year of major rejuvenation, with announcements of several major developments coming to the area, making it one of Melbourne’s premier waterside precincts to live, work, play and stay.  
Schools
The announcement of a new, high priority government primary school in Docklands, to be delivered by 2019, and the opening of the Haileybury College city campus, located a short walk from NewQuay in West Melbourne, are expanding access to world class education. 
Already, residents at NewQuay have access to education services for all ages. The Giraffe Early Learning Centre at Harbour Town provides walkable access for working parents with infants. School-aged children are in proximity to several government primary and secondary schools, with suburban private schools conveniently connected by tram routes from NewQuay. <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/08/700_newquay1.jpg" alt="">
 
Tertiary institutions including Melbourne University, RMIT, Victoria University and the Australian National University are all accessible on the tram network.
Parks
NewQuay currently boasts over 2.2 hectares of parks, which will soon be increased by the development of the second stage of Ron Barrassi Senior Reserve and the construction of NewQuay Central Park as part of the Banksia development.
This makes the green space development at NewQuay the largest green space complex constructed close to the city since Birrarung Marr in 2002.
Entertainment and Convenience  
Harbour Town Shopping Centre is continuing with its multimillion dollar redevelopment.
Having completed the canopy works, landscaping and seating upgrades throughout the centre, works have also commenced on the new cinema and entertainment complex, which will include a Hoyts cinema, food retailers and a bowling alley.
The center will also expand to include a fresh food market and a full line grocery store.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/08/700_banksia2.jpg" alt="">
Hotels
Proximity to the city center, a choice of entertainment and the scenic waterside location are perennial draws for visitors to NewQuay. The hotel industry has recognised these unique assets with leasing operators investing in the precinct.   
In addition to the Sebel Hotel located at the The Quays, a new Four Points by Sheraton will open its doors in March, and will be joined in 2018 by the largest Quest serviced apartments in Australia.
With so much happening at NewQuay, why not come down and experience it for yourself?
Visit the NewQuay Display Suite at 24 NewQuay Promenade or visit <a href="https://bs.serving-sys.com/serving/adServer.bs?cn=trd&amp;mc=click&amp;pli=20536740&amp;PluID=0&amp;ord=%5Btimestamp%5D" target="_blank">www.elmandstone.com.au</a> to view the latest residential opportunities by the water.
 
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NewQuay is evolving

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GUEST OBSERVER
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NSW First Home Buyer (FHB) assistance measures have not kept pace with the market.
First home buyers represent only 8 percent of owner- occupier home loans in NSW, compared to 15 percent in Victoria and 16 percent in Queensland.
The overall package for first home buyers in NSW has had a consistent and critical flaw for some time. That is that the stamp duty exemptions for FHB’s (via the First Home - New Home package) have not worked in tandem with the First Home Owners Grant.
A full stamp duty exemption should be offered for new properties up to the same monetary cap as the First Home Owners Grant of $750,000 and on vacant land up to $450,000. Currently, a full stamp duty exemption is only available on new properties up to $550,000 and vacant land up to $ 350,000.
I doubt any first home buyers are able to meet the criteria for a stamp duty concession virtually anywhere in Sydney. The stamp duty price caps were put in place in 2012 and prices in Sydney have increased by more than 50 percent in that time.
This is way out of touch with the reality of today’s market.
The overall support to first home buyers would be far more successful if these simple changes were made as soon as possible.
First Home Buyers in NSW are struggling to get a foothold in the market and reinstating the $15,000 grant for new dwellings up to $750,000 and providing a stamp duty exemption to the same amount could provide a saving of up to $34,000 up front.
Whilst longer term structural change is needed to deal with inefficient taxes like stamp duty, such change is unlikely to come anytime soon. That’s why we need to support those struggling to enter the market in the near to medium term.
David Bare is HIA executive director, NSW, and can be contacted <a href="https://hia.com.au/about/Contact.aspx?contactustab=Media" target="_blank">here</a>.
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NSW government needs to make first home buyers assistance effective: David Bare

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<h1 class="page-title">Statement by Philip Lowe, Governor: Monetary Policy Decision</h1>
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
Conditions in the global economy have continued to improve over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia's national income.
Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Long-term bond yields are higher than last year, although in a historical context they remain low. Interest rates are expected to increase further in the United States and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively and stock markets have mostly risen.
The Australian economy is continuing its transition following the end of the mining investment boom, expanding by around 2½ per cent in 2016. Exports have risen strongly and non-mining business investment has risen over the past year. Most measures of business and consumer confidence are at, or above, average. Consumption growth was stronger towards the end of the year, although growth in household income remains low.
The outlook continues to be supported by the low level of interest rates. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.
Labour market indicators continue to be mixed and there is considerable variation in employment outcomes across the country. The unemployment rate has been steady at around 5¾ per cent over the past year, with employment growth concentrated in part-time jobs. The forward-looking indicators point to continued expansion in employment over the period ahead.
Inflation remains quite low. With growth in labour costs remaining subdued, underlying inflation is likely to stay low for some time. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent, with the rise in underlying inflation expected to be a bit more gradual.
Conditions in the housing market vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades. Borrowing for housing by investors has picked up over recent months. Supervisory measures have contributed to some strengthening of lending standards.
Taking account of the available information the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
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Rental growth slowest in two decades: RBA Governor Philip Lowe's March 2017 statement

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SPONSORED POST
Global office yields continue to firm as investors seek safe havens for their funds amidst ongoing economic and political uncertainties, and with those factors likely to prevail in the short to medium term, the office investment markets, particularly in gateway cities, look certain to continue to prosper, according to global investment advisor Savills.
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Sydney%20Leads%20Global%20Yields%20-%20Graph%201.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/07/Sydney%20Leads%20Global%20Yields%20-%20Graph%201.jpg" alt=""> Savills and Australia’s Deakin University’s latest <a href="https://www.savills.com.au/publications-pdf/savills-world-office-yield-spectrum-1h-2017.pdf" target="_blank">World Office Yield Spectrum</a> report found yields across 11 gateway cities had firmed by an average 95 basis points since December 2014 with San Francisco witnessing a dramatic 32 percent fall from nearly 7 percent to 4.64 percent, while Shanghai and LA West barely bothered the analysts with falls of just 0.29 and 0.31 percent respectively. Of the gateway cities, Sydney led the pack offering by far the most attractive yields at 5.37 percent, with LA West and San Francisco the only others offering above 4.50 percent. The data from all 54 cities across, Asia, Europe, the US and Australia, put Hanoi on top with a prime yield of 8.75 percent followed by Ho Chi Minh City at 8.5 percent. Taipei brought up the rear with the tightest yield of just under 2 percent while Hong Kong was at 2.5 percent. Report editor, Savills National Head of Research in Australia, Tony Crabb, said generally office markets looked set for another year of strong investment driven by office property’s most preferred investment status along with economic and political factors which had pushed investors towards the safety of bricks and mortar. “This is an interesting time in the investment cycle where markets have responded to the inflation/growth trade by pushing bond yields and growth stocks, whilst also recognising office markets should perform well as demand grows,” Mr Crabb said.  He said with some level of economic and political uncertainty remaining in most markets, it was fair to say that office risk premiums would continue to offer very good value and hence drive demand and, in some instances, even firmer office investment yields. “Much of what happens in 2017 and beyond will depend on the course the US Federal Reserve takes with regards to interest rates and the new President’s policy settings. “Those factors, along with Brexit negotiations and elections in key European countries, will largely determine how currencies behave, how trade flows and how capital moves around the world,” Mr Crabb said. He said what, if anything, would limit office property investment was the shortage of stock in most gateway markets which had experienced, in some instances, record investment levels in recent years. “That shortage of stock is being exacerbated by the strength of leasing markets, especially in gateway cities, which is driving tighter vacancy and rental growth, and landlords are happily holding on for the ride,” Mr Crabb said.
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Sydney%20Leads%20Global%20Yields%20-%20Graph%202.jpg" target="_blank">Click to enlarge</a>
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 A look into each global market
Australia/New Zealand
Mr Crabb said the $27 billion worth of commercial property transactions recorded in Australia in 2016 remained above the five year average for the fourth year running and while the market was on track to record a fifth consecutive year of growth, a lack of portfolios and a diminishing supply of prime properties would limit investment volumes. Foreign investors were the most active in 2016 purchasing 40 percent of stock reported sold - approximately $10.7 billion - while professional investors, represented by Trusts, Funds and Syndicates, spent $8.75 billion. Mr Crabb said while both buyer groups remained keenly interested in ongoing investment, yields would continue to firm. “In some markets, particularly Sydney and Melbourne, market fundamentals are improving rapidly. We believe this improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning,” he said. Asia
In Hong Kong Savills Senior Director, Research and Consultancy, Simon Smith, said yields across Asian investment markets had firmed but there was still some limited scope for further falls. “The low interest rate environment, the ongoing search for yield and increasing allocations to real estate are all considered to be positives for the sector. “One of the most significant challenges for investors is a lack of prime office stock and volumes have fallen consistently compared with 2015, a situation which is unlikely to reverse any time soon,” Mr Smith said. He said the lack of liquidity across most asset classes had arguably been masked by the above average number of portfolio deals recorded over the second half. “Scarcity of assets has resulted in money accumulating on the side-lines causing fundraising to decline versus the previous year,” Mr Smith said. He said despite its inward focus, Asian real estate capital had continued to explore overseas markets with the US attracting the lion’s share of deals. Cross border activity, Mr Smith said, had been dominated by China, South Korea, Singapore and Hong Kong in that order while South Korean activity registered the highest rate of increase.
UK/Europe
Savills Director Research Europe, Lydia Brissy, said Brexit had seen a decline in institutional investment activity but a sharp rise in demand from off-shore private investors. Many investors, she said, had been attracted by the weakening of the pound which was seen as enough to compensate for a perceived increase in occupational risk. “Overall, our predictions for 2017 and beyond are investment volumes are expected to trend downwards towards £50 billion per annum, with a swing away from opportunistic deals to income-security plays. “Yields are expected to rise in most sectors, though the stable debt market, low vacancy rates, and global investor demand is expected to put a lower ceiling on prime yields than was reached during the GFC. “Brexit definitely carries a risk of creating a sustained period of occupier uncertainty, but to some degree this should be balanced by lower levels of development activity. However, until some clarity emerges as to how Britain will exit from the EU, the real impact on the UK market will be hard to quantify,” Ms Brissy said. She said the expectation was that investment volumes in Continental Europe in 2017 would be similar to 2016. “Although interest rates are expected to rise to 1.16% in the Eurozone, the property market should remain high on investors’ radar. In France, Germany and the Netherlands where elections will be held, we expect a wait and see attitude, however the prevailing story regarding core countries is the lack of prime product. She said prime yields in non-core countries remained above the European average, offering more attractive returns and yield compression potential: “This is especially so in countries like Spain and Italy where strong property fundamentals combined with the availability of portfolio opportunities are attracting foreign investors.” USA
In New York, Director of US Real Estate Analytics at Savills Studley, Keith DeCoster, said in comparison to the volatility in equity markets, real estate in the US held up very well in 2016 with office property sales totalling $124 billion to November, roughly 4 percent below the $129.6 billion in the first 11 months of 2015. “The ‘most-favoured market’ status of some gateways is slipping slightly with most buyers showing disdain for markets such as Manhattan and Washington DC, where demand is running short of growing supply. On the other hand, they have remained active in Boston and Los Angeles, where the life science and entertainment/social media sectors continue to grow,” Mr DeCoster said. He said Boston’s market fundamentals were among the strongest in the country and appeared as though they had more to run than San Francisco, which had seen a recent spike in sublet supply and drop off in leasing, while Los Angeles has seen its strongest leasing volume in a decade.
To learn more about the latest trends in global office yields, <a href="https://www.savills.com.au/publications-pdf/savills-world-office-yield-spectrum-1h-2017.pdf" target="_blank">view the Savills World Office Yield Spectrum</a>.
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. To learn more about Savills, visit <a href="https://www.savills.com.au" target="_blank">savills.com.au</a>.
 
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Sydney leads as global yields continue to firm: Savills

<html><body>
GUEST OBSERVER
Businesses need to operate in rapidly changing conditions and this has many brokers wondering how do they grow – or in many cases, simply how to stay afloat in an increasingly tough industry.
Brokers can stay ahead of the curve by focusing on ten key areas.
1. Process improvement
Continually seek out opportunities to complete processes in your business faster and more efficiently. As a broker, you will obtain greater business results if you are not the only resource in your business. If you are, review the alternative options for completing key tasks, to maximise your output and 'income producing hours'. This could include how you capture your clients supporting documents, or outsourcing the file management of your loans.
It helps to set time aside each month to review business processes. Document all the tasks in the business, identify clear steps in each of the processes, and then seek out alternative ways to deliver these processes.
2. Customer feedback
"Feedback is the breakfast of champions" (Ken Blanchard) has never been more applicable than in the digital age where customers are inclined, and encouraged to share their thoughts. The best way to improve your business is to ask the person who just used your services for feedback, and then actively respond to their insights. It’s invaluable and directly feeds into process improvement.
3. Customer referrals
There are three rules when it comes to asking for referrals: ask for them, ask for them, and ask again!
There are also four key points during the customer journey that you should ask for referrals:
<ul>
<li>When you first meet or engage – ask how the customer heard about your business and let them know how import_ant client referrals are to growing your business.</li>
<li>At Conditional Approval - ask the customer if they know of anyone else who is currently seeking financing or advice that you could assist.</li>
<li>Upon Settlement - refine and personalise the question about who the client may refer i.e. do they know of anyone at their school or sporting club (whatever is applicable) who may benefit from your services.</li>
<li>When you ask customers to rate your performance.</li>
</ul>
4. Online referrals
The ‘gold standard’ of a broking business is to secure 5-7 key referral sources. Given that a large proportion of borrowers do their research online, broker businesses should now consider an online lead opportunity as part of their referral network.
5. Time expenditure
Review how you can reduce time wastage in your business and maximise your output. For example, offices are more than simply a 'cost' to a business. Numerous points of research have shown that brokers with a permanent office are more profitable than brokers who drive to meet their appointments. This makes sense as 'income producing hours' are not being spent in a car.
6. Diversified business model
A single broker, offering one product is no longer a sustainable business model. Customers are time poor and require a holistic discussion regarding their financial position. It is beneficial to have key partners within the business to assist with the full suite of client requirements, as well as align with two or more brokers in order to leverage office support and reduce broker effort on administration tasks.
7. Performance tracking
The brokerage business is mostly a numbers game. If you know your ratios and current performance, you know how many leads you need to attract in order to write your annual settlement target.
Generally, industry statistics for leads to lodgement is 60%; and lodgement to settlement is 80%. If a broker applies their average loan size, then it is possible to calculate the total loan volume forecast within a year.
8. Monthly marketing strategy revamps
Marketing is a key aspect to growing your business. Ideally you should be implementing a new initiative each month. It can help to brainstorm 10-11 ideas for the year and then select one to implement each month, starting with the initiative that provides the ‘biggest bang for your buck’.
9. Business disruption
"If you are not disrupting your own business, someone else is" (Andy Groves).
Every broker should ask themselves whether they think they or their business is changing at a faster pace than their customers, or whether their customers are moving and changing at a faster rate than their business.
Implement an 'ideas jam' to see how you can disrupt your own business to continually improve and change. Even small steps can make a huge difference.
10. Work-life balance
Running your own business is challenging and will stretch the best of us, but it is important to keep balance and enjoy the opportunity. Success is the journey, not the destination.
Siobhan Hayden, is chief operating officer of HashChing and can be contacted <a href="https://www.hashching.com.au" target="_blank">here</a>.
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10 things mortgage brokers should focus on to maximise returns: Siobhan Hayden

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

[smartcode_project:default project_id=139552 project_image_fid=371025]

Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

[smartcode_project_cta:default project_id=139552]

Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

[smartcode_project:default project_id=110379 project_image_fid=311393]

The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

[smartcode_project:default project_id=149594 project_image_fid=362634]

While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

[smartcode_project:default project_id=135094 project_image_fid=356540]

Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

[smartcode_project:default project_id=150787 project_image_fid=366230]

While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

[smartcode_project:default project_id=143932 project_image_fid=367515]

The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

[smartcode_project:default project_id=150017 project_image_fid=370960]

ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

[smartcode_project:default project_id=4896 project_image_fid=368543]

The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

[smartcode_project:default project_id=4896 project_image_fid=368544]

Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

[smartcode_project:default project_id=4896 project_image_fid=368588]

Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

<section data-scroll-anchor="false" data-testid="conversation-turn-150" data-turn="assistant" data-turn-id="request-WEB:55d7c6ac-8e6d-4881-ad49-0ed9bf66d1cc-74" dir="auto">
Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
</section>

[smartcode_project_cta:default project_id=4896]

Jonathan Chancellor

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