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Canberra's house and unit market continue to operate at different wavelengths as house prices shifted slightly higher over the quarter and unit prices recorded the steepest annual fall in more than two decades, according to Domain's latest House Price Report.
The report found, heightened development has weighed heavily on unit prices.
Canberra house prices grew 0.1% over the quarter and held flat over the year at $738,933.
Canberra unit prices fell 3.6% over the quarter and 6.1% over the year to $412,718.
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Domain Senior Research Analyst, Dr Nicola Powell said: “Canberra continues to defy the national downward trend, with house prices nudging marginally higher over the December quarter. Canberra is the third strongest Australian capital city, behind Hobart and Adelaide. Steam has slowly dissipated from the nation’s capital throughout 2018, the year closed with flat annual house price growth. Canberra, like all other cities, is being restricted by credit flows, although to a lesser extent than Sydney and Melbourne.
“However, new stamp duty exemptions to come into play in the second half of the year will likely increase demand from first-home buyers in the territory.
“Despite a diversifying economy, the public sector still accounts for a large employment base in the nation's capital. It is therefore likely that local consumer confidence will be dampened in the lead up to the federal election, with buyers and sellers holding tight.
“The prospect of an uncertain political landscape looming, and particularly if a change in government ensues, the demand for housing could be impacted in the short-term. However, house prices are unlikely to go backwards given the ongoing controlled supply of residential land, positive economic outlook and predicted population growth,” she concluded.
<img src="https://www.urban.com.au/images/2019/1/23/Domain%20Q4%20Can.jpeg" alt="">
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Canberra unit prices record the steepest annual fall in more than 20 years: Domain

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If the current level of price growth in Hobart continues it could lose its title as most affordable capital city to purchase a house to Adelaide and Darwin, according to Domain's latest House Price Report.
The report found Hobart house prices have had a record period of growth, rising for 11 consecutive quarters.
Hobart House prices grew 2.7% over the quarter and 8.8% over the year to $479,685.
Unit prices fell 2.6% over the quarter and 3.5% over the year to $342,796.
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Domain Senior Research Analyst, Dr Nicola Powell said: “Despite strong growth Hobart remains Australia’s most affordable capital city to purchase a house. Population fueled demand has outstripped supply, resulting in two years of double-digit growth.
“Hobart continues to be the standout performer for capital gains, bucking the national downward trend. However, even though the city continues to record growth, the pace has slowed from the peak rate of growth recorded at the end of 2017 and early in 2018.”
<img src="https://www.urban.com.au/images/2019/1/23/Domain%20Q4%20Hob.jpeg" alt="">
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Hobart may soon lose its status as most affordable capital city: Domain

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On the back of increasing levels of supply, Greater Brisbane unit prices recorded their largest fall in 17 years in the December 2018 quarter, according to Domain's latest House Price Report.
The report found, this has created a window for buyers to purchase at 2013 prices.
Brisbane unit prices fell 5% over the quarter and 7.9% over the year to $369,882.
Brisbane house prices fell 0.2% over the quarter and 0.1% over the year to $566,058.
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Domain Senior Research Analyst, Dr Nicola Powell said: “Greater Brisbane house price growth evaporated by the end of 2018, with prices ultimately flatlining over the quarter and year. This provides further evidence that credit access is not only impacting Sydney and Melbourne, it is now having a marked effect on housing markets that would otherwise be growing.
“A number of factors should provide better foundations for the housing market, as greater job prospects and an improved economic outlook draws residents to the state. Queensland remains a magnet for interstate migrants, which is currently at a 12-year high, and more residents are moving from overseas. Demand is rising, with Domain recording an increase in the number of views per listing.
“Although house price growth has stalled, it is a better outcome than many other Australian capital cities have experienced, with Brisbane proving the fourth best performer, behind Hobart, Adelaide and Canberra.
“A number of dynamics will eventually see Brisbane’s heightened supply of units absorbed. 
“The number of developments under construction, apartment completions and multi-unit building approvals are all shrinking. However, for now the stricter lending environment is stalling a recovery.”
<img src="https://www.urban.com.au/images/2019/1/23/Domain%20Q4%20Bris.JPG" alt="">
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Greater Brisbane unit prices recorded their largest fall in 17 years: Domain

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Unit prices have been holding steadier than houses in Melbourne, just 5.8% below the peak they reached at the beginning of 2018, according to Domain's latest House Price Report.
The report found, Melbourne house and unit price falls sped up throughout 2018, although so far the downturn has been shorter and less severe when compared to Sydney.
Melbourne house prices fell 2.1% over the quarter and 8.4% over the year to $833,321.
Melbourne unit prices fell 1.8% over the quarter and 4.3% over the year to $479,306.
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Domain Senior Research Analyst, Dr Nicola Powell said: "Restrictions to housing finance have hit Melbourne and Sydney the hardest. However, Melbourne is in better shape than Sydney, as a growing employment sector, lower affordability hurdles and stronger population growth supports the underlying demand for housing.
“Melbourne house prices have now fallen for four consecutive quarters, the last time this occurred was seven years ago. The ongoing falls have resulted in the steepest annual house price drop since Domain records began in 1993. However, it’s worth noting that the downturn follows an extraordinary period of growth, with house prices rising 72.8% in just over five years.
"Houses are 8.4% below the price peak achieved at the end of 2017, with homes now transacting at late-2016 prices.
“Underpinning the strength of units relative to houses is affordability hurdles and lending practices. Factors that have supported demand for housing at the lower end of the price spectrum include a rise in the number of first home buyers, and lending practices designed to reduce exposure to borrowers with a high debt to income ratio.”
<img src="https://www.urban.com.au/images/2019/1/23/Domain%20Q4%20Melb.JPG" alt="">
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Melbourne unit prices holding steadier than houses: Domain

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Sydney’s current house price downturn is the sharpest in more than two decades, although the duration is yet to surpass the 2004-06 slump, according to Domain's latest House Price Report.
The report found that for the second time since Domain records began in 1993, house prices have fallen for four consecutive quarters, the only other period this occurred was in 2008. 
House prices fell 3.2% over the quarter and 9.9% over the year to $1,062,619. 
Unit prices fell 3.3% over the quarter and 5.8% over the year to $702,012.
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Domain Senior Research Analyst, Dr Nicola Powell said: "Despite the consistent quarterly moderations, the depth of the falls have not gained significant momentum. The pullback in price was anticipated given the stellar run of growth that lasted almost six years. Homeowners reaped an unprecedented gain of 89% over this period.
“Historical performance proves unit prices have a tendency to hold firmer than houses, with slumps being of shorter duration and intensity. Similar to houses, unit prices have also fallen for four consecutive quarters. The latest annual decline the steepest in more than 20 years, taking unit prices back to mid-2016 levels.
“Since changes to macroprudential policies began in late 2014, obtaining a home loan has become increasingly challenging. Although this has resulted in fewer buyers, it has removed the loans written on thin grounds. Having met more stringent lending standards, those who are active in the market are ready to transact.
"Astute investors, who are able to secure finance, may start to look to Sydney as they hunt for the right opportunity to purchase under softer market conditions. Educated investors will continue to take a careful approach, even with the 30% growth cap on interest-only loans lifted.
“Affordability is improving in the harbour city. First home buyers have fewer investors to compete against, greater choice and a wider window to make their purchase. This also provides opportunity for the upsize buyer. It may mean selling at a lower price point compared to the boom, but if buying and selling under the same market conditions, it is likely to be offset by a more affordable upsize purchase.”
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Sydney house prices have fallen 11.4% from their mid-2017 peak: Domain

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Off-the-plan units top the list of the most perilous property investments, and the risks will rise dramatically if changes to negative gearing and capital gains tax go ahead.
This is according to <a href="http://www.riskwiseproperty.com.au/">RiskWise Property Research</a> CEO Doron Peleg, who says while there are already major risks associated with this type of investment due to a number of factors, including oversupply, the introduction of the reforms if Labor win this year’s federal election will compound them.
The ALP proposes to limit negative gearing to new houses only and reduce the discount on capital gains tax from the current 50% to 25% … and the likelihood of them winning is high, Peleg said. 
“A number of markets across Australia are already experiencing weakness and the introduction of these reforms will hit them hard,” he said.
“Should the ALP policy be implemented there will be reduced demand to purchase rental properties due to the creation of primary and secondary markets, and this will cause new dwelling prices to decline in many regions. 
“The second owner won’t receive the same tax benefits of depreciation etc as the primary owner when they buy a property. They will not be able to claim negative gearing against their wages and the capital gains tax discount will be cut in half. Therefore, the vendor will have to drop the value of the property because the benefits to the buyer are lower, and it is therefore not as attractive to potential buyers.
“So, when a market is already weak, for example off-the-plan units in an over-supplied area, as we see in capital cities around the country, this will contribute further to the price reductions.”
He said an example of this was inner-city Brisbane where weakness in the market had led to lower valuations, rising defaults on settlements, major discounting, falling rents and ‘over-the-top’ incentives to get buyers across the line.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/22/Brisbane%20Inner%20City%20Units%20November.jpg" alt=""> 
Brisbane City, Fortitude Valley and South Brisbane were all named in the Top 10 of the RiskWise 2018 list of the <a href="https://www.riskwiseproperty.com.au/News/high_risk_alert">100 Worst Off-The-Plan Suburbs</a> in Australia, as were Zetland and Epping in Sydney and Southbank in Melbourne where oversupply of units is a huge issue. 
In South Australia, the highest risk area for units was Adelaide CBD (postcode 5000), where oversupply was extreme and, according to CoreLogic, had delivered -2.9% capital growth in the past 12 months. In Perth they delivered -6.5% capital growth. The Perth - Inner area has the highest rate of unit oversupply in Western Australia with 4362 units in the pipeline (a 11.1% increase to the current stock), while the Greater Perth area has 12,687 units in the pipeline which is a 6% increase to the current stock.
He said the widespread oversupply issue was universally acknowledged by banks which had ‘blacklists’ for postcodes suffering potential unit saturation. In addition, he said lenders were scrutinising loan applications much more vigorously and either required a much higher deposit as security or were turning down the application entirely.
“It must also be remembered that rental units and owner-occupier units are not fully substitute products. The dwelling types and needs of owner-occupiers are often greatly different from the dwelling types and needs of renters,” he said.
“Units that are used by owner-occupiers are larger than units that are typically used as rental properties and, more importantly, the price per square metre of rental properties is higher than the price per square metre of owner-occupied properties, especially in Sydney and Melbourne. This means that, overall, rental units in Sydney and Melbourne are significantly less affordable than units that are owner-occupied.
“All this added up suggests that if the proposed changes to negative gearing and capital gains tax take place it is likely to put off-the-plan units at their highest risk ever and this includes equity risk, cashflow risk and settlement risk.”
Peleg said unless there was phenomenal capital growth, the value of off-the-plan property in many regions was likely to be reduced and it would become significantly harder for investors to enjoy capital growth, at least in the foreseeable future. 
“And if you consider that many of the prices for off-the-plan units include a significant commission to the marketer, between 5-6% of the value of the property and sometimes even more, and with the current risks to settle the property … all of these things together make purchasing off-the-plan units in many regions in Australia extremely high risk,” he said.
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Inner Brisbane off-the-plan units the riskiest of all property investments: RiskWise

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McGrath Estate Agents secured nine agents to join its McGrath Paddington, as it seeks to bolster its existing company-owned offices in Brisbane.
The new recruits are led by Daniel Goodwin (pictured right), until recently principal of LJ Hooker Paddington, will transition his entire sales team across to McGrath with more than 45 listings. Daniel has more 15 years experience in the Brisbane property market, and his combined team has over 60 years.
His agents will service key Brisbane suburbs that include Paddington, New Farm, Ashgrove, The Gap, Bardon and Teneriffe.
Daniel’s recent team sale include: 91 Moray Street, New Farm for $11 million; 4 Moore St, Milton for $1.415 million; 15 Evelyn St, Paddington for $1.310 million; and 35-41 Simpsons Road, Bardon for $3.1 million.
MrGrath boss Geoff Lucas said the move was in line with "our overall strategy to increase market share in our key markets with the recruitment of exceptional agents who have the desire to be part of a well-resourced and well capitalised company."
"Their wealth of knowledge and experience will augment our existing sales teams of 16 agents in Paddington, and 12 agents in New Farm where we have seen some strong sales results in the past few months.”
Such results by McGrath include 4602/71 Eagle Street, Brisbane for $4 million (Drew Davies – New Farm); 264 Ken Street, New Farm for above $3 million (Henry Hodge –New Farm); 32 Burdenkin Drive, Sinnamon Park for $2.5 million (Reuben Packer-Hill – Paddington); and 10 Charlane Avenue, Indooroopilly for $1.975,000 (Alex Jordan – Paddington).
McGrath Founder John McGrath (pictured middle) has long been an advocate of South East Queensland, and reinforced his enthusiasm for the Sunshine State in the recently released McGrath Report 2019.
“Liveability, affordability, scale and future economic prospects all suggest that Brisbane is a market which you can confidently invest,” said McGrath. 
“Brisbane is one of the world’s great cities and in my opinion the best market in Australia for short to medium term growth. I’ve been bullish on the area for some time, and whilst there has been some growth I believe there is a lot more to come over the next few years.”
Daniel Goodwin said that joining McGrath was a carefully considered decision and one endorsed by his team.
“We felt this was the right time to join McGrath, a company that has the respect of our agents as being the market leader in property marketing, customer service and industry training.
"With margins constantly under pressure, I believe the high level training and leadership by their entire management team, including John himself, is very important if agents are to adapt to a constantly changing and challenging market. Equally as a public company, the accountability and transparency is very appealing,” Goowin explained.
Kon Stathopoulos (pictured left), Head of Sales for McGrath’s company owned offices, said he was thrilled high performing agents wanted to step away from being traditional business owners with a desire to be part of a synergistic brand.”
Goodwin believes that the inner city unit market represents tremendous value compared to its interstate counter parts. 
“There are brand new 1 bedroom units available in the early $400,000 range and 2 bedrooms in $500,000 bracket in areas like Newstead and Fortitude Valley.
“These developments offer outstanding lifestyle features suited to Queensland’s enviable climate and have luxurious pools, rooftop entertainment areas, and private cinemas rooms.
“We are also finding a trend of upgrading from outer suburbs to places like The Gap, Ashgrove and Bardon within the 10km ring of the Brisbane CBD with many family purchasers seeking the catchments of a number of high quality and well regarded public and private schools whilst maintaining easy access and transport links to the CBD for working professionals.
“In the higher end space, interstate influence is certainly being felt in suburbs like New Farm and Paddington with value again being a prime driver of these opportunities.
"Equivalent high end property in Melbourne or Sydney could be up to double the price of that in Brisbane, and with new and planned infrastructure such as Brisbane airport’s new runway expansion, new Queens Wharf Casino under construction and Howard Smith Wharves development, cashed up buyers are recognising the value, lifestyle and connectivity that Brisbane now affords,” Goodwin said.
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McGrath announces major recruitment of agents in Brisbane

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Colliers International has sold two DA approved sites at Hemmant to a Brisbane developer for $5 million.
Estates Co. purchased the two sites, totalling 2.23ha.
The new owner has obtained development approval for 36 home sites ranging from 400sqm to 600sqm.
The sites at 261 &amp; 273 Hemmant-Tingalpa Road are within 10km of the Brisbane CBD and within close proximity to the Port of Brisbane employment hub 
They previously had acquired 30 Oswald St, Hemmant around 12 months ago for $4.715 million for a total of 68 residential lots.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/22/4.%20Capture%20-%204th%20photo.jpg" alt="">
Estates Co. has developed other infill projects in the surrounding area.
These sites as the last available flood free land in the area.
"There are other sites in the area, but they are badly affected by flood or environmental issues," Jason Dao, at Colliers International said. 
“The business recognises the keenness of homeowners to live and work near the city while being surrounded with other key amenities such as shopping centres, train station, schools and parks,” he said.
Both projects will be developed in the first quarter of 2019.
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Estates Co. plans for 36 home sites in Hemmant

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Capital city clearance rates have dropped to just 43.6 per cent in the three months to December 2018, according to recent CoreLogic findings.
CoreLogic found, it was down from 53.6 per cent over the previous quarter and 62.3 per cent over the same period a year prior.
The lowest weekly clearance rate for the quarter was recorded over the week ending 16 December (40 per cent across 2,406 auctions), while the highest clearance rate was recorded over the week ending 7 October (49.5 per cent across 1,817 auctions).
The findings stated, "Individual capital cities saw a decline in clearance rates everywhere except Tasmania, which remained unchanged at 50 per cent."
"The largest fall in clearance rates was seen across Canberra (down -13.4 per cent from the previous quarter), followed by Adelaide (-12.2 per cent), Perth (-11.9 per cent) and Melbourne (-11.2 per cent).
"Activity actually increased over the December quarter with 25,894 homes taken to auction across the combined capital cities (up from 20,653 over the September quarter), but current volumes remain much lower than the same period last year, when 32,408 homes were taken to auction," according to their findings.
Capital city auction clearance rate &amp; volumes: 
<ul>
<li>Sydney 43.1 % (8,828 auctions) </li>
<li>Melbourne 45.4 % (12,372 auctions) </li>
<li>Brisbane 31.8 % (1,642 auctions) </li>
<li>Adelaide 48.5 % (1,423 auctions) </li>
<li>Perth 25.0 % (499 auctions) </li>
<li>Tasmania 50.0 % (40 auctions) </li>
<li>Canberra 46.9 % (1,090 auctions) </li>
<li>Combined capitals 43.6 % (25,894 auctions)</li>
</ul>
Highest number of auctions for the quarter across capital city suburbs: 
<ul>
<li>Melbourne: Reservoir 216 </li>
<li>Sydney: Mosman 126 </li>
<li>Brisbane: Camp Hill 39 </li>
<li>Adelaide: Prospect 33</li>
<li>Canberra: Griffith &amp; Narrabundah 32 </li>
<li>Perth: South Perth 15</li>
</ul>
Highest clearance rate for the quarter by capital city suburbs:
<ul>
<li>Sydney: Bellevue Hill 80.0% (captured results: 40, scheduled auctions: 52, number sold: 32)</li>
<li>Melbourne: Windsor 71.4% (captured results: 21, scheduled auctions: 24, number sold: 15)</li>
<li>Canberra: Griffith 58.3% (captured results: 24, scheduled auctions: 32, number sold: 14) </li>
<li>Adelaide: Prospect 57.6% (captured results: 33, scheduled auctions: 33, number sold: 19) </li>
<li>Brisbane: Ashgrove 33.3% (captured results: 21, scheduled auctions: 27, number sold: 7)</li>
</ul>
CoreLogic found that, in non-capital city markets, auction volumes increased across all five regions over the December quarter when compared to the previous quarter, but mirroring the combined city results, clearance rates have fallen over the same period too.
The largest fall in clearance rates was seen across the Hunter region, down -18.8 per cent over the quarter, followed by Geelong (-17.3 per cent), Wollongong (-10.2 per cent), Gold Coast (-5.9 per cent) and the Sunshine Coast (-3.1 per cent).
The Gold Coast region was host to the highest number of auctions over the 3 months to December 2018 (616), followed by Geelong (579).
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Capital cities see a big drop in late 2018 clearance rates: CoreLogic

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The Australian states' mid-year reviews (MYRs) revealed that revenue pressures from the housing market correction will partly offset gains from the GST funding reform, according to Moody's Investors Service.
Moody's Investors Service noted that at the same time, they expect higher-than-budgeted capital spending to become a major challenge for states as most embark on record capital spending programs, causing debt to rise more rapidly than revenue.
They added that for some states, debt will start rising from a lower level than in earlier budget projections, overall debt burdens will remain elevated over the next four years, increasing vulnerability to risks such as unbudgeted health and education reform costs.
Housing correction will partly erode revenue gains from GST reform:
Additional Commonwealth GST top-up payments will be offset by a weaker housing market according to Moody's
However, a weaker housing market will offset these gains.
John Manning, Vice President, Moody’s Investors Service said, "following strong growth in transfer duty revenue in recent years, particularly driven by very strong house prices along the Australian east coast, the MYRs forecast a larger drop in property-related revenue than previously budgeted."
"Despite already projecting lower property-related revenue in their FY2019 budgets, the larger states of NSW and Victoria now forecast further declines in transfer duty and land tax revenue as a result of weakening residential property market prices and falling sales volumes."
He noted however, "revenue projections for both states increased overall."
"Both NSW and Victoria expect to receive additional Commonwealth grant revenue to offset lower transfer duty revenue."
"Higher payroll tax revenue, mineral royalties and an upward revision to GST also increased NSW’s revenue projections, while Victoria’s projections improved due to higher payroll taxes from stronger full-time employment and wage growth," he concluded.
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New South Wales and Victoria feeling the pressure from housing correction: Moody's

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

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The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

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The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

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According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

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Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

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Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

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Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

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Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

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Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

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Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

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Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

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Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

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La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

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<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

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