Why Fitzroy, Why Now? 
Purchased five years ago, the Fitzroy site for Fabbrica Fitzroy, has witnessed an intriguing evolution. Ash Bramich sheds light on the adaptive approach PACE took, responding to shifts in the market. The focus on owner-occupiers became paramount, leading to a redesign that increased apartment sizes and catered to downsizers. This dynamic response to market demands reflects PACE's commitment to meeting the evolving needs of property buyers.

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The Industrial Vibe: Designing Fabbrica Fitzroy 
Mike Bird commends PACE for its innovative design approach at Fabbrica Fitzroy, seamlessly blending the industrial aesthetic with a modern twist, perfectly mirroring Fitzroy's eclectic charm. The conversion of an industrial warehouse into Fabbrica Fitzroy, a contemporary masterpiece, not only aligns with Fitzroy's vibe but also instills confidence in potential buyers. The visual transformation, backed by substantial investment, stands as a testament to PACE's dedication to authenticity and quality.

Unveiling Fabbrica Fitzroy: Size, Mix, and Market Focus 
Fabbrica Fitzroy boasts 78 apartments, strategically mixing one, two, and three-bedroom configurations. With a focus on owner-occupiers and downsizers, the project includes townhouses with street frontage, catering to diverse preferences. A deliberate emphasis on larger apartments addresses the changing landscape of property demands.

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PACE's Evolution and Rebranding 
Ash Bramich outlines PACE's strategic evolution, acknowledging past success and pivoting towards a more owner-occupier-centric approach. The recent rebrand, reassessment of values, and collaboration with top-tier consultants signify a commitment to understanding the market and aligning projects with buyer expectations.

PACE's Unique Advantage: Developer and Builder Synergy 
Mike highlights PACE's advantage as both a developer and builder. With over 30 years of experience and a track record of delivering over 100 projects, PACE navigates challenges more efficiently, ensuring promises are not just met but exceeded.

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Building on Fitzroy's Legacy 
The interview draws parallels with Fitzroy's rich development history, mentioning iconic developers like Neometro, Milieu, and Piccolo. PACE, with Fabbrica Fitzroy, join this league and aims not only to meet but exceed the benchmarks set by these industry stalwarts.

In an era where property buyers seek transparency and authenticity, PACE Development Group's dedication to quality, innovative design, and buyer-centric approaches positions Fabbrica Fitzroy as a formidable player in Fitzroy's dynamic landscape.

Stay tuned for more updates as we delve deeper into Fabbrica Fitzroy with PACE Development Group.

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[smartcode_project:default project_id=139552 project_image_fid=240744]

In a candid interview conducted amidst the chic urban landscape of Fitzroy, Mike Bird, CEO of Urban.com.au, sat down with Ash Bramich, the Sales and Marketing Director of PACE Development Group, to unravel the story behind their upcoming project - Fabbrica Fitzroy. 

Michael Bird

Unveiling Fabbrica Fitzroy: A Conversation with Ash Bramich, Sales and Marketing Director of PACE Development Group

Commentary from CoreLogic's&nbsp;Head of Residential Research Australia Eliza Owen

CoreLogic's interactive Mapping the Market Report shows 82.4% of the 4,506 house and unit suburbs analysed nationally saw values rise in the three months to October.

Conversely, 792 (17.6%) house and unit suburbs declined in value in the past three months&nbsp;

Capital city markets are running at very different speeds, with Perth the strongest market while Hobart and Darwin are flat or falling.

Australia's housing market upswing has become more widespread, with four in five house and unit markets analysed nationally recording a rise in values over the past three months.&nbsp;

CoreLogic's interactive Mapping the Market tool, updated with data to the end of October 2023, found 83.1% of house markets and 80.6% of unit markets saw values rise in the past three months.&nbsp;

This broadly reflects continued growth in the Australian housing market, despite high interest rates and weakening economic conditions.&nbsp;

It’s often noted that Australia is not ‘one housing market’ and we’re currently seeing increased diversity in capital city market performance. That’s reflected in city-wide growth rates, the various levels of supply that’s available in some cities over others, and it’s reflected in the different suburbs we analyse in this report.&nbsp;

At one end of the spectrum, suburb-level analysis reflects the extraordinary growth trend across cities like Adelaide, Perth and Brisbane. In these cities, total listings levels &nbsp;are low, city-wide capital growth is running a bit over 1% per month, and migration &nbsp;trends from both overseas and interstate favour more housing demand."&nbsp;

<h2>Capital cities running at high speed&nbsp;</h2>

In Brisbane, each of the 162 unit markets analysed saw values rise in the past three months, while of the 305 house markets, only four saw a quarterly decline. These were the higher-end suburbs of Kalinga and Windsor as well as the more affordable &nbsp;Redland spots of Macleay Island and Lamb Island. &nbsp;

In Adelaide, only 3% of house markets saw a decline in the quarter, but there was a notable portion of unit markets in decline (13.4%, or 9 of the 67 suburbs analysed). &nbsp;

In Perth, there was one suburb where house values fell in the past three months, which was Mount Hawthorn, and Ms Owen said even there, the house market sustained only a mild decline of -0.2%. &nbsp;

Remarkably, 98.1% of the house and unit markets across Perth rose in value over the &nbsp;past three months, and 96.3% of suburb dwelling markets in Perth were at record high &nbsp;values at the end of October."

<h2>Capital cities running at mid-speed&nbsp;</h2>

Running at ‘mid-speed’ are Sydney and Melbourne dwellings, where city-wide capital growth was 2.5% and 1.2%, respectively in the past three months. &nbsp;

The pace of growth across both markets has slowed from the middle of the year when the June rate-hike surprised financial markets and many economists’ &nbsp;predictions.

Currently, growth in Sydney markets are strongest across relatively expensive house markets, with Five Dock houses topping the three-month capital growth ranking (up &nbsp;8.4%). In Melbourne, it was the more mid-priced unit market of Moorabbin, which topped the list, increasing 7.4%.

<h2>Portion of suburbs recording quarterly and annual falls in values&nbsp;</h2>

<img alt="Portion of suburbs recording quarterly and annual falls in values" data-entity-type="file" data-entity-uuid="13084365-cc5e-432b-9d90-5f1285a55214" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Portion%20of%20suburbs%20recording%20quarterly%20and%20annual%20falls%20in%20values.png?VersionId=TcsKKK9_.RZMkOM3Vnh.G8m6WMscUqSs" />

<h2>Capitals that are flat or falling&nbsp;</h2>

In Hobart and Darwin, 41% of house markets saw a quarterly decline. &nbsp;

Ms Owen said overall, Hobart home values ticked 0.3% higher in the past three months, but capital growth trends have been shaky, and total listings are trending around 47% higher than the previous five-year average. &nbsp;

"The city has seen value falls recorded in three of the past six months. Declines across &nbsp;Hobart houses were led by a -3.2% fall across the relatively expensive market of &nbsp;Sandford. &nbsp;

"Canberra has also seen relatively flat capital growth trends, and particular weakness in the unit market. 32 of 39 unit markets analysed in Canberra saw a quarterly decline, &nbsp;with the steepest fall in O’Connor, down -4.1%," she said.&nbsp;

Across regional markets, conditions are equally diverse, with Regional Queensland the strongest house market and Regional SA the best performing unit market.

Australia's housing market upswing has become more widespread, with four in five house and unit markets analysed nationally recording a rise in values over the past three months

Staff Writer

Values rising in more than 80% of Australian house and unit markets: CoreLogic 

<a href="/developers/goldfields-group">Goldfields Group</a>&nbsp;has been at the forefront of residential development for a number of years. It was that experience that helped them make the move first into the office sector, and then into the multi-residential high-rise apartment space in&nbsp;<a href="/new-apartments/sydney-nsw">Sydney</a> recently, as well as expanding their house and land developments to Western Australia.

With everything going on, Apartments.com.au CEO Mike Bird caught up with <a href="/developers/goldfields-group">Goldfields Group</a>&nbsp;CEO Lachlan Thompson, in the Beverley Rooftop bar which sits atop <a href="/developers/goldfields-group">Goldfields</a>&nbsp;House, their commercial tower at&nbsp;627 Chapel Street in <a href="/new-apartments/south-yarra-vic-3141">South Yarra</a>, to talk about their approach to development.

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Goldfields House was <a href="/developers/goldfields-group">Goldfields Group</a>&nbsp;entry into the office market, presenting&nbsp;both commercial and hospitality elements.&nbsp;In 2017, amid expectations of a significant run on commercial office rents, the team strategically decided to explore the uncharted territory.

"The opportunity was probably a little bit bigger than we were looking for in 2017," Thompson says.

"We thought there was going to be a significant run on commercial office rents."

They had initially been looking for something smaller, missing out on a few opportunities in Cremorne, before securing the prime site on South Yarra's Chapel Street.

It completed around the time where the leasing market was the worst in three or four decades, but the fact they delivered a product that was the best in class, meant they were incredibly successful in leasing the building.

The success at Goldfields House led <a href="/developers/goldfields-group">Goldfields Group</a>&nbsp;into the high-rise apartment space, with the learnings of developing a high-rise office tower with the amenity to match.

"Amenity is everything these days, and it's a bit of a one-upmanship at the moment as to who can provide the most," Thompson said on residential developments.

"What there is that's coming out of the market at the moment is that everyone is becoming very house proud of where they live, and becoming super loyal to the building that they've bought in."

<a href="/developers/goldfields-group">Goldfields Group</a>&nbsp;first made the move into Sydney high-rise market with <a href="/new-apartments/the-bryson-of-chatswood-871-877-pacific-highway-chatswood">The Bryson of Chatswood</a>, a 90-metre tower in the heart of <a href="/new-apartments/chatswood-nsw-2067">Chatswood</a>. That came after a low-rise townhouse and apartment project in Pymble.

[smartcode_project:default project_id=21170 project_image_fid=231163]

The Bryson, near Beauchamp Park will comprise 70 one, two and three-bedroom apartments across its 26 levels, including a collection of&nbsp;skyhomes and penthouses.

Thompson says he's seen a shift in buyer preferences during the marketing of <a href="/new-apartments/the-bryson-of-chatswood-871-877-pacific-highway-chatswood">The Bryson</a>.

"Two-bed one baths are nearly extinct, we saw that coming," Thompson says. What they didn't see coming was the amount of amalgamation requests.

"Probably about 25 per cent of enquiries at the moment are for amalgamations, turning twos into threes."

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<a href="/developers/goldfields-group">Goldfields</a> will be looking at recreating a smaller version of Goldfields House in Brisbane in the not too distant future.

All up <a href="/developers/goldfields-group">Goldfields</a> have delivered around 6,000 residential dwellings across house and land lots, apartments and townhouses.

With everything going on, Urban.com.au CEO Mike Bird caught up with Goldfields Group CEO Lachlan Thompson, in the Beverley Rooftop bar which sits atop Goldfields House South Yarra, to talk about their approach to development

How a diversified portfolio helped Goldfields Group expand into the apartment market: Five minutes with Goldfields Group CEO Lachlan Thompson

<a href="/new-apartments/skye-residences-kangaroo-point-8-river-terrace-kangaroo-point">Skye Residences</a> is the newest luxury apartment project by longtime Brisbane developer Pikos Group.

The three-building, Kangaroo Point development with just two apartments per floor has been a hit with local baby boomers since its launch a few months ago.

With everything going on at <a href="/new-apartments/skye-residences-kangaroo-point-8-river-terrace-kangaroo-point">Skye Residences</a>, including the recent construction kick off, Urban CEO Mike Bird caught up with Pikos Group's CEO Michelle Wooldridge to talk about the project in depth.

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Wooldridge, a former director at Lendlease and also currently the Queensland Division Council Vice President at the&nbsp;Property Council of Australia, says the <a href="/new-apartments/skye-residences-kangaroo-point-8-river-terrace-kangaroo-point">River Terrace site</a> speaks for itself.

"It's a beautifully designed, beautifully finished product with great amenity, but it's all about the location, it's all about the uninterrupted views, the connectivity to the city," Wooldridge says.

Read more:&nbsp;<a href="/news/qld/skye-residences-the-kangaroo-point-clifftop-location-offering-the-best-of-brisbane">Skye Residences: The Kangaroo Point clifftop location offering the best of Brisbane</a>

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<a href="/new-apartments/skye-residences-kangaroo-point-8-river-terrace-kangaroo-point">Skye Residences</a>, under construction by Tomkins Commercial, sits&nbsp;on a vast 2,300 sqm site above the Kangaroo Point cliffs. The <a href="/new-apartments/skye-residences-kangaroo-point-8-river-terrace-kangaroo-point">Conrad Gargett-designed buildings</a> will home 68 luxury apartments.&nbsp;

Residents will get exclusive access to the 1,000 sqm sky deck which will home an infinity pool and a rooftop leisure and restaurant precinct.&nbsp;

All apartments feature uninterrupted views of the Brisbane City skyline, South Bank, the Botanic Gardens and the Brisbane River.

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With everything going on at Skye Residences, including the recent construction kick off, Urban CEO Mike Bird caught up with Pikos Group's CEO Michelle Wooldridge to talk about the project in depth

Everything a buyer needs to know about Skye by Pikos in Kangaroo Point: Five minutes with Pikos CEO Michelle Wooldridge

DM Property recently introduced a rare new off the plan apartment development to the undersupplied Geelong apartment market.

They recently launched Motif, a Rothelowman-designed building on York Street, right near the hear of the action as well as the beach.

With everything going on at Motif, including their recent launch event,&nbsp;Urban.com.au CEO Mike Bird sat down with DM Property Director Brendan Mullan to discuss the project in more detail.

&lt;iframe width="560" height="315" src="https://www.youtube.com/embed/5CPMhzvF7ms?si=R8VGVo-USQe31ugG" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen&gt;&lt;/iframe&gt;

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Rediscovering Hidden Potential

Mullan recounts the unearthing of Motif's site—an erstwhile garage shed factory concealed for years. The story of an elderly owner, oblivious to the site's true worth, intertwines with the government's strategic push for Geelong's development. This historic context shapes Motif's emergence as a hidden gem. The interview unveils the intriguing backstory of Motif's genesis and its connection to Geelong's larger transformation.

Geelong's Multifaceted Appeal

Over the past seven to eight years, Geelong has undergone a notable transformation. Mullan highlights the city's appeal across education, hospitality, and employment sectors, attracting a diverse buyer demographic. Motif, strategically positioned to align with Geelong's growth, emerges as a testament to the city's increasing desirability. The interview sheds light on how Geelong's current landscape caters to a broad spectrum of residents, setting the stage for Motif's significance.

Crafting Excellence with a Proven Team

Motif boasts a stellar team featuring renowned architects Rothelowman and sales experts RPM, leveraging the success of their previous project, RAR Home. Mullan emphasises the significance of assembling a team with a proven track record in the area. This section explores how the collaboration of experts contributes to Motif's unique identity and market positioning.

Striking Affordability and Quality Balance

A distinguishing factor of Motif is its commitment to delivering quality at an affordable price point. Mullan draws parallels to Melbourne's property scene a decade ago, aspiring to recreate a similar experience without compromising on standards. The interview elucidates on how Motif manages to strike a delicate balance between affordability and maintaining a high-quality living experience.

Powering Ahead with Strong Partnerships

Motif's partnership with Icon Kajima, one of the world's largest property companies, emerges as a cornerstone of the project. Mullan underscores how this alliance instills confidence in buyers amid uncertainties in the builder market. This section explores the positive influence of the partnership with Icon Kajima on buyer perception and the overall credibility of the Motif project.

Grand Launch and Market Resonance

With the completion of the display space, Mullan reflects on the initial market response, citing strong inquiries and early purchases. The upcoming grand launch marks a significant milestone in Motif's journey. This part of the article delves into the public reception and early sales as a reflection of Motif's resonance with the Geelong community.

As Motif Geelong prepares for construction, Brendan Mullan's insights, as revealed in the interview, form a compelling narrative of Geelong's growth and the project's pivotal role in shaping its future. With a commitment to diversity, quality, and collaboration, Motif stands as a beacon heralding a new era in Geelong's urban landscape.

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With everything going on at Motif, including their recent launch event, Urban.com.au CEO Mike Bird sat down with DM Property Director Brendan Mullan to discuss the project in more detail

Everything a buyer needs to know about Motif Geelong apartments: Five minutes with DM Property's Brendan Mullan

DM Property Directors Brendan Mullan and&nbsp;David Dordevic have spent years developing in Geelong in the house and land space.

Then the opportunity arose for their newly minted <a href="/developers/dm-property">DM Property Group</a> to acquire a <a href="/new-apartments/motif-geelong-1-york-street-geelong-vic-3220">multi-residential apartment development site on York Street</a>, an opportunity they couldn't pass up.

Recently Apartments.com.au CEO Mike Bird went down to the display at 11 James Street to catch up with Brendan about the project, <a href="/new-apartments/motif-geelong-1-york-street-geelong-vic-3220">Motif</a>.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/5CPMhzvF7ms?si=GIbA-pOKOVD1nF08" title="YouTube video player" width="560"></iframe>

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A few days before the interview was filmed, <a href="/news/vic/motif-geelong-apartment-sales-rocket-on-launch">DM Property officially launched the project</a>, to much fanfare.

RPM Group Projects quickly found buyers for around 35 per cent of the 129 one and two-bedroom apartments across both launch weekends.

RPM Group Projects Director Nic Cuni says the sales is a testament to the collaborating between DM Property, JV parner Icon Kajima, as well as the&nbsp;exceptional architectural design by&nbsp;<a href="/architects/rothelowman" target="_blank">Rothelowman</a>.

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The low-rise, five-level building is ideally located a stone's throw from the evolving James St precinct on the the fringe of the city centre, and less than 100 metres to the beach.

Mullan says the evolution of Geelong and where the project sits in proximity to a lot of amenity is what drew them to York Street.

"It's a great site. We're near The Esplanade, we're near the hospitality precinct, Deakin University is down the road, and most importantly the Geelong Convention Centre is just coming up. That will start getting built in the next 12-18 months, and that will be neck and neck with the Melbourne Convention Centre," Mullan said.

Mullan says people are now wanting to stay in Geelong.&nbsp;

"We're finding people want to stay in Geelong CBD because of good education, a good food and beverage precinct now, employment down here is second to none. A lot of white collar and young professional buyers are geting into the market."

There's also been downsizers coming down into the two-bed apartments, Mullan says.

One-bedroom apartments start from $480,000, and two-bedroom units from $699,000. There are a select handful of three-bedroom apartments which start from $1,125,000.

[smartcode_project_cta:default project_id=136615]

DM Property Directors Brendan Mullan and David Dordevic have spent years developing in Geelong in the house and land space. Recently Mike Bird, Urban.com.au CEO, went down to the display at 11 James Street to catch up with Brendan about the Motif, Geelong.

Everything a buyer needs to know about Motif, Geelong apartment development: Five minutes with Brendan Mullan

Property advisory firm Charter Keck Cramer believes the price gap between house and units in Melbourne to narrow once again having blown out over COVID.

In&nbsp;their&nbsp;State of the Market Report H1 2023, Charter Keck Cramer said Melbourne is not experiencing normal housing market conditions.

"This means that there will continue to be extraordinary price and rent changes with more unique levels of risk and opportunity compared to historical patterns," CKC advised.

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They noted that pre-COVID, the long-term price gap between houses and units was 34 per cent, however the median house price in June 2023 was $919,000 for houses compared to $601,000 for units. That's a gap of 53 per cent, which CKC said was "extremely large."

They believe, given&nbsp;rate rises and diminished purchasing capacity for buyers, that additional buyer demand will be driven into the unit market which stands to support price growth and overall apartment price recalibration in new apartments in many locations in Melbourne.

They also expect rental price growth to be around for some time yet, which will attract investors.

"Given the current supply vs demand imbalance, it is reasonable to expect elevated rental growth in the rental market over the next three to four years," the report noted.

"Vacancy rates are anticipated to remain very low given the shortage of supply of dwellings which are struggling to be mobilised combined with the substantial increase in demand for dwellings. Renters are once again having to make lifestyle choices about the types of dwellings (houses, townhouse or apartments) they occupy. They are also starting to group up (to share the rent) which was a pre-pandemic trend which is anticipated to continue in the absence of the delivery of new rental stock."

Vacancy rates across all housing markets in Melbourne are less than three per cent.

Addressing the well documented supply vs demand imbalance, CKC's analysis showed only 4,400 apartments were launched to the market in FY23, which represented the lowest number of launches recorded over the past decade and -82 per cent below the peak levels in FY16. Constructed start on 4,600 apartments in FY23, which was also the lowest number of apartment commencements in the past decade.

<img alt="Melbourne BTS" data-entity-type="file" data-entity-uuid="1a64c7f3-662e-40e4-ab06-c0ffcd12b1aa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-11%20at%202.57.04%20pm.png?VersionId=cgmtdp_ruOFoyKBiKlPQg.Tmkz8GqYDJ" />

Completions in Melbourne Metro were also below trends for a second consecutive year.

"As the market continues to suffer from the lagged impact of COVID, less than 10,000 apartments have been delivered, a decline of -40 per cent compared to the pre-pandemic years."

There are just 10,000 apartments currently under construction and due for completion in FY24 to FY26.&nbsp;CKC believe&nbsp;Melbourne needs&nbsp;to build between 15,000 to 18,000 BTS and BTR apartments every year to accommodate the growing population. They also however believe the government is "substantially underestimating population growth."

"This misalignment between supply and demand is anticipated to remain an ongoing issue, and depending on the responses by Government, could potentially be exacerbated over the balance of the decade."

There's a further 9,200 apartments currently being marketed on top of the 10,000 under construction, but CKC suspect a significant proportion of these projects are likely to be delayed given elevated construction costs and a challenging pre-sale environment.

"We continue to expect Melbourne’s apartment market to remain severely under-supplied as high levels of net overseas migration (NOM) absorb new stock that is able to be mobilised."

<img alt="Melbourne" data-entity-type="file" data-entity-uuid="eb806638-7034-47ad-abaf-94233ce9382f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-11%20at%203.04.50%20pm.png?VersionId=uALCo1gcDLN4KOu07PfhNQE7SYTiqrQC" />

CKC believe there are opportunities for developers&nbsp;those developers that are able to proceed with construction at present.

"It is very clear that the buyer and renter markets are seeking new stock but also certainty with respect to both costs and timing. These developers will be delivering completed stock into a market with a shortage of new BTS and BTR apartment supply over the next 2 years and will have the opportunity to be rewarded when providing desirable stock."

CKC are looking ahead to what is anticipated to be some major planning system announcements this month through the State Government’s Housing Statement.

"In summary, it is very reasonable for industry to expect that over the next two years, weekly rents will continue to increase at above average levels of growth and prices of new BTS apartments will recalibrate upwards across most markets. Once the market finds a new equilibrium we anticipate that both rent and price changes will revert to longer-term trends."

In their State of the Market Report H1 2023, Charter Keck Cramer said Melbourne is not experiencing normal housing market conditions

Joel Robinson

"New Melbourne apartments will recalibrate upwards across most markets": Charter Keck Cramer State of the Market Report

Property advisory firm Charter Keck Cramer believe the Sydney off the plan apartment market is in the process of recalibrating and “jumping” ahead by a full cycle.

Suggesting there's been challenges in Sydney's apartment market over the last 12 to 18 months given the RBA's tightening cycle, Charter Keck Cramer noted in&nbsp;their&nbsp;State of the Market Report H1 2023 that although headwinds remain, there are now green shoots beginning to emerge.

"We anticipate the BTS apartment market will gradually improve over the balance of 2023 and into 2024," the report read.

"Whilst there have been challenges in various apartment sub-markets and locations throughout Sydney, boutique prestige projects continue to perform strongly. This is highlighted by strong takeup of new release projects and continued excellent demand (and prices) for development sites in premium locations."

They said once there is greater market certainty that we're nearing the top&nbsp;of the rate tightening cycle, which may have already occurred, overall market sentiment is expected to start improving.

"When interest rates enter a tightening phase (which could be as early as 2024), improved sentiment and ongoing supply issues are anticipated to combine and manifest in an extremely elastic response across the market. This is assuming that economic conditions do not notably deteriorate nor is there a significant increase in unemployment.

"The BTS and BTR apartment markets stand to be the primary beneficiaries of the next cycle given substantial affordability issues in Sydney as well as the structural changes in living preferences of which our readers are now well aware."

The supply v demand imbalance is even more pronounced than it was earlier this year, CKC suggested.

They believe&nbsp;Sydney needs to build between 22,000 to 25,000 build to sell and build to rent apartments every year to accommodate the growing population. 
<img alt="BTS Sydney" data-entity-type="file" data-entity-uuid="938fd5d9-42c8-4679-9473-93ace31bad47" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-11%20at%2011.22.16%20am.png?VersionId=fGZHRPTxM7eWMBFcz7kZDfA6KThMUa59" />

"Sydney has averaged about 18,500 apartment completions per year over the past decade. During FY2024 – FY2026, apartment completions are forecast to measure around 12,000 per annum."

Apartment completions in Sydney Metro fell to 7,700 during FY2023, the second consecutive year of decade low delivery. The 7,700 was just 50 per cent lower than typical annual completions.

CKC noted that a&nbsp;greater number of apartments will be delivered in the next two years, with 21,500 currently under construction and a further 7,800 marketed for FY2025 completion, as the market tries to ‘catch up’ from the COVID-affected years.

"We continue to expect Sydney’s apartment market to remain undersupplied, despite the projected increase in construction volumes as high levels of net overseas migration (NOM) absorb new stock. Furthermore, a significant proportion of projects currently marketed for FY2025 completion are likely to be delayed given elevated construction costs and a challenging pre-sale environment."

CKC also believe current projects by the Government "substantially underestimate population growth."

"This misalignment between supply and demand is anticipated to remain an ongoing issue, and depending on the responses by Government, could potentially be exacerbated over the balance of the decade."

The lack of supply is likely to place upward pressure on pricing.

<img alt="Sydney BTS" data-entity-type="file" data-entity-uuid="a946e25a-ea21-4809-ae34-8357592f6a53" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-09-11%20at%2011.35.06%20am.png?VersionId=sSQYXYMbq2PXqUU46jGszbuFkhikosRg" />

"From a market perspective, lack of new supply over the last three to four years should result in greater demand for apartment stock, being the most affordable dwelling typology. This will likely place upward pressure on pricing, particularly when market sentiment improves and interest rates start to cycle downwards."

There's already been&nbsp;median apartment price growth in some markets due in part to the Reserve Bank of Australia holding cash rates firm and exorbitant growth in rental pricing.

"This has seen an increase in buyer activity as more purchasers return to the market. For developers to ensure the best opportunity to increase pricing, new projects will need to feature highly marketable characteristics in order to generate strong demand.

"There has been growing interest from purchasers to acquire product within well thought out master planned projects, offering excellent social amenity and practical design options. This is particularly in light of more residents employing a hybrid working model. Such projects in centralised locations offering superior lifestyle factors (close proximity to public transport, retail, schools, employment hubs) have seen a notable increase in project appeal."

"We anticipate the BTS apartment market will gradually improve over the balance of 2023 and into 2024," the report noted

Sydney apartment market "jumping a full cycle": Charter Keck Cramer State of the Market Report

The current rental market crisis is already pushing enquiry numbers through the roof from both first home buyers and investors who are seeking to either get out of the rental market, or take advantage of it.

The latest statistics from property data analytics firm CoreLogic show just how strong the rental market is, particularly in Melbourne.

Their Quarterly Rental Review Q2 2023 found Melbourne is now no longer the most affordable capital city to rent a house, following 3.5 per cent quarterly growth in the rental market.

Dwelling rents in Melbourne (both houses and units), rose 3.9 per cent in the quarter, significantly outpacing growth in Perth (3.4 per cent) and Sydney (3.2 per cent).

The rise is putting pressure on renters who are now starting to look at entry-level apartments, particularly in Melbourne's inner-ring, rather than be beholden to the rent rises, while the growth has investors looking at securing stronger rental yields than they've likely ever seen before.

Where gross rental yields have started to fall across Sydney, Brisbane, Adelaide, Hobart and Canberra, they rose in Melbourne, Perth and Darwin. Another case for investors is the critically low vacancy rate, 0.8 per cent, one of the lowest capital city vacancy rates across the country.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="3682f33e-8a57-4dc6-b979-ebca21924406" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-06%20at%209.26.50%20am.png?VersionId=WarMQHyNJCfIVu64kZT2ZVuXO1zoxJoe" />

Specifically looking at units, which incorporates both apartments and townhouses, Melbourne rents are up 4.5 per cent on the quarter to June, the second highest quarterly gain behind Perth.

Melbourne's median rent for units is now $532, and houses $567.

Sydney, Melbourne and Perth have also seen total rental supply between -30 per cent and -50 per cent below the previous five-year average for this time of year.

<img alt="CoreLogic" data-entity-type="file" data-entity-uuid="30201ca8-2eec-49c6-af1f-c9c6d798c7d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-07-06%20at%209.24.32%20am.png?VersionId=xtnDqQMblFefjrXCtvhaAKH2qTfdEfpq" />

Rental listings remain well below the previous five-year average, with a national shortfall of around -32.4 per cent, or 47,500 rental listings recorded over the four weeks to June 3rd.

"Strong demand from overseas migrants, particularly international students, continues to support stronger growth in the medium to high-density sector, with national unit rents increasing by 3.6 per cent in the June quarter compared to a two per cent increase in house rents," CoreLogic&nbsp;Economist and report author Kaytlin Ezzy noted.

The report found Brighton was the most expensive suburb in Melbourne to rent a house. The median rent in the Bayside hotspot is $1,343 a week, and the median house value $3,536,000.&nbsp;

The majority of Melbourne's most expensive suburbs to rent a house are in the inner ring. Black Rock, Middle Park, Malvern and Canterbury made up the top five. The top 24 suburbs have median house rents at over $1,000 a week.

The latest statistics from property data analytics firm CoreLogic show just how strong the rental market is, particularly in Melbourne.

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