Brisbane has become the first of the eastern capital cities to erase to losses in the property market in 2022, CoreLogic's latest Home Value Index found.

Dwelling values in the Queensland capital have gone so well over 2023 that they've rubbed out the -8.9 per cent decline to reach a new record high.

Both the house and unit market have contributed significantly. Houses are 10.3 per cent up year to date, units 9.8 per cent.

Units, which incorporates both apartments and townhouses, posted another 1.3 per cent gain over October to be the best performing capital city unit market alongside Perth, although bested by their Gold Coast neighbours whose unit market posted 1.6 per cent growth.

Read more:&nbsp;<a href="/news/qld/city-beat-october-2023-southern-boom-continues-in-gold-coast-off-the-plan-apartment-market">City Beat October 2023: Southern boom continues in Gold Coast off the plan apartment market</a>

The rolling quarterly average of Brisbane units is now up 3.5 per cent, taking it to a new median high $545,000. It is now on track to overtake Canberra and become Australia's third priciest capital unit market, behind Sydney and Melbourne. Canberra's median unit value is $589,000.

<h2>What's happening in Brisbane's off the plan apartment market?</h2>

The chronic undersupply in Brisbane was alleviated somewhat by two new projects hitting the market in October.

National developer Kokoda Property, who submitted <a href="/news/qld/kokoda-propose-1-5-billion-triple-tower-riverside-development-in-teneriffe">plans for their $1.5 billion Tenneriffe masterplan</a> last month, has just launched <a href="/new-apartments/ruby-ruby-milton-12-crombie-street-milton">Ruby Ruby</a>, their second apartment development in Milton.

[smartcode_project:default project_id=139032 project_image_fid=231172]

The <a href="/new-apartments/ruby-ruby-milton-12-crombie-street-milton">145-apartment project on Crombie Street</a> has already seen huge success, selling down around 90 apartments in the space of a few months before its public launch.

Spanning 21-levels and designed by Cottee Parker, <a href="/new-apartments/ruby-ruby-milton-12-crombie-street-milton">Ruby Ruby</a> features a suite of wellness amenity, the majority of it on the rooftop. It&nbsp;will feature an wet-edge swimming pool with several cabanas and day beds and a heath and wellness space with a gym, infrared sauna, spa, plunge pool and a yoga studio.&nbsp;

360 Property Group's Jeremy Gilmore is marketing <a href="/new-apartments/ruby-ruby-milton-12-crombie-street-milton">Ruby Ruby</a>.&nbsp;Gilmore says due to the lack of supply, for those that can get to market are getting good prices.

"The good developers are really shining through at the moment," Gilmore says. "They're favourable for the banks, builders and buyers, who all want to see a long track record to invest their money into the project."

&nbsp;

[smartcode_project:default project_id=139032 project_image_fid=232277]

A true test of the appetite for off the plan apartments is when both ends of the market are firing, which is certainly the case in Brisbane.

YPM Group have seen a similar demand and uptake at their recently&nbsp;launched <a href="/new-apartments/sorano-house-kangaroo-point-12-hamilton-street-kangaroo-point">Sorano House</a>, just seven full floor apartments on Kangaroo Point's dress circle Hamilton street.&nbsp;

[smartcode_project:default project_id=6206 project_image_fid=227100]

YPM has already sold over half of the apartments to downsizers from both Brisbane and the Sunshine Coast.

YPM Group Projects Director Phillip Rand says the successful start to the campaign has been underpinned by the decision to start construction before&nbsp;launching to market.

"Buyers at this end of the market want to have full confidence in the delivery of the project&nbsp;before they commit, and the biggest confidence driver&nbsp;in the current climate&nbsp;is construction&nbsp;certainty," Rand says.

"Our Sorano House buyers have been drawn to both the rarity and exceedingly high quality of the project as well as the development around it.&nbsp;The Kangaroo Point Green bridge is less than 100m away, connecting you with Brisbane's City and the new Waterfront Brisbane by foot, plus just 500m from the site Queen's Wharf will bring 50 new restaurants and cafes within walking distance."

[smartcode_project:default project_id=6206 project_image_fid=231550]

Rand says the rarity of projects like <a href="/new-apartments/sorano-house-kangaroo-point-12-hamilton-street-kangaroo-point">Sorano House</a> means demand is always likely to outstrip supply.

"It&nbsp;can take years for&nbsp;developers to source and amalgamate&nbsp;true luxury sites, either fronting the river&nbsp;or with incredible never to be built out views, so buyers&nbsp;in this end of the market recognise&nbsp;how rare an opportunity like this is when an&nbsp;exclusive&nbsp;project like Sorano House comes to market. "

McGrath's Head of Projects QLD, Jo Prince-Gillies, says the landscape of new luxury apartments and terrace homes is undergoing a remarkable transformation, driven by a scarcity of supply.

"This scarcity has shifted buyer preferences, placing a premium on quality, prime locations," Gillies says.

"The higher end projects we take on have resonated with the discerning affluent downsizer and empty nester market, mirroring a growing desire for sophisticated living experiences."

Gillies says their buyers, now more discerning as ever, are seeking certainty before they commit.

"We recognize the importance of providing reassurance, and we're diligently working towards confirming builders and construction timelines to instil confidence in our clients."

On interest rates, Gillies says that while the fluctuations have impacted the broader property market, our niche segment has exhibited resilience, particularly among buyers with budgets exceeding $2.5 million.

"Projects less than $1 million is where we have had to be a little creative to get buyers across the line due to finance and rising interest rates."

Dwelling values in the Queensland capital have gone so well over 2023 that they've rubbed out the -8.9 per cent decline to reach a new record high

Joel Robinson

City Beat October 2023: Brisbane property market reaches record highs as off the plan demand continues

The <a href="/new-apartments/gold-coast-qld">Gold Coast unit market</a> continues to post impressive month-on-month growth.

Another 1.6 per cent value gain in the unit market across October marked the sixth consecutive month of plus one per cent growth,&nbsp;CoreLogic's monthly Home Value Index found.

The median unit value on the <a href="/new-apartments/gold-coast-qld">Gold Coast</a> is now $717,000, up 3.9 per cent on the rolling quarter and 8.8 per cent over 2023.

Comparing it to the capital city markets, the median is just over $100,000 less than the <a href="/news/nsw/city-beat-october-2023-all-markets-transacting-in-the-sydney-off-the-plan-apartment-market">Sydney unit median</a> and over $100,000 more than the next most expensive capital, Melbourne.&nbsp;

Despite many suggesting the traditionally cyclical <a href="/new-apartments/gold-coast-qld">Gold Coast</a> market would come crashing down when people started heading back into the office and not have the ability to work remotely, the market has bucked opinion and has been one of the best performing markets in the whole country this year.

Read more:&nbsp;<a href="/news/qld/city-beat-september-2023-gold-coast-unit-values-pass-700k-after-continued-2023-growth">City Beat September 2023: Gold Coast unit values pass $700k after continued 2023 growth</a>

<h1>What's happening in the Gold Coast off the plan market?</h1>

The COVID-19 pandemic lit a fire under the <a href="/new-apartments/gold-coast-qld">Gold Coast property market</a>, particularly in the off the plan apartment space.

Those who bought anywhere between 2020 and 2021 are starting to see their projects complete.&nbsp;

Despite interest rates rising significantly over the last 18 months, the overwhelming majority of buyers are still settling and are just having to accept an interest rate repayment they never thought would be this high when they purchased. That's because for the last two to three years, prices have skyrocketed. Most buyers are getting their valuations coming back for their completed apartments at 30 per cent more than what they paid.

And what's more, prices haven't come down like the rest of the country. The <a href="/new-apartments/gold-coast-qld">Gold Coast </a>has proven to be one of the most resilient markets in Australia, and the tight supply v high demand has been the contributing factor.

An interesting insight is that southern demand has continued well into 2023. Initially the southern boom, whether it was for migration purposes or an investment, started when southeners wanted to escape both the cold and the rolling lockdowns for the beach, with the ability to work from anywhere in the country at an all time high.

Now that's over, the expectation was southern interest would taper. But that's not what local agents have found.

Pezet Matheson Director Todd Matheson says southeners are still making up a large portion of both enquiry and purchases.

"Those buyers from the southern states aren't just investors looking to take advantage of the Gold Coast's tight rental yields, they're buying off the plan as a future home," Matheson says.

Southern city dwellers, as well as downsizing locals and those from Brisbane who are looking ahead to retirement, have dominated the sale of the Signature Residences at <a href="/new-apartments/lagoon-main-beach-11-23-cronin-avenue-main-beach">Lagoon Main Beach</a>, the under construction <a href="/developments/main-beach-qld-4217">Main Beach apartment development</a> by Drew Group.

[smartcode_project:default project_id=108747 project_image_fid=221589]

Pezet Matheson secured $43 million worth of sales in the last six weeks at <a href="/new-apartments/lagoon-main-beach-11-23-cronin-avenue-main-beach">Lagoon Main Beach</a>, the majority of whom were new buyers to the <a href="/new-apartments/gold-coast-qld">Gold Coast</a>.

"There's been a large cohort of buyers who have come in and transacted quickly in the last month and a half," Matheson says, adding that the status of the project, and the fact it's under construction by one of the biggest and best builders in the country in Hutchisons, goes a long way in the current market.

The $390 million project, on a 4,000 sqm plus site, an amalgamation not seen since the&nbsp;1980s,&nbsp;comprises two towers of 259 apartments on the sought-after Cronin Avenue.

The two towers are called Sunrise and Sunset, each taking in either views of the Pacific Ocean or the hinterland.

<a href="/new-apartments/lagoon-main-beach-11-23-cronin-avenue-main-beach">Lagoon Main Beach</a> comes&nbsp;comes with a high-end range of amenities designed to compliment the coastal way of life. The name Lagoon stems from the lagoon-style pool oasis, with private cabanas and a heated spa, which sits between the two towers,. There's also indoor and outdoor lounges, a fitness centre, yoga deck, a business hub, storage for surfboards.

[smartcode_project:default project_id=108747 project_image_fid=221590]

Total Property Group are also seeing significant demand from southeners at the luxury end of the market they market in. They're marketing Royale, Jewel and Escape, and have recently launched Burly Residences, the North Burleigh apartment development by David Devine's DD Living.

Total Property Group Managing Director Adrian Parsons says however that recently the most robust enquiry at the top end has come from the local <a href="/new-apartments/gold-coast-qld">Gold Coast</a> and Brisbane markets.

"At this point it’s probably the strongest demographic we see," Parsons says.

They've had a strong resposne to the launch of <a href="/new-apartments/burly-residences-north-burleigh-264-268-the-esplanade-burleigh-heads">Burly Residences</a>, the Koichi Takada-designed apartment development with interiors by Mim Design.

[smartcode_project:default project_id=134791 project_image_fid=223390]

"We knew the market response would be strong having sold out developments in Burleigh previously," Parsons said, adding however that North Burleigh is a little different when being compared to Burleigh Heads.

"It’s quieter and suits the owner-occupier or quiet holiday maker, footsteps from the ocean. Despite its more peaceful outlook, <a href="/new-apartments/burly-residences-north-burleigh-264-268-the-esplanade-burleigh-heads">Burly Residences</a> is also just a short stroll from the amenity at nearby Miami and Nobby Beach, presenting the best of both worlds."

Read more: <a href="/news/qld/dd-living-reveal-luxury-burly-residences-development">DD Living reveal luxury Burly Residences development</a>

[smartcode_project:default project_id=134791 project_image_fid=220106]

Parsons says buyers have been attracted to the "playground of six-star amenities", which have a real focus on R&amp;R.

Residents of <a href="/new-apartments/burly-residences-north-burleigh-264-268-the-esplanade-burleigh-heads">Burly Residences</a> will have access to two floors of resort amenities, including resort-style pools set amid tropical gardens, a pool deck, and a luxury beach club.

There's also wellness facilities in the form of a gym, yoga and Pilates lounge, Peloton room, steam room and a sauna.

City Beat October 2023: Southern boom continues in Gold Coast off the plan apartment market

Melbourne unit value growth again outstripped houses for the fourth time in five months, according to CoreLogic's monthly Home Value Index.

Units, which incorporates both apartments and townhouses, saw values rise by 0.7 per cent over October, compared to 0.4 per cent for houses.

Over 2023 Melbourne unit values are now 3.7 per cent higher than they were at the start of the year, with the new median unit value now $615,000.

The housing market growth has tapered off since it turned a corner earlier this year. Sydney and Melbourne led the property market rebound, driven by low listing. Their growth has slowed the most however due to an increased level of supply most evident heading into spring and summer.

Where there's still a significant shortage in supply is in the off the plan apartment market, with developers continuing to battle the challenges of construction costs and the increased cost of land.

<h1>What's happening in the Melbourne off the plan market?</h1>

The aforementioned supply issue is still a critical issue in Melbourne, and looks like it will be for some time. There were a handful of projects go live o\ver October, but not enough to keep up with projected population forecasts.

Projects by Buxton Director Heath Thompson said the lack of supply is driving interest in stock which at one time or another has been overlooked.

“We’ve seen that residual stock is now starting to sell easily," Thompson says.

"Apartments that had been on the market for an extended period, having at one time, when supply was better, been viewed as being either expensive, compromised in outlook, or the floorpan wasn’t right, now an attractive purchase, given the lack of supply on the market."

Thompson is marketing Martin Brighton, a new boutique apartment development in Melbourne's Bayside. He's just sold a two-bedroom apartments to a Sydney investor, site unseen.

[smartcode_project:default project_id=5495 project_image_fid=220683]

Thompson says Martin ticks the right boxes in the off the plan apartment market at the moment.

"The project is under construction, with a timeframe in which people can start to prepare for their next move. The move in date of early next year means those downsizers can start to look at selling their house and what their next move looks like. It's a little easier when the building is six months away from completion compared with a few years ago. The stage of which construction is at is also particularly attractive in the current climate. There's certainty the project will complete, and that's worth its weight in gold."

On the Sydney buyer, Thompson says the buyer was particularly attracted to the longer term capital growth Brighton, and in particular Martin, represents," Thompson says.

"Martin sits in a niche pocket where you don't have to win the lottery to afford one of the apartments, but nor is it typical investor-grade, first home buyer stock. It sits in the middle tier, and suits the downsizer who doesn't have, or doesn't want to spend, $3 million plus, which the majority of new apartments in Brighton cost."

[smartcode_project:default project_id=5495 project_image_fid=190763]

Thompson has also seen renewed interest in a penthouse he's been marketing for a while, also in Brighton.

"A penthouse in Brighton we’ve been marketing has had no activity for months, but in the last week we’ve had three inspections for it.

No issues with interest rate rises at the moment as Thompson's main buyer demographic at the moment is downsizers.

Noorden Property agent David Lamond is seeing buyers cautiously await the RBA news, and the timing of the hike hasn't helped.

"It just speeds up the Christmas break for prospective buyers," Lamond says, where typically sales don't tend to occur. He says there will still be enquiry, but their timeline to purchase won't be until well into the new year once they've seen evidence of the RBA's willingness to hold rates for a prolonged period.

Lamond recently launched Marlu, a collection of just four townhouses in Hampton.

[smartcode_project:default project_id=140140 project_image_fid=219622]

In a similar fashion to Thompson's Martin, Marlu bridges a gap, in this instance between a grand $5 million plus mansion and an apartment.

"The project resonates with those not wanting to downsize fully to an apartment, but don't want the maintenance of a large family home."

Lamond forecasts that August 2024 will be a key month where developers will start to be able to put their foot on the gas once more after a few years of status quo, which will help the Melbourne supply issues.

"When looking at the supply pipeline for buyers, developers are starting to look at site acquisitions in the new year, with the view that by August, a few current challenges in the build space might tip in their favour.

"Trades are expected to start running out of work, and they won’t be able to command exorbitant prices like they are now, and materials, while not coming down, will start to at least plateau which will make it easier for a developer to accurately price a project."

Where there's still a significant shortage in supply is in the off the plan apartment market, with developers continuing to battle the challenges of construction costs and the increased cost of land.

City Beat October 2023: Buyer activity improves in Melbourne's off the plan apartment market

Sydney unit values are approaching new highs after CoreLogic's national Home Value Index showed another month of growth for apartments and townhouses in the harbour capital.

Values rose 0.6 per cent over October, taking Sydney's 2023 unit growth to eight per cent.

Despite the median unit value ($832,000) being over $200,000 more than the next most expensive capital city unit median (Melbourne, $615,000), Sydney units have proven to be one of the best performing unit markets in the country over the year, third only to Perth (+9 per cent) and Brisbane (+9.8 per cent).

CoreLogic's overall index has been tracking upwards since&nbsp;finding a trough in January when the market bottomed out after losses over 2022 when the RBA started its rate tightening cycle.

The trend in advertised stock levels remains a critical feature of the market influencing housing trends, CoreLogic Research Director Tim Lawless says.

"After 10 months of below-average vendor activity, the flow of new capital city listings has ramped up through winter and spring to be almost 12 per cent higher than a year ago," Lawless says.

"Although total listings (ie new listings plus relistings) remain lower than this time last year and below the previous five-year average, it is clear that inventory levels are rising."

Sydney's advertised stock levels are 9.3 per cent up through spring.

<h2>What's happening in Sydney's off the plan apartment market?</h2>

Supply has too been one of the leading contributors to the success in the off the plan apartment market for the majority of 2023.

While in October there were <a href="/news/nsw/five-development-applications-submitted-across-sydney-in-october-2023">some&nbsp;significant development applications submitted</a> which will assist in the supply moving forward, the number of new apartment projects coming to market has been critically low.

Agents across Sydney are reporting that each segment of the market is moving.

Colliers National Director Blake Schulze says there's appetite for luxury apartments, middle tier stock, and the more price pointed units.

Schulze says it's still a strong owner-occupier market, but investor activity has started to pick up. Not so much by way of increase enquiry however, more so a higher conversion from investor enquiry to sale than there has been in a while. The investor purchasing hasn't necessarily been on the most price pointed stock either.

"Investors have a more owner-occupier mindset now," Schulze says.

"They're looking forward to owning it as a short-term investment, but something they will reside in in the future."

[smartcode_project:default project_id=21170 project_image_fid=231163]

Most of the buyers Schulze and the Colliers team are working with are off the plan buyers for the first time.

"A number of buyers have been priced out of the housing market, and are now looking at apartments as a viable option, and that's all phases of life, whether it be young professionals, young families, or even established families.

"Traditionally the lifecycle of homeownership is that you'd move into an apartment when you're young, move out and buy a house, then maybe downsize and move back into an apartment in later life. Now however, if the apartment is set up right, particularly in a masterplanned, placemaking way with well curated amenity and lifestyle, then the middle phase of that cycle is conducive."

David Highland's Highland Property sold nearly $200 million worth of apartments off the plan in October across their portfolio, holding 2,300 buyer inspections, which he says is an important metric to track.

"It shows buyers are out there, and if not yet transacting, they're starting their journey to do so," Highland said.

Highland recently relaunched Nautique in Rushcutters Bay, the large scale apartment building in the harbourside suburb in 13 years.

[smartcode_project:default project_id=108896 project_image_fid=180670]

He said the launch gave them a good gauge of what's selling.

"The launch showed there's demand from every segment, with sales from the low $1 million's to $15 million, and everything in between."

Highland says the top end of the market is "incredibly strong."

"Anything over $10 million is selling quickly. There’s not enough stock for this market and we’re getting significant enquiry for this type of product from downsizers. The middle market and investment level are too buoyant given the lack of supply across the majority of Sydney."

[smartcode_project:default project_id=108896 project_image_fid=229979]

That's been the case over in nearby Elizabeth Bay where Toohey Millers' debut project has seen three out of the five full-floor apartments sales snapped up just a few weeks into the launch. Sales ranged between $8.25 million and $13 million.

CBRE Residential / Stewart Residential's Ben Stewart has been marketing No.1 Onslow Avenue, saying the project has resonated with a number of different buyers.

"While nearly all of the enquiry has come from downsizers, it's not necessarily all been localized," Stewart says, noting that wile Elizabeth Bay, Potts Point and the nearby harbourside suburbs domianted enquiry, there's been interest from the Lower North Shore too.

[smartcode_project:default project_id=141600 project_image_fid=219763]

Stewart puts the success down to the limited supply in an area like Elizabeth Bay. He's also grabbed a couple of sales at&nbsp;Eurangi, the new MH Design Union block of just eight apartment on Bondi Beach's dress circle Campbell Parade.

"Much like Elizabeth Bay, there's only even going to be a limited amount of supply in these premium suburbs, particularly on the streets either on the beach or the harbour."

Stewart is about to launch Muse Potts Point, the joint venture between Toohey Miller and Third.i just off Victoria Street.

[smartcode_project:default project_id=112613 project_image_fid=231686]

The 13 apartments, designed by WMK Architecture and Mathieson Architects, capture significant harbour views from the higher apartments in the Brougham Street building.

"The great thing about Potts Point is it appeals to such a diverse market," Stewart says.

"There's nothing like Potts Point anywhere else in Sydney. It's got cosmopolitan amenity with a food and restaurant lifestyle, by the way, and the convenience of being to walk into work while looking at the harbour."

Values rose 0.6 per cent over October, taking Sydney's 2023 unit growth to eight per cent

City Beat October 2023: All markets transacting in the Sydney off the plan apartment market

The Sydney unit market continues to tick along in 2023, with growth of unit values only bettered by Brisbane over the year.

September saw another month of growth for Sydney units, which incorporates both apartments and townhouses, according to property data analytics firm CoreLogic's Monthly Hedonic Home Value Index.

Values grew 0.9 per cent, following one per cent gains in August and 0.7 per cent in July. Sydney unit values now sits at a median $829,000, rising by 7.5 per cent over 2023.

Read more:<a href="/news/nsw/city-beat-august-2023-downsizers-fuel-sydneys-off-the-plan-apartment-market">&nbsp;City Beat August 2023: Downsizers fuel Sydney's off the plan apartment market</a>

CoreLogic’s research director, Tim Lawless said&nbsp;Australia’s housing recovery remains entrenched, with national dwelling values only 1.3 per cent off record highs. He said the outlook for housing values remains positive, albeit with some risks of a slowdown.&nbsp;

"Advertised supply levels are arguably the most important facet of the market to watch over the coming months," Lawless says.

"An acceleration in the flow of new listings is a normal feature of spring and early summer, however, if this trend continues we are likely to see buyers benefitting from more choice, less urgency and greater leverage to negotiate."

<h2>What's happening in the Sydney off the plan market?</h2>

Sydney is starting to see some projects get launched to the starved off the plan apartment market. There's also been some notable development applications and approvals in the last month or so, particularly in Chatswood, which will eventually help the Sydney apartment market supply in the future.

Prolific Sydney developer Urban Property Group recently launched La Vera, their first apartment project in Macquarie Park.

Designed by award-winning COX Architecture, La Vera has 119 apartments across 14 levels. It's been designed to attract a wide variety of buyers, from first home buyers and investors to young families and downsizers.

[smartcode_project:default project_id=134951 project_image_fid=223717]

Chief Executive Patrick Elias says they were in the market as soon as development approval was given, with demand far outstripping supply across Sydney.

"The lack of supply across Sydney has seen sales momentum remain incredibly consistent over 2023, with an uptick in recent months at our Bexley project Parc," Elias says.&nbsp;

"Developers who can get into a position with development approval and firm construction costs should be in the market. While supply levels are low, it is still critical for developers to create something which sets itself apart from other developments in the area."

Buyers at La Vera will also have the assurance of the NSW Government's LDI insurance scheme, which not many developments have. Urban Property Group were the first developer in New South Wales to have the defect insurance, at their Bexley project.

"This sends the message that we stand-by the quality of our developments and buyers can have peace of mind beyond the point of purchase," Elias adds.

Urban Property Group just secured approval to develop apartments in Little Bay which they will launch in early 2024.

[smartcode_project:default project_id=134951 project_image_fid=223723]

Toohey Miller has too brought something new to the market.

They've just launched No.1 Onslow Place in Elizabeth Bay, a collection of just six full-floor apartments on the dress circle Onslow Avenue.

Toohey Miller Founder Nick&nbsp;Couloumbis says the market has responded incredibly well to the project.

"We’ve received over 1,000 enquiries before its upcoming official launch, which is significant given there’s just six full-floor apartments,"&nbsp;Couloumbis says.

[smartcode_project:default project_id=141600 project_image_fid=219760]

"Buyers have reacted to the rarity of full floor apartments in Elizabeth Bay, something which hasn’t been produced in years. It’s difficult to get approval for this kind of development."

Couloumbis says the majority of enquiry has come from downsizers, from locals to those looking to downsize from the wider eastern suburbs and lower north shore.

"There’s still a lot of buyers in the luxury market,"&nbsp;Couloumbis says.

Sydney is starting to see some projects get launched to the starved off the plan apartment market

City Beat September 2023: Sydney's off the plan apartment market starts to see increase in supply

Melbourne unit value growth doubled month on month in September, with the growth in apartments and townhouses outstripping house value growth.

Following modest gains of 0.4 per cent in July and 0.3 per cent in August, Melbourne units grew 0.6 per cent over September, compared to the 0.3 per cent growth houses in the Victoria capital posted, according to&nbsp;CoreLogic's Monthly Hedonic Home Value Index.

Melbourne unit values are now 1.6 per cent up over the rolling quarter, and 3.3&nbsp;per cent year to date. The median value for units in Melbourne is now $612,585.

CoreLogic Research Director Tim Lawless noted that in&nbsp;the more expensive cities, Sydney and Melbourne, the broad middle of the market is now recording the highest growth rate after previously being led by the upper quartile.

“Possibly we are starting to see renewed affordability challenges deflecting more demand towards the middle of the market where barriers to entry are lower,” Lawless said.

Read more:&nbsp;<a href="/news/vic/city-beat-august-2023-buyers-start-to-emerge-in-melbournes-off-the-plan-market">City Beat August 2023: Buyers start to emerge in Melbourne's off the plan market</a>

<h2>What's happening in the Melbourne off the plan market?</h2>

Melbourne is arguably the slowest of markets to understand the value that off the plan apartments offer currently.

Everything in Melbourne points to a prolonged period of growth. The supply and demand imbalance is the largest in the country by some distance, and the most concerning part for Melbourne is that the gap is likely to widen, not narrow. Not enough apartment developments are getting launched, nor are development sites transacting. At the same time, immigration numbers are expected to be the highest in the country.

Anecdotal feedback from agents however is that the majority of buyers are not ready to commit to a purchase yet, with confidence of deliver an issue. However more buyers are starting, or restarting, their purchasing journey now there's more confidence in the RBA holding rates.

Buxton Projects Director Josh Buxton believes there's a real opportunity to make money in the off the plan apartment market at the moment.

"Over the next decade we’re going to see a large shortfall of supply, and at some stage those pressures will come in and people will realise there’s money to be made in buying off the plan property," Buxton said.

"When property prices jumped by 40 per cent in some areas during COVID, off the plan prices didn’t move which is incredible. That means you’re still buying at a price that you might have afforded back in 2020. Buyers can’t do that in the established market after such significant price jumps."

Buxton recently started construction on ADA Toorak, just 22 three-bedroom apartments designed by Paul Conrad on Malvern Road.

[smartcode_project:default project_id=92806 project_image_fid=175568]

Buxton said he couldn't believe how quickly enquiry changed when they started building.

"There was a really distinct line. It wasn’t when the site was demolished, or site prep, but as soon as the concrete was poured, then we got activity."

Construction on the striking building is slated for mid-2024. Buxton says ADA brings something different to Toorak, offering a more affordable solution to the bluechip suburb without compromising on quality.

"We wanted to provide the quality Toorak locals have come to expect from high-end homes but in an apartment. We really pushed on the landscaping too so downsizers are still surrounded in greenery without the maintenance of a large yard.

[smartcode_project:default project_id=92806 project_image_fid=175569]

OSK Property is finding buyers are saying the same about builder confidence at BLVD, their latest stage of their&nbsp;$2.8 billion Melbourne Square development in Southbank.

BLVD, which follows two completed residential towers, comprises 591 apartments and a suite of wellness facilities and sustainability features which have become the cornerstone of the masterplan.

OSK Property Sales and Marketing Director Ivy Chen said they are seeing success because of the certainty they bring to the off the plan apartment market.

"What is influencing buyers is having the&nbsp;certainty that construction will indeed go ahead. They will research the quality of past projects as evidence too."

[smartcode_project:default project_id=107714 project_image_fid=214124]

Chen says&nbsp;demand for both completed and off the plan apartments is very strong at the moment.

"There has been a big change from previous years with a noticeable switch of purchaser type from investors to owner occupiers. Now more than half are owner occupiers," Chen advised.

She says buyers are more demanding in their requirements for floor plan layouts, views, and storage space, as well as&nbsp;whether the development has any sustainability or wellness features, the latter more of a requirement since COVID.

"People are definitely more focused on their mental and physical health now," Chen noted.

[smartcode_project:default project_id=107714 project_image_fid=211867]

Lendlease have quickly secured two thirds of sales at their Regatta at Collins Wharf development, which has prices starting from $591,500 through to nearly $4.7 million.

<a href="/developers/lendlease-development">Lendlease</a>&nbsp;Head of Apartments Daniel Dugina&nbsp;said the&nbsp;significant demand demonstrates the return of confidence in the off the plan housing market.

[smartcode_project:default project_id=134684 project_image_fid=224391]

He said the development has been welcomed by first home buyers through to downsizers seeking a quality home within the desirable dual-waterfront neighbourhood with easy access to the CBD.

“Regatta at Collins Wharf is the next stage of our ongoing investment in the area, with the precinct’s location presenting an exciting opportunity for Melbourne's city centre to stretch further westwards and engage with the water, connecting its maritime past with the contemporary vibrancy of the city for residents, workers and visitors.”

Melbourne unit values are now 1.6 per cent up over the rolling quarter, and 3.3 per cent year to date

City Beat September 2023: Melbourne unit growth outstrips houses as buyers look ahead

Brisbane unit vales continued to grow over September as supply remains incredibly tight in the Queensland capita.

CoreLogic's monthly Hedonic Home Value Index showed another surge in Brisbane unit vales over last month, a further 1.1 per cent. The rolling quarterly gains of 3.7 per cent makes the Brisbane unit market one of the best performing unit markets in the country.

The Brisbane unit median is now&nbsp;$539,169, a rise from the previous months $520,000.

CoreLogic Research Director Tim Lawless said the performance of the housing market in Brisbane reflects the underlying supply dynamic, with advertised supply levels around 40 per cent below the previous five-year average.

"The trend in advertised stock levels is a key influence on housing values," Lawless says.

"The flow of new listings has been on an upwards trajectory since early June, bucking the normal seasonal trend where new listings are typically flat to falling through winter. Over the four weeks ending September 24th, the flow of new capital city listings was 14 per cent higher than at the same time last year and 8.0 per cent above the previous five year average."

Lawless notes however that, while total&nbsp;capital city listings remain below last year and less than the five-year average, there is a clear upswing in available supply.

<h2>What's happening in the Brisbane off the plan apartment market?</h2>

The <a href="/developments/brisbane-qld">Brisbane off the plan apartment market</a> is firing on all cylinders, still driven by a lack of supply across the city.

The supply constraints was evident in Rider Levett Bucknall's 2023 Crane Index which showed the Queensland capital recorded a net loss in crane numbers over the past six months.

Pikos Group have timed the relaunch of their Kangaroo Point apartment development, Skye Residences, perfectly, at a time where there's little to no premium riverfront apartment projects.

They've secured a number of sales at the luxury two-tower, 68-apartment development on one of the best sites in the whole of Brisbane.

Pikos Group CEO Michelle Wooldridge says the response from the immediate local market has been overwhelming, with Brisbane buyers accounting for $20 million in sales over last month alone.

"Many buyers have viewed more than five residential projects and revisted Skye, realising it cannot be matched for quality of finish and its absolute riverfront location," Wooldridge says.

“People can see the tower crane in place, a full basement completed and that construction of the building is progressing and a reality. While many other projects have been put on hold, Skye is clearly progressing and this certainty has boosted demand.”

[smartcode_project:default project_id=90059 project_image_fid=218024]

Pikos recently completed the excavation of the basement on the River Terrace site, a major milestone in construction. They've appoted Tomkins Commercial to build the project, which will be complete in 2025.

Read more: <a href="/news/qld/pikos-advance-construction-at-kangaroo-point-apartment-development-skye-residences">Pikos advance construction at Kangaroo Point apartment development, Skye Residences</a>

Wooldridge says buyers were attracted to the views on offer and apartment sizes, with all luxury residences featuring uninterrupted views of the Brisbane City skyline, South Bank, the Botanic Gardens and the Brisbane River.

“We are finding that buyers require a visual demonstration of value which Skye offers in abundance including a strong recognition of, and appreciation for, generous use of natural stone throughout the residence, premium Vzug appliances and Parisi tapware, master king sized suites with upgraded built-in wardrobes, and ensuites with baths

“Our purchasers are motivated to upgrade their living environment, and at the same time, maximise a riverfront lifestyle on Brisbane’s premier dress circle, within walking distance of waterfront dining and the CBD."

[smartcode_project:default project_id=90059 project_image_fid=218025]

At the other end of the market, longstanding Brisbane developer Azure has continued its success in Brisbane's northern corridor, doubling down on what sales manager Allyce Kluger says is a niche market to be developing in.

"We're one of few developers creating design-led and amenity rich townhouses in the northern corridor," Kluger says, adding that the northern hub has "everything a buyer would need."

"The northern corridor has grown in popularity, with good schools, transport and retail. Our projects are more price pointed than a house, while families have also been attracted to a lock up and leave, low maintenance lifestyle which a house doesn't tend to offer," Kluger said.

Azure have been developing in the northern corridor for a number of years. They've already sold two thirds of their yet to be launched 76-townhouse development Willow in North Lakes, and they're soon to launch Elwood by Azure, another 68 townhouses in Mango Hill bordering a nature reserve.

They're currently construction their sold out Munro by Azure in Bundamba.

Kluger said Azure's biggest marketing tool is to point prospective buyers&nbsp;in the direction of their previously completed projects nearby to show what it would be like living in an Azure community.

"We have 25 year caretaking agreements in every community we develop to ensure we deliver on the promise and our properties remain special forever. We are also a builder developer and can therefore give buyers confidence in the final price, having a deep understanding of the true construction costs.”

Next year Azure will launch their Casuarina project at 6 Grand Parade which will have 91 "subtropical" apartments and terraces.

The Brisbane off the plan apartment market is firing on all cylinders, still driven by a lack of supply across the city

City Beat September 2023: Locals snap up off the plan projects in and out of Brisbane

The continued strength in the Gold Coast property market has seen the South East Queensland hotspot's median unit value surpass $700,000.

CoreLogic's Hedonic Home Value Index found Gold Coast units jumped another 1.3 per cent across September, topping growth in Sydney, Melbourne and Brisbane.

Unit values are now 6.4 per cent up in the last 12 months, according to the property data analytics firm.

Read more:&nbsp;<a href="/news/qld/city-beat-august-2023-gold-coast-unit-median-approaches-700k-following-august-growth">City Beat August 2023: Gold Coast unit median approaches $700k following August growth</a>

<h2>What's happening in the Gold Coast off the plan market?</h2>

Prospective buyers are still queuing up for off the plan apartments developments on the Gold Coast.

While signing up to join waitlists was more prevalent during the pandemic when buyers were missing out on projects which were selling to databases without even hitting the market, the recent development application by Molti for their <a href="/news/qld/first-look-exclusive-molti-secure-prime-bilinga-site-plan-luxury-apartment-project">luxury beachfront Bilinga project</a> saw a strong response.

Molti Director Ben Teague said the response has been incredibly positive.

"We’ve already had people join our waitlist at this early stage," Teague said, adding that buyers have been impressed with both the architecture and the beachfront position in Bilinga.

"We’ve been looking at the southern Gold Coast for a number of years, and while it’s seen considerable growth since the pandemic, we still feel there’s plenty more room to grow."

<img alt="Bilinga" data-entity-type="file" data-entity-uuid="90f45f83-d3ae-48fd-9b32-e28ac6b82207" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-10-05%20at%209.15.01%20am_0.png?VersionId=8oIJOVH6SMSrf8SFM_IDJpf0RcIVOGBK" />

Molti's key business&nbsp;contacts and stakeholders from southern states, particularly Melbourne, are wanting to heavily invest in property in South East Queensland.

"That tells us the growth wasn’t solely pandemic-fuelled. While thousands from the southern states viewed it as an escape from lockdowns over 2020 and 2021, there’s still people moving in droves to SEQ, and forecasts suggest that will continue."

Prominent Canberra developer Amalgamated Property Group are set to bring some further supply to the Gold Coast off the back of the success of their under construction Broadbeach apartment development, Amaya Broadbeach.

Amalgamated Property Group Development Manager Michael D'Elboux says they&nbsp;are seeing a return of buyer confidence, which he says&nbsp;is a direct response to the recent introductions of developer/builders at the helm of both the project vision and delivery.&nbsp;

"Specific feedback that we’re hearing from our buyers at Amaya Broadbeach is that this is providing them with additional certainty knowing that the delivery of the home they’re investing in will actually be of the highest priority to both parties and that their successes go hand-in-hand; there isn’t another party calling the shots," D'Elboux says.&nbsp;

[smartcode_project:default project_id=111866 project_image_fid=205116]

"Industry-wide, this all contributes to a much-needed positive sentiment – these increases in sales and continuation of construction activity does have a broader flow-on effect, with impact on the general market confidence and therefore, future demand and supply."

D'Elboux said that even with the arrival of spring and its natural inclination for the number of sales to pickup, the majority of enquiries at the moment are discerning buyers, namely those who have been watching the marketplace for some time.&nbsp;

"Buyers are doing more independent research before they even reach out to us, which means we're experiencing higher-quality enquiries and shorter conversion timelines to purchase,"&nbsp;D'Elboux says.

[smartcode_project:default project_id=111866 project_image_fid=205115]

"They are connecting with the long-term vision so we’ve got a strong reassurance of a quality residential community that will be in alignment with our original concept.

"As well as holiday-home makers, we’ve definitely been seeing a strong pickup in owner-occupiers who are looking to the future and finding their way to get closer to the water and live that Gold Coast dream by the sand and the sea, but in a low-maintenance home for an easy lifestyle."

Unit values are now 6.4 per cent up in the last 12 months, according to the property data analytics firm.



City Beat September 2023: Gold Coast unit values pass $700k after continued 2023 growth

The growth in the Sydney unit market looked like it had started to slow in July, following booming gains earlier in the year.

Growth slowed to a still respectable 0.7 per cent, but that followed gains of 1.2 per cent in June and 1.8 per cent in May.&nbsp;

But the latest update in property data analytics firm CoreLogic's Monthly Hedonic Home Value Index showed solid growth of one per cent over August, taking units to a new median $822,000.

Sydney unit values (which includes apartments and townhouses), are now 5.2 per cent up over 2023 and 1.1 per cent compared to this time last year.

Nationally, August marked the sixth consecutive month of housing value recovery.

CoreLogic Research Director Tim Lawless noted the trend in housing values, although generally positive, is diverse.

“Sydney has led the recovery trend to-date with a gain of 8.8 per cent since values found a floor in January this year. Brisbane has also posted a strong recovery with values up 6.2 per cent since bottoming out in February."

Stock levels across Sydney rose in August, up nearly 10 per cent, but they remain lower than they were a year ago.

Read more:&nbsp;<a href="/news/nsw/city-beat-august-2023-sydney-unit-value-growth-softens-as-listings-rise-but-not-in-the-off-the-plan-apartment-market">City Beat August 2023: Sydney unit value growth softens as listings rise, but not in the off the plan apartment market</a>

<h1>What's happening in the Sydney off the plan market?</h1>

Agents are reporting higher demand as we approach the back end of the year, across various different pockets of Sydney and Newcastle.

It's the premium apartments which are selling well, generally because they tend to be bought by downsizers and empty nesters, who either don't require any finance, or not as much, compared to a first home or next home buyer.

McGrath Projects Associate Director Adam Sparkes, who is marketing Grand Reve in Castle Hill, has seen the most recent enquiry coming from well qualified buyers with an intent to purchase.

[smartcode_project:default project_id=94147 project_image_fid=197731]

"We’re getting good enquiry for the over-sized large premium apartments at Grand Reve in Castle Hill, but we’re running low on supply," Sparkes says.

"Buyers looking at our three bedroom plus studies, four bedrooms and penthouses are typically downsizers, most of whom own their homes outright. This particular group of buyers are not affected by the RBA as closely as first home buyers or up-sizers might be."

Interestingly Sparkes is also fielding interest from Australian expats who are seeing value in the Hills area.

"One of our most recent purchasers, a couple living in Singapore, have bought a large two bedroom plus study apartment which may serve as an investment on completion, and longer term as a new home when they return to Sydney. Buyers are now seeing a completion date roughly 12 months from now, and they’re able to work toward that timeline a little easier than they would when construction completion is forecast years from now."

[smartcode_project:default project_id=94147 project_image_fid=203070]

Colliers Director Residential Peter Kerras has found the same levels of demand at the premium end of the market.

"The strong results we’ve seen at Newlands in St Leonards and Newmarket in Randwick are based off low supply and the significantly high house prices in the Lower North Shore and Eastern Suburbs," Kerras says.

Kerras says it's remarkable how resilient the market has been, despite the recent month-on-month rate rises.

"Buyers are now more concerned about where they are going to live. The huge jump in rents across Sydney has fuelled buyer demand, and the first home buyer scheme and NSW Shared equity scheme have assisted this."

[smartcode_project:default project_id=24509 project_image_fid=203622]

Kerras is expecting spring to be busy, with Colliers handling new releases at Alkira Asquith, the final release in the Woolooware Bay masterplan, and The Glade release at Newlands in St Leonards, all of which are set to fuel demand.

It's the same view from the Colliers Newcastle team, with Peter Macadam saying over 2023 he's typically seen buyers downsize in this market.

"Announcements from developers around planning status and constructions contracts will act as further stimulus for projects in Spring, whilst downsizers will be buoyed by the positive impact of the general residential market throughout that period, Macadam says.

Investor interest has been strong, Macadam says, based on the low 1.5 per cent vacancy rate in Newcastle, which is outperforming Sydney's 1.6 per cent vacancy.

"While enquiry level has reduced from the peak, the qualified buyers are still moving forward despite the higher interest rate environment," Macadam adds.

Colliers is set to launch a new project of 230 apartments during spring, pending final development consent by the local council.

Agents are reporting higher demand as we approach the back end of the year, across various different pockets of Sydney and Newcastle.

City Beat August 2023: Downsizers fuel Sydney's off the plan apartment market

Melbourne has continued to see growth in its unit market, albeit slower than previous months.

CoreLogic's Monthly Hedonic Home Value Index found that&nbsp;value of&nbsp;<a href="/developments/melbourne-vic">Melbourne units</a>&nbsp;grew by 0.3 per cent across August, slightly softer than the 0.4 per cent gains in July and one per cent in June.

It was the first time in three months unit growth didn't outstrip house value growth. House values in Melbourne grew 0.6 per cent in August.

Unit values are now 1.6 per cent up over the rolling quarter, and 1.7 per cent year to date. The median value for units in&nbsp;<a href="/developments/melbourne-vic">Melbourne</a>&nbsp;is now $603,000.

Read more:&nbsp;<a href="/news/vic/city-beat-august-2023-melbourne-units-outperform-houses-again-as-supply-problems-persist">City Beat August 2023: Melbourne units outperform houses again as supply problems persist</a>

<h1>What's happening in the Melbourne off the plan market?</h1>

It's taken a bit of time, but agents are reporting that buyers are starting to come into the market.&nbsp;

That's what&nbsp;Stephen Bowtell, Director at Jellis Craig Projects, is seeing across a number of his projects.&nbsp;

"It's a good sign for the market that new buyers are beginning their search," Bowtell says.&nbsp;He adds however that most are new buyers only just starting their journey, and they're not ready to transact.

"That slows down the sales process because those buyers need time to assess all options and spend some time researching the market," Bowtell says.&nbsp;

But due to the supply crunch in Melbourne, because of the difficult construction environment, there's not a lot of other options on the market, or even coming to the market.

He says when there even a hint of a rate cut, there will be a flurry of both enquiry and transactions.

Bowtell has just launched Kindred, in Bayside Mentone, a collection of just 10 architecturally-designed villas on the park and near the beach.

[smartcode_project:default project_id=138768 project_image_fid=214857]

"This one ticks a lot of boxes," Bowtell says.

"Kindred Mentone stands out from anything that's been done in Mentone before from an architectural standpoint, but it's also one of few residential sites that faces the park, which makes it difficult to repeat."

Read more:&nbsp;<a href="/news/vic/sloane-launch-one-of-a-kind-townhouse-development-in-melbournes-mentone-bayside">Sloane launch 'one of a kind' townhouse development in Melbourne's Mentone Bayside</a>

[smartcode_project:default project_id=138768 project_image_fid=214862]

Colliers National Director Project Marketing Ben Gearing says it's this undersupply of apartments which has driven sales at their two projects in Melbourne currently, Park Quarter on St Kilda's Road by SIDG, and Lendlease's newest tower in their $1.5 billion Collins What redevelopment, Regatta.

Park Quarter has raced to 50 per cent sold having only launched in March, while Regatta hit the market last month and has had "overwhelming interest".

"We are entering a period where there are going to be fewer apartment development completions," Gearing says.

[smartcode_project:default project_id=134959 project_image_fid=210773]

"This lack of supply in and around the CBD and city fringe of Melbourne will add further pressure on rents in an already tight rental market, bringing astute investors out in large numbers."

Gearing has also seen demand however from first time apartment buyers, whether it be downsizers or first home buyers.

"There has been consistent strong interest from owner occupiers searching for quality, liveable residences which includes your first time apartment residents such as downsizers and first homeowners. As the Melbourne apartment market matures we can see increased interest from residents choosing to upgrade from their current apartments and seeking enhanced design, amenity, quality of build and location."

RT Edgar Projects Director Nihal Peter says there's a few factors at play in the off the plan market in Melbourne. Starting from the bottom up, he says first home buyers have no incentive to buy off the plan.

"They’re renting and don’t want to rent, but they don’t want to be buying something which is over 12 months or so away from completion, they want to move now. They need the 10 per cent deposit now because of rising inflation and rising rents. They’re not buying off the plan and they’re buying completed, well priced stock."

Peter says on the flip side, ageing downsizers are always buying off the plan.

"They don’t have mortgages, they’re buying and future proofing, settling at that price, then selling their home when the market is a bit better.

"There’s a big disparity between the bottom end and the higher end of the market. Supply is going down, demand is going up, the Chinese are coming back. We predict the apartments that sell now will be worth more at settlement.

Peter's newest projects in market are Mimosa Row in Carnegie and EIRA Apartments in Bentleigh East, both being developed by ITUM.

[smartcode_project:default project_id=139888 project_image_fid=212587]

Mimosa Row comprises just 40 two and three-bedroom apartments, while EIRA Apartments offers 18 one, two and three-bedroom units.

Tomassi &amp; Co Founder and Director Alby Tomassi says there's&nbsp;plenty of positives to look at in Melbourne’s off the plan property market.

"Forecasts are for 160,000 people to migrate to VIC in the next 12 months, which is 30 per cent of the whole of the country and double pre-COVID levels. The recent interest rate pauses have seen confidence come back into the market.

Tomassi says when we approach the first cut, then it will be game on.

"The new RBA Governor will signal a change in direction at the Central Bank. Whenever there’s a change in leadership in government, it’s generally because the direction wants to change. So I suspect the change of direction will see us go from a rate hiking, inflation controlling RBA to one who will seek to cut rates at the first opportunity.

"As soon as the media start reporting on first rate cuts, demand will far surpass supply, which is worse in Melbourne than in any other capital city."

Tomassi is preparing to launch a boutique project on Fitzroy's Smith Street, and a townhouse project in Mordialloc.

Chad Arbid at Chad Arbid Projects says the RBA's second consecutive decision to hold rates steady in August has sparked increased activity within the market.

"We are now receiving more qualified enquiries as people are able to engage in more effective financial planning. Confidence is reemerging within the market, and individuals are realising that we are either at the pinnacle or very nearly so, within the interest rate cycle."

Arbid is marketing Casa Tranquila in Hampton East, which he says is attracting buyers who want everything that Bayside has to offer.

[smartcode_project:default project_id=113441 project_image_fid=208731]

"It's a true Bayside suburb," Arbid says.

"It shares the Hampton postcode, it's in an area known for parks, the beach, the best schools, restaurants and cafes, all within three or four hundred metres of the front door."

Local downsizers have made up the bulk of enquiry and purchases. There were some first home buyer purchases earlier in the year, but they're not even enquiring now as interest rates have further restricted budgets.

It's taken a bit of time, but agents are reporting that buyers are starting to come into the market

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