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The 2019 March quarter ANZ-Property Council survey shows that confidence in Australia’s housing sector has fallen further than in 2018 and is now at its lowest level since the survey commenced in 2011.
It is not surprising given that many indicators are around their worst levels in many years.
"Housing prices, credit, auction results, days on market and vendor discounts are all weak," the report noted adding there is little sign of improvement.
"The ANZ-Property Council survey is consistent with these other indicators and suggests we are set for an extended period of weakness in the housing sector," it noted.
<img src="https://www.urban.com.au/images/2019/1/10/ANZ-Prop%20Counc%20G1.JPG" alt="">
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NSW's property industry confidence has dropped to one of the lowest in the nation, according to the latest ANZ/Property Council Survey.
The largest decline in confidence came in Queensland.
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Property Council NSW Executive Director Jane Fitzgerald said sentiment is down.
"With a state and federal election just around the corner, I don’t think we will see it rebound in the short term despite stronger results in some sectors," she said.
“The industry is facing a lot of uncertainty and change, particularly over the past twelve months.
"We have seen the introduction of Special Infrastructure Contributions, increasing 7.11 levies, the changing of key policies such as the Medium Density Housing Code, the updating of Local Environmental Plans, and the review of approaches to planning in areas such as Ryde – that’s a lot of change for an industry."
“With a flat residential market, there is a real risk that this moving feast of policy changes will have a detrimental effect on economic growth and jobs. The 400,000 people who work in the property industry in NSW rely on a healthy industry for their economic wellbeing," she concluded.
David Plank, the ANZ Head of Australian Economics, said the survey gives a softer reading on the health of Australia’s property sector.
"Survey respondents report that the availability of finance will worsen further over the coming year, which is a central feature of our housing outlook.
<img src="https://www.urban.com.au/images/2019/1/10/ANZ-Prop%20Counc%20G2.JPG" alt="">
"In turn, respondents also expect housing prices and construction activity will continue to ease.
"We think prices will fall through to 2020, and expect to see declines <a href="/expert-insights/buying/anz-revise-forecast-upwards-to-20-percent-house-price-declines-in-sydney-and-melbourne">around 15–20% peak to trough</a> for Sydney and Melbourne.
"We also think the decline in housing construction will accelerate through 2019 and 2020, as the current backlog of work is gradually completed.
"The survey also suggests that firms expect the next interest rate movement to be higher, though the conviction in this expectation has dropped from the last survey.
"With risks around global trade tension and questions over the sustainability of domestic household spending, we think any RBA move is still some time off.
"Overall, though, the forward work schedule is solid and employment intentions are holding up.
"But clearly sentiment in the property sector is being challenged by a number of significant headwinds.," Plank said.
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j.ballantyne1990-6AQqhLzZaK

Little sign of optimism in the residential sector as confidence falls to lowest levels: ANZ/Property Council

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House rents in Sydney have declined annually for the first time in more than 12 years and are now back to 2016 levels, according to the latest research released by Domain.
They found that house rents declined 1.8 per cent over the quarter and the year to $540 per week, while rental yields increased 0.9 per cent over the quarter and 4.2 per cent over the year to 3.24 per cent. 
Unit rents declined 2.8 per cent over the quarter to $530 per week and rental yields increased 0.1 per cent over the quarter and 1.7 per cent over the year to 3.87 per cent. 
For the first time since 2004 unit rents have fallen for two consecutive quarters.
The cost of renting a unit is now at 2017 levels.
For the first time in 11 years the cost of renting a house in Canberra is now higher than Sydney, according to the latest data from Domain.
The difference in weekly house rents between Canberra and Sydney has jumped to $20.
Canberra house rents increased 1.8 per cent over the quarter and 3.7 per cent over the year to $560 per week, while rental yields improved 1.4 per cent over the quarter and 0.6 per cent over the year to 4.36 per cent. 
Unit rents increased 3.3 per cent over the quarter and 8.1 per cent over the year to $465 per week.
<img src="https://www.urban.com.au/images/2019/1/9/Domain%20Rent%20Syd.JPG" alt=""> Domain research analyst, Dr Nicola Powell said available rental stock continued to increased over the year, with development completions adding to the pipeline of supply.
"We expect rental supply to increase further in 2019, putting tenants in the driver’s seat. Tenants will find greater bargaining power as rising supply keeps pressure on rents, providing strong grounds to negotiate lease terms. Landlords will be keen to retain good tenants as leases expire, with incentives and rental discounts a realistic prospect.” “Gross yields are nearing a two-year high, suggesting rental prices are holding firmer than property values. Despite improved yields, we expect many investors will look to other capital city markets in 2019, with the prospect of short-term capital gains unlikely.
"This could serve to tighten rental supply over the long term. However, slowing interstate and overseas migration could offset this impact,” she concluded.
Melbourne house and unit rental prices continue to rise, with both achieving new record highs, according to the latest research from Domain.
Domain found, Melbourne house rents increased 2.3 per cent over the quarter and 3.5 per cent over the year to $440 per week, while rental yields improved 1.4 per cent over the quarter and 4.4 per cent over the year to 3.20 per cent. 
Available Brisbane rental stock has been sliding since the end of 2017, and is now at a three and a half year low, according to the latest research from Domain.
House rents increased 2.5 per cent over the quarter and year to $410 per week, while rental yields declined 0.3 per cent over the quarter but increased 1 per cent over the year to 4.62 per cent. 
Brisbane unit rents increased 1.3 per cent over the quarter and 2.7 per cent over the year to $380 per week.
However, rental yields declined 0.2 per cent over the quarter but improved 3.7 per cent over the year to 5.12 per cent.
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“If rental stock keeps shrinking, greater competition between tenants will emerge, putting further upward pressure on rental prices, a marked change given the prolonged period of stability," Domain research analyst, Dr Nicola Powell said.
"House and unit rents are already displaying a higher pace of growth relative to last year, with houses recording the first positive movement and units the strongest gain on an annual basis in roughly three years.”
“Population growth in the sunshine state has been driven in fairly equal measure by natural increases, interstate migration and overseas migration. Queensland is the only state or territory to have such balance, which has helped to support a broad-based demand for housing. Job prospects, an improving economy and greater housing affordability continues to lure residents from NSW and Victoria.”
“Given property prices have fallen in Sydney and Melbourne, investors have already started to find Brisbane a more attractive option as they seek better yields and growth potential. Investors will be further enticed north as rental prices and gross yields continue to improve,” she concluded.
<img src="https://www.urban.com.au/images/2019/1/9/Domain%20Rent%20Bris.JPG" alt="">
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Sydney no longer the nation’s most expensive capital city to rent a house: Domain

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The NSW Valuer General has released the latest official land values.
Residential land values increased by 4.4% over the year.
There had been a 14.1 per cent rise in the previous year.
The land values are for the value of the land only, as at 1 July 2018.
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One of the biggest increase was in Ku-Ring-Gai local government area where residential land values increased by 22.5% with very strong increases in land values for mixed use properties along the Pacific Highway (45.8%).
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Residential land values increased in the Lane Cove local government area by 17.4%, due to demand for housing near public transport, main roads and the business centres of North Sydney, Chatswood and Macquarie Park.
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Acting Valuer General Michael Parker said the land values are made by independent contract valuers following the analysis of over 46,000 sales. 
Residential land values in the Sydney Central region recorded an increase of 2.1%, the so-called Sydney East region increased by 3.2% and the Sydney West region had a 3.8% increase.
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Decreases were recorded in the Georges River suburbs (-3.3%).
Rural NSW land values increased overall by 14.3% due to continued demand and firm commodity prices. 
Most locations recorded strong increases despite the continuing dry conditions, the department noted.
The land values reflect the property market at 1 July 2018. Land values do not include the value of a home or other structures.
Mr Parker encouraged the public to visit valuergeneral.nsw.gov.au for more information on land values and the valuation system.
“The latest land values for all properties in NSW are available on our website along withinformation on trends, medians and typical land values for each local government area,” Mr Parker said.
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The Sydney East region saw its strongest increases in the local government areas of North Sydney and Mosman, which showed 14.4% and 11.2% increases respectively.
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The Blue Mountains local government area had an increase of 16.6%. The Hills Shire (0.7%) and Fairfield (1.5%) local government areas had steady residential land values.
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Ku-Ring-Gai and Lane Cove show strongest gains as NSW residential land values up 4.4% over the year

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National residential listings declined 9.2% in December 2018 to 328,203 from 361,619 in November 2018, according to SQM Research.
It noted that the stock reduction in all cities was expected during the festive and summer break, however, the decline in Sydney, Melbourne and Canberra were larger than expected.
Residential listings were down on November in Sydney 17.7%, Melbourne 17.2% and Canberra 15.5%.
Hobart recorded the smallest monthly decline at 5.8%.
But compared to a year earlier, national listings were up 2.8%, with Sydney, Melbourne and Canberra’s year-on-year listings up the most - Melbourne up 25.4%, Canberra 19.3% and Sydney up 16.5%.
Hobart on the other hand experienced a yearly decline of 5.8%, with residential property listings dropping from 2,426 in December 2017 to 2,286 in December 2018.
Adelaide and Darwin also experienced yearly declines of sale listings at 4.1% and 2.9%, respectively.
<img src="https://www.urban.com.au/images/2019/1/8/SQM%20Table%201.JPG" alt="">
(Source: SQM Research)
Louis Christopher, managing director of SQM Research, said listings in December had some large falls however, let us keep in mind there was a surge in listings recorded in November and that December traditionally records a large fall in properties for sale as this is a holiday period.
“Our view remains in place that prices will likely fall in Sydney and Melbourne over the course of 2019.
"We note however that Melbourne house asking prices increased during the month by 0.3% as did unit asking prices in Sydney 0.7%.
"I also note that national listings are now only up 2.8% for the year, indicating that regional centres may well have outperformed the major capital cities in 2018.”
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Asking prices were a different story as capital city asking prices rose 0.4% for units to $571,600 but declined 0.9% for houses to $924,500, for the month to 31 December 2018.
The largest monthly rise came from Canberra, where house asking prices rose 2.5%. However, Unit asking prices in Canberra declined by 1.1%.
Sydney recorded the highest increase in Unit asking prices of 0.7% but the largest decline in House asking prices of 1.6% over the month.
Year-on-year asking price gains were the strongest in Canberra for both houses and units, with house prices rising by 3.4% and Units by 7.9%.
Year-on-year prices fell in Sydney, Darwin and Perth for both houses and units.
Brisbane and Hobart recorded increases in house asking prices but unit prices declined year-on-year.
This was reversed in Adelaide and Melbourne which recorded decreases in house prices but increases in unit asking prices over the year.
<img src="https://www.urban.com.au/images/2019/1/8/SQM%20Table%202.JPG" alt="">
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December 2018 national residential listings sat higher than December 2017: SQM Research

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The Bank of Queensland has become the first bank to officially hike home loan rates out of cycle in 2019.
The decision affects a range of BOQ variable rate loans including their Economy Variable Home Loan which is increasing by 0.11 per cent for both new and existing customers.
Other loans are increasing by up to 0.18 per cent, effective from January 11th.
That increases the price of monthly repayments on a $500,000 dollar loan by $32 and over the life of the loan it will cost an additional $11,369
RateCity.com.au research director Sally Tindall said the bank has cited cost of funding pressures and intense competition in term deposits as the reasons for the hike.
“These cost of funding pressures are affecting most banks so it’s likely we’ll see other lenders follow suit in 2019,” she said"
“A lot of household budgets are feeling the pinch after Christmas. While most families will be able to absorb this hike, some may struggle to come up with the extra cash,” she concluded.
Bank of Queensland is the ninth largest mortgage lender in Australia, according to APRA.
<img src="https://www.urban.com.au/images/2019/1/8/BOQ%20hike.JPG" alt="">
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Bank of Queensland hikes home loan rates for 2019

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South Australia’s housing market is forecast to remain relatively subdued with slow but steady growth, according to the latest report from Moody's Analytics.
Moody’s Analytics have forecast housing values will pick up slightly in 2019, while apartment values will likely be weak off the back of a slow 2018.
<img src="https://www.urban.com.au/images/2019/1/8/Adelaide%201.JPG" alt="">
Greater Adelaide is expected to see sustained housing growth of 2.6% in 2019 and 3.6% in 2020, a small improvement on 2018, while apartments are forecast to see subdued growth as in the trend of previous years.
The Central and Hills region of Adelaide is forecast to see housing growth of 2.5% in 2019 in line with greater Adelaide and slightly less growth in 2020, while apartments are expected to stabilise after making a small loss last year of -0.8%.
Adelaide North is forecast to have greater growth in 2020 than in 2019 reaching 4.6% an improvement on its previous performance, while apartments are forecast to continue a small downward trend in 2019 and 2020.
The Southern Adelaide region is forecast to have the strongest housing growth in Adelaide growing 3.7% in 2019 and 4.9% in 2020, while apartments are forecast to have slow growth in 2019 of 1.4% and the strongest apartment growth of any SA region in 2020 at 3.9%.
Western Adelaide is forecast to see small growth in housing prices in 2019 and 2020 of 2% and 2.9% respectively, while apartments are expected to have a strong 2019 with growth of 3% lower than their 2018 growth of 4.5% before slumping to a loss in of 2.9% in 2020.
The rest of SA is expected to be continued a trend of home price weakness in 2019 with a loss of -0.6% forecast by Moody's Analytics, however in 2020 a recovery has been predicted with growth pegged at 4.2%.
Barossa, Yorke, and Mid North SA are predicted to experience weakening house prices in 2019 before experiencing a pick up in 2020 of 3.4%, after experiencing price growth in 2017 and 2018.
The Outback region of SA is forecast to see price falls of -10.2 throughout 2019 continuing a trend of price falls before bouncing back in 2020 to grow 5.6%.
South East SA is forecast to have consistent price growth in 2019 (3.9%) and 2020 (4.1%) after seeing a reduction of -0.6% last year. 
The report authors note, "although low population growth has dampened home values, a recovery in employment growth, coupled with increased incomes over the next few years, could result in pockets of South Australia outperforming the rest of the state."
The dwelling market in Adelaide-North is likely to remain mixed with house values expected to accelerate while apartment values remain subdued.
Overall, population growth has supported home values; nearly 50% of the total population gain in Adelaide has been in Adelaide-North in 2016-2017.
However population growth is expected to moderate.
<img src="https://www.urban.com.au/images/2019/1/8/Adelaide%203.JPG" alt="">
The report said, "the Adelaide-Central and Hills region enjoyed a strong run in 2017, but values have slowed in 2018, and a slow recovery is likely in 2019."
"Moreover, a strong runup in apartment supply since 2014 has prompted apartment values to fall in 2018, and only a small recovery is likely in 2019 and 2020."
"A higher supply—with around 1.4 apartments approved for every home approved since 2015—will limit apartment value gains in the region," the report stated.
<img src="https://www.urban.com.au/images/2019/1/8/Adelaide%202.JPG" alt="">
Moody's Analytics forecast that slow population and income growth will weigh on the South Australian housing market.
They have also predicted that high rental values will keep the Adelaide housing market stable and prevent a sharp collapse seen elsewhere nationwide.
Notably, agriculture commodity prices are expected to remain subdued, while the Australian dollar is unlikely to fall further.
These external developments will limit income gains across the Barossa-Yorke-Mid North and South Australia-Outback regions in the coming years.
Consequently it is forecast the housing market there is will correct further in 2019 before a recovery takes place in 2020.
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Adelaide's housing market forecast to see slow but steady growth: Moody's Analytics

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A home in Gunn in the Northern Territory has been sold by its mortgagee in possession for a loss of $105,000.
The home at <a href="https://www.realestate.com.au/sold/property-house-nt-gunn-107564066" target="_blank">17 Bryant Terrace, Gunn</a>, the sold for $340,000, a substantial drop from its 2011 sale price of $445,000.
Located a minutes drive from the Palmerston CBD, the home features air conditioning and security screens throughout.
The home is also within 2 km of a number of schools and has parking for two cars.
Set on 480 sqm the home was listed as a rental as recently as June of this year at $460 per week.
The median price for a house in <a href="/developments/gunn-nt-0832">Gunn</a> is $453,000, according to CoreLogic data, which put the annual change in median house price over the past ten years as 1.4%.
In November of 2017 another mortgagee sale took place in Gunn, <a href="https://www.realestate.com.au/sold/property-house-nt-gunn-126051690" target="_blank">7 Bett Bett Court</a>.
Set on 790 sqm the three bedroom two bathroom house sold for $440,000.
The sale also lost just over $100,000 dollars on its previously sale price as it went for $555,000 in 2010.
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Gunn, NT home sold by mortgagee for $100,000 loss

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Queensland’s 2019 housing market is expected to vary across the state, largely because of its diverse economy, according to Moody's Analytics latest report.
The report noted that the Brisbane area has seen its strongest growth since the lull in 2012, thanks mostly to improved activity in the services sector.
The outlook for Queensland's housing markets is for either flat or mildly positive returns over the next two years.
<img src="https://www.urban.com.au/images/2019/1/7/Moodys%20Graph%203.JPG" alt="">
The authors noted, "although Brisbane home values rose steadily through 2017 and 2018, the apartment market has been more subdued."
"A runup in supply over the past few years has capped gains in the apartment market."
"However, supply has tightened since its peak; the latest data suggest apartment building approvals have fallen from their 2013 levels."
"Therefore, a reduced apartment glut will likely usher in a broad-based recovery in apartment values from 2019 onward," according to the report authors.
<img src="https://www.urban.com.au/images/2019/1/8/Brisbane%20apts%203.JPG" alt="">
The contrast between home and apartment values is most apparent in Brisbane Inner City (comprising South Brisbane, Ascot and Grange).
Moody’s Analytics forecasts home values to underperform throughout the forecast period, while apartment values are expected to accelerate.
This is a reversal of trend from the past few years; home values had risen more than 30% since mid-2012, while apartment values had risen only around 5%.
 <img src="https://www.urban.com.au/images/2019/1/8/Brisbane%20apts%204.JPG" alt="">
(Source: Moody's Analytics, CoreLogic)
Apartments in Greater Brisbane are forecast to grow 2.8 percent overall in 2019 with every region seeing growth, ranging from 2.7% to 7.6%, after falling -3.1 and -0.9 percent in prior years.
Moreton Bay, Logan and Ipswich are projected by Moody's Analytics to be the three largest growth areas for apartments with a forecast growth over 2019 and 2020 ranging from 13.5% in Ipswich to 18.6% in Moreton Bay - North over the next two year. 
Brisbane North and South as well as the Inner City Brisbane region are expected to see medium to high growth with Inner City region expecting growth of 7.3%.
However Brisbane East and the Inner City region are expected to see a slowdown in 2020 with both areas still forecast to grow.
The second housing sector comprising more “lifestyle” areas, including Sunshine Coast, Wide Bay and Cairns, are expected to perform better over the forecast period, as income growth remains robust and the degree of supply increase is not as great as in areas of Brisbane.
Lifestyle areas are also buoyed by overseas tourist demand, which has remained strong on the back of the falling Australian dollar.
Moody’s Analytics forecasts home values to underperform throughout the forecast period, while apartment values are expected to accelerate.
<img src="https://www.urban.com.au/images/2019/1/7/Moodys%20Graph%204.JPG" alt="">
The third housing market region in Queensland comprises commodity-producing areas.
These include Central Queensland, Mackay-Isaac-Whitsunday, and Darling Downs-Maranoa.
The report authors note, "values have declined significantly here over the past few years, partly as a result of the end of the mining boom."
"The recent uptick in commodity prices is unlikely to provide a tailwind, with housing values expected to correct further through 2019."
"A lack of job opportunities will subdue population growth, lowering equilibrium home values," the authors concluded.
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Brisbane apartment market forecast to see stronger price growth in 2019: Moody's Analytics

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A mortgagee has sold a Charters Towers City, Qld house for just over half of it's original purchase price.
Located at <a href="https://www.realestate.com.au/sold/property-house-qld-charters+towers+city-129763434" target="_blank">4 Vulture Street, Charters Towers City</a> the home sold for $70,000 in December last year.
The one bedroom one bathroom home features a timber veranda.
Set on a fenced 1,083 sqm block the home was previously sold for $135,000 in 2013 and $117,500 in 2010.
Situated within close proximity to parks and a supermarket the house is within 1 km of the town centre.
The median price for a home in <a href="/developments/charters-towers-city-qld-4820">Charters Towers City</a> is $130,000, according to CoreLogic data, with a -3.9% decline in annual year on year median price over the past 10 years.
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The northern Queensland town is 134 kilometres inland from Townsville on the Flinders Highway.
In 2016 the population was around 8,000 people.
Early last year a Charters Towers City property, <a href="/expert-insights/buying/charters-towers-city-queensland-mortgagee-property-listed-for-50-000">listed for sale with $50,000 hopes</a>, fetched $66,500.
It was listed for mortgagee sale by Kym Whelan from Geaney's Real Estate.
It had last traded at $183,000 in 2009, and at $74,000 in 2006 and $56,000 in 2004.
<a href="https://www.realestate.com.au/property-house-qld-charters+towers+city-127434326" target="_blank">The 3 Regent Street house</a> came with three bedrooms, two sheds and an outdoor entertaining area on 941 square metres.
It had a $52,000 official land value in 2015.
At the time CoreLogic's median house price sat <a href="/developments/charters-towers-city-qld-4820">$121,000</a>.
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Charters Towers City, Qld home sold for half price by mortgagee

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The Sydney and Melbourne housing markets will keep leading the property price decline, after sustained weakness in 2018, according to the latest report from Moody's Analytics.
The CoreLogic-Moody’s Analytics report estimates that the Sydney housing market declined by 5.2% in 2018, and a further 3.3% drop is forecast for 2019. This follows the 12.8% rise in 2017.
However, apartment values are set to recover modestly after a 2.9% decrease in 2018.
House values in Melbourne are set for a steeper correction; they are forecast to fall by 6% in 2019 on the back of declines in Inner Melbourne areas, compared with a 0.1% fall in 2018.
Melbourne’s apartment market is expected to have slowed in 2018, followed by sharper slowdown in 2019.
<img src="https://www.urban.com.au/images/2019/1/7/Moodys%20Graph%201.JPG" alt="">
The report said house values across Brisbane are forecast to gain a mild 1.2% in 2019, with strength in West Brisbane and Inner Brisbane offsetting declines in South Brisbane.
"The worst is likely over for Brisbane’s apartment market."
"Apartment values are forecast to recover by 2.8% in 2019, followed by sharper growth of 6.5% in 2020," the report added.
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Although commodity prices are stabilising, house values in Perth will likely decline 2.8% in 2019, followed by a recovery in 2020, thanks to population growth.
Meanwhile, Adelaide’s housing market will continue its stable run: House values in Adelaide are forecast to rise 2.6% in 2019, after a 1.9% expected gain in 2018.
Hobart’s housing market is likely at the end of its bull run; home values are forecast to decelerate to 2.7% in 2019, followed by a 2% fall in 2020.
Similarly, the Hobart apartment market will likely decelerate from 11.7% growth in 2018 to 1.9% in 2019, the report noted.
<img src="https://www.urban.com.au/images/2019/1/7/Moodys%20Graph%202.JPG" alt="">
The report authors, said "Australia’s housing market has continued its entrenched cooling trend in the final months of 2018."
"The decline has been sharper in home values over apartment values: Home values have fallen more than 4.5% from their peak late last year, while apartment values are down 3.3%," they concluded. 
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Melbourne to be hit hardest in 2019 property price falls: Moody's Analytics

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

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

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

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

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

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

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