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The number of owner-occupier home loan commitments in April lifted by just 0.8% to 48,475 mortgages  (up 6.9% over the past 12 months) with little improvement in first-home buyer participation, according to the latest ABS housing finance figures.
While mortgage broker Loan Market notes this was the highest monthly uptake of home loans since November 2009 and the fifth consecutive month of growth for the "struggling sector" it was significantly below the median forecast of a 2% rise in seasonally-adjusted dwelling commitments to owner occupiers in April based on the views of 26 economists polled by Bloomberg last week.
Westpac's economics team called the latest monthly figures "underwhelming" noting that "although approvals remain broadly consistent with a housing recovery, the strength of the upturn remains disappointing given the low level of interest rates".
"The detail showed loans excluding refinancing were down 0.7% in April although they are stronger in through the year growth terms (up 11.5% for the year vs 6.9% annual growth for total lending).
"Looking by state, NSW, SA and WA continue to lead the recovery with approvals (excluding refinancing) posting strong double-digit annual growth.
"Victoria and Queensland are the laggards with both recording declines in approvals (excluding refinancing) in April," says Westpac.
In value terms, loans to owner occupiers fell 0.9% to $14.6 billion while investment housing fixed loans rose 1.1% in value terms to $8.14 billion - indicating stronger demand for housing from property investors over owner occupiers
<img height="205" width="313" src="/images/stories/april3grandview/dwellings_financed.jpg" alt="dwellings_financed">
The small rise in owner-occupier lending April was driven by demand for establshed homes over new homes.
ABS recorded a 1% rise in loans for established home purchases.
Loans for the construction of new homes lifted just 0.2% while loans for the purchase of new dwellings fell 0.4%.
"Construction-related loan approvals - both loans for construction and for the purchase of newly built dwellings - have been even stronger over the last year and although approvals in this segment were also soft in April, through the year growth is robust at 17.9%," says Westpac.
In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 14.3% in April 2013 from 14.2% in March 2013.
"First-home buyers remain the stand out weakspot in the approvals data - we estimate loans to this segment were up 0.7% (seasonally adjusted) in April but are still down 10.8% annually and at very low levels by historical standards, particularly in NSW and Queensland," says Westpac.
Between April 2013 and March 2013, the average loan size for first home buyers fell $2,000 to $289,200. The average loan size for all owner occupied housing commitments rose $700 to $301,800 for the same period.
Owner occupied housing commitments trended up strongest in NSW  (up 279, 2.1%), Western Australia (up 130, 1.8%), Queensland (up 71, 0.8%), Victoria (up 71, 0.6%), South Australia (up 64, 2.0%), the Australian Capital Territory (up 15, 2.0%) and Tasmania (up 1, 0.1%), while a fall was recorded in the Northern Territory (down 10, 2.7%).
The seasonally adjusted estimates rose in South Australia (up 238, 7.6%), Western Australia (up 219, 3.0%), New South Wales (up 209, 1.5%), Queensland (up 116, 1.3%) and Tasmania (up 5, 0.7%), while falls were recorded in Victoria (down 579, 4.4%), the Australian Capital Territory (down 19, 2.5%) and the Northern Territory (down 3, 1.0%). 
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Mortgage lending limps to 0.8% rise in April as FHBs remain on sidelines: ABS

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With the end of the financial year less than three weeks away, cashed-up property investors should be cognisant of the amount of the money they contribute to their funds.
The ATO has <a target="_blank" href="https://www.ato.gov.au/individuals/PrintFriendly.aspx?ms=individuals&amp;doc=/content/00106372.htm">issued a reminder </a>that there caps on the amount you can contribute to your superannuation each financial year that are taxed at lower rates.
If you contribute more than these caps you may have to pay extra tax.
The tax on non-concessional (before-tax) contributions that exceed the current $25,000 cap is 31.5% (plus 15% paid on your behalf by your super fund) while the tax on concessional (after-tax) contributions that exceed the current $150,000 cap is 46.5%.
Subject to government changes being passed in parliament, from July 1 2013 the government will increase the concessional contributions cap to $35,000 if you are 60 years old or over.
Individuals aged 50 and over will be able to access the higher cap from 1 July 2014.
These contribution cap limits may particularly apply to property investors who have disposed of an asset and wish to invest some of the proceeds into their self-managed super fund.
Other changes set to take effect from July 1 2013 are to allow withdrawals from super fund of any excess concessional contributions made from 1 July 2013 and that excess concessional contributions to be taxed at the marginal tax rate rather than the top marginal tax rate.
Investors though will need to know the difference between concessional and non-concessional contributions.
Concessional contributions apply to before-tax contributions while non-concessional contributions apply to after-tax contributions. 
Types of concessional (before-tax) contributions include:
<ul>
<li>employer contributions, such as compulsory employer contributions paid by your employer, any additional pre-tax super contributions your employer makes, salary sacrifice payments made to your super fund, other amounts paid by your employer from your pre-tax income to your super fund, such as administration fees and insurance premiums</li>
<li>contributions that you are allowed as an income tax deduction, such as contributions you make if you are self-employed (to claim a tax deduction for your personal super contributions, you must first complete a notice of intent to claim deduction in the approved form and give it to your super fund)</li>
<li>notional taxed contributions if you are a member of a defined benefit fund some amounts allocated from a fund reserve.</li>
</ul>
The ATO also warns that if you decide to split your before-tax contributions and give some to your spouse, these contributions count towards your cap.
Types of non-concessional (after-tax) contributions include:
<ul>
<li>non-concessional (after-tax) contributions that your employer makes on your behalf from your after-tax income</li>
<li>contributions your spouse (including a same-sex spouse) makes to your super fund, unless your spouse makes the contributions because they're your employer</li>
<li>personal contributions that are not claimed as an income tax deduction</li>
<li>contributions in excess of your concessional (before-tax) contributions cap</li>
<li>contributions in excess of your capital gains tax (CGT) cap amount</li>
<li>most transfers from foreign super funds, excluding amounts included in your fund's assessable income.</li>
</ul>
Your age affects the amount of the concessional (before-tax) contributions cap, how the cap applies and what options you may have.
The ATO provides an <a href="https://www.ato.gov.au/individuals/PrintFriendly.aspx?ms=individuals&amp;doc=/content/00106372.htm">online guide to super contributions</a>.
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Cashed up SMSF property investors face higher tax rate for excess super contributions

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The Commonwealth Bank offers the most generous mortgage discounts for borrowers who take out loans greater than $750,000 among the four major banks.
This has been revealed in research carried out by financial comparison website <a target="_blank" href="https://ratecity.com.au/">RateCity.com.au</a> ,  which confirms that borrowers who take on a bigger mortgage are being offered cheaper home loans, while many smaller mortgage borrowers are forced to pay higher interest rates.
The major four banks – ANZ, Commonwealth Bank, NAB and Westpac – all offer cheaper deals for bigger mortgages.
The Commonwealth Bank has the biggest spread, with 0.35 percentage points lower advertised variable rates for a home loan above $750,000 compared to a home loan below $250,000. 
<div align="center">
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td style="text-align: left;" width="154">
Bank
</td>
<td style="text-align: left;" width="154">
Advertised variable rate for loans under $250,000
</td>
<td style="text-align: left;" width="154">
Advertised variable rate for loans above $750,000
</td>
<td style="text-align: left;" width="154">
Difference (percentage points)
</td>
</tr>
<tr>
<td style="text-align: left;" width="154">
ANZ
</td>
<td style="text-align: left;" width="154">
5.63%
</td>
<td style="text-align: left;" width="154">
5.43%
</td>
<td style="text-align: left;" width="154">
+0.20%
</td>
</tr>
<tr>
<td style="text-align: left;" width="154">
Commonwealth Bank
</td>
<td style="text-align: left;" width="154">
5.65%
</td>
<td style="text-align: left;" width="154">
5.30%
</td>
<td style="text-align: left;" width="154">
+0.35%
</td>
</tr>
<tr align="left">
<td style="text-align: left;" width="154">
NAB
</td>
<td style="text-align: left;" width="154">
5.53%
</td>
<td style="text-align: left;" width="154">
5.28%
</td>
<td style="text-align: left;" width="154">
+0.25%
</td>
</tr>
<tr>
<td width="154">
Westpac
</td>
<td width="154">
5.56%
</td>
<td width="154">
5.26%
</td>
<td width="154">
+0.30%
</td>
</tr>
</tbody></table>
</div>
Source: RateCity.com.au
Across the RateCity.com.au database, affluent customers, (borrowers who can afford a substantial mortgage such as more than $750,000) receive an average variable home loan rate of 5.32%, out of more than 100 lenders in RateCity’s database.
This is 0.42 percentage points lower than the average variable home loan rate for loans below $250,000.
<div align="center">
<table style="width: 50%;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="49%">
Home loan size
</td>
<td width="50%">
Average advertised variable rate
</td>
</tr>
<tr>
<td width="49%">
Above $750,000
</td>
<td width="50%">
5.32%
</td>
</tr>
<tr>
<td width="49%">
Below $250,000
</td>
<td width="50%">
5.74%
</td>
</tr>
<tr>
<td width="49%">
Difference (percentage points
</td>
<td width="50%">
+0.42%
</td>
</tr>
</tbody></table>
</div>
Source: RateCity.com.au
According to RateCity spokesperson Michelle Hutchison, lenders have a greater financial gain from borrowers taking on more debt.
“It comes down to the fact that bigger home loans are worth more money to lenders so they will make larger loan sizes more attractive by offering cheaper rates.
“Just as if you were to visit a supermarket to buy a bottle of soft drink, the bigger the bottle you purchase the less you pay per litre. In much the same way, a lender is willing to accept a lower rate per dollar when selling a larger amount of money.
“But just like a bottle of soft drink, bigger isn’t always better when it comes to borrowing and you shouldn’t take on more debt just to get a discount.”
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Commonwealth Bank leads big banks offering biggest discounts for big mortgages: RateCity

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The number of residential properties listed for sale across Australia rose 4.8% over May to a total of 379,158 properties. 
All capital cities recorded gains over May with biggest rises over the month occurring in Canberra and Perth - both cities recording 6.3% rises - followed by Melbourne (6%), Sydney (5.5%) and Brisbane (4.6%). 
SQM research director Louis Christopher says the across the board month-on-month rise in listings were “in part” to be expected as the market bounces back during May, after a dip in April due to the Easter holidays. 
<img alt="chartsqm" height="160" width="470" src="/images/stories/2013/chartsqm.jpg"> 
“Overall, if the market was indeed stronger, stock levels would be decreasing despite of seasonality. 
“However, we see that this is not the case as yet. It is the opinion of SQM Research that the current market is still in the very early stages of recovery," he says.
Christopher says Melbourne is a bit of a concern as year-on-year there are now more listings (up 1.2%). 
“We need to see stock being absorbed first before upward pricing momentum can occur,” Christopher says. 
Melbourne has by far the most stock on market with 49,268 residential listings. 
Brisbane is second with 28,205 listings – up 2.4% over the past year. 
Both have more listings than the bigger property market of Sydney, which has recorded the steepest decline in listings over the past year. 
Year-on-year, Sydney listings are down 10.1% to 27,761 properties for sale while Perth listings are down 2.3% over the past year. 
“Except for Sydney, Perth and Darwin, residential property listings across the country still remain elevated and stubbornly high. Melbourne is a prime example of this, “ says Christopher. 
“After a period earlier this year where it appeared that stock was being absorbed, we now have a situation where there is now even more stock on the market than what we had this time last year. Auction clearance rates may well be higher in that city but vendors seem to be using this period to offload their properties. 
“As stated previously, what we have ahead of us is only a modest to moderate housing recovery. 
Christopher says the strongest cities out there “are by far Sydney, Perth and Darwin”. 
SQM expects Perth to slow down later this year.
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Canberra, Perth and Melbourne lead 4.8% rise in May residential listings: SQM

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Two economists – Westpac’s Bill Evans and Macquarie’s Richard Gibbs – predict the cash rate will fall by a further 75 basis points to settle at 2% over 2014.
The forecasts, contained in the latest Bloomberg survey of 26 economists, stand out sharply.
Evans, the first economist to tip the RBA to begin cutting rates in November 2011 has consistently argued that the cash rate will fall to 2%.
Evans tips a 25 basis point rate cut in August followed by another one in the final quarter of the year and one in the first quarter of 2014.
“The Reserve Bank has retained an easing bias, but it is not an urgent one," said Evans following the June decision to leave rates on hold.
“The path of easing from here will depend on developments in demand; the financial markets (the Australian dollar, as it jointly impacts demand and inflation) and the inflation story itself,” he says.
Richard Gibbs was <a href="/news">one of eight economists</a> who correctly tipped the RBA to cut the cash rate in May, but his expectation of a follow-up rate cut in June did not eventuate.
He expects a rate cut in August and two more rate cuts in the final quarter of the year.
Both Gibbs and Evans forecast the cash rate to stay at 2% throughout 2014.
However neither economists tip a rate cut in July, joining 21 out of 26 economists polled by Bloomberg who expect the RBA to site on its hands until at least August.
The quarterly inflation update on July 27 (between the July and August monetary policy meetings) is expected to play a key role in guiding the RBA’s decision about whether to cut rates further as will the performance of the Australian dollar.
Australian Financial Review economics editor Alan Mitchell says the "sub-par" economic growth outlook could force the RBA to cut rates further, while also having the challenge of managing the "bumpy" transition away from mining investment to non-mining sectors of the economy amidst a falling Australian dollar.
Among those tipping a rate cut in July are Stephen Koukoulas, the Business Spectator columnist who tweeted yesterday that the RBA would resume cutting rates “soon” and would have regretted its decision not to cut the cash rate in June.
The outlook over the next 12 months is decidedly unclear based on the Bloomberg survey results.
Six economists see rates higher in a year’s time, four expect them to say them to stay the same, nine expect one more rate cut (2.5%),  four expect two more rate cuts (2.25%) and two expect three (2%).
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Where to for the RBA cash rate? Bill Evans and Richard Gibbs see 2%

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Australia's biggest mortgage lender the Commonwealth Bank has cut interest rates on new three-year fixed rate home loans to 4.99% per annum.
The new rate is available under its Wealth Package offering and is a 10 basis point discount on its previously advertised rate of 5.09%.
The rate requires a minimum loan amount of $150,000.
It is one of the lowest three-year fixed-rate offering of the four major banks.
ANZ also offers a 4.99% fixed-rate for three years under its Breakfree home loan package offering.
"Fixed rate home loans are currently popular amongst home buyers," says Clive van Horen, acting head of retail banking for the Commonwealth Bank.
“Our fixed rate home Loans are now at a 23-year low.
"We are increasingly seeing our customers choosing to fix all, or part of their home loans.” says van Horen.
A spokesperson for the bank added that the majority of customers fixing their rate are new customers, but there is also a significant number of existing customers choosing to fix.
<a href="/news">Click here for a guide to what the other major banks are offering fixed and variable mortgage customers.</a>
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Commonwealth Bank cuts three-year fixed-rate home loan to 4.99%

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Australia’s construction sector notched up three years - 36 consecutive months - of contracting activity in May, according to the latest Australian Industry Group/HIA Australian Performance of Construction Index (Australian PCI). 
The benchmark index remained broadly unchanged in May at 35.3 - readings below 50 indicate a contraction in the industry with the distance from 50 indicative of the strength of the decline.
The last time the sector expanded was in May 2010.
The weakest sub-sector over the month was detached house building, which weakened for a third consecutive month, with activity recording the sharpest rate of contraction in eight months.  
In contrast, commercial construction activity declined at a slower pace while rates of contraction in apartment building and engineering construction were unchanged on the previous month.
Construction activity by sector
<img src="/images/stories/april23tivoli/construction_index.jpg" width="470" height="363" alt="construction_index">
Source: AIG/HIA Performance of Construction Index.
Despite the sluggish conditions, input prices (73.4) and wages (55.9) continue to lift.
“A sharper decline in the house building sector, together with a flat result for apartments at a very low index reading, unfortunately confirms the on-going sluggish nature of residential construction activity,” commented HIA chief economist, Harley Dale. 
“Some leading indicators point to a very modest uplift in new home building activity, from a recessionary starting point. 
However, he says the latest indexresults highlight what should be a prominent concern for policy makers – "the lack of a large and sustainable recovery in residential construction at a time when the domestic economy sorely needs such an outcome". 
“The balance of risks points to a modest increase in building activity in 2012/13, followed by a subsequent pull-back next year," says Dale. 
“That’s hardly the desirable result for the tens of thousands of businesses and hundreds of thousands of people who rely on new home building for their livelihood, before one considers the flow-on negative impacts to the wider economy of continued under-performance from this key sector,” 
AIG director Peter Burn says the construction industry “continues to languish due mainly to historically low levels of building activity”.
“This is now being compounded by reductions in engineering activity related to mining-related investment which had been driving the industry (and indeed, the economy) until very recently.
“Successive cuts in interest rates by the Reserve Bank have been welcome, but so far they appear only to have steadied the decline in building activity,” he says.
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Detached housing construction sector sinks into steepest decline in eight months: AIG/HIA index

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Warren David McFarlane, a real estate salesman and land valuer from Wembley, Perth has been disqualified and fined $1,000 by the State Administrative Tribunal (SAT), after submitting an application with WA's Consumer Protection which contained forged signatures.
The application was for renewal of his real estate sales representative’s certificate of registration prior to its expiry in March 2012, which requires a declaration from a current employer and an authorised witness.
McFarlane, who was not employed by an agency at the time, admitted that he had forged the signature of a former employer, a West Perth real estate agent, as well as two witnesses.
He has been disqualified from registration as a real estate sales representative for two years, fined $1,000 and order to pay costs of $500.
In a subsequent order, the SAT also disqualified him from holding a land valuer’s licence for one year on the basis that he was not a fit and proper person to hold such a licence.
The first renewal application made by McFarlane was rejected by Consumer Protection because the witness was not authorised, and the application was re-submitted with the forged signature of a licensed real estate agent as a witness, WA's Department of Commerce said in a statement.
Disciplinary action against McFarlane under the Real Estate and Business Agents Act began after WA's Consumer Protection confirmed that the signatories to the application had no knowledge of the use of their forged signatures.
Commissioner for consumer protection Anne Driscoll said the case highlighted the serious consequences of including false information in applications.
“The licensing and registration system is designed to ensure that only fit and proper people are allowed to work in the property industry in WA and underpins consumer confidence and protection,” Driscoll said.
“It’s essential that truthful and accurate information is given in licence applications and renewals, so that we can maintain the integrity of the system and the licensed industries.”
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Perth estate agent disqualified after forging signatures

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Steve Keen says he never expected house prices to fall in a huge leap – a point for which he has been figuratively flayed alive by the mainstream media – but does expect house prices to fall like a “slow bleed”.
In 2008, Keen said house prices would fall 40% once the financial crisis had "washed through the system".
In November 2009, he walked up Mount Kosciuszko wearing a T-shirt that said: "I was hopelessly wrong on house prices!" after losing a bet with Macquarie's Rory Robertson.
But he now contends the GFC has never ended and will continue - on and off - over the next two decades.
The volatility in the housing market certainly remains.
Dwelling values fell by a surprising 1.7% in the past two months despite a rate cut in May, according to RP Data-Rismark, while the ABS had capital city house prices up just 0.1% over the March quarter.
Of further concern, the most recent Real Estate Institute of Australia (REIA) Housing Affordability Report has recorded <a href="/news">plummeting mortgage approvals in the key first-home buyer market</a>, particularly in NSW and Queensland.
Keen had anticipated in 2008 when the GFC was in full swing a faster Australian price correction than what has happened in Japan, where house prices in Japan’s six largest cities rose around 175% from 1985 to 1992 and then fell back to their starting point between 1992 and 2000 – but slower than the dramatic GFC plunge in the US.
 <img src="/images/stories/april23tivoli/japanese_and_us_housing_bubbles.jpg" width="470" height="338" alt="japanese_and_us_housing_bubbles">
Source: Seattlebubble.com
Instead Australia underwent a modest house price correction as the latest RBA chart pack show, with five out of the six biggest capital cities now having property markets trending upwards, though at uneven rates of growth - but nothing like the corrections in the US and Japan.
<img src="/images/stories/april23tivoli/house_prices.gif" width="470" height="375" alt="house_prices">
“I got the magnitude wrong. But I?never had this idea of a huge drop?tomorrow,” Keen says in an interview with BRW magazine.
He has called the most recent modest rally in house prices (up 2.9% over the past 12 months according to RP Data) a “suckers rally” with price gains spurred on by government incentives, low interest rates and the resources boom.
Keen does admit that he got other forecasts wrong, including expectations that there would be a massive de-leveraging among households, something which has only occurred on a modest scale.
The most recent RBA chart pack graphs show household debt to income soared from the early 1990s to peak at around 150% to income in the mid-2000s.
<img src="/images/stories/april23tivoli/household_debt.gif" width="470" height="422" alt="household_debt">
It started to dip as the GFC hit around 2007, but government incentives like the doubling and tripling of first-home owner grant (under the boost scheme) encouraged people to borrow again.
Household debt now sits just under 150% - hardly the massive correction Keen anticipated and a mistake he is happy to acknowledge.
Keen says mortgage debt is rising because variable mortgage rates remain the preferred home loan product in Australia while fixed-rates dominate in the America.
This means that borrowers get an instant mortgage repayment benefit when the cash rate is cut.
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House prices will fall in a “slow bleed” fashion: Steve Keen

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The Geelong economy and property market have again been cast into the spotlight following concerns about the number of jobs retailer Target will cut.
Around 1,000 people are employed by Target at its Geelong office.
No announcement has yet been made about how man jobs will be cut, but the retailer has confirmed Geelong jobs will be lost. The cuts were anticipated as part of a company review after Target owner Wesfarmers revealed an earnings downgrade for the discount retailer for the 2013 financial year.
It follows Ford Australia’s announcement last month that it would close its <a target="_blank" href="https://www.propertyobserver.com.au/victoria/first-ansett-collapse-now-ford-plant-closure-threatens-broadmeadows-property-market-ford-fordaustralia/2013052361599">Geelong production plant in 2016</a> with the loss of around 500 jobs.
There is also uncertainty around the future of workers at Shell’s Geelong refinery. The enterprise employs around 450 people as well as contractors.
Shell Australia announcing in April that it would seek to sell the refinery by the end of 2014 as part of its efforts to dispose of smaller, less profitable refineries. Should a buyer not be found Shell may be forced to close the refinery. Converting the refinery to an import terminal has also been muted.
A further 500 jobs at Alcoa's unprofitable Point Henry aluminium smelter with the American-owned enterprise considering cuts worldwide. Alcoa had planned to shut the smelter down last year before receiving a $40 million bail out from the Victorian and Federal governments.
The potential loss of more than 2,00 jobs (more when contractors and affiliated employment are factored in) has been tempered by news that Geelong has been chosen as the headquarters of the new DisabilityCare agency for the National Disability Insurance Scheme (NDIS), which will employ around 300 people plus another 150 in the regional office.
The NDIS will commence in the Barwon area on July 1 with the Victorian government to invest more than $300 million over the first three years of the scheme.
Victorian premier Dennis Napthine says the agency will be located in Geelong's CBD but has not been able to guarantee all jobs will go to local workers.
Local estate agents Property Observer has spoken to emphasise that Geelong is now a far more diversified economy then its manufacturing-heavy tradition
Nick Lord, an estate agent from Maxwell Collins, anticipates a limited impact from the closure of the Ford plant.
He says Geelong has grown to have strong employment in areas such as education and health “to name just a few”.
He says the city has changed over the recent years with people “continuing to commute to Melbourne for work whilst enjoying the Geelong lifestyle”.
Hotspotting.com.au’s Terry Ryder –a big believer in the potential of regional city property markets for growth, provided they have diversified economies - says new ventures in the pipeline will counter-balance the economic impact of the closure of Ford and other potential job losses in Geelong.
These include the Regional Rail Link and the plan to make Avalon the second international airport for Melbourne.
Ryder says Geelong will continue to have a “strong future as an affordable lifestyle alternative to Melbourne, with improving transport links to the City”.
However, some estate agents have warned the job cuts will impact on the sentiment of homeowners, buyers and investors.
Peter Nell from Stockdale &amp; Leggo Geelong says the Ford announcement  would affect the confidence of all types of purchasers.
"The concerns are obviously employment, as Shell, Alcoa and now Ford have all turning their backs on this town," he says.
But, he believes Geelong has so much to offer that he is sure "we will figure a way to create different forms of employment".
"But we need to do something now, not in 2016," he says.
The April 2013 Real Estate Institute of Victoria (REIV) update on Geelong, the Surf Coast and Queenscliff has house prices up 2.6% to $390,000 over the year to April, but unit prices down by 4.7% to $305,000 over the same 12 month period.
The figures are based on properties sold in the previous 12 months, updated on a rolling monthly basis.
REIV spokesperson Robert Larocca says housing is more affordable in Geelong and it has a very good appeal due to the more country feel and access to the bay, but adds that the health of any property market is “directly linked to the health of the economy”.
“As a result if the closure of Ford leads to reduced economic growth and less employment then it will have a negative impact on the market. It really depends on the region finding a replacement for the economic activity provided by Ford and its suppliers. Thankfully there is a strong and resilient local community,” he says.
To mitigate the impact of the Ford closure and other job losses, there are already state and federal government initiatives underway.
Victorian premier Denis Napthine announced last month that he will lead a special ‘Premier’s Ford Taskforce’ aimed at generate new job opportunities for workers and communities affected by the Ford announcement.
Napthine says the taskforce will take action to diversify economies, build confidence and encourage investment in Geelong and the Northern Metropolitan area of Melbourne.
One of its first initiatives is a Jobs Summit taking place in Geelong on June 19 with the aim of identifying ways to further diversify the Geelong economy.
The Federal government has also committed to providing an extra $15 million to the $52 million joint Commonwealth and State Government jobs package for Geelong.
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Target jobs uncertainty throws spotlight back on Geelong property market

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

Joel Robinson

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

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

Sammut secures approval for debut Brisbane apartment development in Toowong

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

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

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

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

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

Larry Schlesinger

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