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Property investors need to pay more attention to price points, rather than just generic price growth.
If I was to tell you that there were more home sales under $400,000 across Brisbane than, say, between $600,000 and $800,000, many of you might not believe me. A similar trend exists across most other Australian capitals, including Sydney and Melbourne; and this is definitely the case in our regional towns.
This information is very important for a range of reasons.
Market size is important. More so, for me, than the general direction or position of the market. Size does matter. Buyers should know how many sales take place in their particular price category.
This helps work out how long it might take to resell. It also gives a clue as to how much one might need to promote their property in the future in order to achieve a sale.
Most property sells for less than the property intelligentsia would have us believe. We largely read about the ‘good news’ in all those property investment mags, and not the bad - or even plain average.
Again, most dwellings sold across Australia sell for under $500,000. A third sell for prices under $350,000.
The market is shaped like a pyramid. Sales volumes diminish as prices rise.
In general, the more you pay for a property, the fewer buyers there are to resell to in the future. That isn’t to say there hasn’t been growth in the size of the top end housing market across Australia. Today, one in 10 of our homes achieves over $1 million on sale, up from 3% 10 years ago. One in 50 sells for over $2 million, up from 0.7% a decade earlier.
Another important point is that price movement isn’t uniform across a market.
Certain price points move more than others, and this changes, depending on the market’s position in the property cycle.
For example, Brisbane is in a recovery phase, so the more expensive properties are starting to sell. While there has been some movement in the number of house sales priced in the more affordable sub $350,000 price range (a 12% lift) over the past three months, this is mild compared to the increase in sales priced between $500,000 and $1 million, which has increased by over 30%.
Sales over $1 million are up a whopping 43%.
In contrast, during a downturn for example, it is the cheaper properties that see more growth in sales volumes.
Keep the latest Brisbane dwelling price points in mind:
<ul>
<li>38%: Under $400,000 
</li>
<li>39%: $400,000 to $600,000 
</li>
<li>6%: $800,000 to $1,000,000 
</li>
<li>4%: Over $1,000,000</li>
</ul>
In summary, I believe investors – especially those starting out – should buy a property in the larger price brackets. There is safety in numbers. Properties in these price groups are generally more affordable, making them more ‘downturn’ proof.
When you read about generic price growth, keep in mind that not all of the market is moving at the same pace. Some market segments may even be moving in a different direction. There are many housing markets, even in the same city and local area.
 
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michaelmatusik-49YzLvdmNv

Keep your eye on price points, not price growth

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Well, more real estate baloney.
This time it is about first home buyers – or the lack of them.
The ABS statistics released today show that first home buyer activity, measured as the proportion of all owner-resident lending, is the lowest in 23 years.
You would have heard all about it on the news tonight or will read about in tomorrow’s papers.
But something is wrong here.
<blockquote>
The fact is, we should all question a lot more of the real estate data that is being fed to us.
</blockquote>
And like many things these days in the real estate world, it’s the figures that are incorrect.  The ‘official’ statistics are measuring only part of the whole, yet very few question the results.
In short, there is a hell of a lot of first home buying taking place.
Most first home buyers buy an established property, and in most places across Australia, first home buyer grants do not apply to established property, only new stock.  And where it does apply, it amounts to very little, and to many it isn’t worth the paper work.
So, for mine, the ABS (along with others) is not correctly corralling first home buying activity.
It is interesting to watch the property intelligentsia trying to explain the reasons for the fall in first home buyer interest, as shown in the first two charts below.
"Generation X are choosing to rent rather than buy – they are buying investment housing instead of homes for themselves – housing is unaffordable so they cannot buy – we need more grant monies"; and it goes on.
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-1.jpg"><img class="alignnone size-full wp-image-7359" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-1.jpg" alt="FHB #1"></a>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-2.jpg"><img class="alignnone size-full wp-image-7360" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-2.jpg" alt="FHB #2"></a>
I think the statistics are wrong.
Why wouldn’t first home buyers be buying?
<ul>
<li>Interest rates are extremely low</li>
<li>Banks are keen to lend</li>
<li>Mum and dad are practically paying for the deposit to get rid of their ‘boomerang’ adult children (at 30, one wonders if ‘children’ should really apply)</li>
<li>Yet according to the same talking heads who claim low first home buyer take-up – housing affordability is the best in over a decade</li>
<li>And to prove that point, there has been little change in the size of the average first home loan in recent years – see my third chart below</li>
</ul>
<a href="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-3.jpg"><img class="alignnone size-full wp-image-7361" src="https://matusikmissive.com.au/wp-content/uploads/2014/06/FHB-3.jpg" alt="FHB #3"></a>
Late last year the ABS put out a great study – sadly it comes out only every five years or so – called Housing Occupancy and Costs (catalogue number 4130.0 for those who want to read the 92 page document).  This shows that first home buyer activity is much higher than the housing finance loan data suggests.
The HOC study shows that over the past three (3) years (and importantly, covering much of the recent first home buyer slump) just short of 1 million households (988,000) bought a property across Australia.
Of the 988,000 transactions over the last three years, 36% or 355,000 were first home buyers.  Eight out of ten first home buyers (289,000 or 81%) bought a second-hand or established home.  Just 19% bought a new property or something off-plan.
My conversations with real estate agents, including those selling new stock, indicate that first home buyer activity is much higher than the low levels officially reported.
I suspect that first home buying activity is close to the historic average – something around 35% of the total owner-resident market and around 20% of the total housing market, when including investors.  This is what I am seeing on the ground; and it explains the strong sales results across much of the country over the last 12 to 18 months.
First home buyers must be taking part; otherwise those upgrading or downsizing would not be able to sell as fast or as often as they currently are.  It is first home buyers that make up a significant part of the buying audience for their established homes.
It is good to see that others, too, are starting to question the results.
I note that the RBA, in their current chart pack (June quarter), have left off first home buyers in the graph outlining loan activity across the country.  See the last chart on page 6 of <a href="https://www.rba.gov.au/chart-pack/index" target="_blank">this</a> document.  It has been included in previous RBA charts.
Michael Pascoe, too – thinking man that he is – has also questioned the results.  See <a href="https://www.smh.com.au/business/comment-and-analysis/first-home-buyer-statistics-not-adding-up-20140609-39sam" target="_blank">here</a>.
You should too.
The fact is, we should all question a lot more of the real estate data that is being fed to us.
The media – for the most part – aren’t interested in checking the statistics before they regurgitate them.
Much of what you read these days about property is sadly bunkum.
Ohh…….. and don’t get me started on the need for or accuracy of a daily price index or suburban median house/unit prices!
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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Have first home buyers really gone missing?

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It is quite sad to see what gets promoted as 'investment' advice in the property space these days.
This was again brought to my attention a few weeks' back when a new inner Brisbane apartment project, under the 'investment' tab on their shiny new website, wrote that apartment values in the area in question had risen by over 10% per annum since 2000 and weekly rents had lifted by over 150% over the same time frame.
It also claimed that the local population is projected to increase almost fourfold over the next 25 years.
The price and rent values used were medians and any increase in population will involve much more new housing supply.
Medians are muddied by new developments, which artificially lift values, especially when used on a small- scale, suburban basis. And there have been a lot of new developments in this area over the past 15 years.
When you look at actual apartment resales, you find a 4.5% annual gross capital average gain over the last ten years in the area (we survey 25 select apartment projects in each major Queensland suburb in order to understand what's going on) and over the past four years there has been little to no resale apartment price growth in the suburb in question.
In addition, the vacancy rate has more than doubled – up from 2% to 4% over the past two years &amp; one-bedroom rents are even starting to fall.
Back in 2000, renters in this area were paying, on average, less than 20% of their income on rent. Local tenants, based on the rents promoted by this new project, would have to give up between 35% &amp; 40% of their income to live there.
In addition, local home values are now close to ten times earnings compared to 3 to 4 times in 2000. Keep in mind that interest rates have fallen from close to double figures to record lows since 2000, and up until the last couple of years, wages were growing by over 4% per annum.
Today, most local jobs are part-time. And a record number of new apartments are proposed in the area; the subject site is surrounded by other development opportunities &amp; population growth/migration are lower than historical averages.
In short, the next 10 to 15 years are very likely to be different from the past decade or two. No doubt there is a movement towards inner city living – heck, I was one of the first (in 1988) to outline why such a trend was imminent – but the cranes on the skyline suggest a potential apartment oversupply. Hopefully, it won't last that long.
But this isn't what gets my goat; it's that too few in the development/selling space really seem to give a hoot about the information used to spruik a new property.
I think buyers should challenge the information supplied. "<a href="/expert-insights/what-is-caveat-emptor-and-how-it-affects-you">Caveat emptor,</a>" many will say; while others will suggest that buyers do their own research and due diligence. I agree with both statements, but where to start?
Here are seven things that a property buyer should do or know when looking to purchase an investment property.
<ol>
<li>Question the time period being used.  Best to look at the last cycle – i.e. seven years, and the last year too.  Try to understand where the local market is in the property cycle.</li>
<li>Ask for resale evidence – the same property, without major improvements, selling over time. Not median prices. Median or middle values work as broad indicators and only when used across big areas, like a city or municipality.</li>
<li>Ask who is buying, the proportion of investors versus owner residents, and where the buyers are coming from.</li>
<li>Request rental evidence, and from at least two independent sources. Ring the sources up and ask them about what they wrote. Ask who will manage the property and the intentions regarding tenant tenure – long or short-term stays.</li>
<li>Quiz the developer, selling agency &amp; local council about the immediate development plans around the subject development. Will the view be blocked out? Overshadowing? Little space between buildings? More competition?</li>
<li>Ask for a 'current market assessment' or 'spot' valuation. Valuers often lowball; they can get things wrong, but to their defence, they carry a lot of professional risk and don't get paid enough. That being said, don't pay more than 5% above the valuation price, unless you believe the area has some real upside (for example, a new hospital being build nearby or major university about to open in the area).</li>
<li>Make sure your property has the potential to be bought or rented by three out of six key housing demographic segments.</li>
</ol>
Better still, I think what is needed is a standard set of rules – a formula that is used to measure all passive residential property performance, regardless of location or property type.
This would need to include the same time frame; same resale equation; same base of measurement – i.e. rate per square metre; same calculation of gross rental yields based on the local vacancy factor and a regular and independent audit of the figures.
Now that would make property investment much easier.
 
Visit Michael's <a href="https://matusik.com.au/" target="_blank">website</a>, read his <a href="https://matusik.com.au/missive/" target="_blank">blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank">Facebook</a> and <a href="https://twitter.com/michaelmatusik" target="_blank">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" target="_blank">LinkedIn</a>.
 
 
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Seven ways to improve your investment analysis

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Q: Where have all the first home buyers gone?
A: Nowhere - and they are not coming back.
For those interested in property matters, you've probably been bombarded by tales of woe about all those poor first timers who cannot get into the market.
Nasty investors.  Rich baby boomers.  Property bubble.  The need for more grants.  Chinese buyers.  Overseas migrants.  Poor town planning.  Capital gains tax.  The blame game will go on and on…
According to the latest official figures released recently – well for August – first home buyers (FHBs) accounted for 13.7% (always best to get the decimal point in) of all loans – a nine year low.  The long term average is about 20%.
Why?
For mine, reasons for this low level of interest include:
<ul>
<li>
They were brought forward.  The machinations with regards to the first home owners grant (FHOG) have interfered with the property cycle.  The FHOG is great politics, poor policy.  It is also inflationary and has resulted in fewer FHBs than would otherwise have been the case.  It needs to go away.
</li>
</ul>
If it wasn’t for the FHOG, this trend – the decline in FHB numbers – would have started more than a decade ago and the decline would have been far more gradual.  Demographics shape everything.
<ul>
<li>
Generation Y – the largest rental group – is more interested in travel and other lifestyle things than being saddled with a home loan.  They are partnering later, if at all, and history shows that unless one is getting serious about a relationship (and having children is being discussed or on the way), then the momentum to buy your first home is limited.  Renters have better things to spend their money on.  Also, they have more investment options – including their own portfolio of work – than their parents did.
</li>
</ul>
<ul>
<li>
Potential FHBs are happy to share accommodation, especially higher priced rental (and better quality/located) properties and experience the lifestyles that are outside their ability to obtain through home purchase.
</li>
</ul>
<ul>
<li>
HECS debt is also strangling FHB interest.  Under-employment is also having an impact.  Our employment situation is still somewhat shaky.
</li>
</ul>
<ul>
<li>
Expectations are out of whack.  Many FHBs want their first home to be like the one they currently live in.  Many still live at home – without paying rent or doing too much around the house.  There are plenty of options for FHBs to buy a property – for example, a third of all house sales in South East Queensland are still priced under $300,000 – but these properties aren’t good enough for many of today’s FHBs.
</li>
</ul>
We aren’t likely to see FHBs come back into the market at volumes as seen over the past two decades or so.  A new norm is being set.  If this comes true, then we are likely to see three market impacts:
<ul>
<li>
More renting.  But maybe not rental increases.  
</li>
</ul>
<ul>
<li>
Fewer sales made by existing property owners – especially those holding more affordable houses.  Investors might, for a period, replace FHB interest and buy some of these second-hand properties, but investor interest will not be as stable as FHB interest.
</li>
</ul>
<ul>
<li>
Less heat in the overall property cycle – quite ironic given the conversation of late.  A Sydney-centric recovery (boom?) only (so far).  It takes all three market segments – investors, second and subsequent buyers and FHBs – to move together to drive a strong market recovery.
</li>
</ul>
Those trying to sell second hand property – many of them looking to downsize and in more suburban locations – are the real losers here, not first home buyers.  Frankly, they have never had it so good.
Save your tears for something or someone else.
 
<hr>
Michael Matusik is the founder of <a style="font-size: 14px;" href="https://www.matusik.com.au/" target="_blank" rel="nofollow">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.
Read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
 
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A new norm is being set, first home buyers aren't coming back: Michael Matusik

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Q: Is there a housing bubble?
A: Nationally no, but if we are talking about Sydney, Melbourne and new inner Brisbane apartments, then yes.  That's a YES, in case you somehow missed it.
Sydney and Melbourne have been distorted by an influx of 'grey' money coming from China. Many don't like to hear this, but it is happening. No hard statistics, but our groundtruthing is looking worthy of a hefty bet.  And of late, some of this grey has shifted north, along with local superannuation funds looking for cheap property &amp; a longish timeframe to settle, in the hope of double digit price growth.
Brisbane always follows Sydney, right?  Property is so cheap in Brisbane, hey! You can buy two in Brisbane for the price of just one in Sydney. Bris Vegas here we come.
Sidebar
I have an internal debate several times each month – it's fun, like talking to an imaginary friend – about whether or not to write on a certain topic. 
Do I let blast about China? Publish my thoughts about smaller apartments?  Call out all those BS artists promising double digit price growth &amp; rental increases?  And this week, it's a yes.  Write something about the Reserve Bank (RBA), Foreign Investment Review Board (FIRB) and how we will all be rooned.
We'll all be rooned
Now, there is nothing wrong with a global property market, nor being in the recovery phase of the property cycle and having closer ties to China – or any of our major trading partners for that matter.
But a housing bubble is a different story.
Property values have almost trebled over the past two decades, while wages have not kept pace. House prices in both Sydney, Melbourne, some parts of Perth and now across inner Brisbane, are often over 10 times household earnings. In many cases, weekly rents also far exceed 30% of a renter's income.
And things can start getting out of hand when the proportion of investors buying accounts for around half of all residential sales – double the 25% of the housing market made up by private renters. This happens every cycle, but its current trajectory is unsustainable.
Got some doubts?
Well this year alone, housing credit and house prices have climbed at, respectively, more than two and three times the rate of household income growth. It isn't the actual rate of credit and price growth that is the problem, but their relationship with our ability to afford this inflation.
It's true that this is mostly a Sydney and Melbourne phenomenon, but we only have a few blunt tools in the back of our ute to temper the times. And besides, we have never been that good at small, fiddly renovations. Slash and burn is more our style.
The good and the bad
Yes, there are reasons for property demand to be improving – we have record low interest rates, relatively low vacancy rates, high population growth and a strong penchant for owning property.
But on the flip side, we have falling commodity prices, an employment baton change which, for the life of me, I cannot see happening smoothly nor correspondingly, little wage growth, ageing demographics, high debt, an increasingly economically wobbly China and a close to epileptic Europe. Not to mention what may or may not happen with the rest of the world.
For those who only hear good news, you might have missed that Australia's federal budget deficit last year (2013/14) was close to $50 billion &amp; yet the Palmer United Party wants to keep the red ink flowing until the early 2020s. 
If that happens, then our prized AAA sovereign credit rating could be at risk, especially if something goes wrong with our economy – or that of a major trading partner.
In short, we might see the vulnerable economic conditions of southern Europe down under.
This article continues on the next page. Please click below to continue.
<hr class="system-pagebreak">
True blue
But in true ocker fashion – it's all "she'll be right mate", "nothing to see here". Those questioning our "property at all costs" mentality need to take a double dose &amp; retire to bed early. Keep on moving on. Bid higher at that auction. Buy something tiny and off-plan. Doesn't property double in value every seven years? You cannot lose.
Too far-fetched?
Well, our real wages are falling. Yes, falling, as average earnings rose just 2.3% over the last 12 months – that's 0.3% lower than inflation. Unemployment is over 6%, without counting the 700,000-plus on disability pensions.
True, the RBA does predict higher economic growth next year, real wage growth in some distant future and lower employment one day, maybe, but this is predicated on the assumption that nothing economic will go bang or that China's economy won't slow down further.
Excuse me for being a skeptic, but trying to predict an economic future, these days, is almost impossible.  I would just love to read or hear one of those talking eco heads say something like, "well, frankly we don't have a bloody clue".
If you ask me what's going to happen, your guess is as good as mine.
But I do like to guess, so here goes.
<ul>
<li>Government will not reign in spending; we (the senate) won't allow it.</li>
<li>No workplace reforms, for fear of a union campaign.</li>
<li>The RBA will continue jawboning and keep interest rates where they are (when looking at the whole of the Australian economy – not just housing in Sydney and Melbourne – they really need to fall).</li>
<li>Plenty of talks about macro-prudential action – like higher investment loan to value ratios; changes to property taxation or minimum product sizes – but nothing done. Maybe that is a good thing?</li>
<li>No enforcement by FIRB regarding illegal overseas buying – and it has almost all been illegal in recent years.</li>
</ul>
And it's the last point that is the most pertinent right now.  If you want to slow down the Sydney, Melbourne and inner Brisbane property markets without stopping the rest of the country, then you must enforce offshore buying laws.
Inert FIRB
An inert FIRB has done nothing to inhibit the grey economy that exists to get money out of China (ironically, helping them deflate their own housing bubble) &amp; into safer overseas havens like Australia.
It's true that the Chinese government imposes a $US50,000 a year limit that can be sent out of the country, but cashed-up Chinese bypass this system via personal relationships rather than transparent bank transfers. Heaps of property – just how much is unknown (but it shouldn't be) – is being bought this way in Sydney &amp; Melbourne, Perth, and now in Brisbane and starting to again on the Gold Coast.
Also, the Significant Investor Visa (SIV) is dominated by mainland Chinese who meet the $5 million requirement. They are paying stupid prices for potential development sites (with site values doubling in the past five years), but property economics do not apply here, as the SIV is really a fast-tracked qualification for a permanent visa. Dual nationality is the want, but sadly, too many Chinese just want an Aussie passport as an insurance policy, not a new way of life.
Lower down the chain – much lower, if you ask me – is another sheltered workshop – property spruikers flogging Chinese investors little high-rise boxes in Sydney, Melbourne and now Brisbane. Entire high-rise buildings are financed, built and sold for the Chinese market, with local buyers and developers rendered irrelevant. Small, one-bedroom dogboxes are the norm. The more the merrier. How divine, indeed!
And all of this should be illegal. If only FIRB would enforce the law!
All of this illicit activity is creating a demand that would not otherwise exist. Well at nowhere near the levels that it is increasing spruiked. Quarterly newspaper lift-outs about Australia's sudden urge to live on top of each other – I mean, come on.
And this, coupled with local superannuation investors – many of whom appear to have been sold a pup – has created valuations that are dangerously detached from average weekly earnings &amp; sustainable owner-resident demand.
But then again, it is Australia mate; stop all this fussing; she'll be right; tyranny of distance and all that stuff.
But seriously folks
But seriously, something has to be done.  We are now entering some serious hot water.
Here's another guess.  Nothing will happen until this gets political; economic sense doesn't seem to cut the mustard around here anymore.  The political wedge, for mine, come next federal election, is overseas buying.
But between now then, I will take Terry's advice – take a couple of aspirin &amp; have a good lie down. 
Michael Matusik is the founder of Matusik Property Insights, which has helped over 550 new residential projects come to fruition.  Read Michael's <a href="https://matusik.com.au/missive/" target="_blank">Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank">Facebook</a> and <a href="https://twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" target="_blank">LinkedIn</a>.
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Is there a housing bubble? Or should we all take a wee lie down?

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Earlier this year, Brisbane's cost of living was reported among the world's highest at 13th, based on a survey by Expatistan – a group that analyses world-wide cost of living data.
In terms of our capitals, Brisbane came in second, behind Sydney (11th); while Melbourne placed 18th, Perth 24th, Adelaide 25th and Canberra 26th.
Yet if we break out housing – a major component of the variables measured in the survey – Brisbane's housing price points may surprise many.
The fact is that the majority of home sales taking place across Brisbane are for a price tag of less than $400,000.
And a similar trend exists across most other Australian capitals as well, including Sydney and Melbourne – also in our regional centres.
While the perception may be otherwise, the reality is that most dwellings sold Australia-wide are for less than $500,000. A third sell for prices under $350,000.
When it comes to buying property, knowledge of location price points can be helpful for investors in terms of making better property choices and maximising future investment returns.
That's because knowing how many sales take place in a particular area and price category, can provide an indication as to how long a property might take to resell; and how much future promotion and resources might be required to achieve that sale.
Price points – along with other key criteria such as value, design, site, supply and demand – are something that investors really should pay more attention to, rather than generic price growth alone.
Another way of looking at price points is to visualise the market as being shaped like a pyramid, where sales volumes are diminishing as prices rise.
The point being that in general, the more you pay for a property, the fewer buyers there are to resell to in the future.
That's not to say that the top end housing market has not seen growth across Australia.
Today, one in 10 of our homes achieves over $1 million on sale, up from 3% 10 years ago.
And one in fifty homes sells for over $2 million, up from 0.7% a decade ago.
In Brisbane, these are the latest dwelling price points:
<ul>
<li>Under $400,000 – 38%</li>
<li>$400,000 to $600,000 – 39%</li>
<li>$600,000 to $800,000 – 13%</li>
<li>$800,000 to $1 million – 6%</li>
<li>Over $1 million – 4%</li>
</ul>
Investors, especially those just starting out, would be wise to consider buying property in the larger price brackets. The old adage of safety in numbers does apply.
It's important to remember, too, that price movement is not necessarily uniform across a market. Some price points move more than others and will change, depending on the position of the market in the property cycle.
Currently, in Brisbane's recovery market, here's what we are seeing:
<ul>
<li>Properties priced below $350,000 have seen a 12% lift over the past three months</li>
<li>Those priced $500,000 to $1 million have increased more than 30%</li>
<li>And sales over $1 million are up an impressive 43%.</li>
</ul>
 Visit Michael's <a href="https://matusik.com.au/" target="_blank">website</a>, read his <a href="https://matusik.com.au/missive/" target="_blank">blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank">Facebook</a> and <a href="https://twitter.com/michaelmatusik" target="_blank">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" target="_blank">LinkedIn</a>.
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Forget generic price growth: it's time to take a closer look

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;

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<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;

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<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.

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<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.”

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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."

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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.

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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.

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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.

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Michael Matusik

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