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The Newcastle residential real estate market strengthened in the last six months of 2012 with rising prices and rents attracting growing enquiries from out-of-town investors.
Interest has been particularly strong among investors for cheap inner-city units offering rental yields of between 5% and 7%.
<a href="https://www.propertyobserver.com.au/new-south-wales/newcastle-fringe-suburbs-attracting-first-home-buyers-and-investors-with-many-options-under-%24300000-htw/2012120258247" target="_blank">Market momentum</a> was also maintained by a stable presence of first-home buyer despite the withdrawal of the $7,000 grant at the end of September last year.
“Despite somewhat softer conditions in the Hunter Valley’s coal industry, record trade in the Newcastle port is driving the employment market in Newcastle, with infrastructure investment in the City positioning it as one of the most robust regions in NSW,” says PRDnationwide research analyst Oded Reuveni-Etzioni.
In December last year, the NSW announced a new master plan for the Newcastle CBD with the aime of revitalising the Newcastle City Centre.
“Marked by the termination of the railway at Wickham the plan prescribes a replacement of the existing railway line with a pedestrian-friendly corridor and is expected to stimulate investment in the CBD,” says Reuveni-Etzioni.
PRDnationwide records the <a href="/news">Newcastle</a> median house price up 9.3% $405,000 and the unit price up 6.4% just under $350,000 for the 2012 calendar year.
Both house and unit prices in Newcastle have been trending up since around June 2009 – though the progression has not been smooth, as the graph below prepared by PRDnationwide shows.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/03/newcastlemarch19graph.gif"><img src="/images/stories/2013/03/newcastlemarch19graphthumb.gif"></a>
Final figures are not yet compiled for the six months to December 2012, but PRDnationwide expects they will mirror the December 2011 period when around 1,300 house and 489 unit sales were recorded.
Preliminary figures record 1,649 transactions for the year – 1,235 houses and 414 units sold.
PRDnationwide figures record that 40% of house sales and 68% of unit sales in the region where for properties in the inner city suburbs.
“Comparing the December 2012 unit price point with the corresponding period in 2011 revealed a 7% decline in units selling between $300,000 and $399,999 along with an increase in the size of price brackets between $400,000 and $800,000. The demand for luxury apartments priced $800,000 plus declined by two per cent from 2011,” says Reuveni-Etzioni.
Apartments priced below $300,000 made up 25% of unit sales over the year and yielding “attractive” rental returns of between 5% and 7% and proved attractive to investors.
Current investor listings include a <a target="_blank" href="https://www.realestate.com.au/property-apartment-nsw-newcastle-109446051">two-bedroom Quest serviced apartment on Hunter Street</a> seeking offers above $299,000 and marketed by Josh Mana of Raine &amp; Horne – Newcastle. The apartment offers guaranteed income of $1,653 per month – a gross yield in excess of 6%.
Another inner city listing is a one-bedroom, <a target="_blank" href="https://www.realestate.com.au/property-apartment-nsw-newcastle-113209003">sixth floor apartment on Watts Street</a> being offered for $273,000 by Christian Booth of Robinson Property – The Junction. The property is rented at $325 per week – a yield of 6.2%.
 
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Reuveni-Etzioni says realistically-priced off-the-plan stock also experienced strong uptake from investors and first home buyers, with first time buyers taking advantage of the $15,000 first home buyers grant and stamp duty exemptions.
“There are currently approximately 250 units under development in the inner city, with a large portion of units sold off the plan. This level of development is considered adequate when the growth in demand for units is taken into consideration,” he says.
PRDnationwide records a Newcastle rental vacancy rate of 1.7% for January 2013.
Rental vacancy figures from the Real Estate Institute show a higher vacancy rate of 2.5% for February (2% for January), but still well below the balanced market figure of 3% - indicating a market that favours landlords over renters.
According to local council area figures, two-bedroom unit rents rose 7.3% over the year to $346 per week while three-bedroom house rents increased by 5.4% to $400 per week.
“Of particular interest was growth in rents for single bedroom apartments, with a median price increasing by 10.4% over 2012. Not surprisingly, the inner city represented 50% of single bedroom dwellings within the LGA,” says Oded Reuveni-Etzioni.
He says the strong performance of the Newcastle property market following the GFC “was initiated by first home buyers and upgraders, with investor activity increasing in 2012”.
“In the second half of the year first time buyers’ activity remained stable despite the cancellation of incentives for existing dwellings.
“A growing number of second-home buyers purchased units as a medium-term investment with an outlook to use it for their main residence in the long term.
“Investors were induced back into the market by rising rent prices and a decline in the cost of funding. Anecdotal evidence points to a growing number of out-of-town enquiries, with particular interest in inner city apartments,” says Reuveni-Etzioni.
In the detached housing market, the suburb of Merewether recorded the highest number of sales for the period (85 sales) followed by New Lambton (79 sales) with the $900,000 plus bracket almost doubling to represent 13% of the market in the second half of 2012.
Photo by Michael Coghlan, courtesy of Flickr.
 
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lschlesinger-FZcF9M3vE6

Investor interest rising as sub-$300,000 Newcastle inner-city units offer 5% to 7% yield potential: PRDnationwide

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Now is the “perfect” time to consider buying an investment property, says Aussie Home Loans founder John Symond.
He says there are at least half a dozen suburbs in each capital city where gross rental yields are greater than the cost to repay the mortgage, and in some cases, where rent is increasing year on year.
“It’s the perfect time for the average Australian to consider a move into property investment if they have some money saved,” says <a target="_blank" href="https://www.propertyobserver.com.au/residential/demand-rising-for-tiny-studio-apartments-but-mortgage-hurdles-higher-aussie-john-symond/2013011058719">Symond</a>.
“Both fixed rates and variable rates are the lowest they have been in years; interest rates can be below 5%, housing prices in some areas are historically low but are starting to move back up, and now investors can earn rental yields between 5% and 10% in some areas," he says.
Figures derived from RP Data analysis show that Bella Vista in Sydney’s outer north west (33 kilometres from the CBD) is offering investors the highest average gross rental yield followed by Ultimo, just on the edge of the CBD.
The Sydney suburbs offering the highest gross rental yields are:
<ol>
<li>
<a href="/news">Bella Vista</a> (11.5%)</li>
<li>
<a href="/news">Ultimo</a> (9.0%)</li>
<li>
<a href="/news">Wyong</a> (7.3%) plus high rental growth of 24.1%</li>
<li>
<a href="/news">Bradbury</a> (7.3%); </li>
<li>
<a href="/news">Tregear</a> (7.3%)</li>
<li>
<a href="/news">Jamisontown</a> (7.1%)</li>
</ol>
Source: RP Data
<ol></ol>
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John Symond says it’s the "perfect time" to invest with Bella Vista offering the top gross rental yield in Sydney

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The current housing market recovery is the weakest cyclical upswing since the late 1980s, according to ANZ.
The following chart, prepared by ANZ in its March quarter research report, compares the current upswing in house prices (which began in February last year) with four other cyclical upswings.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/03/anzmarch18chartone.gif"><img src="/images/stories/2013/03/anzmarch18chartthumb.gif" width="470"></a>
The previous housing market upswing between February 2009 and February 2010 was both the most rapid and shortest-lived, following on from 425 basis points cut from the cash rate between September 2008 and April 2009 as the RBA took drastic steps to keep credit markets flowing in the wake of the GFC.
It also followed the availability of the first home owner boost scheme, which provided an additional $7,000 for first-home buyers buying existing homes and $14,000 for those building or buying new homes.
The scheme ran from October 2008 to December 2009 (the grant was halved between October 2009 and December 2009) with the contention being that it artificially inflated house prices as vendors capitalised on rising demand from eager first-home buyer numbers.
The current modest recovery follows an expected 225 basis points being cut from the cash rate since November 2011. This reflects ANZ's forecast of a further 50 basis points cut from the cash rate in 2013 on top of the 175 basis points already cut to date. 
"If the current cycle were to only have 175 basis points then our starts/dwelling investment forecast would be even softer," says ANZ's head of property research Paul Braddick.
ANZ economists Ivan Colhoun and Katie Dean, authors of the Australian portion of the quarterly report, say while there are some moderate signs of improvement in residential building approvals, this sector still faces “serious constraints”.
“Soft house price expectations, poor housing deposit affordability for first-home buyers, relatively tighter credit conditions for developers, difficult approval processes and limited land availability and accessibility all mean that this is prospectively the weakest cyclical recovery of the past five housing upswings,” they say.
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Current housing upswing the weakest since 1987: ANZ

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Borrowers can secure variable mortgage rate discounts of as much as 1.2% off the standard variable rate as banks continue to compete for new business in a slow-growth mortgage environment.
Banks are advertising their variable rate discounts in print campaigns and through their websites, but never these discounts, and certainly never available to all their customers.
Existing borrowers with equity in their homes may be able to secure similar or greater discounts in negotiations with their bank manager if they are of good standing and can demonstrate that they intend to refinance into a cheaper home loan with another lender.
However, borrowers should be aware that refinancing can be an<a target="_blank" href="/news"> expensive protest.</a>
Last month <a href="/news">Channel Nine finance journalist Ross Greenwood </a>suggested any borrower “worth their salt” could get 100 basis points cut from the standard variable rate.
The suggestion was made to Commonwealth Bank CEO Ian Narev at a media briefing – Narev responded by saying the standard variable rate was just a benchmark rate against which the bank determines the rate offered to its customers.
Canstar researcher Mitchell Watson told Fairfax that NAB, Macquarie Bank and building society IMB had all increased the discount offered on home loan packages recently.
''Our data would suggest that you can achieve up to 1.2 percentage points off the standard variable rate, which is being offered by Citibank,'' Watson said.
120 basis points - Citibank
Citibank’s standard variable rate is 6.69% with its website showing its lowest variable rate offering being 5.49% - a difference of 1.2 percentage points.
To be offered this rate borrowers must have a minimum 30% deposit – a hefty requirement – and a minimum loan amount of $150,000.
105 basis points – Bank of Queensland
The Bank of Queensland is offering 105 basis points off the standard variable rate for the first two years of the loan as part of its Home Loan Privileges Package. The offer is available for home loan applications between February 1, 2013 and March 31 2013 and settled by July 31, 2013. The offer is for loan amounts from $250,000 and $1,000,000. After the two-year period, a discount rate of 0.85% p.a. off the applicable standard variable rate will apply for the remaining life of the loan.
Bank of Queensland’s standard variable rate is 6.51%.
101 basis points – Macquarie Bank
Macquarie Bank is offering a 101 basis point discount off the standard variable rate for the life of the loan for loans with a loan to value ratio of 80% or less. The offer is available under its classic loan, premium loan and line of credit offerings. The offer is for new home loan lodgements only that settle  by June 30.
Macquarie Bank’s standard variable rate is 6.45%. 
101 basis points – Bankwest
Bankwest is offering a 101 basis point discount off the standard variable rate for two years under its Double Deal Home Loan – a variable rate of 5.38%. The offer requires a 5% deposit. The offer rolls over to the regular save home loan rate after two years, which is currently 5.89%. 
100 basis points - Westpac
Westpac is advertising “up to 1% discount” in its “Castles” campaign which is running in newspapers across Australia.
The discount is available for a limited time for customers who take out a new home loan of $500,000 or more under its premier advantage package.
This discount incorporates the standard 0.7 percentage point discount under its package home loan offering plus the additional 0.3 percentage point discount for new loans of $500,000 or more.
90 basis points – Suncorp
Suncorp is offering this discount off the standard variable rate for the life of the loan under is its home package plus offering, which includes a platinum credit card. The discount rate is only available to new customers who take out a standard variable rate home loan as part of the package, with a balance of between $250,000 and $499,999 and who contribute a minimum 20% deposit. 
Suncorp has a standard variable rate of 6.49%
85 basis points - NAB
NAB’s lowest variable rate offering is 5.53% - 85 basis points below its standard variable rate of 6.38%.
The offer is for new loans issued from February 11, 2013 and only for a limited time.
The loan must have a balance of $500,000 or more.
80 basis points – Commonwealth Bank
The Commonwealth Bank is offering a maximum discount of 0.8% off the standard variable rate for package home loan borrowers. The offer is for new loans issued from January 9 and requires a balance of $150,000. The special office is “subject to change without notice”.
The bank’s standard variable rate is 6.40%
80 basis points - ANZ
ANZ is offering a maximum discount of 0.8% off the standard variable rate under its breakfree package offering.  The offer is for new loans issued from November 13, 2012 and only for a limited time.
The maximum saving is available for borrowers who take out a loan of $500,000 or more with a loan to value ratio equal or less than 80% - this would require a minimum deposit of $100,000 on a $500,000 loan.
70 basis points – Bendigo Bank
Bendigo Bank is offering a maximum 0.7% off the standard variable rate under its home loan package plus. It requires a minimum loan amount of $250,000. The bank has a standard variable rate of 6.51%.
65 basis points - IMB
Building society IMB is offering a platinum package home loan rate of 5.51%. The loan requires a $500,000 loan balance and a minimum 20% deposit. IMB’s standard variable rate is 6.16%.
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Bank home loan discounts: who's making the biggest offers

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Property investors can use limited recourse borrowing (LRBA) to fund off-the-plan investments using their self-managed super funds.
Under this strategy, your SMSF receives a concessionally taxed rent, pays off the loan while you are still working, and transfers the property to you upon retirement.
After your retirement, you can either:
• Take the property as a non-cash, lump-sum benefit (although capital gains tax is payable on any capital profit, the tax rate is an effective 10% – if the property was owned by the fund for at least 12 months); or
• Buy the property from the fund for its market price. No CGT is payable if the property is backing the payment of a superannuation pension, but you are personally liable for stamp duty.
Under limited recourse borrowing rules SMSFs require a separate lending arrangement for each “single asset”.
In May last year, the ATO clarified what constitutes a single acquirable asset and provided a specific example of what constitutes a single asset in relation to a completed apartment: “The trustees of an SMSF enter into a contract to purchase a strata-titled apartment off the plan. A deposit is required upon entering into the contract, with the balance to be paid upon settlement for the completed strata-titled apartment.
“A single LRBA can be entered into to fund both the deposit and the balance to be paid under the contract upon settlement. Both the deposit and the settlement payment are applied for the acquisition of a single acquirable asset being the completed strata-titled apartment.”
According to AMP financial planning, the ruling recognises that “generally speaking, under LBRA rules, the single acquirable asset is considered to be the completed strata-titled unit, or land with a completed house on it – despite the fact that the building activity is yet to occur”.
As a result, where a contract is entered into for a unit off the plan or a house and land package, both the initial deposit and the final payment upon settlement can now be funded by a LRBA.
Previously, under the draft ruling, it had been suggested that the initial deposit for these types of transactions would need to have been made from existing SMSF assets.
Mortgage Choice broker Michelle Towner,who specialises in helping investors acquire apartments off the plan using SMSF borrowing rules, stresses the importance of these investments being structured correctly and that buyers must engage a qualified financial planner, lawyer or accountant to draft up the contracts.
She says the contract needs to be worded correctly so that when the asset is transferred from the bare trust to the super fund, the SMSF beneficiaries don’t risk having to pay double stamp duty.
The bare trust is the arm’s length holding trust that holds the property until the mortgage has been paid off.
In particular, any off the plan contract must be written to say the deposit is for the acquisition or deferred purchase of the property, not just an option or right to buy the property.
Investors will need to work with a professional to ensure the borrowing arrangements are worded and structured correctly.
For great tips on buying off the plan, download Property Observer’s free ebook – <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=14e9848476&amp;e=7a53fc6dd9" rel="nofollow" target="_blank">14 tips for buying off the plan: The 2013 guide for investors and owner-occupiers.</a>
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Consider buying off-the-plan using your self-managed super fund

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Accessing financing for new residential developments continues to be a problem for smaller developers, says assistant RBA governor Christopher Kent.
“While finance is available to households on relatively favourable terms, some developers continue to report difficulties in obtaining finance for new construction, with banks requiring a higher proportion of pre-sales than was typical prior to the global financial crisis,” said Kent in a <a href="https://www.rba.gov.au/speeches/2013/sp-ag-140313" target="_blank">recent speech</a> to The Australian Institute of Building in Sydney.
Obtaining funding is not so much of a problem for large developers.
“According to the Reserve Bank's industry liaison, large developers that have a good reputation and a strong balance sheet have access to credit, while small developers have tended to experience more difficulty in borrowing funds,” said Kent.
A 2013 insolvency and distressed assets white paper by Colliers International found that development sites overtook industrial property in 2012 in terms of number of distressed assets on the market across Australia, followed by the industrial, commercial, residential and rural and agribusiness sectors.
<img src="/images/stories/2013/distressed_assets.gif" width="600" height="391" alt="distressed_assets">
“Three sectors, in particular, saw a big spike in the number of distressed assets coming to market; being development sites, rural and agribusiness, and mixed-use developments,” says Felice Spark, director of research at Colliers International and author of the report.
Queensland had the highest number of distressed property assets listed for sale over 2012 with 395 properties listed for sale - a 3.5% increase compared with the 382 properties advertised for sale over 2011.
The biggest increase in distressed assets listed for sale state-by-state occurred in Victoria where there was a 56% increase with numbers rising from 61 properties listed for sale in 2011 to 95 properties listed for sale in 2012.
New South Wales saw a decline in the number of distressed properties on the market, falling back slightly from 256 properties to 242 properties.
“The banks have now begun pushing through, forcing properties to be put to market, with a trend towards secondary or regional-based property,” says Spark.
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Smaller developers struggling to get funding as banks require higher pre-sales: RBA

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Borrowers who choose to fix their home loan for two years at 4.99% would still be $1,500 better off if variable rates fell by 0.5 percentage points over this period, according to a new study by financial comparison website RateCity.com.au.
It found that the cash rate would need to fall by a cumulative 1oo basis points (four rate cuts of 25 basis points each) over this period to a record low of 2% and be passed on in full by lenders for variable borrowers to come out better off.
The study was based on the average of the major four banks’ lowest advertised two-year fixed-rates of 4.99% compared to their lowest advertised variable rates of 5.67%, for a $300,000 home loan with a 30-year loan term.
Borrowers could potentially save even more if they were to fix with AMP, which is offering the lowest two-year fixed-rate on <a href="https://www.ratecity.com.au" target="_blank">RateCity’s</a> database of 4.84%.
However, they should consider all the aspects of any fixed-rate home loan offer beyond just the rate (including fees, the ability to make extra repayments without penalty and other conditions) before deciding on which loan is right for them.
They could also consider splitting their loan between fixed and variable to have a degree of certainty about home loan repayments and also benefit from any variable rate cuts or access other variable rate home loan benefits such as an off-set account or the ability to make additional repayments without penalty.
The likelihood of further rate cuts is being <a href="/news">discounted by lenders with the Commonwealth Bank </a>now not expecting any more rate cuts this year and Business Spectator columnist and economist Stephen Koukoulas writing yesterday that the<a href="https://www.propertyobserver.com.au/news/unemployment-stays-steady-through-february-at-54/2013031459873?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank"> better-than-expected unemployment data</a> meant interest rates were likely to be locked in for a few months at the minimum.
Official ABS figures shows the proportion of borrowers who are choosing to fix their home loan is trending up with 13.1% of dwellings financed with fixed-rate home loans over the past six months to January compared with 12.2% in the previous six months.
February figures from Mortgage Choice (a month ahead of the ABS) recorded an increase in fixed-rate demand to 18% of all home loans with nearly one-in-four Queenslanders opting for a fixed-rate home loan compared with just 11% of Victorians.
Alex Parsons, RateCity’s CEO, said the findings revealed why so many borrowers are currently choosing to fix their home loan.
“It’s unusual to see so many fixed home loans offering cheaper rates than variable.
In fact, out of more than 100 lenders in RateCity’s database, 21 lenders are now offering two-year fixed-rate home loans under 5% – including all four major banks.
Compared to variable, only one lender is currently offering a home loan under 5% – <a href="/news">State Custodians at 4.99%.</a>
This loan does require a hefty 25% deposit and is only available for borrower who are refinancing.
“We discovered that it would take at least three 25 basis point cuts within the first six months or four 25 basis point cuts within the first 12 months for borrowers to be better off with a variable rate,” says Parsons.
“Of course this is off the assumption that any RBA changes are passed on in full immediately which has not recently been the case.
“Borrowers need to remember there are several factors that can impact how much you can save or lose by fixing your home loan such as timing of when rate cuts occur, if lenders pass on the full cuts and if you’ve locked in a good value deal. So to make the most of the home loan market, make sure you use RateCity to compare what lenders are offering and save.”
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Borrowers better off with two-year fixed-rate even if cash rate falls to 2.5%: RateCity

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A four-bedroom Mosman house above Chinaman’s Beach, which sold for $3.05 million through McGrath Estate Agents prior to auction, was the top Sydney sale last week.
It was first listed for sale in August last year with an asking price of $3.3 million.
It last sold for $2.4 million in 2006 and previously for $1.15 million in 2000.
The two-storey, high-set house at the end of a cul-de-sac was advertised as having a master bedroom with a “resort-style” ensuite bathroom with water views and outdoor access.
According to RP Data, Mosman has a median sales price of $2.1 million with an average time on market of 92 days and average discounting of 11%.
The house was sold by Matthew Smythe of McGrath - Neutral Bay who had been giving a $2.9 million plus price guide.
The 60 year old house underwent a redesign by the architectural firm <a target="_blank" href="https://mosmandesignawards.com.au/2011/nominations/35-upper-fairfax-road">Atelier Haefeli</a> about three years ago.
The RP Data Top 10 sales last week were all in NSW:
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/35_upper_fairfax_road_mosman_nsw_2088/4484342" target="_blank">35 Upper Fairfax Road, Mosman, NSW, 2088</a>, four-bedroom house, sold prior to auction on March 9 by McGrath Estate Agents for $3.05 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/1_albany_street_point_frederick_nsw_2250/5495682" target="_blank">1 Albany Street, Point Frederick, NSW, 2250</a>, five-bedroom house, sold prior to auction on March 9 by L J Hooker Terrigal for $2.95 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/18_govett_street_randwick_nsw_2031/5754429" target="_blank">18 Govett Street, Randwick, NSW, 2031</a>, four-bedroom house, sold at auction on March 9 by Ray White Double Bay for $2.95 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/36_pauling_avenue_coogee_nsw_2034/1931958" target="_blank">36 Pauling Avenue, Coogee, NSW, 2034</a>, five-bedroom house, sold at auction on March 5 by Raine &amp; Horne Bondi Junction for $2.625 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/53_francis_street_manly_nsw_2095/3979013" target="_blank">53 Francis Street, Manly, NSW, 2095</a>, four-bedroom house, sold prior to auction on March 9 by Cunninghams Property for $2.355 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/158_copeland_road_east_beecroft_nsw_2119/1351083" target="_blank">158 Copeland Road E, Beecroft, NSW, 2119</a>, four-bedroom house, sold at auction on March 9 by Century 21 Joseph Tan Real Estate for $2.26 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/34_park_road_hunters_hill_nsw_2110/3007794" target="_blank">34 Park Road, Hunters Hill, NSW, 2110</a>, four-bedroom house, sold at auction on March 9 by McGrath Hunters Hill for $2.2 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/18_windsor_street_paddington_nsw_2021/5277848" target="_blank">18 Windsor Street, Paddington, NSW, 2021</a>, four-bedroom house, sold at auction on March 9 by McGrath Estate Agents for $2.175 million
<a href="https://www.realestate.com.au/property-house-nsw-tamarama-113037495" target="_blank">2 Illawong Avenue, Tamarama, NSW, 2026</a>, three-bedroom house, sold at auction on March 9 by McGrath Estate Agents for $2.11 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/23/69_north_steyne_manly_nsw_2095/3981908" target="_blank">23/69 North Steyne, Manly, NSW, 2095</a>, three-bedroom unit, sold prior to auction on March 9 by Clarke &amp; Humel Property Manly for $1.98 million
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Mosman house above Chinaman’s Beach tops RP Data top 10 sales

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There was a 38.1% rise in construction loans for investment purposes in January, according to ABS January housing figures.
This increase was highlighted by Commonwealth Bank economist Diana Mousina who called it "one positive part" of the otherwise disappointing January data release.
However she told Property Observer this number tended to be "quite volatile".
Overall construction lending rose 4.7% over January and is up 19.5% over the past year. 
"Residential construction activity is in the early stages of a recovery and we expect to see a continued lift in activity over the year. 
"Rising residential construction is an important element in the RBA’s game plan for 2013," say Mousina.
<img alt="CBA_construction_approvals" height="455" width="500" src="/images/stories/2013/CBA_construction_approvals.gif">
Source: Commonwealth Bank
Nationally, loans to buy and build homes rose slightly.
HIA economist Geordan Murray says the aggregate number of loans to owner occupiers for the construction and purchase of new homes rose only 0.6% in  January.
"It would have been a touch optimistic to expect the interest rate cuts late in 2012 to have an immediate impact, but we expect the effects of this to emerge over the coming months.
“While we didn’t see a material improvement in number of loans for new homes in January 2013, activity over the month was still 9.3% higher than we saw in January 2012.
"From this perspective, we have started the year in a better position than we did in 2012.
“If we consider the total value of lending for housing, there was an increase of 2.4% during the month of January 2013. After contracting in the months of November and December 2012 it is pleasing to see lending regain some of the lost ground,” says Murray.
Peter Jones, Master Builders Australia’s chief economist, said the 0.6% rise in the number of loans for the construction of dwellings and for the purchase of new dwellings (and 9.3% up on the corresponding figure in January 2012) was a "welcome pick up but a far cry from the sort of strong housing recovery builders were hoping for given where we are in the current easing cycle". 
“Consumers remain overly cautious about committing to a significant purchase like housing. The industry is hoping the rise in consumer confidence will quickly translate into the new housing market," he says.
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Investor loans to build new homes up 38% in January: ABS

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Australian house prices are high but they reflect the high cost of living, says Gary Thomas, president of the US National Realtors Association, who is currently visiting Australia.
Thomas says there is no perception among his constituency that Australian housing is in a bubble that may burst – a claim made by the likes of <a href="https://www.propertyobserver.com.au/news/us-economist-predicts-australian-housing-crash/2011081551170" target="_blank">US economist Harry Dent and others.</a>
The National Realtors Association is the largest trade assocation in the US, representing around one million US real estate agents.
“Australian property prices certainly are high relative to what we pay in the US, but it all depends on your average income,” Thomas tells Property Observer.
Thomas has more than 35 years’ experience in American real estate and has occupied numerous industry roles.
He operates real estate business Evergreen Realty, which has seven offices throughout Orange County, Southern California with a head office in Irvine and more than 7,000 estate agents on its books.
The most recent figures from US data provider CoreLogic showed that US home prices, including distressed sales, increased on a year-over-year basis by 9.7% in January 2013 compared to January 2012
Morgan says the US market is definitely improving with prices starting to inch up including in his home state of California and in Florida and Arizona, to name just a few.
“It’s kind of ironic that the recovery is occurring in the states the hardest hit,” he says.
In Southern California he says there is only 30 days’ worth of real estate inventory available to purchase at current sales rates – very low by historical standards.
Despite the lack of stock, house prices are not accelerating as they did in the boom years prior to the GFC, though they are rising at a more sustainable pace.
Among the reasons for this is that obtaining financing is still very hard with much stricter lending practices now in place.
“It’s like an inquisition” is how he describes lender inquiries into whether a borrower should receive mortgage approval.
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Australian housing not perceived as being in a bubble: US real estate industry boss

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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