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Values in Darwin’s housing market have been declining since 2014-2015, coinciding with the contours of the liquefied natural gas boom, according to the latest report from Moody's Analytics.
The report found, dwelling values are now around 23% below the peak.
As a result of falling dwelling prices, housing affordability in Darwin is among the highest of all capital cities, attracting increased numbers of first time home-buyers.
<img src="https://www.urban.com.au/images/2019/1/17/NT%202017-2020%20home%20values.JPG" alt="">
Moody’s Analytics expects a 3.7% growth in house values in 2018 after a -2% drop in 2018 in Darwin.
Greater Darwin House values are forecast to accelerate in 2020 growing 6.6%.
Apartment values in Darwin dropped steeply by 11.3% in 2018 however they are to stabilise in 2019 growing 1.2% and building off that growth in 2020 reaching 6.5% growth in median apartment values.
Dwelling values in Darwin fell year on year every month for four straight years.
The rest of the Northern Territory is forecast to have a recovery with house prices to grow 5.9% in 2019 and 4.4% in 2020 after seeing small losses in median house value in 2017 and 2018.
Vacancy rates in Darwin in the June quarter of 2018 were the highest among all capital cities, according to the Northern Territory government, though Darwin’s vacancy rate is susceptible to fluctuations due to the transient nature of the state’s population.
The authors noted that, "as a result, rental values have been tumbling; they were already down 24% since the first quarter of 2014."
"Even though building approvals have been falling at a similar rate in recent years, rental values have continued to fall."
"This is contributing to lower purchasing demand, even though rental yields are high by national averages," they concluded.
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j.ballantyne1990-6AQqhLzZaK

Darwin property values to finally rise in 2019: Moody's Analytics

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A Tomewin Mountain home with views of Currumbin Valley has hit the market with a price guide of $1.875 million. 
It has been listed by Ray White Tugun’s Ken Jacob and Camilla Skye.
The 4.06ha Gold Coast hinterland home at <a id="LPlnk213232" href="https://www.realestate.com.au/property-house-qld-currumbin+valley-128568114" target="_blank" data-auth="NotApplicable">731 Tomewin Mountain Rd, Currumbin Valley</a> has two separate dwellings including a main low-rise luxury four bedroom residence and a contemporary two bedroom council-approved studio.
<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/2019/1/14/currumbin%203.jpg" alt="">
The outdoor features include a resort-style pool, a Balinese-style pavilion, a paved outdoor dining and entertainment zone, tennis court with clubhouse, and a huge five-bay shed.
It's only 24 minutes from Burleigh Heads and 25 minutes from Gold Coast Airport. 
The suburb's median house price sits at<a href="/developments/currumbin-valley-qld-4223"> $850,000</a> according to CoreLogic. 
<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/2019/1/14/currumbin%202%20.jpg" alt="">
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Currumbin Valley trophy home with mountain views listed

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GUEST OBSERVATION
The latest figures put Australia near the top when it comes to company tax collections, even though our total tax take isn’t particularly high.
In international tax circles, as in other areas, we often talk about American exceptionalism.
But these days, it is becoming increasingly clear that Australia is exceptional in taxation, among members of the Organisation for Economic Co-operation and Development and indeed, compared to countries around the globe.
The OECD has just produced its <a href="https://www.oecd.org/tax/beps/corporate-tax-statistics-database.htm" target="_blank">first-ever detailed comparison</a> of company tax collections and rates and effective rates around the world. The “statutory” or headline rate comparisons cover 94 countries. The harder to calculate “effective” tax comparisons cover 88 countries.
The bad news – for companies – is that Australia is close to the top among the 94 countries, and in one of the measures, the effective marginal company tax rate (more on this later), third from the top.
Click <a href="https://images.theconversation.com/files/253830/original/file-20190115-152971-1oevmqr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank">here</a> to enlarge.
<a href="https://images.theconversation.com/files/253830/original/file-20190115-152971-1oevmqr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/253830/original/file-20190115-152971-1oevmqr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Interestingly, in another recent report, the OECD shows that Australia clearly falls into the “low tax” group among OECD countries, with a tax-to-GDP ratio <a href="http://www.oecd.org/tax/tax-policy/revenue-statistics-2522770x.htm">below 25%</a>. But within that context we rely heavily on company tax.
Company tax revenues are high
Australia’s A$80 billion in company tax collections in 2016 was about 4.6% of GDP, ranking Australia twelfth out of the 88 countries for which the OECD had information.
Company tax accounted for 16% of Australia’s total tax revenue, the 27th highest out of the 88 countries.
The statistics have oddities. Luxembourg and Switzerland also have a high share of company tax revenues because they attract so much global capital. In contrast, the overall high-taxing countries of France, Denmark and Finland collect much less revenue from company tax.
Click <a href="https://images.theconversation.com/files/253831/original/file-20190115-152968-kcvom4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank">here</a> to enlarge.
<a href="https://images.theconversation.com/files/253831/original/file-20190115-152968-kcvom4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/253831/original/file-20190115-152968-kcvom4.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> 
Headline rates are heading down
Corporate tax rates have been trending down for at least two decades. The Trump tax changes in 2017 that lowered the US federal rate to 21% was the latest dramatic change, but the United Kingdom now has a rate of 19% and many European countries sit at or below 25%. The change since 2000 has been dramatic and the global average is now 20%.
In our Asian region, the average headline corporate tax rate is 15%. As a result of <a href="https://www.oecd.org/investment/investment-policy/Towards-smarter-use-of-tax-incentives-in-Southeast-Asia.pdf" target="_blank">tax incentives available around Asia</a>, companies involved in manufacturing and supply chains often face a lower, or zero, rate.
This trend was identified by the Henry Tax Review in 2009, which recommended transitioning to a 25% rate, which today could be financed with a 1% increase in Australia’s GST rate, according to <a href="https://www.policyforum.net/australia-can-afford-cut-company-tax/" target="_blank">recent modelling by Chris Murphy</a>.
Click <a href="https://images.theconversation.com/files/253833/original/file-20190115-152983-16aslqh.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=524&amp;fit=crop&amp;dpr=1">here</a> to enlarge.
<img src="https://images.theconversation.com/files/253833/original/file-20190115-152983-16aslqh.JPG?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""> 
What matters are effective tax rates
The OECD also compares effective marginal tax rates (EMTRs), and effective average tax rates (EATRs), for corporate investment. These combine the headline rate with the rules for corporate investment, depreciation allowances for plant and equipment, and intellectual property investment.
In theory, investors choose to invest based on the expected after-tax rate of return, taking into account tax breaks and special rules.
The EMTR determines the tax cost of expanding an existing investment: putting one more dollar into that investment. In the EMTR ranking, Australia is third highest.
Countries that provide a tax break known as <a href="https://theconversation.com/how-the-government-can-pay-for-its-proposed-company-tax-cuts-92739" target="_blank">allowance for corporate equity</a>, including Belgium and Italy, actually have negative tax rates on increased investment.
The EATR reflects the tax rate that would be paid on an entire new investment. In the EATR ranking, Australia is, again, near the top in ninth place, at 30% – the same as our statutory rate.
Click <a href="https://images.theconversation.com/files/253834/original/file-20190115-152980-11hzrfk.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank">here</a> to enlarge.
<a href="https://images.theconversation.com/files/253834/original/file-20190115-152980-11hzrfk.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/253834/original/file-20190115-152980-11hzrfk.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Unlike many other countries, Australia has few tax incentives. We do not have a low tax regime for intellectual property or accelerated depreciation for new equipment – except for small businesses, and mining exploration. Only in research and development did Australia provide higher tax subsidies than some other countries and the R&amp;D concession is <a href="https://www.budget.gov.au/2018-19/content/factsheets/6-tax-integrity" target="_blank">being tightened</a>.
Overall, Australia’s high rate and broad corporate tax base makes new investment, or the expansion of existing investment, expensive relative to other countries.
Why are we such an outlier?
Australia is a resource extraction and exporting economy.
We haven’t had to compete quite as hard for foreign investment as other countries.
Our relatively high rate of company tax serves two purposes: to tax company profits and to get a fair return on resources in the ground which state governments, through royalties, don’t properly charge for.
And we are geographically isolated, meaning that, even in the global digital economy, it is hard for companies to service us from offshore. Many have to be here and subject to tax.
Also, and importantly, our reliance on corporate tax is not as dramatic as it seems, because of our almost unique dividend imputation system. About one third to one half of corporate tax revenues are handed back to shareholders in credits against company tax already collected. (New Zealand, which has an imputation system, also has high corporate tax revenues).
Kevin Davies suggests that the “real” corporate tax rate in Australia, taking account of dividend imputation, is <a href="https://theconversation.com/australias-company-tax-burden-is-just-a-myth-10433" target="_blank">below 20%</a>.
But that assumes a closed economy. The reality is that the imputation system subsidises some domestic investors – especially tax-free retirees with self managed super funds – while pushing the full weight of company tax onto foreign investment, at the expense of the economy as a whole, and at the expense of Australians who could potentially benefit from that investment.
The political heat generated by Labor’s proposal to end the payment of imputation cheques to <a href="https://www.afr.com/personal-finance/superannuation-and-smsfs/retirees-mobilise-to-stop-franking-credit-change-20181119-h18290" target="_blank">retirees who don’t pay tax</a> shows their high value to domestic investors. Self-managed super funds are <a href="https://www.intelligentinvestor.com.au/the-franking-elephant-in-the-room-1888156" target="_blank">massively overweight in stocks that provide imputation credits</a>, skewing the Australian share market and the dividend policy of our largest companies.
Does it matter?
Australia’s high company tax rate, and the bias in our imputation system against foreign equity, mean that large multinationals will increasingly borrow to finance Australian investment rather than issue shares.
They will get tax deductions for outbound flows of interest, service fees and royalties, while shifting more and more of their sales, marketing and intellectual property offshore where they can.
Australia can, and is, clamping down on profit shifting, but it’s a never-ending battle.
<a href="https://taxpolicy.crawford.anu.edu.au/publication/ttpi-working-papers/12644/australias-high-company-tax-rate-and-dividend-imputation-poor" target="_blank">A bold suggestion </a>is that we should scrap our system of dividend imputation and use the money saved to dramatically cut the rate of company tax. It would make Australia much more attractive to foreign investors, although much less attractive to retirees.
Another idea <a href="https://theconversation.com/heres-a-long-term-budget-fix-that-would-boost-investment-replace-company-tax-with-cashflow-tax-108347" target="_blank">aired in The Conversation late last year</a> is that we should make new capital investment fully tax deductible, turning company tax into a “cashflow tax”.
What we’ll probably end up with is a compromise – a combination of permitting greater deductions for new investment and lowering the rate will be the answer, while limiting or ending dividend imputation.
There’s much to be proud of in being a weird mob.
But as David Ingles and I argued in a <a href="https://taxpolicy.crawford.anu.edu.au/publication/ttpi-working-papers/12216/australias-company-tax-options-fiscally-sustainable-reform" target="_blank">research paper</a> last year, it is not smart to ignore what’s happening in other places.
It is true we are geographically isolated, and it is true our resources make us different, but we exist in a global tax environment in which investors consider tax when they decide where to put their money. It is beyond our control.
Miranda Stewart is a Professor at the University of Melbourne
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/new-figures-put-it-beyond-doubt-when-it-comes-to-company-tax-we-are-a-high-tax-country-in-part-because-it-works-well-for-us-109875" target="_blank">original article</a>.
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When it comes to company tax, we are a high-tax country, in part because it works well for us: Miranda Stewart

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11 percent of home borrowers will be seeking new lenders this year, according to a new research revealed by Finder.
Their survey of 2,010 revealed that 56 percent of Australians are "sick of paying too much for financial products and pledging to switch at least one this year."
Aussies are most likely to switch phone providers, with 3.5 million looking to ditch their telco this year.
Finder's survey revealed "parents are twice as likely (14%) to consider switching a home loan than those without kids (7%)."
"Australians are least likely to shop around for super funds. Just 7% admit they will look for a better deal in 2019."
"Health insurance (17%), car insurance (16%), energy plans (16%) and broadband internet (14%) round out the top five switches that Aussies will be pursuing in 2019," according to the researchers.
Angus Kidman, editor-in-chief at Finder, says “Cost-cutting is the main reason householders will jump ship, and it can result in huge savings.
Generation Y (those aged 24-38) are much more inclined to switch, with 70% keen to find a better deal in 2019, compared to just 41% of Baby Boomers (those aged 59 and above).
Kidman said “More Australians are shopping around than ever before and they’re looking for the best deals."
<table><tbody>
<tr><th colspan="2">
Service                                                       
</th></tr>
<tr>
<td>
Mobile plan
</td>
<td>
18%
</td>
</tr>
<tr>
<td>
Health insurance
</td>
<td>
17%
</td>
</tr>
<tr>
<td>
Car insurance
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
Energy provider
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
Broadband plan
</td>
<td>
14%
</td>
</tr>
<tr>
<td>
Credit card
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
Home loan
</td>
<td>
11%
</td>
</tr>
<tr>
<td>
Super fund
</td>
<td>
7%
</td>
</tr>
</tbody></table>
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Just 11 percent of Australians are set to refinance their home loans in 2019: Finder

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The Customer Owned Banking Association has welcomed the Government’s release of draft regulations to improve access to capital for customer owned banking institutions.
“This will fix an anomaly in tax law that has restricted our sector’s capacity to issue the full range of regulatory capital instruments,” said Customer Owned Banking Association CEO Mike Lawrence.
“Our member banking institutions have been unable to issue convertible debt instruments because of uncertainty about such instruments’ tax status.
“Greater flexibility for our members to issue debt instruments that qualify as regulatory capital will help level the playing field between investor-owned banks and their customer-owned competitors.
“COBA requested this measure in our May 2017 submission to the Hammond Review into access to capital by mutual companies. As Assistant Treasurer Stuart Robert MP notes in his announcement today, this is the latest instalment in the implementation of the Hammond Review’s suite of reforms to boost the competitive potential of the customer owned sector.
“These reforms are designed to improve access to capital and to remove uncertainties currently faced by cooperatives and mutuals to enable the sector to invest, innovate, grow and compete with investor owned corporations.
“We congratulate the Government and the Opposition for their bipartisan support for this important reform agenda.
“Release of the draft regulations for consultation is a further step in the right direction to improving competition in the banking sector.
"Greater competition delivers greater outcomes for Australian consumers.” COBA will be making a submission on the draft regulations.
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COBA welcoming of improved access to capital for customer owned banking institutions

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GUEST OBSERVATION
To make a success of moving home, to the country for example, it helps to be open to the ways a place will change you. 
Many people move in the summer months, but not everyone realises that moving starts a process of identity transformation that never really stops.
I first noticed something about place changing a person when I moved to Canada. While Canada and Australia share many similarities, there were still significant differences. The clothes worn were one, and occasionally a phrase would seem unfamiliar. I was teased for saying “queue” instead of “line up”, and “no worries” instead of “no problem”.
When I moved back to Australia, to tropical Cairns, I found myself in a world that moved on “tropical time”. It could hardly have been more different from the fast-paced world of North America. I had to adapt
Identities are created and evolve in <a href="http://www.oxfordbibliographies.com/view/document/obo-9780199874002/obo-9780199874002-0030.xml" target="_blank">places</a>. Places can be physical, geographical areas and can also be places inhabited virtually, including online games, forums and blogs, or in discourse, such as books and magazines. These places continually shape our identities, changing as we live our lives day by day.
When we move to a new house, especially if it’s a big move such as from city to country or from one country to another, the process of moving inevitably changes us. For a start, we are now a newcomer and the “locals” will speak of us that way. That shapes how we are perceived and perhaps even whether and how we are accepted socially. The norms and morés of the new community may influence us in other ways, even prescribing how we are “supposed” to act in the new area.
‘City girls’ and ‘country girls’
In my <a href="https://eprints.usq.edu.au/34713/" target="_blank">recent research</a> into how media affect lifestyle migrants in rural Queensland, I looked at how place changes people. Many of the women I spoke to described themselves as a “city girl” or a “country girl”. These women framed their identity in relation to their location.
The women who called themselves a “city girl” often chose activities that took them to places where they felt they could relate more – such as the shops, galleries and other amenities of the city. Their identification with the city resulted in weaker bonds locally and sometimes meant that they chose to return to the city. Certainly, they were less satisfied with country life.
On the other hand, women who identified as a “country girl” engaged in activities accessible in their rural locations, including crafts, cooking, gardening and outdoor activities. Their free time reinforced their emplaced nature and strengthened their ties to their place and the people in it. They adapted to being in the country and were happy with where they lived.
How do you adapt to your new life?
Knowing what to do in certain places is a form of capital, as <a href="http://www.oxfordbibliographies.com/view/document/obo-9780199756384/obo-9780199756384-0083.xml" target="_blank">Pierre Bourdieu</a> outlines. Capital describes the knowledge needed to play the game in a particular place.
There are different types of capital, including cultural, economic and educational. Knowing how to act when working at a major company, for example, is different from knowing how to get on when unemployed. These are different fields, which require different capitals. One requires corporate smarts, the other stipulates smarts in various other areas.
Even if our fields don’t change as dramatically as described above, we still use differing capitals when at work, at home, with friends and as a parent. The way we learn how to act, or adapt, is achieved through the expansion of what’s called habitus.
Ordering coffee is part of many people’s daily ritual, but don’t expect a cafe on every corner outside the city. 
Habitus is the stuff we do without thinking – the beliefs, norms and ways of doing things that are a part of us. If we were in a witness protection program, these are the things that would trip us up and lead the bad guys to us. It’s simple stuff, like ordering coffee a certain way, or bigger things like thinking about the world through a particular framework or liking blue or living in the city.
To expand our habitus, we need to see new ways of doing things and imagine these for ourselves. This could happen by watching TV shows, reading books, travelling to other parts of the world or seeing someone else do something differently. It’s hard to change habitus, because we need to be open to new ideas that permeate our reality and we need to like them enough to decide to adopt them and let them become a part of us.
When we move, we are changing the field we occupy. To adapt to this, we watch how other people play the game and, to fit in, we most likely adopt these ideas within our habitus and change a bit. At the same time, we might influence the people around us, changing them a little bit too. It works dynamically.
So, yes, moving countries or to the country from the city is an identity-altering project, and the more the fields are different, the more we have to adapt.<img src="https://counter.theconversation.com/content/109225/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/rachael-wallis-568028" target="_blank">Rachael Wallis</a>, Lecturer and Research Fellow, <a href="http://theconversation.com/institutions/university-of-southern-queensland-1069" target="_blank">University of Southern Queensland</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-moving-house-changes-you-109225" target="_blank">original article</a>.
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How moving house changes you: Rachael Wallis

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Treasurer Josh Frydenberg is under pressure to release the final report of the banking royal commission on February 1 – the day it is handed to the federal government.
Shadow Treasurer Chris Bowen is demanding the report be released publicly on the same day it’s handed to the government, ahead of Parliament resuming in mid-February.
The New Daily website reported Labor will warn any failure to release the royal commission’s final report immediately would “unnecessarily politicise the handling of the report and give rise to potential material market risks around leaks of all or part of the report”.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/Subscriber%20strip%20ad.jpg" alt=""></a>
“It is in the national interest for the Australian people and victims of banking scandals to be able to access the <a href="https://thenewdaily.com.au/money/finance-news/2018/11/30/bank-royal-commission-wrap/" target="_blank" rel="noopener noreferrer">Hayne Banking Royal Commission</a>’s final report and form their own views, at the earliest opportunity, and that means on Friday, February 1,” Mr Bowen said.
“I have written to the Treasurer requesting they release the final report and related documents of the banking royal commission as soon as practicable after it is received by the government.”
Treasurer Josh Frydenberg established a precedent of releasing the <a href="https://thenewdaily.com.au/money/finance-news/2018/09/28/kenneth-hayne-royal-commission-interim-report/" target="_blank" rel="noopener noreferrer">Royal Commission’s interim report</a> on the day it was received.
The Treasurer will deliver a major economic speech at the Sydney Institute on tonight, which is expected to touch on the government’s approach to the royal commission.
The government voted 26 times against establishing the royal commission. 
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Labor seeks February 1 release of banking royal commission report

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Property price falls could potentially double previous estimates, down 20 percent rather than 10 percent, according to Morgan Stanley.
The revision comes after weakening sentiment and tighter credit.
Potentially facing declines at their largest since the early 1980s, the investment bank's analysis suggests peak-to-trough property declines are now expected to be about 15 to 20 percent, compared with previous estimates of 10-15 percent.
Evidence of worsening conditions will increase pressure on the Reserve Bank of Australia to cut this year, the analysis reported by Nine Entertainment concludes.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><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/Subscriber%20strip%20ad.jpg" alt=""></a>
"We are now watching second-round impacts closely," Morgan Stanley's team of equity strategists concludes about the broadening economic impact of the property slowdown.
"There is evidence of a consumer pullback over Christmas but jobs impact will be key for any negative feedback loop to push Australia into a balance sheet recession," it concludes.
A balance sheet recession describes where high levels of debt and growing nervousness about the economic outlook cause consumers or companies to focus on saving and paying down debt rather than spending or investing, causing economic growth to slow or decline.
The research says credit growth continues to slow with the share of interest-only and investor lending low, despite the Australian Prudential Regulation Authority removing restrictions late last year.
Finance commitments have slowed sharply for investors, it noted.
A 15-20 percent decline in real terms - after allowing for inflation - would be the largest slump since the 1981 to1983 decline, when the median house price in Sydney was $79,000.
Falls in house prices in real terms during the global financial crisis were about 9 percent.
 
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Higher property price falls could emerge in balance sheet recession: Morgan Stanley

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The Perth rental market has continued its recovery in the December 2018 quarter, with the vacancy rate declining to 2.8 per cent, according to the latest data from REIWA.
REIWA President Damian Collins said “The last time the Perth vacancy rate was this low was in March 2013. The rapid improvement we’ve observed in the last 18 months is impressive, especially considering the vacancy rate peaked at 7.3 per cent in June 2017 – the highest it’s ever been."
“Now that the vacancy rate is below three per cent, we can safely say the market is in a recovery phase with landlords now the beneficiary of the current rental environment," Mr Collin said.
Median Rent Price
Perth’s overall median rent price continued to hold at $350 per week during the December quarter.
“The median rent in Perth has been stable for seven consecutive quarters, which is the longest stretch of stable rents Perth has seen since reiwa.com first started capturing rental data in 2001,” Mr Collins said.
Despite the markets overall stability 105 suburbs recorded an increase in price, with North Coogee, Churchlands, Ardross, Daglish and Munster the top performers, according to REIWA's findings.
Mr Collins said, “When we drill down further and isolate houses and units, the results of the December quarter are very pleasing for landlords, with both houses and units experiencing increases in rents. The median house rent increased $10 per week to $360 during the December quarter, while the median unit rent increased $5 per week to $325."
“This improvement didn’t translate into an increase in the overall median as there were more units leased during the quarter than houses, which has kept the overall median stable.”
“If the rental market continues on its current trajectory, we should see Perth’s overall median rent price increase in 2019, which will be a welcome development for landlords” Mr Collins stated.
Leasing activity
There were 12,917 properties leased in Perth during the December quarter.
“Leasing activity slowed during the December quarter, as the festive season saw less people out and about searching for properties. This is very common at this time of year, with activity tending to decline in December before increasing again early in the New Year,” Mr Collins said.
Reiwa.com data shows the five suburbs to experience the biggest increase in leasing activity (percentage wise) were Kallaroo, Daglish, Melville, Merriwa and Hilton, while the suburbs with the highest volume of leased properties were Perth, East Perth, Scarborough, Baldivis and Maylands.
“We expect to see a notable increase in leasing activity in 2019, with REIWA members already noticing a significant uptick in the volume of enquiries for rentals in January,” Mr Collins said.
Listings for rent
REIWA indicated there were 6,865 properties for rent in Perth at the end of the December quarter.
“Listings continue to reduce, with the December quarter figure down 10 per cent on the September quarter and a substantial 27 per cent on the same time last year,” Mr Collins said.
“The sharp decline in listings is a driving force behind why Perth’s vacancy rate has improved. With population growth in WA on the incline and fewer new-building projects commencing, listing stock is being absorbed more quickly.”
Average leasing time
Landlords found tenant's on average four days quicker in the December quarter than in the September quarter down to 44 days from 48.
“The signs for 2019 look very promising. The rapidly improving rental landscape combined with Perth’s favourable buying environment should hopefully see more investors enticed back to the market,” Mr Collins concluded.
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Perth vacancy rate drops to five year low: REIWA

Toorak remained Melbourne's priciest suburb: REIV

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.

[smartcode_project:default project_id=1979 project_image_fid=363229]

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.

[smartcode_project:default project_id=1979 project_image_fid=363284]

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."

[smartcode_project:default project_id=1979 project_image_fid=363228]

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."

[smartcode_project_cta:default project_id=1979]

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.

[smartcode_project:default project_id=150489 project_image_fid=373834]

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."

[smartcode_project:default project_id=150713 project_image_fid=373827]

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.

[smartcode_project:default project_id=151449 project_image_fid=357458]

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."

[smartcode_project:default project_id=151449 project_image_fid=357463]

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.

[smartcode_project:default project_id=151449 project_image_fid=357469]

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>.

[smartcode_project_cta:default project_id=151449]

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.

[smartcode_project:default project_id=134951 project_image_fid=368645]

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."

[smartcode_project:default project_id=134951 project_image_fid=358802]

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.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<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.

[smartcode_project_cta:default project_id=134951]

Staff reporter

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