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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/developments/broadbeach-qld-4218">Broadbeach</a> offers plenty of reasons to live vertically, but moving from a substantial family home into an apartment can expose the compromises of high-density living. Privacy, room for guests and usable living space tend to matter more when an apartment is intended as a permanent home rather than an occasional coastal base.

A typical residential floor at <a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a>, on Surf Parade,&nbsp;contains just four apartments. The 94-residence development by <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> is predominantly made up of expansive three-bedroom homes, with a limited collection of half-floor penthouses above.

Across the apartment floors, <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has used the relatively limited number of residences to give each home greater access to natural light and outlook. Living spaces extend towards full-height glazing, while a series of bay windows frame selected views across the Pacific Ocean, city and hinterland rather than treating the building edge as a continuous wall of glass.

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“The apartment floors deliver a collection of homes that embrace controlled outlook via a series of bay windows deliberately framing moments of view,” Rothelowman Director Kim Lowman said.

From outside, those projecting forms contribute to the tower’s faceted profile. Strong horizontal and vertical elements establish its proportions, while the changing position of the sun alters the light, shadow and reflection across the façade throughout the day.

The same attention moves inside the apartments, where the material palette combines warm timber, natural stone, metallic detailing and softer curved forms. Kitchens sit within the main living zone, with stone island benches, integrated joinery and European appliances, before the living areas extend towards the glazing and the outlook.

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[smartcode_project:default project_id=149670 project_image_fid=360981]

Three genuine bedrooms provide room to accommodate family and guests, while two secure car spaces and storage address some of the practical considerations that can become more noticeable when moving from a larger home. Feedback from the display suite has centred on the warmth and restraint of the interiors, with buyers commenting that the residences feel like homes rather than conventional coastal apartments.

A limited collection of half-floor penthouses occupies the upper levels, increasing the scale of the living spaces and adding private balconies and elevated finishes. From this position, the outlook extends between the ocean and hinterland.

Outside the private residences, The Eveleigh separates its shared spaces between the podium and rooftop. The podium is centred on wellness, with subtropical landscaping surrounding a swimming pool and pool terrace, yoga garden, private gymnasium, sauna and hot and cold plunge facilities. Landscaped retreats and pavilions provide additional places to sit away from the main recreation areas.

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Higher in the building, a rooftop pavilion and private dining suite sit alongside resident lounge, barbecue and outdoor dining areas, opening towards panoramic views across the ocean, city and hinterland.

“Buyers are no longer just looking for an apartment, but a lifestyle where they can relax, reset, and enjoy a balanced way of living,” Hirsch &amp; Faigen Director of Sales Matt George said.

Interest to date has come from established owner-occupiers and interstate lifestyle purchasers, including buyers planning a future move to the Gold Coast. Many are coming from larger homes and want to reduce ongoing maintenance without giving up space for family and guests, privacy, two car spaces or the ability to entertain at home.

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Much of that daily life can also take place beyond the building without requiring a drive. Kurrawa Beach and Pratten Park are an easy walk from Surf Parade, while Pacific Fair, Oracle Boulevard, The Oasis, restaurants, cafés, entertainment and public transport are also within walking distance.

The Eveleigh is Hirsch &amp; Faigen's fourth Gold Coast development since entering the market in 2021, following The Hemingway at Palm Beach, The Emerson at Kirra and Yves at Mermaid Beach. Each of the preceding projects sold out before completion.

“Broadbeach had been on our radar throughout our time operating on the Gold Coast,” the developer said. “Following our projects in Palm Beach, Kirra and Mermaid Beach, Broadbeach represented the natural next step for the business.”

The Surf Parade site brought together proximity to the beach, protected coastal outlooks and walkability to dining, shopping and recreation. Hirsch &amp; Faigen also identified the street as an emerging premium residential address, with enough separation from Broadbeach's busier destinations to retain a quieter environment at home.

The Eveleigh is now under construction by Maxcon, with completion forecast for mid-2028. Three-bedroom residences are currently available from $2.87 million.

[smartcode_project_cta:default project_id=149670]

Joel Robinson

The Eveleigh brings house-like apartments to Broadbeach

A long-stalled Campbelltown development site is back in play, with new plans for 139 apartments set to supersede a mixed-use scheme approved almost a decade ago but never built.

The new proposal for 28 Cordeaux Street would deliver 116 market and 23 affordable apartments in a part 14-storey building, bringing a substantial new project into a Campbelltown market where new apartment supply remains limited.

Plans have been filed over the 3,092 sqm corner site at Moore-Oxley Street, around 600 metres from Campbelltown Railway Station and the city-centre retail core.

The site already carries a mixed-use residential approval dating to 2016. Doroch Architects has now been engaged on a larger replacement scheme, which is progressing as a State Significant Development Application following a Housing Delivery Authority determination in August 2025.

The apartment mix comprises 39 one-bedroom, 72 two-bedroom and 28 three-bedroom residences. Two-bedroom apartments make up just over half of the project, while three-bedroom homes account for 20 per cent.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="136dd5b9-3791-4da6-9e31-76f533f5b4de" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da2.png?VersionId=LgOSy9nwf5u.MGswBBwaGGxuX8QpHSl_" />

Of the 139 apartments, 23 will be delivered as affordable housing under the in-fill affordable housing provisions of the Housing SEPP. The affordable component represents 15 per cent of the residential gross floor area and will be managed by a registered Community Housing Provider.

Doroch has sought to break the scale of the building into two distinct elements, with a masonry podium of around four storeys establishing the street edge before the residential tower steps back above.

The corner position has shaped that approach. Cordeaux Street faces toward the commercial and civic centre, while Moore-Oxley Street leads into the lower-scale residential neighbourhood to the south, and the design verification report describes the site as "bridging the commercial core to the north and established residential areas to the south."

The podium will be expressed predominantly in face brick, while the upper levels shift to brushed and grooved concrete cladding with darker metal detailing. Recessed sections, deep balcony edges and landscaping break down the upper form, with an approximately 11.8-metre setback to the northern boundary addressing the adjoining St Peters Anglican School.

<img alt="First look: New 139-apartment plans revive long-stalled Campbelltown city centre site" data-entity-type="file" data-entity-uuid="c8b3d2d3-c561-4bfc-a5d9-a68c0c10dac1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campbelltown%20da1.png?VersionId=AeAEyJU02Gk2k5noUj2StziCvdQ7fW4B" />

Campbelltown has been starved of new residential developments in the last decade.

The only other notable development set to come to market this year is ALAND's Queen Square, a mixed-use precinct on over two hectares that will comprise apartments above a vibrant ground-level retail and hospitality dining precinct.

First look: New 139-apartment plans revive long-stalled Campbelltown city centre site

First Look: Sherlock Construction pitches apartments for low-rise Deception Bay

Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

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The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

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Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

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Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

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Larry Schlesinger

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