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St George Bank economist Janu Chan is confident that low interest settings will ensure house price growth of at least 5% and as much as 10% in Australia’s major capital cities over 2013, with growth at the lower end of this range for Melbourne.
Most forecasts for Melbourne house prices are on the flat or bearish side.
Australian Property Monitors (APM) is forecasting <a target="_blank" href="https://www.propertyobserver.com.au/residential/australian-analysts-tip-modest-property-price-gains-in-2013-led-by-perth-depending-on-who-you-ask/2013011058725">0% to 3% price growth for Melbourne</a> over the course of the year, BIS Shrapnels expects just 0.9% growth while hotspotting.com.au's Terry Ryder believes prices could fall 5% in 2013.
Chan accepts that her forecasts of 5% to 10% growth are higher than some other analysts are predicting, but says they are “still nowhere near the house price growth in that has been witnessed in the past in Australia”.
Principally, she believes a low interest rate environment will support the market.
“I would find it difficult to believe that house prices will see flat to backwards growth with interest rates as low as they are, likely to stay low into 2013, and there is already some evidence of house prices stabilising, including in Melbourne, “ she tells Property Observer.
“It also takes time for the impact of lower interest rates to feed through to various parts of the economy and to housing, and this is likely occurring still. Population growth has also picked up,” she says.
However, she tempers he remarks by saying that the performance of house prices in Melbourne will be on the lower end of the bank’s forecast range, “because it does not have the same supply constraints as in other states, and they have already had a good run up in house prices over 2009-10”.
“There are downside risks to our forecasts including if the unemployment rate rises sharply and/or the global economy takes a turn for the worst. However, we expect the unemployment rate to stay low even though we expect it to edge higher, and the global outlook is improving.
“There are still difficult conditions in the housing market, and suggests there is room for another rate cut.
“We expect the RBA to cut rates once more by 25 bps in the second quarter this year.
“Overall, we are optimistic on the housing market because I believe the RBA will step in and lower interest rates further if these downside risks materialise,” she says.
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St George economist tips minimum 5% house price growth in capital cities in 2013 including Melbourne

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If the housing market is one favouring buyers, then the mortgage market is shaping up to be one favouring borrowers.
According to mortgage comparison website RateCity.com.au, competition between lenders for mortgage business is set to heat up in 2013, with annual home loan commitments forecast to return to levels last seen in 2000, meaning borrowers should be able to negotiate or switch lenders for a better deal.
RateCity.com.au says lenders are bracing themselves for one of the toughest years in 2013, and will have to boost their efforts to attract and retain borrowers.
The website bases this outlook on its analysis of ABS annual home loan commitment figures, which show a steep decline since peaking at just under 730,000 in 2007.
“During the global financial crisis, home loan commitments dipped to 599,070 in 2008 and the mortgage market never recovered with 2013 expected to have even fewer home loans financed,” says RateCity.com.au.
RateCity.com.au expects less than 600,000 home loans to be financed this year, and with mortgage rates expected to fall this will give added impetus for borrowers to consider refinancing, particularly if lenders don't pass on full rate cuts.
<img alt="ratecityjan18" height="261" width="470" src="/images/stories/2013/01/ratecityjan18.jpg">
Anecdotally, the competition for mortgage lending appears to be already heating up, with Yellow Brick Road, fresh from its funding deal with Macquarie Bank, offering a 115-basis-point reduction off of its base rate under its Empower Home Loan offering – followed by up to 86 points off the base rate for the life of the loan.
<ul>
<li>Bank of Melbourne is offering a 90-basis-point discount off of its standard variable rate home loan or portfolio loan over $500,000 until the end of January for those who take out a package deal. 
</li>
<li>Bankwest is offering an 80-basis-point discount off the standard variable rate for the first three years of its Super Start Home Loan.</li>
</ul>
In addition, RAMS is not charging mortgage application fees until the end of the month.
Other lenders that have cut upfront fees on some home loans during the past six months include AMP Bank, Yellow Brick Road and Gateway Credit Union.
RateCity.com.au spokesperson Michelle Hutchison says the peak levels of home loan activity in 2007 are unlikely to return any time soon and borrowers should take advantage of competitive offers and the opportunity to negotiate as lenders fight for market share.
“Interest rates are expected to fall further, which means borrowers are less likely to refinance because their repayments will drop, despite significantly lower rates often available to those who compare home loans and switch."
"Fewer government incentives for first home buyers will also mean there’s less appeal to enter the market.”
“Some lenders are also offering <a href="/news">no-deposit loans</a> such as RAMS (offering up to 120% LVR) and the latest from SGE Credit Union (up to 100%) with conditions.
“More lenders need to work harder if they want to attract and retain their mortgage customers this year. Borrowers should take advantage of the exit fee ban and save more than a Reserve Bank rate cut by comparing deals at RateCity, renegotiating with your lender or switching,” she says.
For information on refinancing, watch our free webinar<a href="/news"> The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a> 
 
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Tough year ahead for mortgage lending could be good news for borrowers: RateCity.com.au

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Having observed a slight, but expected rise in the unemployment rate last week (up 0.1 percentage points to 5.4%) the RBA will next turn its attention to the December quarter inflation reading put out by the ABS next week on Wednesday (January 23).
Apart from the monthly unemployment figure, the quarterly CPI reading is perhaps the most keenly watched statistic by the RBA given that the aim of monetary policy settings are to maintain an average medium-term inflation rate of between 2% and 3%.
Inflation is viewed as a forward-indicator of demand, allowing the RBA to reduce the cash rate if inflationary pressures are diminishing to provide a “short-term stimulus to economic activity”.
For the RBA to continue to cut the cash rate this year, the inflation rate will need to continue to hover towards the lower end of the central bank’s target band.
Economist and the RBA will focus on the ‘underlying’ or ‘core rate’ of inflation reading rather than the overall headline rate.
Core inflation gives a long-term trend picture of inflation by excluding volatile, seaosonal components of CPI like automotive fuel and some food items.
An average of the trimmed and weighted inflation readings provided by the ABS gives the core inflation reading.
The major banks are forecasting a moderate rise in both headline and core inflation, which will give the RBA scope to cut the cash rate further – but a March rate cut appears more likely at this stage than one in February.
NAB and ANZ expect a core inflation reading of around 0.7% for the quarter equating to an annualised rate of 2.4% to 2.5%.
According to NAB, a low core reading of 0.6% for the quarter is needed to sway the RBA to cut the cash rate in February rather than March.
“While a February rate cut will be discussed at the next board meeting, they already have done a lot. A low core CPI would probably be needed.
"We see the tipping point at 0.6% or lower (or 0.5% ex carbon). Hence we still see a March cut as more likely but it will be a close run thing," says NAB.
ANZ expects the RBA to leave the cash rate on hold in February, but that a moderate inflation reading will give the RBA the scope to lower rates further over the year.
The bank expects a 25 basis point rate cut in March with the cash rate falling to 2% by the end of this year.
“The improvement in financial market sentiment and, tentatively, the global backdrop is likely to stay the RBA’s hand," says ANZ.
“However, given confirmation of softness in the Australian labour market this week and few signs that interest-rate sensitive parts of the economy are picking up strongly, an unusually low fourth quarter underlying CPI inflation print next Wednesday would ensure an interesting discussion by the RBA Board."
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RBA interest rates countdown: Low inflation number could result in February rate cut

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There are 33 suburbs in Melbourne – many of them on the outskirts – where first-home buyers can purchase a three-bedroom apartment and pay equal or less than the average estimated first-home buyer mortgage repayment in Victoria of $414 per week.
The suburbs can be found in an interactive heat map showing weekly mortgage repayment price bands across Melbourne suburbs compiled by the Real Estate Institute of Victoria (REIV) as part of its new <a href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide" target="_blank">first-home buyer guide.</a>
<a href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide/3-bedroom-units" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/01/3bedmap.jpg"></a>
The $414 per week median mortgage repayment is based on the average first-home buyer loan size of approximately $286,600, a standard variable interest rate of 6.4%, receipt of the $7,000 first-home owners' grant, a loan term of 30 years, a 10% deposit, and benchmark lenders mortgage insurance (LMI) and conveyance fees.
The list is dominated by suburbs further out of town, but does include the middle Melbourne suburb of St Albans, which has a median three-bedroom unit price of $270,000 and average weekly mortgage repayments of $360 per week.
Also on the list are less fashionable, but well-located Sunshine and Sunshine North, where 'Kath &amp; Kim' obtained numerous TAFE qualifications and where Tracey, daughter of the Kerrigans in The Castle obtained her hairdressing diploma.
The full list starting from the cheapest is:
<ol>
<li>
<a href="/news">Melton </a>- $277 per week, median price of $210,000</li>
<li>
<a href="/news">Werribee </a>- $312 per week, median price of $235,000</li>
<li>
<a href="/news">Cranbourne </a>- $324 per week, median price of $244,000</li>
<li>
<a href="/news">Hoppers Crossing</a> - $332 per week, median price of $250,000</li>
<li>
<a href="/news">Pakenham </a>- $332 per week, median price of $250,000</li>
<li>
<a href="/news">Tarneit </a>- $346 per week, median price of $260,000</li>
<li>
<a href="/news">Frankston </a>- $346 per week, median price of $260,000</li>
<li>
<a href="/news">Sunshine </a>- $350 per week, median price of $263,000</li>
<li>
<a href="/news">Dandenong </a>- $353 per week, median price of $265,000</li>
<li>
<a href="/news">St Albans</a> - $360 per week, median price of $270,000</li>
<li>
<a href="/news">Noble Park</a> - $366 per week, median price of $275,000</li>
<li>
<a href="/news">Tullamarine </a>- $373 per week, median price of $280,000</li>
<li>
<a href="/news">Narre Warren</a> - $373 per week, median price of $280,000</li>
<li>
<a href="/news">Sunshine North</a> - $377 per week, median price of $283,000</li>
<li>
<a href="/news">Langwarrin</a>- $380 per week, median price of $285,000</li>
<li>
<a href="/news">Hadfield</a> - $380 per week, median price of $285,000</li>
<li>
<a href="/news">Doveton </a>- $382 per week, median price of $286,250</li>
<li>
<a href="/news">Somerville </a>- $382 per week, median price of $286,500</li>
<li>
<a href="/news">Dandenong North</a> - $389 per week, median price of $291,700</li>
<li>
<a href="/news">Mill Park</a> - $392 per week, median price of $293,750</li>
<li>
<a href="/news">Broadmeadows </a>- $392 per week, median price of $293,750</li>
<li>
<a href="/news">Epping </a>- $393 per week, median price of $294,500</li>
<li>
<a href="/news">Thomastown </a>- $399 per week, median price of $299,000</li>
<li>
<a href="/news">Seaford </a>- $400 per week, median price of $299,500</li>
<li>
<a href="/news">Lalor </a>- $401 per week, median of $300,000</li>
<li>
<a href="/news">Deer Park</a> - $401 per week, median of $300,000</li>
<li>
<a href="/news">Hallam </a>- $403 per week, median price of $302,000</li>
<li>
<a href="/news">Springvale </a>- $406 per week, median price of $304,000</li>
<li>
<a href="/news">Craigieburn </a>- $408 per week, median price of $305,000</li>
<li>
<a href="/news">Mernda </a>- $408 per week, median price of $305,000</li>
<li>
<a href="/news">South Morang</a>- $412 per week, median price of $308,000</li>
<li>
<a href="/news">Sydenham</a> - $412 per week, median price of $308,500</li>
<li>
<a href="/news">Berwick </a>- $414 per week, median price of $310,000</li>
</ol>
Source: REIV first-home buyer guide
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From Melton to Berwick: The 33 Melbourne suburbs with affordable three-bedroom apartments 

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Dixon Advisory’s US Masters Residential Property Fund has moved distinctly upmarket spending US$3 million on a historic four-storey apartment building in trendy Hell’s Kitchen in the heart of Manhattan.
In addition it has also bought a “limestone mansion” in Harlem for US$1.8 million dating back to the 1880s and a row house in Hoboken dating back to 1901 for US$1.54 million.
The ASX-listed Australian fund, managed by Dixon Advisory, was the first listed entity to invest directly in US residential rental properties, beginning in Jersey City across the Hudson River, but has extended into Manhattan and Brooklyn as well.
It raised a $100 million in its most recent oversubscribed public offer, having initially targeted between $40 million and $80 million with managing director Alan Dixon saying the investment would allow the fund to take advantage of “highly favourable market conditions” to expand its portfolio of acquisitions into areas such as Brooklyn and Harlem.
The Hell’s Kitchen and Harlem acquisition are two of 31 properties purchased by the US Masters Fund over December, increasing its portfolio to 332 properties worth US$107.9 million with yields ranging from 3.4% to 9.3%.
The fund also has conditional acceptances on 21 properties with an estimated combined acquisition cost of US$18 million, with pre-purchase due diligence suggesting they will achieve annualised net yields of 3.5% to 13%.
The Hell's Kitchen acquisition (pictured below) is a distinctive red-brick four-and-half-storey walk-up building with a penthouse addition at 458 West 50th Street.
<img alt="hellskit" height="510" width="338" src="/images/stories/2013/01/hellskit.jpg">
It was purchased with vacant possession for US$2.988 million and has six one- and two-bedroom apartments with estimated monthly rents of US$2,650 and US$4,000 respectively.
US residential data indicates the US Masters Fund acquired it at a discount of around 14% to the February 2012 asking price of US$3.5 million
Hell’s Kitchen – officially the neighbourhood of Clinton – was once an Irish-American working-class district and one of the grimmest parts of Manhattan, but it is currently undergoing gentrification.
The name is said to derive from descriptions of slum tenements in the districts.
 
<hr class="system-pagebreak">
 
The US Masters Fund has also acquired a fully renovated five-storey limestone mansion (pictured below) at St Nicholas Avenue &amp; West 146th Street in Harlem for US$1.82 million, which has two apartments bringing in estimated combined monthly rent of US$9,000 – an estimated net annual yield of 4%.
<img alt="harlem" height="525" width="340" src="/images/stories/2013/01/harlem.jpg">
The New York Times reported in 2009 that the carriage trade made St Nicholas Avenue, one of the best addresses in Upper Manhattan in the 1880s – a “broad boulevard … was a natural resort for the gentry and their fine horses and rigs”.
However, the arrival of the motor car turned St Nicholas Avenue into an “internal combustion highway”, with the limestone townhouses demonstrating the “highs and lows of this unusual street”.
The building acquired by the US Masters Fund was  designed by Boston-based architect Theodore Minot Clark in 1885, who most noted work is the 1877 Trinity Church in Boston.
The US Masters Fund also acquired a historic row house on Bloomfield Street in New Jersey in Hoboken for US$1.54 million with an estimated annual yield of 3.6%.
Not all the acquisitions are as expensive or prestigious – but they do offer higher yields.
They include a characterless, single-apartment building on Liberty Avenue in New Jersey, bought for just US$179,000 on a yield of 5.1%.
The highest estimated yield is 9.3% on a four-apartment on Neptune Avenue in Jersey City in the West Bergen region, which was bought for US$305,000.
The fund reported an after-tax loss of $2.1 million for the six months to June 30, 2012, which it said reflected the start-up phase of the group.
The share price has traded up strongly since November, rising from $1.55 to currently stand at $1.80.
Hell's Kitchen picture by Ed Gaillard courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr.</a>
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US Masters Fund moves upmarket with historic Hell’s Kitchen and Harlem acquisitions

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As the Commonwealth Bank’s chief economist Michael Blythe says, the RBA pays “a lot of attention” to the unemployment data – and so should property investors and buyers.
Most home owners need to have a job in order to secure and pay off their mortgages.
Unemployment rose – as expected – by 0.1 percentage points over November to 5.4%, but there’s more to the monthly labour force data than just the change to the headline unemployment rate.
Here are seven points to ponder from the December figures:
Nationally, employment is trending upwards
On trend measures (rather than using seasonally adjusted figures) employment is trending upwards at a modest pace, with 7,000 jobs added. According to bullish HSBC chief economist Paul Bloxham, the trend data “cuts through the month-to-month noise”. Rising employment could temper the RBA’s eagerness to cut the cash rate. Bloxham is the only bank economist tipping the cash rate to rise to 3.25% this year.
However, a fall in the participation rate is masking higher unemployment rate 
The participation rate (those employed or unemployed but looking for a job) was flat in December but is trending down. Westpac points out that if the participation rate were holding closer to its average since March 2008, then the unemployment rate would now be around 6% rather than 5.4%.
 Employment is growing in some non-mining sectors
Looking at December quarter data (October, November and December combined), Bloxham points out that employment is rising in some of the “exchange rate sensitive industries” including manufacturing, as the “effect of the high Australian dollar starts to wear off”. Again this suggests the economy may be starting to rebalance away from mining, suggesting a wider economic recovery.
But unemployment is rising in Queensland and is at 6.2% 
Those hopeful of a recovery in house prices in south-east Queensland should keep in mind that the state still has the highest unemployment rate on the mainland, well above the national average, and that it rose by 0.1 percentage points to 6.2% while the national unemployment rate fell. Westpac labelled the Queensland December unemployment result as “very poor”. The state’s unemployment rate has been above 6% since August last year – a drop in this rate could bode well for a pick-up in demand for housing, but should it continue to remain elevated a recovery could be further off.
Unemployment rate lowest in WA, but higher than six months ago
The biggest beneficiary of the mining boom, Western Australia, has the lowest unemployment rate of any state or territory at 4.3% – well below the national average. Six months ago, though, WA had an unemployment rate of 3.5%. ANZ notes that employment growth in Western Australia was strong over 2012 but “moderated towards the end of the year as the iron ore price fell sharply and the global outlook became more uncertain. Strong population growth has meant that the unemployment rate has increased a little in WA as a rising share of jobseekers has not found work”.
NSW employment trending upwards
NSW employment growth is up a solid 1.6% year-on-year, with ANZ noting that this was  accompanied by a “broadly unchanged jobless rate over the year”. This bodes well for expectations of moderate recovery in house prices in Sydney and other parts of the state in 2013.
 
Unemployment rate among youngest-seeking work at 14.1%
Loans to first-home buyers fell from 18.7% to 15.8% over November according to ABS housing figures. December unemployment figures show that those aged between 16 and 24 seeking full-time work, the unemployment rate stands at 14%, up from 13.5% in November. A year ago the unemployment rate for this category of prospective workers was 13.3% and it was less than 10% before the GFC – many of these people seeking work are potential first-home buyers.
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Unemployment rises to 5.4%: Seven insights for property investors and buyers

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Economist and housing market bear Steve Keen is at loggerheads with his academic institution, the University of Western Sydney (UWS), following comments made to his final-year economics students last year.
Keen is taking UWS to the Fair Work Commission (FWC) with the case due to be heard in Sydney on Monday afternoon.
A spokesperson for the FWC told Property Observer it is scheduled as a confidential conference to deal with a dispute between the two parties.
A report from the ABC suggests it is over delays in processing his voluntary redundancy with Keen tweeting yesterday that he needed urgent "industrial relations and also defamation legal representation".
At the same times UWS is investigating Keen for "serious academic misconduct" after Keen told his final economics students that he could not fail any of them because the university had abolished the economics faculty and they would have no way of re-taking his class.
"Without commenting on the specifics of a matter that is under investigation for serious academic misconduct, the University of Western Sydney believes that any allegation of ‘soft marking’ is extremely serious and an affront to academic standards," said the university in a statement.
The unversity says it also obligated to report any alleged breach of academic standards to the Federal Tertiary Education Quality and Standards Agency (TEQSA) and the Independent Commission Against Corruption (ICAC) for investigation, "which we have done".
"The matter is then to be investigated internally in accordance with the process outlined in the University’s collective agreements."
Keen told <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/steve-keen-contemplates-quitting-australian-academia-for-possible-private-sector-role-in-london/2012103057536">Property Observer in October </a>the university was cutting economics entirely from its curriculum and claimed UWS would soon have the “dubious” distinction of being the first university in Australia to offer no economics courses.
He made these comments as he contemplated quitting academic life for possible private sector roles in London, where he is a well-known economic analyst.
The university has denied it will no longer offer economics courses and said in a statement that it is “completely false” that students would not be able to re-sit their exams.
"Should an instance present where a current Bachelor of Economics student has failed a subject, the University would case manage the situation on an individual basis to ensure students can still finalise their degree and provide a good outcome for them, " said the university in a statement.
A spokesperson for the university told the ABC it would continue to offer a major and sub-major in economics as part of its Bachelor of Business and Commerce degree.
However, it did announce in November last year that it was closing its economics degree program after applications for the course fell from 241 four years ago to just 47 last year.
The Australian reported that the only economics course offered to students next year would be an introductory course for first-year business students.
Keen has tweeted about his battles with the university and also received messages of support from students.
He is one of 30 academics offered voluntary redundancy following UWS's decision to cancel economics and other courses.
 
 
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Steve Keen heads to Fair Work tribunal in legal stoush with the University of Western Sydney

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The unemployment rate increased marginally by 0.1 percentage points to 5.4% in December,  according to figures released today by the Australian Bureau of Statistics (ABS).
This was in line with consensus forecasts.
The December data release included upward revisions to the November unemployment reading with job gains upwardly revised from 13,900 to 17,100 jobs while work hours were also revised up in November, now showing 0.8% growth rather than 0.1%.
"In short, the job market remains resilient," says CommSec economist Savanth Sebastian.
The Commonwealth Bank had forecast the unemployment rate to remain unchanged at 5.3%.
Commonwealth Bank chief economist Michael Blythe says the RBA pays “a lot of attention to the jobs data". 
"It is the one monthly statistic that covers the whole economy.
“Trends in the unemployment rate are a good near?term predictor of RBA rate moves,” he says.
Economists tipping multiple cuts in the cash rate this year are forecasting a rise in unemployment to around 5.7% over the course of the year along with lower economic growth.
According to the ABS, the number of people employed decreased by 5,500 to 11,538,900 in December.
The decrease in employment was driven by decreased full-time employment, down 13,800 people to 8,112,500 and was offset by increased part-time employment, up 8,300 people to 3,426,400. The increase in part-time employment was driven by an increase in male part-time employment. The number of people unemployed increased by 16,600 people to 656,400 in December, the ABS reported.
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RBA interest rates watch: slight rise in unemployment to 5.4% in December, but as forecast

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There are 23 suburbs in Melbourne where first-home buyers can purchase a one-bedroom apartment and pay equal or less than the average estimated first-home buyer mortgage repayment in Victoria of $414 per week.
The suburbs can be found in an interactive heat map showing weekly mortgage repayment price bands across Melbourne suburbs compiled by the Real Estate Institute of Victoria (REIV) as part of its new <a target="_blank" href="https://www.reiv.com.au/Property-Research/First-Home-Buyer-Guide">first-home buyer guide.</a>
The $414 per week median mortgage repayment is based on the average first-home buyer loan size of approximately $286,600, a standard variable interest rate of 6.40%, receipt of the $7,000 First Home Owners Grant, a loan term of 30 years, a 10% deposit, and benchmark Lenders Mortgage Insurance (LMI) and conveyance fees.
First-home buyers may be surprised to learn that the list includes inner city, café-lined suburbs like Carlton and Moonee Ponds, the bayside suburb of Williamstown and up-and-coming suburbs like Preston and Reservoir.
The full list starting from the cheapest is:
<ol>
<li>
<a href="/news">Noble Park</a>, $202 per week, median price of $155,000</li>
<li>
<a href="/news">Albion </a>- $232 per week, median price $177,000</li>
<li>
<a href="/news">Box Hill</a> - $257 per week, median price of $194,750</li>
<li>
<a href="/news">Carlton </a>- $257 per week, median price of $195,000</li>
<li>
<a href="/news">Frankston </a>- $260 per week, median price of $197,500</li>
<li>
<a href="/news">Footscray </a>- $325 per week, median price of $245,000</li>
<li>
<a href="/news">Ormond</a> - $339 per week, median price of $255,000</li>
<li>
<a href="/news">West Footscray</a> - $346 per week, median price of $260,250</li>
<li>
<a href="/news">Epping </a>- $347 per week, median price of $261,000</li>
<li>
<a href="/news">Brunswick West </a>- $365 per week, median price of $274,000</li>
<li>
<a href="/news">Moonee Ponds</a> - $366 per week, median of $275,000</li>
<li>
<a href="/news">Mentone </a>- $370 per week, median price of $277,750</li>
<li>
<a href="/news">Reservoir </a>- $380 per week, median price of $285,000</li>
<li>
<a href="/news">Preston </a>- $381 per week, median price of $285,500</li>
<li>
<a href="/news">Williamstown </a>- $387 per week, median price of $290,000</li>
<li>
<a href="/news">Coburg </a>- $388 per week, median price of $291,000</li>
<li>
<a href="/news">Murrumbeena </a>- $391 per week, median price of $293,000</li>
<li>
<a href="/news">Flemington </a>- $392 per week, median price of $294,000</li>
<li>
<a href="/news">Bundoora </a>- $394 per week, median price of $294,000</li>
<li>
<a target="_blank" href="/news">Glen Huntly</a> - $401 per week, median price of $300,500</li>
<li>
<a target="_blank" href="/news">Thornbury</a> - $401 per week, median price of $300,000</li>
<li>
<a target="_blank" href="/news">Essendon </a>- $414 per week, median price of $310,000</li>
<li>
<a target="_blank" href="/news">Carnegie </a>- $414 per week, median price of $310,000</li>
</ol>
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From Noble Park to Essendon: 23 Melbourne suburbs with one-bedroom apartments priced below the first-home buyer mortgage median

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Rental vacancies rose in all mainland capital cities over December with Melbourne recording the highest vacancy rate of 3.6% - up 0.4 percentage points - with over 15,000 properties available for rent, according to the latest SQM Research figures.
The only capital city to buck the trend or rising rental vacancies was Hobart, where the vacancy rate eased marginally from 2.1% to 2% with 549 properties available for rent.
Perth remains the tightest capital city rental market with a vacancy rate of 0.9%, up from 0.7% in November, but unchanged on a year ago with 1,710 properties available for rent.
Sydney still favouring landlords with a vacancy rate of 2.1%, up from 1.8% in November, well below what is considered a balanced rental vacancy rate of 3%.
Melbourne, with a vacancy rate of 3.6% favours tenants and is described by Australian Property Monitors as the most “tenant friendly” capital city market in Australia.
Nationally, the vacancy rate increased by 0.4 percentage points to 2.3% with to a total of 63,089 rental listings following a rise in November – the first rise seen months “after periods of modest declines and stagnation in the months preceding” - but in line with SQM expectations.
“However, when comparing this figure to that of the corresponding period of the previous year (December 2011), there is very little to no change in vacancies,” says Louis Christopher, managing director of SQM Research.
“Thus, this surge is seen predominantly by SQM Research as a seasonal increase, with many rental properties becoming vacant during this period due to possible reasons such as university students vacating student accommodation or rental properties situated near their respective campuses, due to the end of year break,” he says.
Christopher says that at this time of the year “seasonality really can have an impact upon vacancy rates and overall property listings, and this year has proven to be no exception”.
“SQM Research does not seasonally adjust its numbers because we are of the opinion that the user of the data actually receives more value from observing the seasonal change that occurs in the property market,” he adds.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties rather than what it considers an inferior methodology of using a "potentially incomplete sample of agency surveys or merely relying on raw online listings advertised".
 
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Rise in rental vacancy rate to 2.3% in December mainly seasonal: SQM Research

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

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;

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;

Larry Schlesinger

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