Regional rents continued to outpace capital city rents over the fourth quarter of 2021 with regional dwellings rising 2.5% against the 1.6% rise in capital city rents, taking the annual regional rental growth rate to 12.1%.&nbsp;

Over a 10-year period regional house rents have increased 33.2% compared to 24.9% growth across the combined capitals.&nbsp;

The regional unit market has seen rents increase 41.4% in the past decade compared to capital city figures of 14.4%.&nbsp;

[smartcode_project:default project_id=106957 project_image_fid=184863]

Despite worsening affordability, houses continued to outperform unit rents over the December quarter, according to CoreLogic&rsquo;s quarterly Rental Review.

The national rental index increased 1.9% during the December quarter, a repeat of the September quarter.

CoreLogic&rsquo;s research director Tim Lawless said rents were under extraordinary pressure from many factors.

Lawless said the stronger rental conditions across the regional markets is a story involving both demand as well as supply, following a surge in regional population growth through the pandemic, especially across regional Victoria and regional NSW.

[smartcode_project:default project_id=5559 project_image_fid=88243]

&ldquo;While demand has risen we generally haven&rsquo;t seen much of a supply response. Australia&rsquo;s rental market is mostly reliant on private sector investors to provide rental housing,&rdquo; he says.

&ldquo;Investors as a proportion of total mortgage demand moved through record lows in early 2021, highlighting relatively low levels of investment activity across the country and also implying relatively low levels of new rental stock coming onto the market.&nbsp;

&ldquo;Arguably the regions have less elasticity in rental markets, meaning, when demand rises, supply is less responsive than capital cities where investors are generally more active.&rdquo;

Brisbane was the strongest performing rental market amongst the capitals over the quarter, rising 2.3%, followed by Canberra and Hobart, both rising 2.1%.&nbsp;

[smartcode_project:default project_id=102451 project_image_fid=186075]

Despite recording the strongest annual rental growth (15.2%), the Darwin rental market was the worst performing over the quarter, with rents rising 0.6% over the three months to December.

Canberra remains the most expensive capital city rental market, with typical dwellings renting for $651 per week, followed by Sydney ($604p/w), Darwin ($561p/w), Hobart ($521p/w) and Brisbane ($507p/w).&nbsp;

Adelaide remains Australia&rsquo;s most affordable capital with a median dwelling rent of $447 per week, followed by Melbourne at $456 per week.

Each capital city market posted a rise in rents over the December quarter for both houses and units.&nbsp;

Brisbane recorded the strongest quarterly increase in house rents of 2.7%, taking annual growth rates to 10.6%.&nbsp;

[smartcode_project:default project_id=102309 project_image_fid=163974]

Darwin house rents increased 0.6% during the quarter, however its growth in rents during the first half of 2021 resulted in the highest annual house growth figures of any capital at 15.0%.

&quot;As arguably the most COVID-impacted unit market in Australia, Melbourne&rsquo;s rental growth trends shifted in December, as units recorded the strongest rental growth in the country, up 1.6%,&quot; Lawless said.

Melbourne&rsquo;s rents remain 5.5% below the record highs of July 2019, however any recent momentum in unit rental growth could represent a recovery trend, underpinned by affordability constraints.

&ldquo;Brisbane&rsquo;s rental market for houses has shown strength throughout the pandemic as demand outweighed supply, while Melbourne&rsquo;s unit market has been weak through most of the pandemic to date due to low demand against relatively high vacancy rates,&rdquo; Mr Lawless says.

&ldquo;Melbourne&rsquo;s unit market is now benefitting from higher demand as more domestic renters seek out affordable housing options in the unit sector.&nbsp;

&quot;Demand for Melbourne unit rentals is likely to increase more sharply as foreign students and international visitors return.&rdquo;

Across the capital city markets, each city posted a rise in rents over the December quarter for both houses and units

jchancellor-FAypfDUnLy

Apartment rentals soar in regions: CoreLogic

Work is expected to resume later this year on the Nightcliff apartment complex Seabreeze in Darwin.

The project stopped construction in 2016 given the ailing Northern Territory economy and a downturn in the apartment market.

Sunbuild has reportedly lodged a reapplication permit for the site on the corner of Progress and Dick Ward drives.

Sunbuild owner Neil Sunners has begun the process of completing the five-storey, 92-apartment development.

About a third of the project had been completed, the NT News reported.

Sunners said it had taken until now for confidence in the economy to return.

“I believe the time is right in Darwin to get going again, as the economy is stronger than a few years ago and confidence is continuing to grow,” Sunners told the NT News.

He expects it will take about eight months to complete with works likely to begin around August.

The project was first mooted in 2009

Darwin, which is a small town and relies on big oil and mining projects, has seen a weak apartment market.

According to the latest data from real estate firm Raine & Horne, the number of properties hitting the market for sale in Darwin is about 75% higher than the capital city’s historical January average.

Glenn Grantham, at Raine & Horne, noted there had been a surge of vendors releasing their properties for sale in January, "after many recognised last year had been very good for capital growth.” 

In 2021, Darwin’s real estate values increased by almost 15%, its highest annual growth rate in many years.

"Many of the properties for sale are long-term rentals. 

“Given the transient nature of Darwin’s workforce, plenty of tenancy agreements end at this time of year and rather than seeking to find a new tenant, the owners are deciding to put the properties on the market for sale
.
“This decision makes plenty of sense as it is often more straightforward to show a vacant property to buyers than a home with a tenant.”

"Around 85% of buyers in Darwin are currently owner-occupiers seeking to a first home or to upgrade. 

"If there is a lease in place on a property, first home buyers and upgraders will look elsewhere.

“We’ve even seen an increase in off-market sales to tenants.

“These off-market sales not only take the tenant out of the rental market but also take the long-term investment properties out too.”

 “The silver lining is that a smaller pool of rental properties combined with strong tenant demand will push up investment yields in Darwin which is great news for investors.”

Sunbuild stopped construction at the site in 2016 

Seabreeze, Darwin apartment block set for 2022 construction restart

The main measure of inflation in Australia – the Consumer Price Index (CPI) – rose by 1.3 per cent in the December quarter.

It was higher than the industry wide economists' consensus of 1 per cent. 

The annual rate of the CPI rose from 3.0 per cent to 3.5 per cent.

The most significant price rises were for new dwelling purchase by owner-occupiers up, 4.2 per cent.

The new dwelling purchase component of the CPI captures the cost of adding to the housing stock – newly built dwellings and major renovations. It is measured as the price of a new dwelling, excluding the value of the land.

The CPI rise is against the backdrop during 2021 of construction being hit by a shortage of materials with global supply chain disruptions, combined with rising freight costs, along with rising labour costs at a time of high levels of building spurred by government incentives.

"Shortages of building supplies and labour, combined with continued strong demand for new dwellings, contributed to price increases for newly built houses, townhouses and apartments," says the ABS's head of prices statistics Michelle Marquardt.

Automotive fuel was up 6.6 per cent, along with furnishings/household equipment (up 3.6%) and health (up 3.3%).

The capital city weighted increase in rents was 0.1 per cent up for the quarter and 0.4 per cent for the year.
 
Rents fell again in Sydney and Melbourne, the fourth consecutive quarterly fall for Sydney, and the third consecutive quarterly fall for Melbourne.
 
The REIA noted rents across the other capital cities, in line with population trends, continued to rise.

The ‘underlying’ CPI or trimmed mean rose by 1 per cent in the quarter (consensus: +0.7 per cent) with the annual growth rate lifting from 2.1 per cent to a 7½-year high of 2.6 per cent.

It sits in the middle of the Reserve Bank’s 2-3 per cent target range, Craig James the Commsec cheif economist noted.

"Before the release of today’s December quarter figures, the Reserve Bank had expected annual underlying inflation to be now sitting at 2.25 per cent. 

"The RBA also “forecast (underlying inflation) to be around 2¼ per cent for much of the forecast period, increasing to around 2½ per cent by the end of 2023.” 

"The latest data showed underlying inflation at 2.6 per cent in the December quarter – above RBA forecasts.

"Inflation has exceeded Reserve Bank expectations for the past two quarters. 

"And that means there will be greater discussion about when the Reserve Bank may start lifting interest rates. 

"So far, the Reserve Bank has largely ruled out rate hikes until 2024 – or 2023 at the earliest," he noted.

"We will hear a lot more from the Reserve Bank next week. 

"The February Board meeting is held on Tuesday; the Reserve Bank Governor delivers a speech on Wednesday; and the Statement on Monetary Policy is issued on Friday."

James added the Reserve Bank won’t just look at inflation rates when deciding when to lift rates. 

"It will want to see the economy at or near ‘full employment’ (a jobless rate near 4 per cent or below)."

The jobless rate currently stands at a 13-year low of 4.2 per cent.

"The RBA will want to see wage growth near 3 per cent," he added.

The current annual growth rate of wages is 2.2 per cent, but with the job market tightening, there are more anecdotal reports that wages are starting to lift. 

The Commonwealth Bank Group economists believe that the job, wage and price metrics will be in place in the December quarter of the year for the Reserve Bank to start the ‘normalisation’ process of lifting interest rates. 

James says the path to normalisation may begin next week with the possibility that the RBA will end its bond buying program.

The main measure of inflation in Australia – the Consumer Price Index – rose by 1.3 per cent in the December quarter

New dwelling price inflation boosts CPI concerns

Japan&rsquo;s largest property developer Mitsui Fudosan has made its first foray into Australia by investing in Midtown MacPark, Frasers Property&rsquo;s urban renewal project on Sydney&rsquo;s North Shore.

The investment is in the $232 million MAC Residences apartment project, the first phase of the Midtown MacPark master-planned community in the Macquarie Park precinct.

It will have a mix of studio, one-, two- and three-bedroom apartments and penthouses.

Around 91 percent of the 24 storey MAC Residences has been sold from $459,500 to $1,800,000, with sales since late 2020.

[smartcode_project:default project_id=29969 project_image_fid=159035]

It is scheduled for completion in late 2023.

The Bates Smart-designed building is located on Herring Road and Epping Road.

MAC Residences is the first building in the $2.1 billion Midtown MacPark community to be developed in stages over the next 10 to 12 years.

Frasers Property is working with the NSW Government to deliver the $2.1 billion Midtown MacPark masterplanned mixed tenure community, which will integrate 3,300 apartments with a range of community facilities including a proposed school and childcare, a new central park, pocket parks and playgrounds, a community centre, pool and gym.

It will comprise 269 units located 550 metres from from the Macquarie University campus and metro station.

[smartcode_project:default project_id=29969 project_image_fid=159036]

Midtown MacPark will adjoin with Macquarie Exchange, a business park joint venture between Frasers and Winten Property Group.&nbsp;

Mitsui and Frasers partner on an integrated logistics park in Bangkok.

&ldquo;We&rsquo;re pleased to again partner with Mitsui Fudosan on the MAC Residences development at Midtown MacPark, where we&rsquo;re applying our place-making and community development expertise to create Sydney&rsquo;s next great urban neighbourhood,&rdquo; said Mark Gleeson, executive general manager of investment and capital transactions at Frasers Property Australia.

The Sydney venture is Mitsui&rsquo;s first investment after setting up its Australian office in 2019.

It is Mitsui’s first investment after setting up its Australian arm in 2019

Japanese developer invests in Fraser's Midtown MacPark apartment project

The latest REIV data calculated there was far less price escalation in the private treaty market than the red hot auction market.

Apartments sold at auctions during 2021 were up 9.6% to a $772,500 median price across Victoria.

But private treaty sale prices went up just 1% to $606,000, according to data from Real Estate Institute of Victoria’s December quarter report.

The median apartment price in regional Victoria saw 19.6 per cent annual price growth in 2021.

It took the median apartment price to $395,950.

The median house price in regional Victoria has was up 27 per cent reaching a record breaking $565,000 over the year.

“The data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions," REIV President Adam Docking said.

Metropolitan Melbourne unit prices jumped 7.1% to $680,000, while houses across the city rose 18.9% to $1,125,000.

The data shows apartments in outer Melbourne, achieved a $615,000 median price with an annual increase of 11.3 per cent.

Middle Melbourne apartments remain the pricier at $765,000 up 8.5% last year.

Apartments in inner Melbourne have experienced 4.8% price growth to a median price of $655,000.

Docking said he expects the market will soon begin to stabilise as some of the listing volume issues are addressed and buyers have more offerings.

But he suggested the impact, if any, of the Omicron surge on the real estate market is yet to be fully understood.

“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”


 

The REIV data suggested there was less price escalation in the private treaty market than the red hot auction market

Private treaty apartment market cheaper than redhot Victorian auction market: REIV

Ray White Surfers Paradise Group kicked off the 2022 auction season with 77 residential properties listed for auction at the 30th annual The Event on Sunday.

Around 57 were apartments put up for sale across the near seven hour auction.&nbsp;

&ldquo;This is a day when so many dreams come true for our sellers and buyers,&rdquo; Ray White Surfers Paradise Group auctioneer Andrew Bell said.&nbsp;

By mid-afternoon the preliminary auction clearance rate was 80 per cent of the residential and commercial properties.

But this trailed off with few of the final dozen offerings being sold.

&ldquo;The most satisfying thing for me is that most properties are selling well over their reserves,&quot; Mr Bell said.&nbsp;

&quot;We&rsquo;ve seen some strong bidding from the floor and online but it&#39;s mostly locals in the room bidding.

Mermaid Beach local Rod McIvor snapped up the first property on the order of sale, which was one of the cheapest of sales.

The telco technician secured 4/26 Holland Court, Broadbeach Waters for he and his daughter for $388,000.

The two bedroom ground floor apartment on a lowrise block last sold at $135,000 in 1999. It was offered as a deceased estate.

&ldquo;Honestly I am so happy to have picked up a property so close to everything for under $400,000, that&rsquo;s good buying,&rdquo; Mr McIvo said, who had been looking and saving up for more than six months.

&ldquo;The market is still very competitive. I&#39;ve been to a lot of open homes where there have already been 4-5 offers submitted. I am glad to have found our new home.&rdquo;

The deceased estate was marketed by Ray White Surfers Paradise agent Glen Williams who had four registered bidders.

Chevron Island locals Rhonda and Ron Emmett fought off nine other registered bidders to secure 2541/9 Ferny Ave, Surfers Paradise for $1.625 million, one the of dearest sales.

The 3 bed, 2.5 bathroom apartment on the 54th floor of the Circle on Cavill building last sold in 2018 at $1,225,000, and initially at $1.7 million in 2006.

&ldquo;We were attracted to Circle on Cavill for its facilities as we have already had a unit there up until a month ago when I sold it,&rdquo; Ms Emmett said.&nbsp;

&ldquo;We were only looking at properties that were central and where we could walk to the shops without needing the car. We didn&rsquo;t want any steps either.&rdquo;&nbsp;

Agent Henk Schreurs said the apartment had been sold by Sydney investors. The highest apartment sale was at $2.4m for 1352/23 Ferny Avenue, a 286sqm sub-penthouse in the Chevron Renaissance which sold through agent Jackson Paradise. 

The unsold apartments included a heritage listed apartment in Surfers Paradise.

The 4D 34 Hanlan Street offering saw a $100,000 opening bid with two bidders taking the bidding to $170,000 when it was passed in.

The apartment last sold at $155,000 in 2016.

The partly furnished one bedroom apartment has ocean views from the 4th floor of Kinkabool.

The 53sqm apartment is tenanted at $285 a week until May 2022.

Buyers were given a prospective rent appraisal of $300 to $350 a week.

The body corporate is $68 a week, plus council rates of $41 a week, and water rates of $20 a week.

The total sales figure was around $68m from 101 properties, with over two dozen sold before the auction.

There were 54% of bidders local and 46% interstate with 78% of the buyers being in room. There were over 600 registered bidders.

The lowest sale was a Surfers Paradise apartment at $336,000.

Around 57 apartments were put up for sale across the near seven hour auction. 

Gold Coast apartment auctions get underway in 2022

ANZ has cut rates on its basic variable home loan by 0.20 per cent.
 
The rate cuts are for new customers with deposits of over 20 per cent.

The biggest discount going to borrowers with deposits of 30 per cent or more.
 
The move comes after continued pressure on lenders to cut their lowest variable loans, as competition in the market drives these rates down, despite rising fixed rates.
 
The RateCity.com.au database shows that in the last three months, 65 lenders have cut at least one variable rate.
 
Most cuts have been to lenders’ ‘no frills’ variable loans and for new customers only, it noted.

The exception is Athena, which this week cut its lowest variable rates for new and existing customers.
 
"There are now significantly more variable rates under 2 per cent than fixed, with 72 variable rates under 2 per cent and just 42 fixed,"  RateCity.com.au research director, Sally Tindall, said.

"ANZ was trying to chase down its big four bank competitor Westpac.
 
“Fixed rates might be on the rise, but competition in the variable rate market is still alive and kicking,” she said.
 
“For months Westpac has had the lowest variable rate out of the big four. 

"ANZ has now thrown down the gauntlet in a bid to win new customers, matching Westpac’s lowest variable rate of 2.19 per cent.
 
“Variable rates are following a very different trajectory to fixed rates, at least for now. 

"There are 72 variable rates under 2 per cent, however, for most borrowers there’s a catch. The vast majority of these variable rate cuts are reserved for new customers, so anyone looking for a rock bottom rate will have to consider switching lenders, or at least haggle with their current bank.
 
“The one notable exception is low-cost lender Athena, which cut its variable rates this week, not just for new customers but for existing ones as well. That’s a rare act in the mortgage market, particularly when there’s been no move to the cash rate for over a year.
 
“We expect variable rates will continue to fall over the next couple of months, however, as we get closer to the next cash rate hike, some lenders could move ahead of the RBA, particularly if the cost of funding continues to soar,” she said.
 


The RateCity.com.au database shows that in the last three months, 65 lenders have cut at least one variable rate

Variable home loan rates still being cut for big deposit buyers

The longtime gap between house and unit profitability is narrowing, according to analysis of around 99,000 dwelling resales in the September 2021 quarter.

House resales continued to have a higher chance of nominal gain (95%) than units (86.5%), however the CoreLogic advised the gap had narrowed.

The trend was occuring “as affordability constraints limit growth in the detached house market and gradually deflect demand towards higher density housing options,” Ms Eliza Owen, the research head at CoreLogic advised.

"Profitability of residential real estate continued to be buoyed by low interest rates, and a fall in advertised stock through the period," she said.

Amid the 99,000 resales, some 92.4% recorded a nominal profit-making gain from the previous purchase price, up from 87.5% in the September 2020 quarter.

Hobart was the strongest performing unit market with some 99.5% of resales at a profit, better than the 97.5% for houses.

There was very little difference between the rate of profitability in regional NSW for houses and units, which was 97.7% and 97.1% respectively.

Victoria's regional unit sales saw a 97.4% profit success rate, compared to across Melbourne where sellers secured a profit amid 89.1% of their sales. The report noted this marked a larger increase from the previous quarter of 130 basis points for Melbourne.

Sydney sellers of units saw profits 92.9% of their sales in the September quarter.

Owen also advised the gap between profitability in the regions and capital cities widened through the September quarter. 

The portion of profit-making sales across the capital cities increased 10 basis points to 91.9% in the three months to September, while the rate of profit- making sales in regional Australia increased 90 basis points in the quarter, to 93.1%.

The median nominal gain made on resales nationally was $270,000, while median losses were at $37,000 in CoreLogic's quartery Pain & Gain report.

At the national level, the portion of profit-making sales increased across both houses and units. 

Units accounted for 26.9% of total resales through the period, but represented 59.2% of loss making resales. 

"However, the rate of profitability increased more rapidly in the unit segment," Owen said.

Units had a larger typical decline on loss-making resales at $40,000, compared to $32,000 across houses.

The lowest incidence of profit-making unit sales was across Darwin, where over half of unit resales made a nominal loss (55.8%). 

Perth, Brisbane and the ACT also saw a relatively large divide between profitability in houses and units.

Owen noted some of the key factors that have weighed on unit profitability relative to houses over the past few years included high levels of unit stock being developed relative to detached houses, and negative demand shocks to the investor market, where demand for units tends to be more concentrated. 

"However, in the past year some of these dynamics have shifted slightly. 

"ABS data shows unit construction activity has remained subdued through 2021 when compared with the house segment. 

"Between 2016 and 2020, Australia saw around 1.2 house completions for every unit completion nationally, which increased to 1.4 houses for each unit over the first two quarters of 2021. 

"The boom in house construction activity, which has been in part a response to owner- occupied incentives such as HomeBuilder, may ease the growth and profitability of houses in the next few years as they are completed," she said.

Owen suggested future quarters could see further narrowing between house and unit profitability.

The combined value of profit from resales in the September quarter totalled $27.3 billion, while resale losses totalled $368 million in the same period. 

Around 99,000 dwelling resales were analysed for the September quarter Pain & Gain report

Gap between house and unit profitability narrowing: CoreLogic

First home buyer numbers will likely drop in 2022 as many young Australians find themselves priced out of the hottest property market in decades, according to RateCity.com.au research director, Sally Tindall.

The forecast came after November saw the number of first home buyers rise.
 
After nine months of consecutive falls the number of first home buyer loans increased 1.9 per cent in November according to the ABS lending data.

But is still 28.5 per cent lower than the peak in January 2021.

The number of owner occupier first home buyer loan commitments sat at 11,622 buyers in November, down 17% on a year ago or down 2,442.
 
Owner occupier first home buyer loan commitments accounted for 29% of all owner occupier commitments (excluding refinancing).

“The number of first home buyers rose (in November) as NSW and Victoria came out of lockdown, but with average loan sizes ballooning, this is more likely to be a blip than a trend,” Tindall said.
 
“We expect first home buyer numbers will drop in 2022 as many young Australians find themselves priced out of the hottest property market in decades.
 
“Growth in property prices is starting to slow on the back of fixed rate rises and a crackdown by the regulator, but the opening up of borders this year will increase demand, keeping prices moving north.
 
“One X factor for first home buyers is the upcoming federal election. The government knows it has a housing affordability issue that needs to be addressed.
 
“To date, the government has only tackled this issue with piecemeal schemes. These band-aid measures might help some people into the market, but they do nothing to properly address housing affordability at its core,” she said.

The value of new loan commitments to owner occupied first home buyers rose to reach $5.38 billion in November. 

Canstar Group Executive, Financial Services, Steve Mickenbecker noted first home buyers were borrowing $56,000 or 13.7 percent more over the year.

After nine months of consecutive falls the number of first home buyer loans increased 1.9 per cent in November

2022 election promises could trigger boost in first home buyer activity 

Purchases by NSW owner occupiers came with mortgages sat at around $770,000, according to the latest lending data.

The national average mortgage size for owner-occupiers has reached a record high of $595,568 according to ABS data.
 
Records were broken in every state and territory except WA.
 
The national mortgage was up $92,404, an 18% hike over the year.

The November ABS Lending Indicators, released 14 January, advised the loans were for the purchase of new and existing dwellings. 

The national average mortgage size for owner-occupiers has reached a record high of $595,568 according to new ABS data out today.
 
Records were broken in every state and territory except WA, according to the ABS data in original terms.

Victorian home buyers saw the biggest jump in their mortgages, up 24% or $120,000 to $618,602.
 
Average new owner-occupier mortgage size, November 2021
 
Amount Year-on-year change
National 
$595,568 $92,404 18.4%
NSW
$769,459 $125,112 19.4%
Vic
$618,602 $120,032 24.1%
Qld
$513,649 $73,604 16.7%
WA
$439,578 $22,868 5.5%
SA
$421,801 $38,016 9.9%
ACT
$585,859 $58,434 11.1%
TAS
$445,915 $73,175 19.6%
NT
$433,333 $53,271 14%

"Demand for Aussie housing remains firm, but affordability has decreased because home prices have surged more than wages," Ryan Felsman, senior economist at CommSec noted.

“In November housing stock was high and the country’s two largest states were freshly out of lockdown, so it’s no surprise to see a rise in new lending," RateCity.com.au research director, Sally Tindall, said.

“Growth in property prices is starting to slow on the back of fixed rate rises and a crackdown by the regulator, but the opening up of borders this year will increase demand, keeping prices moving north," she forecast.

The data did not include refinancing, nor renovation loans.

Renovation loans surged by 18 per cent in November to a record $569 million. The value of lending for renovations is up by a massive 115 per cent on a year ago.

Canstar analysis showed Australian mortgage holders refinanced $15.72 billion worth of loans to a new lender in November 2021, down 2.3% from October. 

Lender records were broken in every state and territory except WA, according to the ABS data 

How home loan mortgages rose in 2021 to record levels

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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

Jonathan Chancellor

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