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Sentiment about the housing market is improving but still favours buyers over sellers.
Four out of five (80%) of the 1,030 people surveyed by RP Data and Nine Rewards about the outlook for the property market over the next six to twelve months, said now is a good time to buy.
This is up from 76% who said it was a good time to buy, when last surveyed six months ago.
Is now a good time to buy a property?
<img alt="rp_data_survey" src="/images/stories/april23tivoli/rp_data_survey.jpg" width="470" height="234">
Source: RP Data/Nine Rewards
Less than two-thirds (63%) of respondents said now was a good time to sell a property, down from 71% who said so six months ago.
“There has been a positive improvement in housing market conditions over the past six months, however the majority of those surveyed are still showing a low level of confidence about selling conditions,” says RP Data national research director Tim Lawless.
“As consumer confidence in housing market conditions rises, we are likely to see a larger number of dwelling sales as the year progresses.
“We have already seen buyer numbers rise from their early 2012 lows, and transactions over the past six months are about 4.3% higher than the same time a year ago,” he says.
The survey found an overall improvement in housing market sentiment with 41% of respondents expecting home values to rise over the next six months compared with just 33% of respondents back in October last year.
However, the majority of respondents (52%) expect the housing market to remain steady over the next half year, which may explain the caution about selling.
Only 7% are expecting dwelling values to fall.
Of those respondents who are expecting home values to rise over the next six months, their expectations of growth generally remain subdued. 86% of these individuals are expecting home values will rise by less than 5% over the next six months.
According to those respondents who think values will fall over the next six months, the largest proportion (38%) are expecting the fall to be less than 2.5% and 75% of respondents think values will fall by less than 5% over the coming half year.
“The May survey results revealed that there was a substantial upward shift in consumer expectations for housing market conditions over the past six months, however, this hasn’t changed a great deal since earlier this year when the February survey results were released.
“Based on the survey results, we’ve seen distinctive differences from region-to-region where as an example, 59% of respondents in Perth expected values to rise over the next six months, and 56% cent of respondents located in Sydney expect values to rise over the next half year.
“In contrast, survey participants in Tasmania delivered a much more sedate reaction with no local respondents expecting values to rise over the next six months,” he says.
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lschlesinger-FZcF9M3vE6

Housing market sentiment improving but still favouring buyers

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The Reserve Bank will leave the cash rate on hold at 2.75% until November, according to JP Morgan chief economist Stephen Walters.
Walters believes the dollar is key to the RBA making its next cash rate cut decision.
In newly published research, he expects the Australian dollar’s return to parity against the US dollar – making it harder for industries like manufacturing, tourism and retail – to be competitive will force the RBA to take the cash rate to a new record low of 2.5%.
As highlighted by other economists, Walters says tomorrow’s official capital expenditure figures will provide insights into the health of the overall Australian economy.
He also anticipates the unemployment rate rising while expecting GDP to be only 2.75% next year, reducing his earlier forecasts of 3.25% economic growth in 2014.
The latest Bloomberg survey has 10 out of 21 economists forecasting a cash rate of 2.5% in the final quarter of 2013 with Westpac’s Bill Evans tipping a cash rate of 2.25% and the remainder anticipating now rate cut this year.
Only two economists – Westpac's Bill Evans and AMP Capital's Shane Oliver – expect a rate cut in June.
Yesterday Citibank cut its <a href="/news">five-year fixed-rate home loan to 5.35%.</a>
These are the current lowest fixed and variable rates (as of May 28):
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="127" valign="top">
Provider
</td>
<td width="129" valign="top">
Loan name
</td>
<td width="98" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="127" valign="top">
State Custodians
</td>
<td width="129" valign="top">
State Custodians Peak Performance Offset Home Loan
</td>
<td width="98" valign="top">
4.74%
</td>
<td width="116" valign="top">
5.11%
</td>
</tr>
<tr>
<td width="127" valign="top">
Loans.com.au
</td>
<td width="129" valign="top">
Blackboard special – purchases only
</td>
<td width="98" valign="top">
4.75%
</td>
<td width="116" valign="top">
4.77%
</td>
</tr>
<tr>
<td width="127" valign="top">
UBank
</td>
<td width="129" valign="top">
UHomeloan – refinance only
</td>
<td width="98" valign="top">
4.87%
</td>
<td width="116" valign="top">
4.87%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
Greater Building Society
</td>
<td width="123" valign="top">
Ultimate Home Loan Package
</td>
<td width="95" valign="top">
4.74%
</td>
<td width="114" valign="top">
5.51%
</td>
</tr>
<tr>
<td width="137" valign="top">
UBank
</td>
<td width="123" valign="top">
UHomeloan – refinance only
</td>
<td width="95" valign="top">
4.83%
</td>
<td width="114" valign="top">
5.12%
</td>
</tr>
<tr>
<td width="137" valign="top">
iMortgage.com.au
</td>
<td width="123" valign="top">
iMortgage Fusion 75
</td>
<td width="95" valign="top">
4.84%
</td>
<td width="114" valign="top">
5.08%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="133" valign="top">
Provider
</td>
<td width="133" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="108" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="133" valign="top">
iMortgage.com.au
</td>
<td width="133" valign="top">
iMortgage Fusion 75
</td>
<td width="97" valign="top">
4.94%
</td>
<td width="108" valign="top">
5.16%
</td>
</tr>
<tr>
<td width="133" valign="top">
Loans.com.au
</td>
<td width="133" valign="top">
Dream Loan Express Fixed
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
4.93%
</td>
</tr>
<tr>
<td width="133" valign="top">
Aussie
</td>
<td width="133" valign="top">
Aussie Select Basic Fixed Rate
</td>
<td width="97" valign="top">
4.99%
</td>
<td width="108" valign="top">
5.22%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
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Cash rates to remain on hold until November: JP Morgan’s Stephen Walters

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<img alt="littleprojectsbannertwo" height="94" width="470" src="/images/stories/2013/05/littleprojectsbannertwo.jpg">
Little Projects' Michael Fox was responsible for the first multi-level Bunnings in Victoria.
<img style="margin: 5px; float: left;" alt="michaelfox" height="200" width="200" src="/images/stories/2013/05/michaelfox.png">Developer: Michael Fox
Position: Managing Director
Company: Little Projects
Office location: Melbourne
How long have you been in the industry?
23 years. My experience has been in residential property management, residential sales, commercial property management, commercial sales and leasing, corporate real estate and property development.
What’s happening in the area you specialise in?
We are building some great lifestyle developments at the moment. Our <a target="_blank" href="https://www.propertyobserver.com.au/victoria/developer-offers-olive-branch-after-selling-out-south-yarra-development/2013031259839">ILK development (certain to be one of Melbourne’s most iconic developments)</a> is about to finish. We are well and truly underway with our building of the Tip Top development in East Brunswick and about to start building our latest creation CENTRAL in South Yarra.
Describe the most interesting property you have sold/leased/developed/managed:
I was responsible for the first multi-level Bunnings in Victoria in Burwood Road, Hawthorn. It was a sensational development and still is today. A whole new concept, a whole new view on rentals and how to make big box retail work in an inner city location. I’m pretty sure it still holds the record for yield of a Bunnings store. 6.25% sold off the plan.
What are the ingredients to being successful in your job?
You have to have a great team. At Little we have just that. It’s about the team. It’s not a one person show. We have sensational people and it’s great to place to work. We like to think we create great lifestyle developments. Our buildings are sensational and are in great locations.
What aspects of your role do you enjoy the most?
I love property because it’s a complete lifestyle job. It gets you out on the road and out of the office. I have seen the world with my property jobs over the years and it just keeps going. This month I will go to Malaysia, Hong Kong, Singapore and China.  I also love the feeling you get when someone says “I live in your building” – it’s just the best.
Where would you invest a spare $750,000?
Our one bedroom apartments in Port Melbourne all returning around 5% which is just sensational and most were leased before the owners settled. South Yarra will be the same. So I’d buy a one-bedroom apartment in South Yarra and a one-bedroom in Port Melbourne.
Which football team do you support?
I’m a Hawthorn man.
What’s your favourite app or techno gadget?
It’s bit of a contradiction but I have been using ebay and Gumtree a lot lately to buy parts for my Moke which has no gadgets whatsoever!! Not even a radio or a heater.
How do you use social media?
I’d say getting better. Slow to start but learning as I see that it’s an increasingly important part of marketing. I have 3 daughters and a pretty handy PA and Marketing team. Between them I learn slowly. We have nearly 1000 Facebook fans and we will shortly start on Instagram.
Connect with Michael on Twitter: @Mfox_Little
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In profile: Little Projects managing director Michael Fox

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Macquarie Group, which has one of the fastest growing home loan books and a wholesale funding deal with Yellow Brick Road, has a 4% delinquency rate on home loans securitised through its PUMA program, according to Moody's.
This is more than double the overall mortgage arrears rate of <a href="/news">1.66% for borrowers more than 30 days behind on mortgage repayments</a>.
The chart below shows Macquarie's delinquency rate has been rising since around September 2011.
Arrears rates are modest by comparison at AMP, HSBC, ING and other banks.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/05/moodysmay28two.gif" rel="shadowbox"><img src="/images/stories/2013/05/moodysmay28twothumb.gif"></a>
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Macquarie mortgage delinquencies surge to 4% of securitised loan book: Moody's

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Melbourne house values fell by 1.14% over April to a median value of $556,500 to be up 2.05% over the quarter, according to the latest figures from property market analysts Residex.
RP Data-Rismark also had Melbourne house prices down over April, but by a smaller 0.5%. 
Meanwhile, constrained by a lack of affordability, Sydney recorded the steepest fall in its median house value in April of all the major capital cities and regions, according to Residex.
Sydney house values fell 1.42% over April to a median of $684,000.
Over the quarter Sydney house values are virtually unchanged at 0.84%. They are up 3.23% over the past 12 months.
The decline in Sydney house prices went against the overall trend of an 0.83% rise in house values over April to a median of $437,000 with Residex forecasting a "moderate" rise in housing values over the coming months off low interest rates.
Residex has house values up 2.07% over the quarter and 2.8% over the past year.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/residexmay28one.gif" title="Click to enlarge"><img src="/images/stories/2013/05/residexmay28onethumb.gif"></a>
RP Data-Rismark recorded a 0.6% decline in house values over April with its <a target="_blank" href="https://www.propertyobserver.com.au/residential/autumn-blues-as-dwelling-values-dip-again-in-may-rpdata-timlawless/2013052661671">daily index pointing to a 1% decline over May.</a>
According to RP Data-Rismark, Sydney house prices fell 0.4% over April.
Residex CEO John Edwards says Sydney's unaffordability makes it “overly sensitive to changing economic conditions” resulting in negative growth in April.
According to Residex affordability figures, Sydney home borrowers are left with just $880 in left over cash each week once the home loan is paid off (assuming a variable home loan rate of 5.4%, 25 year loan term pa, average family tax rate of 17.5% and a 20% deposit).
The other capital city market to record a decline was Canberra, with house values down 1.12% over April to a median value of $519,500, down 0.56% over the quarter, according to Residex.
RP Data-Rismark had Canberra house prices down 0.6% over April.
 
<hr class="system-pagebreak">
The positive effects of the mining boom continued to be felt in Perth and Darwin, according to Residex.
Perth house values lifted 1.37% over April to be up a healthy 4.5% over the past three months with a median value of $503,000.
Darwin house values rose 2.41% over April and are up 3.78% over the quarter with a median house value of $550,000.
Over the past 12 months to April 2013, Darwin house values are up 12.41%, the only capital city property market to record double-digit growth annual growth. Darwin’s ten year average growth rate is 10.49%.
Brisbane house values rose 1.42% in April to a median of $437,500 while Adelaide and Hobart values were unchanged.
In the more volatile unit market, Perth was the standout over April with a 2.62% gain to a median value of $448,000.
Over the past year, Perth unit values are up 11.46% with rents rising over 14% over the past year from $390 to $445 and annual sales up 24.57% compared with the corresponding period, according to Residex.
There were also strong gains recorded in Adelaide’s unit market (2.12%) and some growth in Brisbane’s unit market (1.3%).
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/residexmay28two.gif" title="Click to enlarge"><img src="/images/stories/2013/05/residexmay28twothumb.gif"></a>
"Overall, the Australian housing market is improving," says Edwards.
"While I don’t favour considering houses and units as one segment because they have very different return attributes, it is usefully to combine them to simply get a general indication of the direction the market is heading.
"The median value of all dwellings in Australia is approx $425,000, which is around its peak value achieved in January 2011.
"In the last 3 months dwelling prices increased by about 1% while they increased by approximately 1.7% in the last 12 months. Clearly, the majority of advances in the market have taken place in the last three months. Sales activity remains low but it is improving. It is now close to the level achieved in December 1999.
"Overall, the recent interest rate reduction will help ensure the advance in housing values that are currently being seen continues, albeit at a moderate level.
"Rental yields across the nation are rising and will continue to do so as fewer people venture into home ownership and renting becomes more the norm. 
"The only exception to this is Canberra where there is a stock oversupply. There must also be some uncertainty here towards the employment level given the pending Federal Election and the likely outcome of a change in government," he says.
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Melbourne median house price at $556,500 as April sees slight decrease in home values: Residex

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The amount of sublease space available in Sydney's CBD reached 73,872 square metres in April, the highest in two-and-a-half years, as financial services firms downsized their operations.
'Consolidation' or 'contraction' were the primary reasons for subleasing space with finance and insurance firms accounting for nearly 40,000 square metres of available sublease space followed by property and business services (around 10,000 square metres) and government tenants (10,000 square metres)
More than half the sublease space available (52%), is situated in the city core.
The increase in sub-lease space is highlighted in CBRE’s latest Sublease Barometer, which tracks both the volume of sublease space and the trends occurring within different industry groups and market sectors in the Sydney CBD.
This upward trend is expected to negatively impact the city’s overall office vacancy rate in 2013, currently at 6.5% according to Morgan Stanley.
Examples of available sublease space include more than third of the space at<a target="_blank" href="https://www.realcommercial.com.au/property-offices-nsw-sydney-500690839"> Investa's  20 storey 347 Kent Street</a> building, the headquarters of ING Australia. It features 27,000s square metre of space, of which more than 9,000 square metres is available to sublease across eight levels. Sublease spaces range from 500 square metres to 1,4000 square metres with rents of between $500 to $600 per square metre excluding GST.
Other tenants subleasing space include Perpetual, State Street and ANZ Bank, which is relocating to its new headquarters at the $800 million 161 Castlereagh Street tower being completed by Grocon.
The decision by firms to downsize has meant that much larger sublease tenancies are being made available, with the barometer showing that tenancies greater than 1,000 square metres account for 70% of all options.
<img height="196" width="470" src="/images/stories/2013/05/cbremay28one.jpg" alt="cbremay28one">
The report shows that there are currently six options available at present of greater than 2,000 square metres which combined account for 38,000 square metres of sublease space.
The last time the sublease volume was higher was in November 2009, when the quantum of sublease stock was close to 90,000 square metres.
The CBRE barometer shows that the level of sublease stock dropped considerably throughout 2010 and 2011 but has been tracking higher since late last year and over April the volume of sub lease stock increased by a further 1.52%.
In December 2011, available sublease space was under 40,000 square metres.
CBRE office services director Jenine Cranston attributes the increase in sublease space in recent months to financial service tenants shedding more space in further rounds of downsizing.  
“The consolidation of financial tenants continues to have a strong influence on the sublease market and is contributing to the increase in the number of larger sublease tenancies,” she says. 
“The finance and insurance sector presently accounts for around half of both the number of sublease opportunities and the quantum of floor space available, with property and business services also accounting for a high proportion of stock compared to other industry sectors.” 
Cranston says one alleviating factor for owners was that the majority of sublease options did not have quality, useable fitouts in place – something that a growing number of cost conscious tenants were requiring. 
“This said, the increase in sublease stock has undoubtedly put an upward pressure on incentives across the city. During the year we expect to see a number of sublease opportunities converted into direct space if it remains in the market. However, if this upward momentum in sublease space continues, this may negatively impact overall vacancy in 2013," she says.
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Sydney CBD sublease space hits 74,000 square metres as finance firms downsize: CBRE

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A two-level CBD shop and dwelling at 597 Elizabeth Street has sold at auction for $1.03 million.
The ground floor space is leased for six years to popular Indian food tenant Classic Curry.
It brings in annual income of $53,547 plus GST reflecting an indicative yield of around 5.2%.
Chris Kombi and Mitchell Humphreys handled the campaign.
Located within the Queen Victoria Market precinct, the property is zoned mixed use and has a building area of around 150 square metres, encompassing the ground floor restaurant and a first floor studio apartment.
Classic Curry operates a second restaurant in Sunshine.
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Melbourne curry house and upstairs studio apartment sells for $1.03 million

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The InterContinental Hotel Group (IHG) has plans to build up to 40 Holiday Inn Expresses across Australia over the next 10 years with construction of its first Holiday Inn Express in Perth soon to begin.
The London-based hotel group, which operates nine other hotel brands including InterContinental and Crowne Plaza, manages over 2,000 Holiday Inn Express hotels globally.
‘We are looking at second and third tier cities for future Holiday Inn Express location rather than build four and five star hotels,” Phil Kasselis, head of development in Australasia for IHG, tells Property Observer.
The group will consider developing future Holiday Inn Express hotels in Newcastle, Wollongong, Geelong as well as in locations in the capital cities where the government is looking to develop new hotels.
The <a href="https://www.propertyobserver.com.au/leisure/perth-to-get-first-holiday-inn-express-as-city-occupancy-rate-hits-85/2013032760099" target="_blank">224 room Perth Holiday Inn Express</a> to be built at 257 Adelaide Terrace, overlooking the Swan River, is due for completion in 2015.
Site works are due to commence in the third quarter of the year in partnership with Perth-based developer Sunfire Asset.
Holiday Inn Expresses are targeted at “savvy business and leisure travellers” within the “limited service mid-market” sector with IHG opening on average two new Holiday Inn Express hotels ever week around the world.
IHG typically partners with investors to build or develop new hotels, and operates them as managers or under a franchise agreement.
In Australia, IHG tends to manage its own hotels, but is looking at implementing a franchising model.
Investors typically include institutional investors and high-net-worth individuals.
“We describe our typical [Holiday Inn Express] guests as Everyday Heroes – they are independent, self-sufficient and they believe in working hard so they can enjoy life,” says the Holiday Inn Express investor brochure.
The chain is promoted with the tagline “Everything you need. Nothing you don’t” as well as through a series of very funny “Stay Smart” television commercials, including this one featuring a white rapper.
{qtube vid:= ZlCLuIwuVgQ}
As part of its expansion plans, IHG has conducted research to identify "emerging traveller identities", which it says will shape the next decade of tourism.
It has identified four types of travellers: 
<ul>
<li>New global explorers from emerging markets, such as China, India, Indonesia, Egypt and Vietnam, who want to follow well-trodden paths and visit the must-see sights of well-known destinations.</li>
<li>Laptop and latte workers – a new breed of business traveller – are young and accustomed to not having set hours or location for work, and are therefore happy to share spaces and mix business with play.</li>
<li>New family groups from both developed and emerging markets, representing the changing face of the traditional family unit, from single person households to multi-generational families booking entire hotel floors.</li>
<li>Expansive mid-lifers are older travellers – the fastest growing and most affluent age group in the world – but don’t want to be defined purely by their age, as they seek out new experiences while demanding services and amenities that suit their needs.</li>
</ul>
Kasselis says hotels need to cater for the current and future needs of customers including obvious things like providing Wi-Fi, but also less obvious region-specific ones like interconnectable rooms in its Middle Eastern hotels to cater for larger family groups.
“Travellers expect hotels to deliver certain things, rather than be surprised by them,” he says.
He says the Australian hotel market has somewhat lagged other first-world markets but is starting to catch up.
He says it is appealing to offshore investors because of its transparency, the ease of doing business and proximity to Asia.
In addition, many investors know the Australian market through personal experience or because their children have studied in Australia.
“There is new money coming into the market from the Middle East and from sovereign wealth funds,” he says.
IHG generates more than $3 billion in sales every year from its half a million hotel rooms.
In Australia, IHG has partnered with hotel developer Jerry Schwartz to develop the Crowne Plaza hotels in the Hunter Valley and Newcastle as well as with Eureka Funds Management on other projects.
Recent projects include transforming the Clarion Hotel in Parramatta into the Holiday Inn Parramatta.
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IHG plans up to 40 Holiday Inn Expresses in Australia as it targets time-poor tech-savvy travellers

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Apartment prices in the Sunshine Coast surfing town of Peregian Beach crashed on the shore after soaring in 2012.
Renowned for its unspoilt beaches, deep-fried Mars bars and laid-back lifestyle, Peregian Beach – situated between Noosa Heads and Coolum Beach – was the top performing unit market in the $501,000 to $700,000 price bracket as highlighted by Smart Property Investment magazine a year ago.
RP data records a 39% gain in median unit prices in Peregian Beach over the 12 months to February 2012 to $516,000.
However, unit prices fell sharply in the following 12 months with RP Data recording a 33% decline in median prices to $345,000 to February 2013.
Recent sales in Peregian Beach include a <a href="https://www.homehound.com.au/unit+2+244+david+low+way+peregian+beach+qld+4573/21780978/" target="_blank">two-bedroom townhouse on David Low Way</a> (pictured below) acquired by Brisbane-based property investment advisors Parker Property Investments for $480,000.
<img alt="peregianmay29one" height="347" width="470" src="/images/stories/2013/05/peregianmay29one.jpg">
It last sold for $585,000 in 2003, an 18% drop.
The property was listed for nearly two-years with initial price of $595,000 with the vendor presumably deciding to accept a more realistic valuation of their investment after being unable to find a buyer.
The sale was negotiated by Ted Schimke of LJ Hooker Peregian Beach.
His colleague Paul Flanagan negotiated the sale of a <a href="https://www.realestate.com.au/property-unit-qld-peregian+beach-110660457" target="_blank">two-bedroom unit on Peregian Esplanade</a> (pictured below) directly across from the beach in February this year for $337,500. It had been listed for nearly eight months with an initial asking price of $379,000.
<img alt="peregianmay29two" height="332" width="470" src="/images/stories/2013/05/peregianmay29two.jpg">
The Peregian Beach correction extended to the nearby suburb of Peregian Springs, where median unit prices fell 21% to a median of $315,000 in the year to February 2013 following a 48% gain in 2012.
The top three performing suburbs at the upper end of the market, all underwent corrections in the year to February 2013 following strong rises in the previous 12 months.
Median prices fell 16% in the leafy Boroondara suburb of Canterbury, 10 kilometres east of the Melbourne CBD, reversing the 17% gains made in 2012 with a median price of $730,000.
There were also significant corrections in North Fremantle (-12%) and Lavender Bay (-11%), the harbourside suburb on the lower North Shore of Sydney.
In total there were significant price corrections in eight out of the 15 hot spot locations, while four markets were flat and just two made noteworthy gains - West Leederville, just three kilometres north of the Perth CBD (a 42% gain followed by an 8% gain) and Windaroo in Logan City (33% followed by 31%).
However, Windaroo appears to be an anomaly with 2011 census data showing just three units out of nearly 900 dwellings in the suburb.
This the full list of the top 15 performers in the year to February 2012 and how they fared in the year to February 2013. Whilst listed as the top performers, they were not necessarily recommended by RP Data or SPI Magazine as property investment hotspots for 2013.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="73" valign="top">
State
</td>
<td width="123" valign="top">
suburb
</td>
<td width="66" valign="top">
Annual sales to Feb 13
</td>
<td width="78" valign="top">
Median price Feb 2012
</td>
<td width="95" valign="top">
Median price Feb 2013
</td>
<td width="90" valign="top">
Median 12mth growth to Feb 2012
</td>
<td width="90" valign="top">
Median 12mth growth to Feb 2013
</td>
</tr>
<tr>
<td colspan="7" width="616" valign="top">
BEST PERFORMING SUBURBS $700,001 plus
</td>
</tr>
<tr>
<td width="73" valign="top">
WA
</td>
<td width="123" valign="top">
<a href="/news">North Fremantle</a>
</td>
<td width="66" valign="top">
70
</td>
<td width="78" valign="top">
$1.13 m
</td>
<td width="95" valign="top">
$777,500
</td>
<td width="90" valign="top">
49%
</td>
<td width="90" valign="top">
-12%
</td>
</tr>
<tr>
<td width="73" valign="top">
NSW
</td>
<td width="123" valign="top">
<a href="/news">Lavender Bay</a>
</td>
<td width="66" valign="top">
25
</td>
<td width="78" valign="top">
$740,000
</td>
<td width="95" valign="top">
$629,000
</td>
<td width="90" valign="top">
24%
</td>
<td width="90" valign="top">
-11%
</td>
</tr>
<tr>
<td width="73" valign="top">
VIC
</td>
<td width="123" valign="top">
<a href="/news">Canterbury</a>
</td>
<td width="66" valign="top">
28
</td>
<td width="78" valign="top">
$730,000
</td>
<td width="95" valign="top">
$614,500
</td>
<td width="90" valign="top">
17%
</td>
<td width="90" valign="top">
-16%
</td>
</tr>
<tr>
<td colspan="7" width="616" valign="top">
BEST PERFORMING SUBURBS $500,001 - $700,000
</td>
</tr>
<tr>
<td width="73" valign="top">
QLD
</td>
<td width="123" valign="top">
<a href="/news">Peregian Beach</a>
</td>
<td width="66" valign="top">
33
</td>
<td width="78" valign="top">
$516,000
</td>
<td width="95" valign="top">
$345,000
</td>
<td width="90" valign="top">
39%
</td>
<td width="90" valign="top">
-33%
</td>
</tr>
<tr>
<td width="73" valign="top">
WA
</td>
<td width="123" valign="top">
<a href="/news">Kensington</a>
</td>
<td width="66" valign="top">
18
</td>
<td width="78" valign="top">
$535,000
</td>
<td width="95" valign="top">
$436,250
</td>
<td width="90" valign="top">
36%
</td>
<td width="90" valign="top">
-18%
</td>
</tr>
<tr>
<td width="73" valign="top">
SA
</td>
<td width="123" valign="top">
<a href="/news">Henley Beach</a>
</td>
<td width="66" valign="top">
58
</td>
<td width="78" valign="top">
$572,500
</td>
<td width="95" valign="top">
$575,000
</td>
<td width="90" valign="top">
34%
</td>
<td width="90" valign="top">
0%
</td>
</tr>
<tr>
<td colspan="7" width="616" valign="top">
BEST PERFORMING SUBURBS $400,001 - $500,000
</td>
</tr>
<tr>
<td width="73" valign="top">
WA
</td>
<td width="123" valign="top">
<a href="/news">West Leederville</a>
</td>
<td width="66" valign="top">
35
</td>
<td width="78" valign="top">
$482,500
</td>
<td width="95" valign="top">
$522,000
</td>
<td width="90" valign="top">
42%
</td>
<td width="90" valign="top">
+8%
</td>
</tr>
<tr>
<td width="73" valign="top">
QLD
</td>
<td width="123" valign="top">
<a href="/news">Windaroo</a>
</td>
<td width="66" valign="top">
14
</td>
<td width="78" valign="top">
$480,000
</td>
<td width="95" valign="top">
$550,000
</td>
<td width="90" valign="top">
33%
</td>
<td width="90" valign="top">
+31%
</td>
</tr>
<tr>
<td width="73" valign="top">
QLD
</td>
<td width="123" valign="top">
<a href="/news">Geebung</a>
</td>
<td width="66" valign="top">
22*
</td>
<td width="78" valign="top">
$470,000
</td>
<td width="95" valign="top">
$405,000*
</td>
<td width="90" valign="top">
33%
</td>
<td width="90" valign="top">
-20.7%*
</td>
</tr>
<tr>
<td colspan="7" width="616" valign="top">
BEST PERFORMING SUBURBS $300,001 - $400,000
</td>
</tr>
<tr>
<td width="73" valign="top">
QLD
</td>
<td width="123" valign="top">
<a href="/news">Peregian Springs</a>
</td>
<td width="66" valign="top">
64
</td>
<td width="78" valign="top">
$391,950
</td>
<td width="95" valign="top">
 
</td>
<td width="90" valign="top">
48%
</td>
<td width="90" valign="top">
-21%
</td>
</tr>
<tr>
<td width="73" valign="top">
QLD
</td>
<td width="123" valign="top">
<a href="/news">Kunda Park</a>
</td>
<td width="66" valign="top">
19
</td>
<td width="78" valign="top">
$353,750
</td>
<td width="95" valign="top">
$308,000
</td>
<td width="90" valign="top">
47%
</td>
<td width="90" valign="top">
-13%
</td>
</tr>
<tr>
<td width="73" valign="top">
QLD
</td>
<td width="123" valign="top">
<a href="/news">Hillcrest</a>
</td>
<td width="66" valign="top">
36
</td>
<td width="78" valign="top">
$333,000
</td>
<td width="95" valign="top">
$331,750
</td>
<td width="90" valign="top">
43%
</td>
<td width="90" valign="top">
0%
</td>
</tr>
<tr>
<td colspan="7" width="616" valign="top">
BEST PERFORMING SUBURBS UNDER $300,000
</td>
</tr>
<tr>
<td width="73" valign="top">
NSW
</td>
<td width="123" valign="top">
<a href="/news">South Tamworth</a>
</td>
<td width="66" valign="top">
15
</td>
<td width="78" valign="top">
$165,000
</td>
<td width="95" valign="top">
$166,500
</td>
<td width="90" valign="top">
28%
</td>
<td width="90" valign="top">
+1%
</td>
</tr>
<tr>
<td width="73" valign="top">
SA
</td>
<td width="123" valign="top">
<a href="/news">Port Lincoln</a>
</td>
<td width="66" valign="top">
64
</td>
<td width="78" valign="top">
$220,000
</td>
<td width="95" valign="top">
$217,250
</td>
<td width="90" valign="top">
27%
</td>
<td width="90" valign="top">
-1%
</td>
</tr>
<tr>
<td width="73" valign="top">
TAS
</td>
<td width="123" valign="top">
<a href="/news">Trevallyn</a>
</td>
<td width="66" valign="top">
20
</td>
<td width="78" valign="top">
$290,000
</td>
<td width="95" valign="top">
$182,250
</td>
<td width="90" valign="top">
26%
</td>
<td width="90" valign="top">
-31%
</td>
</tr>
</tbody></table>
*based on 2012 calendar year data
Source: RP Data/SPI Magazine
</body></html>

Property waves dump Noosa surf spot Peregian Beach as unit hotspots fail to fire

<html><body>
Non-bank lenders have the highest mortgage arrears rates compared with their deposit-taking banking rivals, Moody's mortgage delinquency figures show.
The graph below represents 30 days plus mortgage delinquency rates for major bank, regional bank, other banks (credit unions, building societies) and non-authorised deposit taking institutions (non-banks) based on securitised lending only.
It shows the wide gap between non-bank lenders and banks, though mortgage arrears rates are rising across all lender types, in line with a small overall rise in mortgage delinquencies in March to 1.66%.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/moodysmay28one.gif" title="Click to enlarge"><img src="/images/stories/2013/05/moodysmay28onethumb.gif"></a>
</body></html>

Non-banks have highest mortgage arrears: Moody's

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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