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<p><span>GUEST OBSERVER</span></p>
<p><span>December saw a continuation of the recent trend of softer price growth in tier-1 cities and sustained price gains for tier-2 and 3. </span></p>
<p><span>Of the 70 cities reporting, 46 responded that the price of new dwellings had increased in the month; similarly, 45 cities also saw monthly gains in the secondary market.</span></p>
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<p><span>While down from their respective peaks of 65 (April 2016) and 60 (September 2016), price growth for new and existing dwellings clearly remains robust and broad based. There has been an increase in the number of cities reporting price declines for new builds, but these remain well below the level seen in 2015. </span></p>
<p><span>Over the year, price growth in tier-1 cities remains strong despite having moderated since April. For new builds, prices are currently up 24.9 percent/yr. Price growth in the existing market is a little stronger at 28.8 percent/yr. </span></p>
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<p><span>As we have outlined on a number of occasions, much of the deceleration in annual price growth in tier-1 cities has come as a result of a material slowdown in Shenzhen, from 62.5 percent/yr in April to 23.5 percent/yr currently (for new homes). </span></p>
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<p>In effect, Shenzhen has come back to the pack, with Beijing and Guangzhou seeing sustained annual growth circa 22 percent/yr over that time and Shanghai having slowed from 32.9 percent/yr (September 2016) to 26.4 percent/yr.</p>
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<p><span>Price growth in tier-2 and tier-3 cities was also very healthy in December, respectively at 12.0 percent/yr and 8.8 percent/yr for new builds. The outcomes for existing dwellings were similar albeit a little softer, at 9.6 percent/yr and 5.7 percent/yr. </span></p>
<p><span>Authorities will be pleased that momentum has broadened outside of tier-1 in a sustained manner. Looking ahead, additional demand for domestic property is likely to build as a result of households being unable to (legally) invest abroad.</span></p>
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<p> </p>
<p><span>Currently the construction and investment data is only available to November. Till then it is apparent that the inventory of unsold homes and current construction projects continued to be worked through. However, we are yet to see new project starts respond. </span></p>
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<p><span>If confidence in the housing market and the broader economy is sustained, then a (likely modest) pick-up in starts is only a matter of time. </span></p>
<p><em>Elliot Clarke is senior economist, Westpac and can be contacted <a href="https://www.westpac.com.au/" target="_blank">here</a>.</em></p>
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New dwelling price increases for December in China

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<p class="x_MsoNormal" style="text-align: left;" align="center">GUEST OBSERVER</p>
<p class="x_MsoNormal"><span>Houses outshone units across Melbourne in 2016, but 2017 may well be the year of the apartment for the astute investor.</span></p>
<p class="x_MsoNormal">Period- or older-style apartment performance was sluggish in 2016 across Melbourne, with activity, rental and capital growth rates measured relative to houses. There was a dampening effect caused by an excessive boom in the high-rise or multi-unit sector over recent years.</p>
<p class="x_MsoNormal"><span>But it is evident from ABS financing and building approval numbers that the much-needed correction in the multi-unit sector has begun, and prices and volumes of new supply in this category will continue to shrink over 2017.</span></p>
<p class="x_MsoNormal"><span>Consequently, there is a strong case to be made that period style apartments are undervalued at the moment. Indeed, with investors looking for safer assets in 2017, we anticipate a rush-to-quality out of high rise and into older-style apartments and houses.</span></p>
<p class="x_MsoNormal"><strong><span>Growth continues in 2017. Around 5 to 10 percent in inner suburbs.</span></strong></p>
<p class="x_MsoNormal"><span>Although residential property has performed strongly in Melbourne over the last four years, don’t be surprised if 2017 sees further growth.</span></p>
<p class="x_MsoNormal"><span>Underpinning this view is evidence of persistent buyer demand off the back of lower interest rates, and a shortage of stock on the market. This shortage of stock is essentially the result of four years of buoyant sales volumes exhausting the pool of discretionary vendors. Eventually, one would expect potential sellers to respond positively to the price growth signal out there, but it hasn’t happened yet, and it may not eventuate until sometime in mid-2017.</span></p>
<p class="x_MsoNormal"><span>Furthermore, the broader fundamentals of the market remain benevolent:  a rising population, a relatively steady economy – with unemployment appearing to be stabilising around 6% – and, of course, low interest rates.</span></p>
<p class="x_MsoNormal"><span>In-demand property types in the inner and middle ring suburbs should record solid capital growth of around 5 to 10 per cent in 2017. But lower-demand properties in the high rise CBD sector and outer suburban areas will see little growth.</span></p>
<p class="x_MsoNormal"><strong><span>Paul’s tips for those considering property in 2017.</span></strong></p>
<p class="x_MsoNormal"><strong><span>Don’t procrastinate</span></strong><span>. The Melbourne auction market remained unusually active right up to the final weekend of the year. This augurs well for 2017, as our experience is that a late end-of-year run invariably heralds a good start to the following year. If you are a prospective buyer, don’t make the mistake of waiting to see what happens in February and March before jumping in. You may find that property prices are 5 per cent higher in April than they finished 2016.</span></p>
<p class="x_MsoNormal"><strong><span>Don’t place too much weight on overseas events.</span></strong><span> The commentariat spent much of November and December agonising over the implications of the coming Trump presidency. Just know that the Australian property market has been subject to numerous external shocks that were supposed to damage it  – the GFC, the tech wreck, wars and international terrorist events – and didn’t.</span></p>
<p class="x_MsoNormal"><strong><span>Focus on what you can control.</span></strong><span> Whilst you can’t control what happens to the world economy or who is in the White House, you can control the property assets that you invest in.  Make getting that right your priority. Focus on selecting high quality property with a track record and propensity for capital growth.</span></p>
<p class="x_MsoNormal"><em>Paul Nugent is a director of Wakelin Property Advisory and can be contacted <a href="https://www.wakelin.com.au" target="_blank">here</a>. </em></p>
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Investors will rediscover value in period-style Melbourne apartments: Paul Nugent

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<p><span>GUEST OBSERVER</span></p>
<p><span>The Urban Taskforce acknowledges the incredible position that Mike Baird has achieved for the state of NSW.</span></p>
<p><span> The next Premier for NSW must be someone who continues the drive for growth with infrastructure </span><span>that has been the hallmark of Mike Baird’s term.</span></p>
<p><span>Mike Baird as NSW Premier has been a great champion of the growth of metropolitan Sydney with a </span><span>commitment towards delivering badly-needed public tr</span><span>ansport networks throughout Sydney. </span></p>
<p><span>Sydney is Australia’s global city and as a result is must develop into a well</span><span>- connected metropolis, with additional density, housing and services located around a metro rail network. </span><span>It is crucial the new Premier continue this approach to ensure Sydney’s continued success as a growing, prosperous global city with a high standard of living.</span></p>
<p><span>The alignment of infrastructure, transport and urban planning will be critical to the sh</span><span>ape of the new </span><span>cabinet once a new Premier has been appointed.</span></p>
<p><span>While the urban growth of Sydney is clearly a priority for the state, the recent Orange Bye</span><span>-election demonstrates that the NSW Government must ensure that the rural and regional areas are incorporated </span><span>into the government’s agenda.</span></p>
<p><span>According to many economic commentators NSW is starting see some head winds come its way. </span><span>The reduction in red tape and providing a planning system that gives certainty but also promotes innovation and investment in the built environment are now more than ever essential to our s</span><span>tate’s economic </span><span>success.</span><span><br></span></p>
<p><span><em>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>.</em></span></p>
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Next NSW Premier must continue to drive Sydney’s growth: Chris Johnson

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<p>GUEST OBSERVER</p>
<p>Employment rose by 13,00 in December after rising by 37,100 in November (previously reported as a rise of 39,100 jobs).</p>
<p>Full-time jobs rose by 9,300 while part-time jobs rose by 4,200. Economists had tipped a 10,000 increase in jobs.</p>
<p>Fulltime employment lifted by 95,000 in the December quarter – best result since the September quarter 2010. Over the calendar year 2016 a total of 91,500 jobs were added – the weakest result since 2013.</p>
<p>Hours worked rose by 0.4 percent in December to be up 0.7 percent over the year.</p>
<p>The unemployment rate rose from 5.7 percent to 5.8 percent in December.</p>
<p>Unemployment across states in December: NSW 5.2 per ent (November 4.9 percent); Victoria 6.0 percent (6.0 percent); Queensland 6.2 percent (6.0 percent); South Australia 6.8 percent (7.0 percent); Western Australia 6.6 percent (6.9 percent); Tasmania 6.4 percent (6.3 percent). In trend terms unemployment in the Northern Territory was steady at 3.6 percent; ACT unemployment was steady at 3.7 percent.</p>
<p>A raft of companies is affected by the employment data but especially those dependent on consumer spending. Amongst stocks affected are Fairfax, West Australian Newspapers, Seek Limited, McMillan Shakespeare and Skilled Group.</p>
<p>What does it all mean?</p>
<p>Employment rose by marginally more than forecast with 13,400 new jobs created in December. For the 2016 calendar year a total of 91,500 jobs were added – the weakest result since 2013. From the perspective of the labour market, 2016 could be classified as a mixed year. One that also confused policymakers - with employment growth was soft over the year but the unemployment rate kept sliding, eventually falling to three-year lows. It was clearly a year, where employers were managing their workforce (cost base) very closely due to a subdued economic environment. In effect, the labour market was largely marking time over the majority of 2016 but there are initial signs of a shift coming.</p>
<p>The modest jobs growth in December, may not sound like much, but couple it with the solid job gains in October and November and it clearly shows a shift in trend. Over the last three months of 2016, more than 67,000 new jobs were created and more importantly all of that was in full-time employment. Full time jobs surged by 95,000 in the December quarter – marking the strongest quarterly growth in more than six years. The shift in the employment landscape is even more evident when you consider that the first nine months of 2016 saw paltry jobs growth of just over 24,000 with full-time jobs going backwards.</p>
<p>Looking forward, the outlook is certainly more encouraging. Job vacancies are holding near 5-year highs, in addition anecdotal evidence suggest activity levels amongst the business sector is lifting. The strength in commodity prices is also a positive and should support an improvement in employment across the resource states in coming months. It is still early days, but the last three months are certainly more upbeat.</p>
<p>The Reserve Bank is likely to look through the latest result and wait on timelier forward looking data. Reserve Bank commentary towards the end of 2016, suggests policymakers are relatively optimistic about Australia’s medium-term growth prospects. Over the next few months the Reserve Bank would be looking to see the impact of the lift in commodity prices - on growth as well as inflation. However the key would be a lift in non-mining business investment. CommSec expects interest rates to remain on hold over 2017.</p>
<p class="x_csbulletlv10"> <em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></p>
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Full-time jobs post best quarterly growth in six years: CommSec's Savanth Sebastian

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<p>Economist Saul Eslake does not think the RBA will raise rates simply to dampen property price inflation if for some reason prices run along at a much higher-than-expected rate during 2017.</p>
<p>When it comes to the outlook for house prices in Australia in 2017, Eslake says its is unwise to talk about the Australian housing market as a single, homogeneous entity.</p>
<p>"There is a considerable divergence between supply and demand conditions across Australia, and among Australia's major cities," he noted.</p>
<p>In Perth and Darwin, in the aftermath of the mining investment boom and with population growth slowing sharply, property prices have begun to decline and Eslake says "will likely fall further this year.</p>
<p>By contrast, population growth in Victoria is accelerating (reaching a seven-year high in mid-2016) so Eslake says "even though there is a lot of new supply coming on-stream in Melbourne, prices could still keep rising during 2017, albeit at more moderate rates.</p>
<p>"There might conceivably be more risk in Sydney – where new housing supply is picking up more rapidly than in Melbourne while population growth has begun to slow – although at least partly offsetting those risks is that the new supply is less geographically concentrated in Sydney than it is in Melbourne (or Brisbane).</p>
<p>In the absence of any obvious trigger for prices to start falling, Eslake says he thinks that Sydney will see further property price increases in 2017.</p>
<p>"But at a more sedate pace than in 2015 or 2016.</p>
<p>"I should add, I don't think this is a good thing – I don't believe that Australia's long-term economic and social interest is well-served by ever-rising property prices, or by an entrenched belief that property prices only ever go one way.</p>
<p>"I don't think it's a good thing that lending to property investors has started to rise again, after slowing during 2015-16 in response to the tightening in lending standards dictated by APRA."</p>
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Melbourne property prices could rise during 2017: Saul Eslake

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<p>GUEST OBSERVER</p>
<p>Consumer confidence: The Westpac/Melbourne Institute survey of consumer sentiment rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.</p>
<p>Dwelling starts: Starts fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. Building work done fell by 5.5 percent in the quarter to be up 1.4 percent on the year.</p>
<p>As at the September quarter, a record 218,297 homes were being built, up 12.1 per cent on a year ago.</p>
<p>In the year to September, dwelling starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21-year highs (49,939) and 36 percent above decade averages.</p>
<p>The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. Building &amp; building material companies are affected by dwelling starts including Boral, James Hardie, Adelaide Brighton, Brickworks, AV Jennings Limited, Devine Limited and Beacon Lighting.</p>
<p>What does it all mean?</p>
<p>The latest monthly reading on consumer sentiment suggests consumers are non-plussed about life. But the more timely Roy Morgan weekly survey suggest consumers are super chipper about the current environment. In addition the monthly consumer sentiment reading suggests that sentiment lifted by between 1.9 percent and 7.4 percent across the major capital cities, yet the overall reading only lifted by a sedate 0.1 percent. </p>
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<p>So just how are consumers faring? The outcome is likely to be somewhere in the middle. Consumers are modestly upbeat and more importantly household finances remain in good shape. Interestingly the weekly and monthly consumer sentiment readings seem to agree on one key point - the measure on whether it is a good time to purchase a major household item? Well, it seems there is no time like the present, with both readings recording a four or five-month high.</p>
<p>Looking forward, a potential dampener to sentiment is likely to be the lift in petrol prices. However the stronger Australian dollar should help to offset that in coming weeks. The ongoing strength in sharemarkets should provide a degree of support to household confidence. Interestingly the measure of whether it was a good time to buy a major household item remains upbeat despite the latest fall.</p>
<p>What do the figures show?</p>
<p>Consumer confidence</p>
<p>The Westpac/Melbourne Institute index of consumer confidence rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.</p>
<p>The current conditions index fell by 0.5 percent while the expectations index rose by 0.5 percent.</p>
<p>Three of the five components of the index rose in January:</p>
<ul>
<li>The estimate of family finances compared with a year ago was down by 7.6 percent; </li>
<li>The estimate of family finances over the next year was up by 0.3 percent;</li>
<li>Economic conditions over the next 12 months was up by 2.5 percent;</li>
<li>Economic conditions over the next 5 years was down by 1.4 percent;</li>
<li>The measure on whether it was a good time to buy a major household item was up by 4.9 percent.</li>
</ul>
<p>Gender &amp; demographics: Men (index reading of 102.9, up 5.2 percent) were still more optimistic than Women (99.6, up 2.8 percent). The sentiment index for young people fell by 0.6 percent to 119.3 in January. Across the other demographics: 25-44 years (index 99.3, down by 1.3 percent); 45 years plus (index 98.3, up by 9.5 percent). </p>
<p>Housing outlook: A good time to buy a dwelling? The index was down 2 percent in the month to 100.9 and was down by 10.7 percent over the year.</p>
<p>States: NSW (103.8, up by 2.7 percent); Victoria (index 103.7, up 5.7 percent); Queensland (99.6, up 3.2 percent); Western Australia (95.2, up 7.4 per cent); South Australia (92.8, up 1.9 percent).</p>
<p>Dwelling starts</p>
<p>Dwelling starts (commencements) fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. House approvals fell by 1.8 per cent and apartments fell by 0.7 percent. Work started on 229,295 new dwellings over the year to September, easing further from the record high of 232,018 dwellings in the year to March.</p>
<p> </p>
<p>Across Australia, starts in the September quarter fell in six states/territories: NSW (up by 5.8 percent); Victoria (down by 9.6 percent); Queensland (up by 6.3 percent); South Australia (down by 20 percent); Western Australia (down by 13.6 percent); Tasmania (down by 0.6 percent); Northern Territory (down by 7.6 percent); and the ACT (down 39.6 percent).</p>
<p>In the year to September, dwelling starts were higher than the decade average in all the states &amp; territories except for South Australia (down 1 percent), Western Australia (down 3.5 percent), Tasmania (down 15 percent) and Northern Territory (down 12.6 percent). Starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21 year highs (49,939) and 36 percent above decade averages.</p>
<p>What is the importance of the economic data?</p>
<p>Westpac and the Melbourne Institute release the Index of Consumer Sentiment each month. According to Melbourne Institute: “The survey of consumer sentiment was first undertaken in 1973 and was conducted on a quarterly basis until 1976, a six-weekly basis from 1976 to 1986, and has been conducted monthly ever since.” Confident consumers may be more inclined to spend, especially on major items.</p>
<p>The Australian Bureau of Statistics releases data on dwelling commencements (starts) each quarter. The figures provide guidance on future construction activity. If construction begins on new houses or apartments, it signifies work for building trades.</p>
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<p>What are the implications for interest rates and investors?</p>
<p><span> </span><span>There are a few headwinds for consumer confidence. No doubt the lift in oil prices and the resulting lift in petrol prices does have a direct impact on household budgets. In addition, the ongoing rebalancing of the Australian economy away from mining to housing and uncertainty about future housing supply in Sydney, Melbourne and Brisbane will occupy policymaker discussions in coming months. Overall the Reserve Bank is comfortably on the sidelines looking to see how the economy evolves over the early part of 2017. </span></p>
<p><span><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a>.</em></span></p>
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NSW leads national building boom: CommSec's Savanth Sebastian

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<p>The chief executive of the real estate franchise business LJ Hooker, Grant Harrod has resigned.</p>
<p>It follows a decision by the board to ditch plans for its $400 million float on the ASX.</p>
<p>"The company was looking to IPO and when I came onto the board in 2014 it was a key objective," Mr Harrod told The Australian Financial Review.</p>
<p>"Now the board has made the call of not wanting to proceed and that has made the role redundant for me.</p>
<p>"My skills are not going to be utilised."</p>
<p>He advised that the company had no debt issues and its funding lines were secured until 2020.</p>
<p>Mr Harrod was hired three years ago after serving as chief executive of listed companies including the communication technology group Salmat Limited and office products company Corporate Express.</p>
<p>LJ Hooker's national market share sits behind Ray White with around 7 per cent.</p>
<p>The agency now hired global talent acquisition firm MitchelLake Group to conduct a search for a new chief executive.</p>
<p>LJ Hooker is one of the nation's best-known brands with more than 700 franchise offices and 8000 people across Australia and in New Zealand, the Pacific and Asia. </p>
<p><span>Grant is also a director of Local Measure, a location based social media monitoring and customer experience management start-up technology company.</span></p>
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Grant Harrod quits LJ Hooker

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<p>GUEST OBSERVER</p>
<p>ABS figures for November 2016 demonstrate strength in lending for new housing.</p>
<p><span>Lending for new housing - to both owner occupiers and investors - turned in strong results in this latest ABS update.</span></p>
<p><span>The new home building </span><span>sector will continue to provide strong support to the broader Australian economy through the </span><span>first half of 2017.</span></p>
<p><span>The number of owner occupier loans for the construction or purchase of a new dwelling increased by 2.7 per cent in November 2016. Meanwhile the value of lending for construction investment reached a new record on a moving annual basis. </span></p>
<p><span>The new home lending cycle has peaked, but the November results confirm that the elevated volumes of lending we have seen over the last three and a half years remained in play as 2016 neared an end</span><span>. </span></p>
<p><span>T</span><span>hat’s a tick in the box for the Australian economy</span><span>.</span><span><br></span></p>
<p><span>As has been typical throughout this cycle, the profile for new home lending varies widely between states and territories</span><span>. </span></p>
<p><span>Looking beyond just today’s update, it </span><span>is not surprising that New South Wales and Victoria are faring the best overall.</span><span><br></span></p>
<p><span>Compared with 12 months ago, the number of loans for construction and purchase of new homes increased in five out of eight states and territories in November 2016. The fastest annual growth occurred in Tasmania (+28.4 percent), followed by Queensland (+20.0 percent), South Australia (+11.0 percent), New South Wales (+9.9 percent), and Victoria (+9.6 percent). The number of loans for new housing fell in November in the Northern Territory (- 57.9 percent), the Australian Capital Territory (-23.3 percent), and in Western Australia (-9.5 percent). </span></p>
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<p> </p>
<p><em>Harley Dale is chief economist at the Housing Industry Association and can be contacted <a href="https://hia.com.au" target="_blank">here</a>.</em></p>
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New house lending turns in strong result: HIA's Harley Dale

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<div class="section">GEUST OBSERVER</div>
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<div class="section">The Nov housing finance figures staged a modest lift for owner occupiers but it does looks as if investor loans are in the midst of a more constructive recovery.</div>
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<br>The total number of owner occupier approvals lifted 0.9 percentmth to be down 2.6 percent/yr, slighted better than market expectations for a flat result but less than Westpac's forecast of a 2 percent gain. Ex-refinance though, approvals were up a more solid 2.1 percent after a 1.2 percent gain in Oct.</div>
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<br>The value of housing finance approvals to investors surged 4.9% in Nov adding to the 1.5% gain in Oct. We are now in the midst of a recovery in investor finance that is more consistent with the solid recovery in the Sydney and Melbourne housing markets through Oct-Nov-Dec.</div>
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<br>The total value of housing finance approvals to both owner occupiers and investors lifted 2.2 percent/mth but was up an even more solid 3.2 percent/mth /7.4 per yr ex-refinancing.</div>
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<div class="section">The state detail ex-refinance had NSW printing a solid gain, Vic added modestly to the solid Oct gains while WA surprised with a very solid bounce almost unwinding a two month contraction. Qld continues to print robust through the year growth rates. Note that the state detail on investor finance approvals is released next week.</div>
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<br>Construction-related owner occupier finance approvals also had a solid month – construction approvals lifted 2.3 percent/mth and finance for the purchase of newly built dwellings also retraced the Oct losses with a material 3.3 percent mth lift.</div>
<div class="section"> </div>
<div class="section">Note that the latter includes purchases of 'off the plan' apartments, it is a poor proxy for settlements in the sector as it includes finance for purchase of other types of newly built dwellings and only covers owner occupiers and purchases by Australian residents – there are no corresponding measure for investors and all finance data is for loans to resident Australians only.</div>
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<div class="section">The complete absence of timely data on foreign buyer activity and the painfully limited data around domestic housing investor activity can be very frustrating. The finance approvals data for example relies almost entirely on data collected by APRA that continues to follow a framework that has not been materially revisited in the last 25 years. </div>
<div class="section">
<br>Overall the Nov finance approvals are highlighting something of a recovery with most components tending to be positive even more so for investors. This is now more in line with the recent strength in auction markets and, to a lesser extent, prices as the pickup in conditions is now showing through in the finance figures and should continue to do so in the months ahead. </div>
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<div class="section"><em>Justin Smirk is ‎senior economist, Westpac Group and can be contacted <a href="https://www.westpac.com.au/about-westpac/westpac-group/" target="_blank">here</a>.</em></div>
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Investor loans in midst of recovery: Westpac's Justin Smirk

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<div class="column">The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.9 percent in November after falling by 0.6 percent in October. It was only the second rise in lending in five months. </div>
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<div class="column">The value of loans rose by 2.2 percent in November with owner loans up 0.4 percent and investor loans up 4.9 percent.</div>
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<br>The ANZ/Roy Morgan consumer confidence rating eased from four-month highs, falling by 0.7 per cent to 119.3 in the week to January 15. Confidence is up 4.6 per cent over the year and well above the average of 113.1 since 2014.</div>
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<br>The inflation expectation 2 years ahead was at 4.6 per cent, a 13-month high. Inflation expectations has now held above 4 per cent for the past 5 months.</div>
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<br>The Bureau of Statistics (ABS) reported that new vehicle sales rose by 0.3 per cent in December. The CommSec Luxury Vehicle index hit record highs in 2016 with sales of 17 luxury marques up 12.1 percent on a year ago. </div>
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<p>On its own, the lift in home loans doesn’t look overly concerning – especially given it was only the second rise in the past five months. But couple it with the lift in home prices in the latter part of last year and it suggests that the housing landscape may continue to cause policymakers a little bit of angst over 2017. Even more so when you delve a bit deeper into the data and realise that the lift in the value of loans was largely driven by investors.</p>
<p>The value of loans by investors surged by 4.9 per cent in November to be up 21.4 over the year – the strongest annual growth in 19 months.</p>
<p>If home prices continue to lift, with growth largely driven by investor loans, regulators may look at further restrictions to curb lending.</p>
<p>Household confidence remains just shy of recent four month highs. And more importantly confidence is holding well above longer-term averages. In particular, the measure of whether it was a good time to buy a major household item lifted to the highest levels in five months. No doubt the discounts offered by retailers post-Christmas are enticing households to spend a little bit more freely. </p>
<p>Interestingly the inflation expectation 2 years ahead was at 4.6 per cent in the past week - a 13-month high. Inflation expectations have now held above 4 per cent for the past 5 months. There is no doubt that inflationary pressures have bottomed out and are likely to start lifting.</p>
<p>Annual new vehicle sales are just shy of recent record highs, suggestive of underlying strength in business and consumer sentiment and finances. But the trends aren’t uniform with sales of sports utility vehicles consistently setting new highs while passenger car sales have now fallen to 20- year lows in rolling annual terms. </p>
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<div class="column">What do the figures show?</div>
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<div class="column">Housing finance - number</div>
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<div class="column">The number of loans (commitments) for budding home owners (owner-occupiers) rose by 0.9 per cent in November after falling by 0.6 per cent in October. It was only the second rise in lending in five months. Excluding the refinancing of dwellings, the number of loans was up by 2.1 per cent.<br><ul>
<li>  The number of new home loans was down by 2.6 per cent on a year ago.</li>
<li>  Loans by owner-occupiers for the construction of homes rose by 2.3 per cent in November.</li>
<li>  Loans to buy newly-erected dwellings rose by 3.3 per cent.</li>
<li>  Loans for the purchase of established dwellings (excluding refinancing) rose by 2.0 per cent.</li>
<li>  The number of refinancing transactions fell by 1.2 per cent.</li>
</ul>
<p>Lending across states/territories in November: NSW (+1.5 per cent); Victoria (+0.8 per cent); Queensland (+2.4 per cent); South Australia (-1.3 per cent), Western Australia (-0.7 per cent); Tasmania (-1.0 per cent); Northern Territory (+2.7 per cent); ACT (+0.2 per cent).</p>
<p>Housing finance - value</p>
The value of new housing commitments (owner occupier and investment) rose by 2.2 per cent in November after rising by 0.5 per cent in October. Owner-occupier loans rose by 0.4 per cent but investment loans rose by 4.9 per cent.<br><p>The value of loans by owner-occupiers and investors to build new homes rose by 14.2 per cent in November after falling by 1.7 per cent in October. The value of loans to build new homes rose to an 8-month high of $3.07 billion in November.</p>
<p>Housing finance – other statistics</p>
<p>The proportion of first-time buyers in the home loan market rose from 13.7 per cent to 13.8 per cent in November (long-term average 19.4 per cent).</p>
The proportion of fixed rate loans eased from 12.8 per cent to 12.5 per cent in November. And the average home loan across Australia stood at $376,600 in November, up 3.6 per cent in the month but down 1.6 per cent on a year ago.</div>
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<p><span>Consumer confidence </span></p>
<p>The ANZ/Roy Morgan consumer confidence rating eased from four-month highs, falling by 0.7 per cent to 119.3 in the week to January 15. Confidence is up 4.6 per cent over the year and well above the average of 113.1 since 2014. Two of the five components of the index rose in the latest week:</p>
<ul>
<li>  The estimate of family finances compared with a year ago was down from +13 to +8;</li>
<li>  The estimate of family finances over the next year was down from +33 to +32;</li>
<li>  Economic conditions over the next 12 months was unchanged at +2;</li>
<li>  Economic conditions over the next 5 years was up from +11 to +12;</li>
<li>  The measure of whether it was a good time to buy a major household item was up from +41 to +43 – the strongest reading in 5 months.</li>
</ul>
<p>In addition the inflation expectation 2 years ahead was at 4.6 per cent, a 13-month high. Inflation expectations has now held above 4 per cent for the past 5 months.</p>
<p>New car sales:</p>
According to the Australian Bureau of Statistics (ABS) new vehicle sales rose by 0.3 per cent in December after falling by 0.7 per cent in November. Passenger car sales rose by 3.6 per cent, while sales of sports utility vehicles fell by 3.3 per cent and sales of “other” vehicles (includes utilities, panel vans, cab chassis, goods carrying vans, rigid trucks, prime movers, non-freight carrying trucks, and buses) rose by 0.7 per cent.</div>
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<br>New vehicles sales were up by 0.2 per cent over the year. Passenger car sales in December were down by 4.2 per cent over the year, while SUVs sales were unchanged and “other vehicles” were up by 10 per cent.<br><p>In rolling annual terms, 1,178,133 new vehicles were sold over the 2016 calendar year. Sales of SUVs (441,023) eased from record highs in annual terms, while annual sales of “other” vehicles stood at a record high of 250,853. Sales of passenger vehicles fell to a 20-year low of 486,257 in the year to December.</p>
<p>CommSec Luxury Vehicle index</p>
The CommSec Luxury vehicle index hit record highs in 2016. Sales of 17 luxury marques totalled a record 106,658 units in 2016, up 12.1 per cent on a year ago. Luxury vehicles now account for 9.17 per cent of total vehicle sales and a record 11.50 per cent of passenger cars and SUVs alone.</div>
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<br>The CommSec Luxury vehicle index includes Audi, Aston Martin, BMW, Bentley, Ferrari, Hummer, Jaguar, Lamborghini, Lexus, Lotus, Maserati, Maybach, Mercedes-Benz, Mclaren, Porsche and Rolls Royce.</div>
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<br>In 2016 record sales were recorded by Audi, BMW, Ferrari, Jaguar, Lamborghini and McLaren.<br><p>Luxury auto sales have been running at a double-digit annual rate for almost four years.</p>
<p>What is the importance of the economic data?</p>
Housing Finance data is produced monthly by the Bureau of Statistics and shows commitments by lenders, such as banks, to provide finance for housing purposes. The lending figures relate to those looking to buy or build homes to live in as well as those seeking to buy or build homes for investment purposes. Generally people get their finance organised first, so the figures are regarded as a leading indicator on the housing market.</div>
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<br>The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.<br><p>The Australian Bureau of Statistics provides seasonally adjusted and trend estimates of industry data. The Federal Chamber of Automotive Industries releases estimates of car sales on the third business day of the month. The figures highlight the strength of consumer spending as well as conditions facing auto &amp; components companies.</p>
<p>What are the implications for interest rates and investors?</p>
<p> Looking forward, policymakers will keep a close eye on how the rebalancing of the domestic economy (away from mining investment) is keeping pace. Inflation and housing activity are likely to be closely watched over 2017. </p>
<p><em>Savanth Sebastian is an economist for <a href="https://www.commsec.com.au/" target="_blank">CommSec</a></em></p>
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Investor loans soar, inflation makes a comeback: CommSec's Savanth Sebastian

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=364156]</p>

<p>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.</p>

<p>“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.</p>

<p>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.</p>

<p>The absence of holiday letting within the building has also resonated strongly with purchasers.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366491]</p>

<p>The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.</p>

<p>“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.</p>

<p>“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.”</p>

<p>[smartcode_project:default project_id=150454 project_image_fid=366486]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=150454]</p>


Joel Robinson

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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371009]</p>

<p>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.</p>

<p>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.</p>

<p>Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371016]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371017]</p>

<p>Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=139552 project_image_fid=371025]</p>

<p>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.</p>

<p>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.</p>

<p><sup>*Conditions apply in relation to the deposit match offer.</sup></p>

<p>[smartcode_project_cta:default project_id=139552]</p>


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

<p data-end="181" data-start="0">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.</p>

<p data-end="484" data-start="183">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.</p>

<p data-end="657" data-start="486">Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.</p>

<p data-end="806" data-start="659">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.</p>

<p data-end="871" data-start="808">“We know the buyer profile exceptionally well,” Abolakian says.</p>

<p data-end="1097" data-start="873">“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.”</p>

<p data-end="1169" data-start="1099">That buyer has historically been overwhelmingly owner-occupier driven.</p>

<p data-end="1434" data-start="1171">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.</p>

<p data-end="1533" data-start="1436">“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.</p>

<p data-end="1665" data-start="1535">“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”</p>

<p data-end="1721" data-start="1667">That philosophy extends well beyond apartment layouts.</p>

<p data-end="1966" data-start="1723">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.</p>

<p data-end="2051" data-start="1968">“There was probably a period where having an approved project in market was enough,” he says.</p>

<p data-end="2154" data-start="2053">“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”</p>

<p data-end="2386" data-start="2156">“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.”</p>

<p data-end="2386" data-start="2156">[smartcode_project:default project_id=110379 project_image_fid=311393]</p>

<p data-end="2549" data-start="2388">The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.</p>

<p data-end="2678" data-start="2551">For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.</p>

<p data-end="2757" data-start="2680">“People buying now often aren’t moving in for several years,” Abolakian says.</p>

<p data-end="2949" data-start="2759">“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.”</p>

<p data-end="3219" data-start="3163">That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.</p>

<p data-end="3219" data-start="3163">[smartcode_project:default project_id=149594 project_image_fid=362634]</p>

<p data-end="3454" data-start="3221">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.</p>

<p data-end="3546" data-start="3456">“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.”</p>

<p data-end="3919" data-start="3669">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.</p>

<p data-end="4005" data-start="3921">“It’s about creating something that feels special without being excessive,” he says.</p>

<p data-end="4112" data-start="4007">“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”</p>

<p data-end="4112" data-start="4007"><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" /></p>

<p data-end="4243" data-start="4114">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.</p>

<p data-end="5230" data-start="5149">“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.</p>

<p data-end="5392" data-start="5232">“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.”</p>

<p data-end="5674" data-start="5394">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.</p>

<p data-end="5723" data-start="5676">“There are definitely people waiting,” he says.</p>

<p data-end="5902" data-start="5725">“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.”</p>

<p style="text-align:start">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.</p>

<p style="text-align:start">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.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=356540]</p>

<p>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.</p>

<p>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.</p>

<p>The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.</p>

<p>“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.</p>

<p>[smartcode_project:default project_id=150787 project_image_fid=366230]</p>

<p>While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=143932 project_image_fid=367515]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=150017 project_image_fid=370960]</p>

<p>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.</p>

<p>“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>


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

<p data-end="231" data-start="139">Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.</p>

<p data-end="597" data-start="233">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.</p>

<p data-end="699" data-start="599">Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.</p>

<p data-end="1041" data-start="701">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.</p>

<p data-end="1173" data-start="1043">Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.</p>

<p data-end="1173" data-start="1043">[smartcode_project:default project_id=4896 project_image_fid=368543]</p>

<p data-end="1566" data-start="1175">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.</p>

<p data-end="1629" data-start="1568">That process has culminated in approval for Camberwell House.</p>

<p data-end="1845" data-start="1631">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.</p>

<p data-end="2162" data-start="1847">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.</p>

<p data-end="2162" data-start="1847">[smartcode_project:default project_id=4896 project_image_fid=368544]</p>

<p data-end="2438" data-start="2164">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.</p>

<p data-end="2496" data-start="2440">The building’s vertical presence will also set it apart.</p>

<p data-end="2868" data-start="2498">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.</p>

<p data-end="2868" data-start="2498">[smartcode_project:default project_id=4896 project_image_fid=368568]</p>

<p data-end="3133" data-start="2870">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.</p>

<p data-end="3317" data-start="3135">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.</p>

<p data-end="3413" data-start="3319">Beyond the private residences, a significant component of the project is its amenity offering.</p>

<p data-end="3710" data-start="3415">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.</p>

<p data-end="3852" data-start="3712">This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.</p>

<p data-end="3852" data-start="3712">[smartcode_project:default project_id=4896 project_image_fid=368588]</p>

<p data-end="4137" data-start="3854">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.</p>

<p data-end="4220" data-start="4139">The inclusion of these facilities reflects a broader shift in buyer expectations.</p>

<p data-end="4590" data-start="4222">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.</p>

<p data-end="4644" data-start="4592">Camberwell House is positioned to benefit from both.</p>

<p data-end="4919" data-start="4646">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.</p>

<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">
<p data-end="271" data-start="88">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.</p>

<p style="text-align:start">“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.</p>

<p>“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.</p>

<p>“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.</p>

<p>“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.”</p>
</section>

<p data-end="5000" data-start="4921">[smartcode_project_cta:default project_id=4896]</p>


Jonathan Chancellor

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