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We are driving less. Our per capita travel by private vehicle has been dropping over the last ten years.  
For mine, the cost of petrol is an obvious reason, though I think technology has something to do with it too, what with the dramatic impact it has on our ability to stay put while connecting (well, if you want to call it that) with just about anyone, anywhere, anytime – without even having to sit upright.  
But what’s on the mind of many of us actually driving is traffic congestion.  
Alleviating congestion has become a focus of city planners, but how congested, really, are our cities? Some science behind the whinge might help matters.  It usually does.  
And to the rescue comes the Dutch manufacturer of automotive navigation systems, TomTom (without the Lone Ranger), which has undertaken extensive studies on congestion levels in urban areas around the globe and has come up with the TomTom Congestion Index on traffic movement by location, time and day.  
Here are a few pertinent stats for Australia and New Zealand (yes they do have traffic there too!) and if you want to download the complete study, you can <a target="_blank" href="https://www.tomtom.com/congestionindex">go here</a>.  
Most congested cities – Sydney and Perth.  
Least congested cities – Brisbane (hard to believe hey!) and Canberra.  
Congestion levels – Sydney’s overall score is 33%, the same as Los Angeles – the most congested city in the United States – and far less than the most congested city in Europe – Moscow 66%.  
Perth gets 30%; Melbourne and Adelaide 28%; Brisbane 25% and Canberra 18%.  This compares to Auckland and Christchurch 28% and Wellington 24%.  
Congestion here is measured 24/7 and not just during peak hours.  
Morning peak hour – Sydney wins most congested and rises to 70% which even exceeds LA’s 56% (we feel your pain, Sydney); Melbourne moves into second place (56%); followed by Perth (55%); Adelaide (50%); Brisbane (45%; and Canberra (41%).  
Top three increasing in congestion – Perth, Melbourne, Sydney.  
Top three decreasing in congestion – Auckland, Christchurch and Brisbane (It still doesn’t help when stuck in traffic on Moggill Road!)  
Likely delay per hour driven in peak periods – Brisbane 28 minutes; Canberra 22m; Adelaide 28m; Melbourne 33m; Perth 33m; Sydney 40m.  Across the ditch: Auckland 40m; Christchurch 30m; Wellington 36m.  
So I assume from this that Brisbane’s traffic congestion is kinda okay, until shite hits the fan somewhere, and it gridlocks up, causing, on average, 28 minute delays, during peak periods.  
Best peak periods of the week – For Brisbane, Adelaide, Melbourne, Perth and Sydney, the best peak periods occur Mondays pm and Fridays am.  For Canberra, best peak periods are Fridays am and pm – in other words, they only work a four-day week in the nation’s capital.  
Worst peak periods of the week – Tuesdays am for all cities except Canberra (Wednesdays am); and Thursdays pm for all cities except Perth (Wednesdays pm) and Sydney (Fridays pm).  
My comments  
The market is placing much higher value on convenience.  Travel times are part of this.  But I think living downtown or closer to an urban centre, has more to do with amenity and being able to walk to things, rather than the time saved when it comes to driving to work, shopping, schools etc.  
We are seeing this when it comes to new subdivisions.  Those developments that spruik easy access to surrounding facilities, are not as attractive as those projects which offer the amenity within the development itself or within a pleasurable walking distance.  
We will not give up our cars.  We might not drive them as much, but far too many things can only be accessed by private vehicle.  Urban consolidation doesn’t equate to fewer actual cars, just fewer and shorter driving trips.  
The market (both buyers and renters) still places a premium on cars.  It is very difficult to sell a new one-bedroom apartment in inner Brisbane without a car parking space for over $350,000.  But buyers pay well over $400,000 for a one-bedroom apartment with a car space.  The premium for the car space within a new inner Brisbane development ranges depending on location, but averages close to $75,000.  The apartments with car spaces – being one space for a one-bedroom apartment and on those rare occasions these days, two spaces for a two-bedroom apartment – mostly sell first.  
Don’t believe me?  Well you ask a downsizing baby boomer couple - who are looking to leave suburbia and live a more urban lifestyle and who can only afford to buy a two-bedroom/one car space apartment – who is going to forego their car? Icy silence.  And wave bye-bye to that sale.  
Where are the Lone Ranger and Tonto when you need them?  
“Hey Kemosabe, maybe a townhouse might do the trick!”
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/" rel="nofollow" style="font-size: 14px;">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read<a target="_blank" href="https://www.matusikmissive.com.au/" rel="nofollow" style="font-size: 14px;">Michael’s Blog</a> or follow him on <a target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts" rel="nofollow" style="font-size: 14px;">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow" style="font-size: 14px;">Twitter</a> or connect via<a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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Despite traffic congestion, we will not give up our cars: Michael Matusik

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Fast car driving - sleek and modern - public transit - photos waiting - blood and glass - three points of rain - carpet lining - seats reclining
Clever words on smooth tongue talking - shove it brother - just keep walking.
- lyrics to Just Keep Walking, INXS 1980
<a target="_blank" href="https://www.walkscore.com/">Walk Score</a> measures the number of typical consumer destinations within walking distance of a dwelling, with scores ranging from 0 (car dependant) to 100 (most walkable).
Recent overseas studies indicate that properties with above-average levels of walkability command a premium over homes with average levels of walkability.
In the United States, for example, an additional one point increase in a Walk Score is associated with a potential $3,000 increase in property value.
Our recent study of Brisbane also found a very strong correlation between a suburb’s Walk Score and a property’s investment performance.
Housing markets attach a positive value to living within easy walking distance of public transport, shopping, services, schools and quality open space.
Furthermore, an investment property value premium for walkability seems to be higher in more populous urban areas and in those locations with extensive public transit access, suggesting that the value gains associated with walkability are greatest when people have real alternatives to living without needing to use their car for most commutes.
It should be stressed that Walk Score’s measure of walkability captures not just the benefits associated with walking, but with greater accessibility generally.  For example, places with higher Walk Scores tend to have more mixed uses &amp; better transit services, and much of the value measured here may be attributable to those assets.
The average Walk Score for the greater Brisbane area is just 49 out of 100.
<a href="https://matusikmissive.com.au/wp-content/uploads/2013/04/Walkscore-Missive-hyperlink.pdf" target="_blank" title="Walk Score">Our study</a> across 24 Brisbane suburbs found that places with higher walkability achieved higher prices; grew faster in value; attracted higher rents (&amp; rental returns); had fewer vacancies &amp; less properties listed for resale.   Resale listings also sell faster in high Walk Score areas.
Everyone thinks their new development or property is better located than the next.  Tell them all to shove it brother, check out Walk Score and make up your own mind.
P.s. INXS’s debut self-titled album, for mine, was their best.  I am getting nostalgic in my old age and I fondly remember seeing INXS, Dragon (now I am showing my age) and Aussie Crawl on Cronulla Beach in the early 1980s. 30,000 people were rumoured to be there. It was INXS’s first big audience and Michael Hutchence sang with his back to the crowd. Hard to believe these days, hey!
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Properties with higher 'walk scores' are better investments: Michael Matusik

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Rising residential construction is an important element in the RBA’s game plan for 2013 and beyond.  As mining-related investment plateaus, residential construction will need to step into the breach.  Housing construction has a big employment multiplier.
Yet first home buyer interest – which does not surprise us in least – is in decline.  Investors, when it comes to new property, are showing little or no urgency - and who could really blame them.  So new construction is, and is likely to remain, subdued.  Falling interest rates can only stimulate new housing demand if other policy settings are correct.
We are reaping what we sow.
First home buyers
A few months ago, based on the January loan figures, most media outlets ran the “first home buyers abandon market” headline.  The falls were the greatest in New South Wales and Queensland, with just 773 first home loans issued in New South Wales during January and only 750 in Queensland.
But both states changed the emphasis of their first home grant schemes towards new housing late last year.  <a title="Missive" target="_blank" href="https://matusikmissive.com.au/2012/09/10/just-11/">We said then</a> that this would end in tears.
Now, most housing statistics covering the month of January are usually not reflective of the market conditions over the next year.  I describe January (and often December) figures as –being “off-market”.
And 14.9% of all loans were taken up by first home buyers during January.  Now, despite what the headlines say, a 15% market share is the long-term first home buyer average.  The home loan volumes traded by first home buyers during 2009 and into 2010 weren’t sustainable.
For mine – there is no headline, no need for even much conversation about this topic; it is just business as usual.  But if you want to encourage new residential construction, which is what both the NSW and Qld governments want to do with their changes to the first home buyers grant last year, you won’t do it by trying to incentivise first timers to buy something new.
Why?  Only one in ten first home buyers buy a new property.  The reason is that a second-hand home offers much better value to a first home buyer because they have energy, enthusiasm and Australian tax laws on their side, which all combine to encourage them to buy something older which they can renovate and in time resell, tax free.  We have all done it.  Why would anything change?
The grant by the way doesn’t work.  It hasn’t offset the impact of GST on new property and in fact we have fewer first-home buyers than would have been the case.  According to the ABS, there were 446,000 first-home buyers across Australia just prior to the grant.  Today that number stands at 429,000.
The average mortgage taken out by a first-home buyer today is $293,000, against a mean purchase price in the low $400,000 range.  This gives many a healthy 30% equity.  However, this equity position has not improved in recent years whilst the size of first-home loans has increased.  In short, the FHOG has also inflated the market.
Finally, it has screwed-up expectations; with three out of five first home buyers being either a single or couple household, yet 75% of the stock bought by them now holds three or more bedrooms.  One quarter (26%) of first home buyers bought a four-bedroom home last year.
Prior to the grant, most first home buyers bought two (35%) or three-bedroom (30%) dwellings.
Investors
On average, investors buy most of the new property for sale in Australia.  This buyer profile varies by product type and location, being higher for downtown apartments than detached houses on standard allotments in a suburban setting, but regardless of what and where it is, investors are the largest buyer group of off-plan property and newly constructed product.
But buyers of new property must pay GST (whilst buyers of second-hand property don’t) and also the same level of stamp duties as buyers of established stock.
If you really want to encourage new residential development, you must incentivise the investment markets.
This is very easy to do and was proven when Jeff Kennett took office in Victoria.  Step the amount of stamp duties payable on a new property transaction according to the stage of development.  No stamp duty being payable if a buyer buys off-plan; some stamp duty due if bought during construction and full stamp duty payable after completion.
What would help – extremely so – is removing GST for new property or making it payable on all property transactions.  The former would be much better than the latter.
We are reaping what we have sown.  First home buyers don’t need help.  Nor do investors for that matter.  They (both really) need to be encouraged to buy something new.  At least create an even playing field.
And again, get rid of the FHOG.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a href="https://www.matusikmissive.com.au/">Michael’s Blog</a> or follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts">Facebook</a> and <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>
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Get rid of the FHOG: Michael Matusik

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Property values have taken a well-documented slide lately, yet construction costs are still relatively high.
Will they ever head south, the way some sales contracts have?
Demand for domestic construction has cooled a bit in the past few years, but excess workers have been absorbed by stellar projects in commercial construction and mining.
As a result, we haven’t really seen widespread discounting of construction labour, and we certainly haven’t seen discounted building materials – although fixtures and fittings imported from China are more affordable than ever.
Depending on your level of construction expertise, you may have heard of a costs guide called Rawlinsons. It’s an annual bible with quarterly updates and gives an accurate reflection of what’s going on with the costs of all things construction.
You can get bogged down in the specifics – if you want to know how much it’ll cost to lay a 22mm terrazzo floor in Perth, the Rawlinsons guide will tell you. Need to price a partial demolition in Melbourne? Rawlinsons knows the ins and outs of that, too. Building a bank in Adelaide? A pub in Darwin? Rawlinsons will tell you what to budget.
The 2012 guide shows that after big jumps in the early 2000s, construction costs have either plateaued or increased very slightly in the past three years – they haven’t gone backwards.
So how much does it cost to build a house, right now? Or an apartment?
Let’s start with a small, basic house – a project home, if you will. A stock standard brick veneer home of 90-110 square metres will set you back anywhere from $825 per square metre in Adelaide, or $1,280 per square metre in Hobart. In Brisbane and Sydney you can expect costs of around $1,050, while Melbourne is about $1,100 per square metre.


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A bit further up the chain, a full brick prestige home between 150-350 square metres is again cheapest to build in Adelaide, with costs ranging from $2,080 per square metre. Brisbane is the most expensive capital in which to build to prestige standard, up to $3,240 per square metre.
Interestingly, the pricing guide for pre-fabricated housing of a medium finish is all around the $1,200 per square metre mark – more than the most expensive project home but considerably cheaper than a similar prestige home. There’s certainly a place in the market for pre-fab housing; consistency of costs is another attraction.
Moving into apartments (so to speak,) and the costs are higher than for pre-fab housing, but generally lower than for a traditional house.
The cost of a medium-finish one- or two-bedroom apartment with no balcony or lift starts at $1,580 per square metre in Adelaide and Brisbane, ranging all the way up to $2,090 in Hobart. Perth’s costs are hovering around the $1,700 mark, Sydney around $1,800 and Melbourne up around $1,900. Then you’ve got to add up to $780 per square metre for a balcony.
It all adds up, but remember – most apartments are considerably smaller per square metre than your average house, so they’re cheaper overall.
Townhouses of a medium standard finish are about the same or marginally cheaper to build than apartments, starting from $1,365 in Adelaide and ranging up to $2,150 in Hobart. Brisbane’s rate is around the $1,600 mark, Perth is around $1,700 while Sydney and Melbourne are both about $1,750.
Rawlinsons’ last quarterly update in July recommended adding an additional 1% on top of all current cost guides – further evidence that construction, just like property, is making a small step back into the black. Another tiny win for confidence!
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Why construction costs are still high when property values are falling: Michael Matusik

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Yes, interest rates fell.
But what do we know?
The local economy is tough.  Overseas markets more so.  Or is it more about structural change than cyclical factors?  Ditto Australia’s housing markets.
Australians are saving at near-record rates.
Budget cutbacks means less fiscal stimulus.
We are spending money but on different things – travel and online goods, not local produce and especially not new housing (or established housing, for that matter).
We are paying down our mortgages, and taking on new debt is way out of fashion.
Inflation looks contained – well, for now.
Established house prices are starting to rise – up over 3% since May or close to 9% on an annualised rate.
Population growth across Australia is on the rise again.
The Aussie dollar remains high.
Very few people are admitting they like Alan Jones right this minute.
For mine, this week’s drop in official rates will have very little impact on our economy.  The banks are limited as to how much they can pass on.  Rates are expected to fall again in November.
True, a rate drop is better than a rate rise, given our current collective frump.
 
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But what we need is a boost to our confidence.  A fall in interest rates won’t do it.  This week’s fall and even next month’s is already factored into our expectations.  It’s like having meat and three veg for dinner, the usual and so ho-hum.
Confidence, that’s what is missing and for the life of me, I don’t see it on the horizon and regardless of what direction I look.  I definitely don’t see in when I look south towards Canberra.  I was hoping to see it in George Street, but maybe my expectations were set too high.  I am not seeing it across the Pacific.  Heck, I cannot even watch a footy match these days without someone getting their ear nearly bitten off.
Without being sexist, Tom Waits has got it right – “there ain’t enough raised right men”.
We need to build something – another Snowy Mountains something.  Or really attempt to solve a major human suffering – and something tangible, like infant mortality or AIDS – and not the nebulous like “climate change”.  We need a plan and a leader to articulate and implement it.  Branson and co. need to step up.  No politician – well, not out of the current crop – is going to do it.  Ditto those mining magnates.
We need our own Springsteen.  Where’s Midnight Oil when you need them?  Come on, Pete – give up your day job!
But before I get higher on my high horse:
All the ingredients are there for another housing upturn – low rates; high yields (often now positive); a rising population growth rate; soft housing starts; very tight vacancy rates; higher rents and now rising end prices, and yet I will get more “spruiker” direct email replies from this post than “high fives”.
It’s a strange world we live in these days for sure.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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What we know about the housing market in the wake of the RBA's cash rate cut

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Yesterday’s Missive found an undersupply of detached houses for sale in Sydney (2%), regional NT (2%), Darwin (3%) and Perth (3%).
<a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-darwin-and-perth-house-markets-undersupplied-but-regional-areas-oversupplied-michael-matusik/2012092556802">Detached housing markets at equilibrium are</a>:  Adelaide (4%), Brisbane (4%), Melbourne (4%), Hobart (5%) and regional NSW (6%).
The oversupplied detached housing markets are: regional WA (especially the <a target="_blank" href="/news">Margaret River</a> area) (14%), regional Victoria (9%), regional Queensland (including the Gold and Sunshine coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie (well, Launceston) (7%).
But where are the stand-out post codes? And where are the shockers – the spots where housing supply has increased, and sometimes by lots?
The current top 10 improvers were all from Victoria, Queensland and WA. The two outer-Melbourne suburbs of <a target="_blank" href="/news">Werribee South</a> and <a target="_blank" href="/news">Wyndham Vale</a> had the biggest drops in housing stock for sale, although it’s worth pointing out there’s plenty more on offer very nearby – similar outer-Melbourne suburbs dominate the losers list, in fact some of them are right next door.
<img src="/images/stories/2012/09/matusept26.gif">
<a target="_blank" href="/news">Portland </a>in regional Victoria is worth a mention – it’s had a whopping 71% drop in the number of houses for sale over the year, with just 110 currently on the market. Portland’s main industry is – you guessed it – its busy port.
Queensland’s biggest drops in housing stock were <a target="_blank" href="/news">Yeppoon </a>near <a href="/news">Rockhampton</a>, <a href="/news">Coolum </a>on the Sunny Coast (down 31% to 618) and <a href="/news">Hervey Bay</a>. On the Gold Coast, <a href="/news">Paradise Point</a> and <a href="/news">Broadbeach</a> both have around 200 fewer houses for sale than this time last year – another tiny piece of good news for the struggling Goldie.
<a href="/news">Willetton</a>, a suburb in Perth (down 33% to 428 houses for sale), and <a href="/news">Mandurah </a>further south of the capital round out WA’s share of the top 10, with both WA locations also dropping about 200 houses each off the sales list.
The bottom 10 list is dominated by the outer suburbs of Melbourne, where houses for sale seem to be a dime a dozen. These are the spots that have experienced the highest jumps – leaps if you like – in the numbers of houses for sale. <a href="/news">Clyde North </a>in Melbourne’s southern outskirts has recorded a dramatic 213% rise (1,342 houses on the market); <a target="_blank" href="/news">Taylors Hill</a> out in the north-west has seen a 130% spike (to 1,158), while nearby <a target="_blank" href="/news">Rockbank </a>has leaped up by a staggering 295%. Seven of the top 10 losers are on the outskirts of Melbourne; the eighth Victorian entry is <a target="_blank" href="/news">Bairnsdale</a>, a small city in Gippsland.
The other two biggest losers are <a target="_blank" href="/news">Wurdong Heights</a>, a new development south of Gladstone in Queensland where demand from mining workers is quite high, and <a target="_blank" href="/news">Woorree</a> east of Geraldton in WA – also a mining area, where new homes, in the past at least, have been resold – and quite quickly.  Mining-related retrenchments, however, might slow down sales in the future.
PS - Thanks again to <a href="https://www.sqmresearch.com.au/">SQM Research</a> for access to its latest stock for sale Excel spreadsheets. Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a>or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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The stand-out and shocker postcodes for detached housing supply

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Forget about apartments for a minute, we’ll get to them next week. Let’s take a look, for now, at what’s going on with detached housing stock levels across the country.
There are 22 million people and 5.82 million detached houses in Australia.  Three out of five, or 60%, are located in a capital city – although only 40% of houses for sale are in the capitals.
About 5% or 300,000 of Australia’s houses were for sale in August, which is about 10,000 more houses than for the same time last year – an increase of about 3%. This means there are 4,000 more houses for sale in the capitals than a year ago, and about 5,500 more on offer in the regions. Yes, stock levels are rising – but where?
All up, there are about 120,000 houses for sale across all the capitals and 175,000 for sale in the regions. Houses make up 75% of all dwellings for sale across the eight capitals and hold 85% of market share in the regions.
There are fewer “for sale” signs of late in Perth (down 1,700), Brisbane (down 1,400) and Darwin (down 275 or a whopping 25%). In contrast, the remaining five capitals all recorded an increase in detached housing stock for sale, especially Melbourne– where there are 5,500 more houses on offer than this time last year.
In the regions, houses for sale dropped in SA and Queensland, remained steady in the NT and Tassie but increased in Victoria (up 3,800), NSW (up 1,750) and WA (up 1,450).
Does this mean things are pretty crappy for detached housing in Melbourne and Victoria? And things are looking up for Queensland, SA and Perth?
Not necessarily.
When you cross-reference the “for sale” detached house figures with the numbers of detached houses in each capital and regional market, the results tell quite a different story.
Despite the lift of 4,000 extra houses for sale this year, the total of 120,000 houses for sale in all capitals actually represents just 3% of stock.
I reckon a turnover of between 4% and 6% for detached houses is normal; anything less than 4% is a bit tight or undersupplied. Anything over 6% is obviously a bit loose or oversupplied.
So, that means the undersupplied detached housing markets are:  Sydney (2%), regional NT (2%), Darwin (3%) and Perth (3%).  (The percentage refers to the number of detached houses listed for sale against the total number of detached houses).
Detached housing markets at equilibrium are: Adelaide (4%), Brisbane (4%), Melbourne (4%), Hobart (5%) and regional NSW (6%).
The oversupplied detached housing markets are: regional WA (especially the Margaret River area) (14%), regional Victoria (9%), regional Queensland (including the Gold and Sunshine coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie (really only Launceston) (7%).
That changes things a bit, doesn’t it? Or perhaps it just confirms what most of us already knew.
PS: Thanks heaps to <a href="https://www.sqmresearch.com.au/">SQM Research</a> for access to its latest stock for sale Excel spreadsheets.
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a> or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Sydney, Darwin and Perth house markets undersupplied but regional areas oversupplied

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So, does Australia have too few, too many, or is the situation just about right?
I am talking about new dwellings.
I have been arguing for some time that one of the biggest real estate myths in this country is that the new housing market is undersupplied; and often this situation is described with words such as “massive”, “chronic” or “enormous”.
But is it true?  As followers of the Matusik Missive know, I have tried to prove that it is false and with, for mine, with quite a degree of finesse.  Yeah, like a bull in a china shop.
Anyway, each year I like to go back and check the numbers.  And last week’s annual check-up has found that Australia continues to build more dwellings than we need.  A few years back – in 2008-09 – not enough new homes were being built, but in recent years, and despite the constant calls from the building industry for stimulus to help create even more new dwellings, we have been building too many. 
In the 2009 financial year, Australia needed to build 167,000 new dwellings, yet only 131,000 or thereabouts were commenced.  However, in 2010 (all years in this post are financial ones), the supply-demand balance reversed, with just 121,000 new homes needed, yet 167,000 actually commenced construction.  During 2011 the industry continued to build far more homes than what was actually needed, to the tune of about 47,650 too many.
The good news is that the rate of overbuilding has slowed down over the last 12 months, with 137,000 new dwellings needed during 2011-12 and with 139,000 actually supplied.
However, dwelling supply (we are talking about actual commencements here and not approvals) is cumulative and since the GFC, Australia has built about 60,000 more new dwellings than it really needed.
Nationwide, we are currently oversupplied with new digs to the tune of about five months, based on current underlying demand.  In short, we could, as a nation, stop building for several months and still have enough new homes to fulfil our needs.
But of course, there are always swings and roundabouts.
Several states and territories are undersupplied, some are chronically oversupplied – I just had to get that in – while others have way too much stock.
Major oversupplies now exist in Victoria; South Australia, Tasmania and the ACT.
Since 2009, Victoria has created 69,000 (yes 69,000 – that’s five digits with a six at the front!) too many new dwellings.  This represents about a two-year oversupply based on the current annual underlying demand for 34,000 new dwellings across the state.
South Australia has built 18,000 too many new homes, but with a need to just build about 6,000 new dwellings per year, South Australia really shouldn’t need to build a new home for years, well close to three, in fact.
There are 6,000 too many dwellings built or being built in Canberra.  This equates to 30 months of supply.  And poor Tassie has also overbuilt, and also in the high 4,000 range.  But Tasmania’s situation is further exacerbated by its declining population growth.  Based on a continuation of last year’s paltry population increase of 1,000 people, Tassie’s 4,800 overbuild represents close to nine years of demand.  Now might be a good time to steal a new property on the Apple Isle.
The Northern Territory is now also oversupplied, with 350 too many dwellings created in recent years.  The demand for new homes in the territory is limited (at about 800 per annum), so this paltry 350 over-hang represents six month’s demand.
In stark contrast, New South Wales hasn’t been building enough new stock – no surprise there – but the undersupply is to the tune of 13,000 or about five months of current demand.
Western Australia is also undersupplied by about 23,000 dwellings at present, which equates to about an nine month demand.
Finally, Queensland has a new dwelling short-fall of 2,800 or two weeks of undersupply.
Last year’s statistics, however, suggest that Queensland is now heading towards a massive undersupply, with 33,000 new dwellings needed during 2012, yet just 26,000 supplied – an undersupply in the tune of about 20%.
Let’s hope the Newman government’s recent $15,000 first-home buyers' grant for new construction kicks some arse.  But for mine, it will not deliver the spanking it was intended to.
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a>or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Australia has an oversupply of 60,000 dwellings

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So you’ve settled on a suburb or area that you want to invest in, and you’ve narrowed it down to a handful of competing developments.
They’re all in great spots, in similar price ranges.
How do you separate them?
One of the biggest mistakes clever investors make is to ignore what I call the four Fs – facilities, fixtures, fittings and finish.
There are 10 four F trends you must be aware of.
1. Smart living: data cabling and wireless
Everybody needs the net at home. Make sure your property has smart wiring built into the walls – you don’t want to add it later. Most developers now offer data and TV cabling to most living and study areas, and demand will only increase. If your development is solid concrete, where can tenants use wireless internet devices, or even mobile phones?
2.  Lap pool and gym
Forget the old jellybean shape; the hot new trend is a lap pool. They create a quieter environment too, because they’re less about “play” and more about exercise and wellbeing. Well-equipped gyms are becoming much more common in small to mid-size developments.
3.  Shared spaces: quality and quantity
Large developments used to have a pool and a barbecue space; now there’s a trend for smaller developments to provide a wide selection of shared spaces for residents to enjoy. Small theatres, rooftop lounges, boardrooms and function rooms – these are all “bang on trend” at the moment.
4.  Natural ventilation and air-conditioning
Some tenants will rely on air-conditioning. Others don’t want an electricity bill up in the stratosphere, so they’re demanding natural ventilation. Either way, there’s a clear trend towards apartments that cost less to live in. Can you control the air-con to shut off rooms you’re not using?
5.  Natural light and energy-efficient light fittings
The big trend towards energy efficiency means ample windows, aspect and surrounding buildings all play a role. A certain proportion of a new dwelling’s light fittings are required to be “energy efficient”; ask the developer about fittings that are used every night.
6.  Two-pack cabinetry and stone benchtops
A few years ago, quality two-pack cabinetry and stone benches only featured in the kitchens and bathrooms of the most expensive houses. Now you’ll find them in most mid-range apartments. Don’t settle for less; they will last longer. Another quality trend: “soft-close” drawers – if Ikea can make them standard, so can your developer.
7.  Kitchen appliances: quality and function
Stainless steel is still hot and will probably never go out of fashion. But it’s the little details ticking boxes these days: a fridge dispensing ice and water; a bigger oven; a wider cooktop; a built-in coffee machine. Negotiate just one “wow” factor into your kitchen, and tenants will love you.
8.  Floors: tough and durable
The trend here is for longevity. Carpets are generally darker and limited to bedrooms. The most durable living area floor is a tiled one – glossy or matte, pick any style you like as long as it’s not terracotta. Their day has passed!
9.  Storage: clever and plentiful
Not so much a trend as a fact of life – we all need somewhere to put our stuff. The more storage space in an apartment, the better.
10. Style: modern and comfortable
Just like a good wine, you want your property to age well. The trend for finishes is simple: modern, spacious designs that can stand the test of time, but are also welcoming, comfortable – and feel like a home.
So next time you go into a display suite or onto a new estate, ask the sales rep to tell you about their four Fs.
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a> or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Don't ignore the four Fs of residential developments

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If you can get past the headlines, things – real estate wise – are definitely looking up – but you might need your head read if you’re planning to sell an property soon, depending on where it is and when you bought it, of course.
Some pretty low forced sales in Melbourne (for example) have caused many investors to desert a sinking market – dropping hundreds of thousands of dollars in the process. Weigh up the current low interest rates, and it might pay to tenant your worst investment as best you can, and wait out the storm.
Things are generally looking up in Sydney and Brisbane, although a sudden flood of stock in spring might make things tougher.
So what can you do if you have to sell in a tough market? There are five things you must do to win a sale sooner rather than later.
1) Wake up and smell the roses
I’m not your agent, and I’m not talking you down – but you need to be realistic on price. Yes, it might hurt. An overpriced property in a tough market will sit there, draped in cobwebs, while its vendor dreams of better times. See what other properties are selling for, then take a good hard look at yours. No one wants to take a hiding from a bargain-hunter in six or 12 months’ time.
2) Present it like you mean it
In a tight market, you need to knock the socks off every buyer who comes through the door. Make it clean as a whistle, leave no stone unturned in the garden – and please, do not forget the windows, inside and out. Buy flowers for the kitchen before every open house. Aim for show-stopping perfection; you want your property to be remembered for good, not evil.
3) Promote it as best you can
Make sure the property’s very best feature is in the headline of the internet ad and any other ads you feel you want to pay for. Always get professional photos taken, but shop around and make sure you own the images if you change agents later. Ask your agent to do a letterbox drop, or offer to do one yourself.
4) Out with the tenants; in with the furniture
It’s a sad fact of life that your tenants are unlikely to share your personal financial goals. It’s even more likely they will not have the place looking ship-shape for each and every inspection, and the longer a sales campaign runs, the grumpier they’ll get. Aim to sell a property immediately after a tenancy – that way you can have free access to get the place cleaned and ready for sale, and your agent can conduct inspections at will. If your budget permits, try furnishing even just one or two rooms to really make a good impression. The living area and the main bedroom should do it.
5) Stay strong
If push comes to shove, only you can make the decision to cut your losses and meet the market, or hold on for a better offer that may or may not ever come. There’s a wealth of psychology to selling – and tough markets are tough, so don’t let it do your head in. If you can’t secure a sale in a time period within your comfort zone, have a backup plan – like re-tenanting the property beyond a certain date, or even taking it to auction. Listen to your agent, but make sure you’re in the driver’s seat.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.wordpress.com%20/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Five tips for property vendors to secure a sale sooner rather than later in a tough climate

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]

Michael Matusik

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