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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

A mix of Gold Coast locals, fly-in, fly-out purchasers from Sydney and Melbourne, and Brisbane-based families has driven early sales success at Broadbeach's newest apartment tower, Lumara.

The 26-level project, a joint venture between builder-developer 5Point Projects and Bourke Projects, comprises just 37 luxury residences and is attracting a buyer profile that is looking for exclusivity, above the most amenity-rich suburb on the Gold Coast.

[smartcode_project:default project_id=150454 project_image_fid=364156]

Jamie Bourke, Director of Bourke Projects, says every buyer secured so far intends to use Lumara as a lock-up-and-leave residence, combining holiday use with the ability to work remotely when required.

“The size of the apartments, both half- and full-floor options, and the different zones within the floorplans, lends itself perfectly to dedicated home office setups and multi-generational family holidays,” Bourke says.

That flexibility has become a key drawcard for affluent buyers seeking a second residence on the Gold Coast without sacrificing the ability to conduct business away from their primary home base.

The absence of holiday letting within the building has also resonated strongly with purchasers.

“This type of buyer doesn't need to generate holiday rental income,” Bourke says. “They're paying for exclusivity, privacy and certainty around who their neighbours are.”

[smartcode_project:default project_id=150454 project_image_fid=366491]

The strong demand comes amid broader shifts in the high-end apartment market following the Federal Budget announcements in May.

“We were already seeing strong enquiry from high-net-worth buyers, but that has only accelerated since the policy changes,” Bourke says.

“A lot of those buyers are looking to place more capital into premium lifestyle assets rather than investment-grade stock that has been targeted by the Federal Government.”

[smartcode_project:default project_id=150454 project_image_fid=366486]

Designed by Cottee Parker, Lumara adopts a slender, sculpted form with an emphasis on natural materials suited to its beachfront setting. The architectural approach draws on coastal influences, with a palette of stone, timber and concrete selected for durability and the ability to weather over time.

Apartments are limited to three and four-bedroom configurations, with a maximum of two residences per floor through the mid-levels and a selection of full-floor and dual-level homes in the upper levels. All apartments are oriented to the north to maximise natural light, cross-ventilation and views across the ocean, city skyline and hinterland.

A two-level amenity offering is positioned high within the building on levels 20 and 21, conceived as a sky wellness retreat. Facilities include a magnesium pool, spa, sauna and steam rooms, alongside more social spaces such as a private dining room, resident lounge, workspaces and outdoor barbecue areas integrated with landscaped greenery.

The uppermost levels are reserved for larger-format residences, including several full-floor homes and a dual-level penthouse with its own private wellness features and recreational spaces.

&nbsp;

To give buyers confidence, 5Point and Bourke commenced construction ahead of the apartments launching to the market, a sure-fire way to prove they mean business, and the building will be delivered. They are targeting a 2028 completion date.

[smartcode_project_cta:default project_id=150454]

Joel Robinson

Locals, interstate holiday makers, drive early sales at Lumara, Broadbeach's newest luxury apartment tower

Often when it comes to purchasing property, the biggest barrier to entry is the deposit. Buyers of established homes typically aim for a 20 per cent deposit to avoid the added cost of Lenders Mortgage Insurance, while most property transactions require around a 10 per cent deposit when contracts are exchanged.

The off-the-plan market works differently, with buyers typically paying a deposit during construction and settling the balance upon completion. As completion approaches at <a href="https://www.apartments.com.au/new-apartments/fabbrica-fitzroy-369-gore-street-fitzroy-vic-3065">Fabbrica Fitzroy</a>, developer <a href="https://www.apartments.com.au/developers/pace-development-group">Pace</a> is making it easier for buyers to secure a residence through a deposit-matching incentive. Purchasers need only contribute a five per cent deposit*, with Pace matching the remaining five per cent.

The offer comes as Pace unveils a completed display apartment and townhouse, now available for inspection by appointment ahead of the project's Spring completion.

[smartcode_project:default project_id=139552 project_image_fid=371009]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/winwood-mckenzie-architecture">Winwood Mckenzie</a> and landscaping by <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a>, Fabbrica draws on Fitzroy’s industrial and manufacturing history, incorporating references to the former Argyle Shirt Factory and Life Savers Confectionery Company that once occupied the site.

The development comprises 85 residences, spanning low-maintenance apartments through to larger-format townhouses with private street access and double lock-up garages, a relatively uncommon offering in Fitzroy’s higher-density apartment market.

Pace says the project has been designed to appeal to buyers seeking inner-city convenience without sacrificing space, flexibility, or amenity.

[smartcode_project:default project_id=139552 project_image_fid=371016]

Inside the residences, Winwood Mckenzie has focused on adaptable layouts and integrated detailing, with features including custom joinery, and concealed storage solutions. The material palette leans into warm, tactile finishes intended to complement the building’s industrial architectural language.

Fabbrica’s rooftop amenity is a key part of the project offering. Spanning around 800 sqm, the communal rooftop includes a private dining room, communal kitchen, lounge spaces, work-from-home zones, and outdoor dining areas overlooking the Melbourne CBD skyline.

[smartcode_project:default project_id=139552 project_image_fid=371017]

Landscape architecture studio Acre has introduced a layered rooftop garden designed to soften the urban setting while creating a more communal environment for residents.

The Fitzroy location also positions residents within walking distance of Brunswick Street, Smith Street, parks, cafés, galleries, and public transport, while remaining only minutes from Melbourne’s CBD. The project has an enviable Walk Score of 96.

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Pace, which is also delivering the project as builder, has developed more than 100 projects across Melbourne over the past three decades. The vertically integrated approach has become increasingly common among developers seeking greater control over construction delivery amid broader market pressures affecting the apartment sector.

The strikingly contemporary Gore Street development is now around 70 per cent complete, with purchasers expected to move into their new homes in Spring 2026. A limited number of residences remain available under the current deposit match offer.

*Conditions apply in relation to the deposit match offer.

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Pace offers five per cent deposit match at Fabbrica Fitzroy ahead of Spring completion

Sydney developer Hyecorp's roots on the Lower North Shore stretch back three generations, and that deep understanding of the market continues to shape where and how it develops today.

From high-rise towers to boutique apartment projects, the family-run developer has built its reputation by focusing on a part of Sydney it knows intimately. Founded by Michael Abolakian in the early 1990s, Hyecorp is now led by his sons Stephen, Troy and Patrick.

Stephen Abolakian, joint managing director alongside Troy, has spent more than two decades in the business, overseeing development, planning, finance, marketing and sales.

Abolakian says the developer's disciplined focus on where it chooses to operate has been, and continues to be, one of Hyecorp's greatest strengths.

“We know the buyer profile exceptionally well,” Abolakian says.

“The demographics between places like Willoughby, Chatswood, St Leonards and Roseville are very similar. There are nuances between suburbs and projects, but culturally and from a buyer perspective, there’s a strong overlap.”

That buyer has historically been overwhelmingly owner-occupier driven.

Unlike many Sydney apartment developers that have traditionally relied heavily on investor demand, Hyecorp’s projects have typically attracted downsizers, upsizers, rightsizers and family owner-occupiers seeking long-term homes rather than short-term investments.

“Historically, investors have been a much smaller portion of our demand profile,” Abolakian says.

“We design for owner-occupiers. We don’t design for yield, we design for comfort, amenity, family living and long-term usability.”

That philosophy extends well beyond apartment layouts.

From landscaping and communal gardens to shared amenities and circulation spaces, Hyecorp’s developments are designed around how people actually live, something Abolakian believes has become increasingly important in Sydney’s apartment market.

“There was probably a period where having an approved project in market was enough,” he says.

“There wasn’t as much competition and if you built it, buyers would come. That’s no longer the case.”

“There’s more supply in the pipeline now, particularly with TOD precincts and low and mid-rise reforms opening up opportunities across Sydney. Buyers have more choice, so if you get the product wrong, they’ll simply go elsewhere.”

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The shift has forced developers to become more sophisticated in how they approach apartment design, particularly as owner-occupier expectations continue to rise.

For Hyecorp, that means thinking beyond who the buyer is today and designing for who they may become in five or 10 years' time.

“People buying now often aren’t moving in for several years,” Abolakian says.

“You might have a young couple buying today, but by the time they move in they may have children, older children, or changing lifestyle needs. You’ve got to think about how families evolve.”

That thinking also shapes Hyecorp’s approach to amenity, which positions wellness at the forefront.

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While resort-style facilities have become increasingly common marketing tools across Sydney apartment developments, Abolakian says the challenge is ensuring amenities are genuinely usable and appropriate for the scale of the project.

“If amenities are done right, they can materially improve the living experience,” he says, adding however that if you&nbsp;overdo it or get it wrong, you can end up with facilities nobody uses that simply create ongoing strata costs.”

That balance is something Hyecorp is aiming to strike with projects like Roseville Avenue, one of the group's upcoming Lower North Shore developments, which Abolakian describes as bringing a resort-style living experience into a metropolitan setting.

“It’s about creating something that feels special without being excessive,” he says.

“Good gardens, quality apartments, thoughtful amenity. Creating that resort feeling in a metro location.”

<img alt="Hyecorp" data-entity-type="file" data-entity-uuid="13c4c0f3-b1b7-44cf-9344-0b3d1d07797a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-02%20at%2012.14.57%E2%80%AFPM.png?VersionId=9OLWjyj2bYkDV35F78WJnyMSPfc2bJ2z" />

The focus on owner-occupier product comes as Sydney’s apartment market continues to navigate a difficult development environment.&nbsp;For Hyecorp, maintaining an in-house operating model across construction, sales, marketing and development management has become increasingly important in navigating that environment.

“We’ve always believed in keeping a lot of the process in-house,” Abolakian says.

“It creates efficiencies, but it also creates quality control. You can make faster decisions and ensure the end product stays aligned with the original vision.”

Despite the challenges, Abolakian believes demand for quality owner-occupier apartments across Sydney remains strong beneath the surface, particularly across established Lower North Shore suburbs where downsizers continue to seek new housing options close to existing communities.

“There are definitely people waiting,” he says.

“Once some of the broader uncertainty settles, whether that’s the global environment or some of the local economic noise, I think the right projects will perform very strongly.”

Hyecorp currently has three residential developments on the market across Sydney’s Lower North Shore.&nbsp;Audrey, St Leonards, positioned opposite Newlands Park, is nearing completion and preparing to welcome its first residents, with the project now almost sold out.

Hyecorp has also recently launched&nbsp;<a href="https://www.apartments.com.au/new-apartments/celine-chatswood-37-archer-street-chatswood-nsw-2067">Celine Chatswood</a>, an architectural tower, while continuing to deliver&nbsp;<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet Roseville</a>, a more boutique scale of development with just 34 apartments.

Why Hyecorp continues to back Sydney's Lower North Shore apartment market

South East Queensland’s apartment market is entering a new phase defined by rising prices, constrained affordability, and mounting pressure on the construction pipeline, according to RPM Group’s latest SEQ Apartments &amp; Townhomes Market Report.

The May 2026 report highlights a widening divide between what buyers can afford and what developers can viably deliver, with detached house prices continuing to push more buyers toward apartments across Brisbane, the Gold Coast, and the Sunshine Coast.

RPM says Brisbane’s median house price has reached around $1.5 million, accelerating the shift toward higher-density housing as buyers are increasingly priced out of the detached market.

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Median unit prices rose across all three major SEQ markets in the March quarter. Brisbane City recorded the strongest annual growth, with median unit prices climbing 21 per cent to $862,000, while the Gold Coast reached the highest overall median at $950,000, up 17 per cent year-on-year. The Sunshine Coast followed at $870,000, representing annual growth of nine per cent.

RPM noted the affordability gap between houses and units remains significant, with detached homes commanding premiums of 67 per cent in Brisbane and 68 per cent on the Gold Coast relative to apartments.

The report suggests this price disparity is increasingly consolidating buyer demand within the apartment market, particularly among downsizers and owner-occupiers.

“Demand is real. Supply is moving. But they’re operating on different timelines and the gap between what’s being built and what buyers can afford is the defining tension in this market right now,” RPM Queensland and NSW Managing Directors Peter Neale and Clinton Trezise said in the report.

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While approvals and commencements are strengthening, RPM argues the delivery pipeline remains constrained by construction costs, labour shortages, and extended build timelines.

Apartment approvals across Queensland increased 86 per cent over the year to February 2026, reaching 12,682 approvals, the highest level recorded since 2016. Brisbane overtook the Gold Coast as the state’s most active apartment approval market, with nearly 5,000 apartments approved over the past 12 months.

Unit commencements also strengthened considerably, rising 48 per cent year-on-year to 5,453 commencements in the December 2025 quarter, the highest level since 2018.

However, RPM’s research found apartment delivery timeframes have expanded sharply compared to the previous cycle. Projects are now averaging around 30 months from approval to completion, compared to roughly 20 months a decade ago.

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The number of units under construction has climbed to approximately 31,530 dwellings, nearing the previous 2016 peak, though projects are remaining in the pipeline for considerably longer.

Construction costs continue to weigh heavily on feasibility. RPM found the average apartment construction cost in Greater Brisbane reached $630,000 per dwelling in 2025, exceeding both Sydney and Melbourne. Coastal Queensland markets, including the Gold Coast and Sunshine Coast, were even higher at an average of $817,418 per apartment due to the prevalence of larger premium product.

The report also points to increasing pressure from Olympic-related infrastructure spending ahead of Brisbane 2032, with labour competition expected to intensify over the next several years.

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ANZ Associate Director of Property Daniel Gradwell said the underlying demand drivers across South East Queensland remain strong, supported by interstate migration, downsizers, and population growth.

“The challenge is bringing enough supply to market to meet that demand, and nothing on the horizon makes that straightforward,” Gradwell said.

RPM’s analysis found the affordability challenge is becoming more pronounced in the new apartment market itself, with only three per cent of surveyed new apartments priced below $1 million.

Instead, the market is increasingly concentrated in higher price brackets, with the most common new apartment price band across SEQ sitting between $1.5 million and $1.75 million. Around half of all new apartment stock surveyed is priced below $2 million.

The report suggests developers are not necessarily avoiding lower price points by choice, but because current construction economics make delivering affordable apartments increasingly difficult at scale.

Rental conditions also remain tight across the region. Median rents for one-bedroom apartments rose 12 per cent in Brisbane over the past year to $580 per week, while Gold Coast one-bedroom rents increased nine per cent to $630.

Despite rising rents, RPM noted bond lodgements have generally trended downward over the past five years, indicating more apartments are being absorbed by owner-occupiers rather than retained as investor-held rental stock.

Looking ahead, RPM expects projects targeting the mid-market owner-occupier segment between $1.25 million and $2 million to remain the most viable part of the market, while premium projects in highly constrained coastal or riverfront locations continue to attract demand.

“Construction costs are rewriting the feasibility rulebook across Greater Brisbane, and with little relief in sight, only projects in the right price band, right location, and with presales secured early will make it through,” the report concludes.

SEQ apartment demand outpacing affordable supply as construction timelines stretch: RPM

Camberwell Junction has long been the epicentre of amenity in Melbourne’s Boroondara region.

For nearly a century, it has drawn both locals and visitors, anchored by the Camberwell Sunday Market, which first operated in 1929 and quickly became a fixture of the suburb’s identity. Over time, the Junction evolved into one of Melbourne’s most established retail and lifestyle precincts, now comprising more than 400 stores and over 300 commercial businesses.

Despite that depth of amenity, one thing has remained notably limited: the supply of new apartments.

In a suburb defined by its heritage streetscapes and tightly held residential stock, new development opportunities have been scarce, particularly within the core of the Junction itself. That lack of supply has left a gap in the market for larger, design-led apartments suited to downsizers and owner-occupiers wanting to remain in the area.

Boutique developer Above Zero identified that gap when it secured a prime site on Burke Road, in the heart of Camberwell Junction.

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The site has a long planning history. Various proposals have been put forward over more than a decade, many of which were knocked back by the City of Boroondara, with initial applications dating back to 2015. Above Zero acquired the site in 2022 and returned with a revised scheme, refining both the building’s height and its ground-level interface to better align with Council expectations.

That process has culminated in approval for Camberwell House.

The Cera Stribley-designed development will deliver 57 residences on a 1,950 sqm site within the Camberwell Activity Centre, placing it directly within one of Melbourne’s most established retail and transport hubs.

It is expected to be one of the only new apartment developments to launch in the Junction in recent years, reinforcing the rarity of new supply in the precinct. Currently, there are just a handful of projects on the market in Camberwell, underscoring the significance of a development of this scale and positioning.

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Camberwell House has been conceived with a clear focus on larger-format apartments. The project will offer a mix of two-, three- and four-bedroom residences, alongside a limited number of penthouses, targeting owner-occupiers seeking scale rather than volume-driven product.

The building’s vertical presence will also set it apart.

Positioned on Burke Road, the development is set to become one of the taller buildings in its immediate context, allowing for elevated outlooks across Melbourne’s CBD skyline and toward the Dandenong Ranges. In a precinct characterised by lower-scale built form, that height provides a point of differentiation, particularly for buyers seeking outlook and natural light.

[smartcode_project:default project_id=4896 project_image_fid=368568]

Architecture has been led by Cera Stribley, with interiors by GOLDEN and landscape design by Florian Wild. The design approach centres on material consistency and restraint, with residences oriented to maximise light, ventilation and connection to outdoor spaces.

Full-height glazing and generous terraces form a key part of that strategy, allowing apartments to extend beyond their internal footprint and engage with the surrounding environment.

Beyond the private residences, a significant component of the project is its amenity offering.

Above Zero has positioned Camberwell House as a “complete living environment”, incorporating a full floor dedicated to resident facilities. At the centre of that is a wellness zone, including a 12.5-metre lap pool, spa, sauna and treatment spaces, alongside a gym and recovery-focused amenities.

This level of amenity is more commonly associated with inner-city developments, rather than established middle-ring suburbs like Camberwell.

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Additional shared spaces include a private library lounge, dining and entertaining areas, and an indoor golf simulator. A self-contained guest suite has also been incorporated, allowing residents to accommodate visiting family or friends without impacting their primary living space.

The inclusion of these facilities reflects a broader shift in buyer expectations.

As more downsizers look to transition from larger family homes into apartments, there is increasing demand for developments that offer not just a residence, but a lifestyle. That includes access to wellness, social and entertaining spaces within the building itself, reducing the reliance on external amenity while still maintaining proximity to established precincts.

Camberwell House is positioned to benefit from both.

Its location places it within immediate walking distance of Camberwell Junction’s retail and dining offering, as well as public transport connections, including tram and train services. That combination of internal amenity and external convenience is central to its appeal.

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Jellis Craig Projects Director Stephen Bowtell is handling sales for the project and says Camberwell House offers a rare entry point into one of Melbourne’s most tightly held markets.

“Buyers are recognising that Camberwell House offers something they simply haven’t seen before in Boroondara,”&nbsp;Bowtell&nbsp;says.

“It combines a level of resident amenity and service typically associated with Melbourne’s premium inner-city developments, while being positioned right in the heart of Camberwell Junction.

“The response to the concierge offering has been particularly strong. Buyers appreciate not only the convenience, but also the sense of security and peace of mind that comes from having a dedicated presence in the building every day.

“When you combine that with the wellness facilities, the exceptional arrival experience, and panoramic views across both the CBD skyline and the Dandenong Ranges, it creates a lifestyle proposition that is genuinely unique within the local market.”
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Staff reporter

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