<p>Apartment developers in the Gold Coast are finding new, creative ways to differentiate themselves from competing projects, as new supply starts to flow through up and down the Coast.</p>

<p>Developer Big Projects brought in the renowned Sydney-based design studio YSG to craft the interiors for The Frederick, Big Projects' new Mermaid Beach project and YSG's first move into the multi-residential development space.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5346]</p>

<p>It was a strategic move for Big Projects to bring in a Sydney eye to the development.</p>

<p>“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.</p>

<p>“We wanted YSG Studio to capture the essence of Nobby’s, to design a building that embraces life, light and connection, while creating a genuine sense of place.”</p>

<p>There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5347]</p>

<p>Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."</p>

<p>“Nobby’s has such an iconic energy, it’s one of those rare pockets of the Gold Coast where the community, the beach, and the streets all feel connected,” Ghoniem says.</p>

<p>"Responding to the neighbouring coastline, soothing curves add a relaxing regional overlay, while unique detailing really sets it apart. It’s a place that feels lived in from the moment you step inside.”</p>

<p data-end="236" data-start="64">A standout feature of The Frederick is its rooftop terrace, an uncommon inclusion for a boutique, low-rise building, where amenity is typically concentrated at ground level.</p>

<p>[smartcode_project:default project_id=110588 project_image_fid=5360]</p>

<p data-end="523" data-start="308">Positioned to capture panoramic views from the hinterland to the ocean, the rooftop has been designed as a series of intimate zones. It includes a pool, sauna, sun decks, workspaces and dedicated entertaining areas.</p>

<p data-end="670" data-start="525">“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.</p>

<p data-end="760" data-start="672">Architecture for the project was led by Plus Architecture, with landscape design by LDG.</p>

<p data-end="951" data-start="762">SRQ Projects Director Nick Clydsdale, who is handling sales at The Frederick, says the majority of enquiry is coming from South East QLD and Victorian buyers who have been actively searching between Broadbeach and Mermaid Beach for some time.</p>

<p data-end="951" data-start="762">"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.</p>

<p data-end="951" data-start="762">Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.</p>

<p>[smartcode_project_cta:default project_id=110588]</p>


Joel Robinson

Big Projects taps Sydney’s YSG for first multi-residential project at The Frederick Mermaid Beach

<p>Melbourne-based property developer ALTA Property has this week achieved planning approval for the adaptive re-use of a former commercial tower into a $200 million, 169-apartment project at 10 Queens Road, one of the last developable sites along the Albert Park Lake-fronting boulevard.&nbsp;</p>

<p>Set within one of Melbourne’s most sought-after precincts and designed by <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser and Partners</a>, the illustrious building will offer unparalleled views across Albert Park Lake, Port Phillip Bay and Melbourne CBD.&nbsp;</p>

<p>The mix of 1, 2 and 3-bedroom residences will be complemented by a ground-floor amenity featuring private dining, a lounge bar, gym and wellness spaces, co-working, outdoor communal gardens, and retail.&nbsp;</p>

<p>The 17-storey building is a masterclass in adaptive re-use, with the existing commercial building’s façade, shell and internal structure to be retained, before high-end residences are built from the ground up in a newly built Albert Park facing addition to the building.&nbsp;</p>

<p>Sitting atop the building will be two 320+sqm penthouses with private rooftop terraces, which are expected to be priced between $9 - $11 million.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="aa11211b-5581-43f9-940c-fc84d30a0e61" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/C_04.png?VersionId=Yhf5p_1EgGDu_zOIMFgvA8Ug8j3sTFQs" /></p>

<p>Architecturally, the building will feature a curved, geometric façade that celebrates and elevates the existing structure, with warm, muted tones which were selected to extend the materiality of the existing building rather than contrast it.&nbsp;</p>

<p>Interiors will bring together three metre high ceilings with waffle concrete in some spaces, natural timber, granite and Australian materials, culminating in crafted, generous and considered spaces that are defined by authenticity.&nbsp;</p>

<p>The adaptive re-use means that the Queens Road project will be a sustainability led, high-quality finished product, with a 62% saving in carbon emissions by re-using the existing structure rather than knocking it down and rebuilding.&nbsp;</p>

<p>ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;</p>

<p>Melbourne’s property market growth is currently led by apartments. According to RPM VIC Apartments &amp; Townhomes Market Report (April 2026), units are outpacing houses, especially in the middle ring suburbs where median prices hit $757,500 – a four-year high that represents 2.9 percent growth quarter-on-quarter.&nbsp;</p>

<p><img alt="ALTA Property achieves permit approval for $200 million Queens Road tower" data-entity-type="file" data-entity-uuid="647e13d7-b4bc-433a-9bc9-fe3c3dd4f2ec" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/V_06.png?VersionId=ou4NUCWUgA3NAy.6CQJlEdKX50j3dOk6" /></p>

<p>For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;</p>

<p>“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.</p>

<p>"With a considered project team and a premier site along one of the city’s most sought-after boulevards, we look forward to contributing to the fabric of this established address.</p>

<p>“Other Australian markets are getting a lot of attention, but I believe the depth of value in Melbourne is being overlooked. The fundamentals are strong, population growth is steady and, based on our preliminary conversations with a leading builder, construction costs are beginning to normalise, creating further opportunity."</p>

<p>Givoni says the project is a&nbsp;highly considered example of adaptive re-use, delivering quality, high-end residences, premium hotel-inspired amenities and an architecturally striking façade, all achieved without the need to remove the existing structure.</p>

<p>"We are really looking forward to the market’s response,” he said.&nbsp;</p>


ALTA Property to deliver $200 million Queens Road apartment tower

<p>Construction is set to begin at <a href="https://www.apartments.com.au/new-townhouses/orchard-mews-glen-iris-18-scott-grove-glen-iris-vic-3146">Orchard Mews</a> in Glen Iris, with&nbsp;PC Whitehall &amp; Sons&nbsp;now appointed as the townhome development moves into its next phase.</p>

<p>The development by&nbsp;<a href="https://www.apartments.com.au/developers/montcoeur">MontCoeur</a>,&nbsp;located at 18 Scott Grove, is now around 30 per cent sold, with completion targeted for late-2027.</p>

<p>Orchard Mews comprises a curated collection of three- and four-bedroom customisable townhomes, positioned within one of <a href="https://www.apartments.com.au/developments/glen-iris-vic-3146">Glen Iris</a>’ more tightly held residential streets. The low-density project has been designed by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo</a>, bringing together a team known for high-end residential projects across Melbourne.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366285]</p>

<p>The development is defined by its focus on flexible living and long-term usability. Each residence includes multiple living zones and a customisable multipurpose room, allowing buyers to tailor spaces to suit changing needs, whether as a home office, additional bedroom, wellness area or entertainment space.</p>

<p>Architecturally, the townhomes emphasise natural light and spatial volume, with dual-aspect layouts and double-height living areas incorporated into the design. Interiors feature natural stone benchtops, premium appliances, and a neutral material palette intended to support everyday functionality rather than statement-driven finishes.</p>

<p>All residences are all-electric and include private lifts and secure double garages, reflecting a broader shift toward sustainability and future-focused housing in Melbourne’s established suburbs.</p>

<p>[smartcode_project:default project_id=150128 project_image_fid=366277]</p>

<p>Outdoor connections are also central to the offering, with a mix of private courtyards and terraces extending internal living spaces and integrating with the landscaped surrounds.</p>

<p>The Scott Grove address places Orchard Mews within close proximity to some of Melbourne’s key lifestyle and education amenities, including Scotch College, Sacré Cœur, Cabrini Hospital and the retail hub of Chadstone. Public transport access is also nearby, with trams and Gardiner Station providing connectivity to the CBD and surrounding suburbs.</p>

<p>[smartcode_project_cta:default project_id=150128]</p>


Construction to commence at luxury Glen Iris townhome project, Orchard Mews

<p data-end="150" data-start="66">A rare new apartment development has been proposed on the fringe of St Ives Village.</p>

<p data-end="370" data-start="152">Developer Newquest Property has lodged plans for a low-rise apartment project designed by well-regarded architecture firm Warren &amp; Mahoney, which is best known for its work in the multi-residential sector in Melbourne.</p>

<p data-end="370" data-start="152">The building, proposed for a 1,916 sqm site on <a href="https://www.apartments.com.au/new-apartments/st-ives-residences-3-5-memorial-avenue-nsw-2075">Memorial Avenue</a> opposite St Ives Village Green, has been designed to blend into the surrounding natural environment.</p>

<p data-end="370" data-start="152"><img alt="St Ives" data-entity-type="file" data-entity-uuid="5c1c7437-2fba-4345-a6d7-05321714ad3e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.28.46%E2%80%AFPM.png?VersionId=KrYyMaJvNqR7vbx0xbB3Ef8sJ6FuHpmn" /></p>

<p data-end="745" data-start="537">“Drawing inspiration from the pale trunks and flowering canopies of the scribbly gums and blue gums prevalent in the area, a considered material palette was developed,” the architectural design report states.</p>

<p data-end="912" data-start="747">“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”</p>

<p data-end="1185" data-start="914">Of the 33 apartments proposed, 21 will be three-bedroom residences. The remaining mix includes nine two-bedroom apartments, one one-bedroom apartment and two four-bedroom residences. The development will be supported by 62 car parking spaces and 33 secure bicycle spaces.</p>

<p data-end="1270" data-start="1187">The proposal would replace two single-storey brick buildings currently on the site.</p>

<p data-end="1270" data-start="1187"><img alt="St Ives" data-entity-type="file" data-entity-uuid="21422eaf-09a9-4439-9278-b9bd9daf22a1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-04%20at%201.38.10%E2%80%AFPM.png?VersionId=v.fXSgcUcEscvOZzqcjG5nk3gVqk_Amt" /></p>

<p data-end="1467" data-start="1272">St Ives remains a relatively untapped market for new apartment development. North Shore developer WINIM has a number of projects in the area, while INCA is nearing completion of Ellis Residences.</p>

<p data-end="1635" data-start="1469">More recently, Traders In Purple has lodged plans for one of the denser projects proposed in the suburb, a 75-apartment development on a 5,900 sqm site on Cowan Road.</p>

<p data-end="1635" data-start="1469">NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: NewQuest Property proposes new St Ives apartment development

<p><a href="https://www.apartments.com.au/developers/centa-property-group">Centa Property Group</a> has achieved two major milestones at its <a href="https://www.apartments.com.au/new-apartments/bilinga-house-107-golden-four-drive-bilinga-qld-4225">Bilinga House</a> apartment development in the sought-after southern Gold Coast.</p>

<p>They've almost sold 50 per cent of the Golden Four Drive building, while at the same time announcing the commencement of construction through reputable builder Greyburn Construction.</p>

<p>The boutique 10-storey building, with 47 two- and three-bedroom apartments, now has a mid-to-late 2028 completion date.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5333]</p>

<p>The <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed project is positioned just 200 metres from Bilinga Beach and brings a relatively rare apartment offering to a market that has seen limited new supply in recent years.</p>

<p>Residences have been designed to maximise natural light and ventilation, with open-plan interiors, generous glazing, and material palettes that reflect the surrounding coastal landscape.</p>

<p>Interiors incorporate engineered timber flooring, stone benchtops, and custom joinery, with layouts designed to adapt to both permanent living and lock-and-leave use.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Rothelowman Senior Project Leader Matthew Tencate said the design approach centres on liveability and community.</p>

<p>“Providing curated on-site amenities and communal spaces for residents that facilitate a sense of community, liveability, and wellness,” Tencate said.</p>

<p>Residents will have access to a suite of private amenities including a pool, gym, sauna, and communal alfresco areas, alongside practical features such as surfboard storage and bicycle facilities.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5336]</p>

<p>Centa Property Group Director Jason Yuen said the project has been designed to appeal to a range of buyers seeking flexibility in how they use their property.</p>

<p>“Bilinga House is designed for those who want the best of both worlds – a modern beachside escape with the flexibility to generate income when you're not there,” Yuen said.</p>

<p>[smartcode_project:default project_id=150037 project_image_fid=5338]</p>

<p>Bilinga remains one of the quieter pockets of the Gold Coast, sitting between the more established hubs of Coolangatta and Palm Beach. Its appeal has strengthened in recent years, supported by proximity to the Gold Coast Airport and the Oceanway coastal path.</p>

<p>[smartcode_project_cta:default project_id=150037]</p>


Bilinga House apartments snapped up as Greyburn commences construction

<p>Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.</p>

<p>They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;</p>

<p>Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.</p>

<p>They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.</p>

<p>Even in the low seasons of May and June, occupancy levels reach around 40 per cent.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" /></p>

<p>Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor</p>

<p>Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.</p>

<p><img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" /></p>

<p>Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><span><img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" /></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><span><span><span><span><span><span>​</span></span></span></span></span></span></p>

<p>The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;</p>

<p>Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.</p>

<p>With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;</p>

<p>Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.</p>


Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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<p><span style="line-height: 1.3em;">The number of auctions due to be held across the capital city markets this week will remain relatively steady, with CoreLogic currently tracking 1,758 auctions, down from 1,876 last week. </span></p>
<p><span style="line-height: 1.3em;">In Australia’s largest auction market of Melbourne, 778 auctions are scheduled this week, following a higher 871 last week, while in the second largest auction market of Sydney, the number of auctions being held this week (669) is higher relative to last week (647).</span></p>
<p>Last year, 2,599 auctions were held over the comparable week, which is substantially higher than the activity CoreLogic is tracking this week. This is reflective of what has been seen across the auction market so far this year.  Over the 2016 calendar year to date, 29,426 capital city auctions have been held, compared to 32,616 over the same period last year.</p>
<p><span style="text-decoration: underline;"><strong>Capital City Auctions this week:</strong></span></p>
<ul>
<li><strong>Sydney: 669</strong></li>
<li><strong>Melbourne: 778</strong></li>
<li><strong>Brisbane: 117</strong></li>
<li><strong>Adelaide: 84</strong></li>
<li><strong>Perth: 37</strong></li>
<li><strong>Canberra: 65</strong></li>
</ul>
<p>This week, Mosman in Sydney is the busiest individual suburb for auctions, with CoreLogic tracking 16 auctions so far this week. Following Mosman are three Melbourne suburbs, Glen Waverley and Richmond, with 13 auctions scheduled and Thomastown with 12 auctions.</p>
<p><span style="text-decoration: underline;"><strong>Summary of last week’s results:</strong></span></p>
<p><a href="/images/2016/05/20/20160519-capital-city-table.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/20/20160519-capital-city-table.png" alt=""></p>
<p>Final results show that clearance rates strengthened last week, up from 67.7 per cent the previous week to 69.5 per cent, bringing the combined capital city clearance rate back in line with results seen towards the end of last month. The latest result marks the seventh consecutive week where the capital city clearance rate was under the 70 per cent mark, however this isn’t the case for Melbourne (71.3 per cent) and Sydney (76.2 per cent), where clearance rates were above 70 per cent for the sixth week in a row for Melbourne and the fourth week in a row for Sydney.</p>
<p><a href="/images/2016/05/20/20160519-capital-city.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/20/20160519-capital-city.png" alt=""></p>
<p>Last week, in each of the smaller capital city markets, clearance rates were up on a week-on-week basis.</p>
<p>Looking at some of the key regional auction markets, clearance rates were strongest in Wollongong (73.9 per cent) and Geelong (80.8 per cent) last week, however the number of auctions held in both regions was lower than over the previous week. In the two Queensland lifestyle markets of the Gold Coast and Sunshine Coast, less than half of all reported auctions cleared last week.</p>
<p><a href="/images/2016/05/20/20160519-sub-regions.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/20/20160519-sub-regions.png" alt=""></p>
<p> </p>
<div class="sharedaddy sd-sharing-enabled"> </div>
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smiller-vwPjRHTkST

Weekend auction numbers steady: CoreLogic RP Data's Shana Miller

<html><body>
<div>The government's State of Australian Cities report for 2015 revealed some interesting demographic and social trends.</div>
<div> </div>
<div>The report found that population growth in recent years is becoming increasingly capital city focussed over time, and this is projected to become even more so the case over the next five decades.</div>
<p><a href="/images/2016/05/23/A1.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/05/23/A1.jpg" alt=""></div>
<p> </p>
<div>In fact, just the four most populous capital cities plus Gold Coast, Sunshine Coast and a handful of other conurbations have accounted for the overwhelming bulk of population growth. </div>
<div> </div>
<div class="separator"><a href="/images/2016/05/23/A2.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/05/23/A2.jpg" alt=""></div>
<div class="separator"> </div>
<div>The other cities and "peri-urban locations" which experienced some population growth were as follows:</div>
<div> </div>
<div class="separator"><a href="/images/2016/05/23/A3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/05/23/A3.jpg" alt=""></div>
<p> </p>
<div>Projecting trends forward, the government expects the capital city share of population growth to continue increasing relentlessly for the next half century, from about two thirds to more than 80 per cent by 2061:</div>
<div> </div>
<div><em>"The majority of Australia's future population growth is expected to occur in and around its capital cities...Australia's population living in capital cities will more than double by 2061".</em></div>
<p><a href="/images/2016/05/23/A4.jpg" target="_blank">Click to enlarge</a> </p>
<p><img src="/images/2016/05/23/A4.jpg" alt=""></p>
<div>The projections show population growth expanding rapidly so that by 2061 several capital cities will have become very large indeed, including Sydney (8.5 million), Melbourne (8.6 million), Brisbane (5.8 million), and Perth (5.5 million).  </div>
<div> </div>
<div>By contrast the respective populations of the smaller cities aren't expected to change all that much in absolute terms. </div>
<p><a href="/images/2016/05/23/A5.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/05/23/A5.jpg" alt=""></div>
<p><br><strong><span style="text-decoration: underline;">House price trends</span></strong></p>
<div>The State of Australian Cities report notes that for regional cities "overall house prices have not recovered strongly since the financial crisis".</div>
<div> </div>
<div>This mirrors quite closely what we have seen in Britain, with house prices rising strongly almost everywhere due to a debt binge broadly from around 2000 to 2008, in Australia's case spurred on by a once-in-a-century mining boom. </div>
<div> </div>
<div>But in most regional markets a long period of stagnation has followed since. </div>
<div> </div>
<div>You don't really need data series to demonstrate this point - just read the personal experiences of property investors on chat forums and their collective frustration is more than evident. </div>
<p><a href="/images/2016/05/23/a6.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/05/23/a6.jpg" alt=""></div>
<p> </p>
<div>It's been fairly well documented that house price growth has been strong in the largest capital cities, but house price growth has been far from uniform even within the larger capitals. </div>
<div> </div>
<div>Research conducted on behalf of the Valuer General concluded that price growth continues to be considerably stronger in the suburbs located close to the Central Business District. </div>
<div> </div>
<div><a href="/images/2016/05/23/a7.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/05/23/a7.jpg" alt=""></div>
<p><span>Indeed, research papers by the </span>Reserve Bank of Australia<span> (RBA), </span>AHURI<span> and others have all arrived at the same conclusion.</span> </p>
<div>Concludes the government report:</div>
<div> </div>
<div><em>"Inner urban regions and municipalities such as the Boorondara, inner, northern and eastern statistical districts and the inner Melbourne districts are pulling away from price growth rates of the middle and outer ring regions. </em></div>
<div><em> </em></div>
<div><em>The differences mean residents of outer urban regions are likely to be increasingly constrained in their ability to move to inner regions."</em></div>
<p><a href="/images/2016/05/23/A8.jpg" target="_blank"> Click to enlarge</a></p>
<div class="separator"><img src="/images/2016/05/23/A8.jpg" alt=""></div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Non-capital house prices have not recovered strongly since the financial crisis: Pete Wargent 

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<p>This week 2,419 auctions were held across the combined capital cities, representing a substantial 26 percent rise in auction activity compared to the previous week when 1,920 capital city auctions were held.</p>
<p>This was the fourth highest number of weekly auctions held over the year to date. </p>
<p>The rise in activity was coupled with a slight fall in preliminary combined capitals clearance rate, from 68.9 percent last week, to 68.0 percent this week. Much of the strength in the combined capitals clearance rate can be attributed to the two largest auction markets (Melbourne and Sydney), where clearance rates remained the strongest nationally.</p>
<p>One year ago, however, both Sydney and Melbourne recorded a clearance rate in excess of 80 percent, and the combined capital city clearance rate was 78.5 percent across 2,792 auctions.</p>
<p><a href="/images/2016/05/30/20160530-Capital-city.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/30/20160530-Capital-city.png" alt=""></p>
<p><strong>Melbourne</strong> was by far the busiest capital city auction market this week, with 1,157 auctions held, up from 843 last week and lower than one year ago (1,248). Preliminary results for the city show 70.8 per cent of auctions sold this week, compared to 70.0 per cent last week and 80.2 per cent one year ago. Across each individual sub-region of the city, performance was somewhat varied with clearance rates ranging from as high as 78.3 per cent in the Outer East across 77 auctions and as low as 65.1 per cent in the South East across 121 auctions.</p>
<p><a href="/images/2016/05/30/20160530-Melbourne.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/30/20160530-Melbourne.png" alt=""></p>
<p>Across <strong>Sydney</strong>, a 75.0 percent clearance rate was recorded this week, based on preliminary results. There were 773 auctions held across the city, with 615 results reported so far. In comparison, last week’s clearance rate was 73.2 per cent, lower than this week, while one year ago, 85 percent of the 1,149 auctions held across the Harbour city were successful over the week. While Sydney’s clearance rate isn’t tracking at the same strong levels seen last year, the city has maintained a relatively strong clearance rate since mid-February this year.</p>
<p>This week, in fact, there were two sub regions that recorded a clearance rate above 80 per cent; Eastern Suburbs at 91.9 percent across 116 auctions and North Sydney and Hornsby at 83.3 percent across 114 auctions.</p>
<p><a href="/images/2016/05/30/20160530-Sydney.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/30/20160530-Sydney.png" alt=""></p>
<p><strong>Brisbane</strong> had 190 auctions this week, up from 131 last week, but lower than the 213 one year ago. Preliminary results show a clearance rate of 40.2 percent across the city, compared to 50.9 percent last week and 48.0 percent at the same time last year. Across the <strong>Gold</strong> <strong>Coast</strong> 82 auctions were held this week, with 41 results reported so far. The preliminary clearance rate for the region was 41.5 percent.</p>
<p><a href="/images/2016/05/30/20160530-Brisbane.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/30/20160530-Brisbane.png" alt=""></p>
<p>The preliminary clearance rate for <strong>Adelaide</strong> was 52.6 percent this week with 122 auctions held, down from 68.8 percent last week across 92 auctions. At the same time last year, there was less auction activity (92) and a higher success rate (67.4 percent).</p>
<p><a href="/images/2016/05/30/20160530-Adelaide.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/30/20160530-Adelaide.png" alt=""></p>
<p>A total of 20 <strong>Perth</strong> auction results have been reported so far this week, with 10 sold. The preliminary clearance rate of 50.0 percent shows a week-on-week rise, compared to 42.9 percent last week across 35 results. Over the same week last year, just 21 Perth auctions were held and of the 17 reported results, 41.2 percent cleared.</p>
<p>There were 107 <strong>Canberra</strong> auctions this week, the busiest week since the week ending 20 March this year when 119 auctions were held. This week represents the third week this year where over 100 auctions have been held in Canberra. Preliminary results show 64.4 percent of Canberra auctions were successful, down from 67.2 percent last week and 68.3 percent one year ago.</p>
<p>So far this week, 6 <strong>Tasmanian</strong> auctions have been reported with a total of 4 sales </p>
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Number of auctions surges to the fourth highest week this year: CoreLogic RP Data's Shana Miller

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<p>This week I listened in to a coaching call. It was a prominent company who have been selling their coaching/mentoring program for a while and I was curious to see what they offered.</p>
<p>It took me back to when I started my investment journey 15 years ago. I knew very little about property investing and all the different strategies you can use to grow your wealth.</p>
<p>With the help of hindsight, I reflected on just how I got going on my journey. I reduced it down to three important pieces:</p>
<p><strong>1. </strong><strong>Become educated, don’t overdo it and understand risk</strong></p>
<p>After completing my intensive one-year training, I found there was always another course on offer. But I was chomping at the bit to put the things I’d already learnt to use.</p>
<p>I started to invest using one strategy well before my course was finished and ended up repeating it five times before moving onto another strategy. I found each time I completed a property transaction, I learnt more and as this experience built so did the quality of my deals. I found that taking action as quickly as I could, got me into the market faster and I could still study as I went.</p>
<p>But I also saw the opposite happen to others who did my course.  I watched as lots of people got sucked into a ‘vortex’ of needing more and more information before doing anything.</p>
<p>I thought that perhaps these people were worried about risk. Then I worked out, it was actually more of a personality thing. When I searched the thesaurus for the work “risk” this is what came up:</p>
<p>-        Danger</p>
<p>-        Possibility</p>
<p>-        Endanger</p>
<p>-        Chance</p>
<p>What jumps out at you when you read that list? </p>
<p>The words I see are “possibility” and “chance”.</p>
<p>Property development has a ‘reputation’ for being risky.  Before I started learning about it I also thought it was risky. Why? Because someone had told me that. As I didn’t really know much about it, I held onto this belief.</p>
<p>When I leant more, I changed my belief from seeing development as risky to seeing it as exciting.</p>
<p>If you focus on the risks, you can’t see the opportunity. So I focus on the opportunity.</p>
<p>Over the years, we’ve found a way to derisk the property developments we project manage.</p>
<p><strong>2.  </strong><strong>Take massive levels of action</strong></p>
<p>Get ready to work. Action speaks louder than words they say. Action is where you are going to really learn. I think some people underestimate just how much action you need to take to move forward.</p>
<p>Action can start with research then move to analysis then through to inspecting properties and making offers and then to negotiating the purchase and can keep moving into adding value to a property. Whatever your situation, there is always an area you can take action in. If you can’t get a loan, find a finance partner. If you don’t have a deposit, find an equity partner, if you don’t have time or experience, find a project manager.</p>
<p>Do anything but make excuses. There will always be a reason not to take action if you let there be one. This is a classic excuse; “It’s not the right time, the market isn’t good”, believe me, there is always opportunity in the market - you just need to tailor your action to the market.</p>
<p><strong>3.  </strong><strong>Refine your process</strong></p>
<p>Practise makes perfect!  Every property development we manage is a little different but our system is almost always the same. With over 100 developments behind us, we’ve refined our process to ensure we get the best from a development project for our clients.</p>
<p>Like when I started out, I repeated my first investment strategy (which wasn’t developing) 5 times before I moved on to another one. The reason I moved on was market conditions changed and so I found a better strategy that would work in all conditions. Property developing or adding value allows us to create equity through the development process. By doing this, we are building in a ‘buffer’ of protection.</p>
<p>Property developing is a very detailed process, there are many steps involved. Each step can be refined and so there’s always opportunity to fast track or fine tune a step which will in turn, impact on the entire process.</p>
<p>So there you have my top 3 tips to getting started on your property development journey. Don’t hesitate, get educated, take massive action, repeat and refine your process. Oh and there is one more…have fun!</p>
<p><em><em>Jo Chivers is chief executive officer of property development project managers <a href="https://www.propertybloom.com.au/about" target="_blank">Property Bloom</a><a href="https://www.propertybloom.com.au/">.</a></em></em></p>
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Three tips to get you started on your property development: Jo Chivers

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<p>Of all the real estate issues regularly mangled by media, probably the most misreported is the one about first-home buyers and affordability.</p>
<p>Reliable information showing good affordability levels (outside of Sydney) are generally ignored in favour of the much-loved “The Great Australian Dream is Dead” storyline.</p>
<p>The numbers of first-home buyers are constantly misreported, despite the ABS warnings about the unreliability of the data and the reasons why FHBs are under-counted. </p>
<p>More credible information, such as the quarterly surveys by NAB which show strong activity from first-time buyers, are shrugged off because it doesn’t fit the prevailing theme of an affordability crisis.</p>
<p>The growing tendency of first-timers to buy an investment property rather than a home is overlooked as a key factor, because it doesn’t suit that pre-determined headline.</p>
<p>And the whole issue of young adults delaying commitment is ignored as well.</p>
<p>It’s pretty well established that young Australians are making different choices to those of their parents. Their preferences can generally be summarised as a deferral of commitment. Getting married, settling down, having kids and establishing a nest – all that can wait. Priorities these days include lifestyle, career and travel.</p>
<p>There’s lots of research showing this as a major demographic – the young adults who have put off family creation and home ownership until they’ve dealt with the travel bug and indulged other lifestyle priorities.</p>
<p>The latest research on this comes from Westpac, which found that 18 to 35-year-olds — known as Millennials — spent $11.3 billion travelling overseas last year — more than any other age group.</p>
<p>Generation X-ers — aged from 36 to 55 — were the most frugal spending $6.8 billion, followed by Baby Boomers who splashed out $9.8 billion.</p>
<p>Westpac’s Head of Young and Millennial Markets, Ashley Gray, says the decision to prioritise travel over home-buying doesn’t make the age group financially irresponsible.</p>
<p>“They’re very aware of their finances and are prepared to make sacrifices to pursue their passion,” says Gray. “We found that 70 percent of Millennials are saving for eight months before heading overseas on their trip.</p>
<p>“They’re also prepared to make sacrifices while they’re abroad so they’ll walk instead of getting a bus, skip meals and miss out on big tourist attractions.”</p>
<p>Lots of other research in the past couple of years have made similar findings about the different options young Australians are taking, compared to their parents – many of whom were married with kids, a mortgage and a car loan before 30.</p>
<p>But despite that, there’s still a high level of real estate buying activity by first-timers. It’s largely flying under the radar screen because relatively few first-time purchases are newly-built homes (the ones that get counted as first-home buyers by the ABS).</p>
<p>The latest NAB quarterly Residential Property Survey indicates that a third of sales of new properties across Australia, and 27 percent of sales of established properties, are made to first-time buyers (some of which are buying investment properties, rather than a home, as a first purchase).</p>
<p>The 27 percent of buyers of established homes who are first-timers aren’t counted in the ABS figures, because first-home buyers are identified in the lending statistics by their state government grants, which are now available only for newly-built homes.</p>
<p>I think those daily headlines about an affordability crisis, requiring top-level action by political leaders, are inaccurate and misleading. And when you dispassionately examine what the research tells us, comments about a whole generation being priced out of home ownership are rendered ridiculous.</p>
<p><em>Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></em></p>
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Strong market activity from first-time buyers: Terry Ryder

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<div>Measures taken to slow the housing market in 2015 did their job effectively, largely by restricting the amount that people could borrow.</div>
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<div>Although there have been two interest rate cuts since May - a valedictory "double tap" from Governor Stevens, if you will - serviceability calculations continue to be assessed at a more stringent level.</div>
<div> </div>
<div>As a result borrowers can generally borrow little more than was the case before the most recent salvo of easing.</div>
<div> </div>
<div>This was to some extent reflected in the Housing Finance figures for June, released by the ABS today following a troublesome Census night website crash.</div>
<div> </div>
<div>Although the average loan size has been increasing steadily again from $352,200 to $360,100 since February, this figure remains below the peak of $382,300 seen in November last year. </div>
<div> </div>
<div>And it's a similar story for first homebuyer loan sizes. </div>
<br><a href="/images/2016/08/11/A2.jpg" target="_blank">Click to enlarge</a>
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<img src="/images/2016/08/11/A2.jpg" alt=""><br><br><div>At the state level, the first homebuyer loan sizes figures show the impact of tighter serviceability calculations.</div>
<br><div class="separator"><a href="/images/2016/08/11/A1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A1.jpg" alt=""></div>
<strong><span style="text-decoration: underline;"><br></span></strong><strong><span style="text-decoration: underline;">Total finance</span></strong><br><br><div>The net effect of this is that although trend total monthly housing finance has also now been rising again for the past few months - back up to well above $32 billion - the total value of commitments for now remains below the peak of $32.7 billion seen in June last year.</div>
<div> </div>
<div>Investor lending was the main target of the macroprudential crackdown, as you can see in the chart below. </div>
<div> </div>
<div>With the speed of investor credit growth now only about half of the arbitrary 10 per cent "speed limit", investor lending has now been trending up again for the past six months, albeit at a far less frantic pace than seen previously.</div>
<br><div class="separator"><a href="/images/2016/08/11/A3.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A3.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">Homebuyers return</span></strong><br><div> </div>
<div>The level of activity of homebuyers in the market has generally been relatively lower than we have seen in previous cycles, in part due to the sheer volume of investors in the Sydney and Melbourne markets since interest rates were dropped.</div>
<div> </div>
<div>However, following the effectively imposed caps on investor lending banks are now targeting the home loan market, and the trend number of monthly owner-occupier commitments has continued to rise to the highest level since June 2009. </div>
<br><div class="separator"><a href="/images/2016/08/11/A4.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A4.jpg" alt=""></div>
<br><strong><span style="text-decoration: underline;">State versus state</span></strong><br><br><div>The number of owner-occupier commitments is trending solidly higher in Queensland, South Australia, Tasmania, and the ACT.</div>
<div> </div>
<div>Homebuyer activity remains high in Sydney and Melbourne, but these markets will also be impacted by serviceability constraints.</div>
<br><a href="/images/2016/08/11/A6.jpg" target="_blank">Click to enlarge</a>
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<img src="/images/2016/08/11/A6.jpg" alt=""><br><br><div>Indeed, this is reflected in the dampened trend monthly value of owner-occupier commitments in the two most populous states in the chart below.</div>
<div> </div>
<div>The homebuyer trend value of commitments appears to be strongest in Queensland, South Australia, Tasmania, and the ACT.</div>
<br><div class="separator"><a href="/images/2016/08/11/A5.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><img src="/images/2016/08/11/A5.jpg" alt=""></div>
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<div class="separator">That said there has been a marked resurgence in investor lending in Sydney, sending preliminary auction clearance rates to their highest level of the year, at above 80 per cent.</div>
<div class="separator"><strong><span style="text-decoration: underline;"> </span></strong></div>
<div class="separator"><strong><span style="text-decoration: underline;">The wrap</span></strong></div>
<div class="separator"> </div>
<div class="separator">Overall, despite lots of alarmist reporting housing finance is tracking both at a historically high level, and is now accelerating again.</div>
<div class="separator"> </div>
<div class="separator">And remember that these figures for June pre-date an interest rate cut delivered in August.</div>
<div> </div>
<div>It's also worth remembering that the underlying demand for mortgages right now is enormous - the only reason lending slowed was because regulators were getting concerned about the sheer wight of demand for borrowing.</div>
<div> </div>
<div>The data seem to be following a remarkably similar trajectory to what we saw in the United Kingdom following its own macroprudential intervention (the so-termed Mortgage Market Review). </div>
<div> </div>
<div>That is the initial shock clonked the market on to the back foot, but as the dust settles lending is on the rise again - just more steadily than it was before.<br><br>Finally, the ABS reported a small increase in first homebuyer activity, but as disclosed by the ABS these data remain incomplete.<br><br>NAB's survey for Q2 2016 showed that first homebuyers accounted for 1 in 3 new home sales in the June quarter, and 29 per cent of established home sales.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Housing finance accelerating again: Pete Wargent

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<p>The housing market appears to be responding to a number of factors which have spurred further growth in home values. </p>
<p>Official interest rates are at historic low levels which has encouraged borrowing for housing and driven housing debt to record-high levels. </p>
<p>The low interest rate setting is also seeing significant competition amongst lenders which has resulted in substantial discounts to headline mortgage rates. </p>
<p>Furthermore, while the total number of homes available for sale is similar to levels a year ago, there has been significantly fewer newly advertised properties listed for sale over the past few months relative to previous years. </p>
<p>The low number of newly advertised dwellings available for sale has created a sense of urgency for buyers in the market, particularly in Sydney and Melbourne, and resulted in further increases in home values over this growth cycle which has been running for more than four years.</p>
<p>While the banking regulator has implemented policies aimed at slowing investment related credit demand, his has not resulted in a significant cooling in the housing market. The pace of investment related credit growth has slowed from a peak of nearly 11 percent per annum to 5 percent over the most rent 12 months period, however we are now seeing an uplift in lending to investors once more. </p>
<p>Following the most recent interest rate cut, auction clearance rates have elevated to levels not seen for more than a year, particularly in Sydney, the nation’s least affordable housing market.</p>
<p><strong>Interest rates</strong></p>
<p>On August 2, the Reserve Bank (RBA) decided to cut official interest rates by 25 basis points to 1.5 percent. </p>
<p>While interest rates were lowered to historic lows, headline variable mortgage rates were generally reduced by much less, with each of the Big 4 banks lowering their mortgage rates by no more than 14 basis points. </p>
<p>Despite the fact that the interest rate cuts were not passed on in full to mortgage holders, mortgage rates below 4 percent are available for those who wish to move from their current lender.  With most mortgages on a variable rate, any cut to mortgage rates will improve a household’s disposable income.  Furthermore, it has become clear that it will also give them more confidence to increasingly purchase more expensive homes, well in Sydney and Melbourne at least.</p>
<p><strong>Housing debt</strong></p>
<p>Each quarter the RBA publishes ratios of household finances which include the ratio of household debt to disposable income. The latest data to March 2016 shows that the typical level of housing debt is 134.7 percent higher than household disposable income. </p>
<p>The current ratio is a record-high but it is important to remember that it is a national snapshot and conditions across different housing markets are likely to vary substantially.  Since the current phase of growth in home values commenced in the June 2012 quarter, this ratio has lifted from 119.0 percent.</p>
<p>While the ratio of housing debt to disposable income has increased and is at a record-high, the ratio of housing assets to disposable income has also risen as home values have increased. </p>
<p>In the June 2012 quarter, the typical value of household assets was 394.4 percent higher than household disposable income.  </p>
<p>By March 2016, the ratio had increased to 470.8 percent indicating a significant increase in the value housing assets.  Again, it should be remembered that this is a national measure and local market ratios are likely to be vastly different especially within areas of very little value growth over that time as well as those areas in which home values have fallen.</p>
<p><strong>Properties listed for sale</strong></p>
<p>Over the four weeks ending August 21 2016 there were 39,676 new (not previously advertised for at least six months) residential properties listed for sale and 229,386 total (includes new and relisted properties) properties advertised for sale. </p>
<p>The number of newly advertised properties listed for sale was -3.4 percent lower than at the same time last year and new listings have been lower each week year-on-year since early June 2016.  Meanwhile, total listings are -0.9 percent lower than they were a year ago and on a weekly basis have been consistently lower year-on-year since early July of this year.  New and total listings are now starting to increase as we head closer to the beginning of the Spring Selling Season as they do each year.</p>
<p>While the national figures show fewer listings than a year ago, the trends are very different across individual capital cities, particularly in Sydney and Melbourne where home value growth conditions are strongest.</p>
<p>In Sydney, over the past four weeks there were 6,299 newly advertised and 18,951 total properties advertised for sale. Year-on-year, new listings have now been lower than they were the previous year fairly consistently since last November and are currently -20.6 percent lower than they were a year ago. </p>
<p>Over the past four weeks there were 17,949 total listings in Sydney which was 0.8% higher than a year ago. </p>
<p>While total listings are slightly higher than a year ago, there is very little new stock being listed for sale.  New listings are arguably more important than relisted properties, especially if the relisted stock has been for sale for a long period of time and vendors aren’t adjusting their price expectations.   Even though spring is just around the corner, there is very little fresh stock being added to the market.</p>
<p>It is a similar story in Melbourne where there were 7,177 new and 25,846 total residential properties listed for sale over the four weeks to 21 August 2016.  The number of new listings was -9.4 percent lower year-on-year and total listings were -0.8 percent lower.  Again, with spring just around the corner there is a relatively low supply of newly advertised properties hitting the market for sale.</p>
<p><strong>Mortgage demand</strong></p>
<p>One of the big challenges the RBA has is the quality and regularity of mortgage data collection. While housing finance data is published each month, owner occupier housing finance commitments are published both on a number and value basis while investor housing finance commitments are only published on the basis of value not the number of loans. </p>
<p>With the investment segment having become so prevalent, it is a challenge not knowing both the number and value, particularly when investment is so strong in Sydney and Melbourne at a time when home value growth is also so strong. </p>
<p>Adding to the challenge of interpreting housing finance data is the lack of clarity about how off-the-plan unit purchases are captured in the data.  It is unclear as to whether they are classified as construction of dwellings or purchase of new dwellings. Finally re-classification of large swathes of mortgages from lenders away from investment and toward owner occupiers has made reading the market even more difficult.</p>
<p>The latest housing finance data showed that in June 2016 there was $32.6 billion worth of commitments with the value having increased by 2.3 percent over the month following a 1.8 percent rise in May. </p>
<p>Although mortgage lending is rising, it remains -2.1 percent lower than its peak in April of last year. </p>
<p>Over the month, there was $20.8 billion in commitments to owner occupiers and $11.8 billion in commitments to investors.  Both segments of lending rose over the month however, owner occupier lending is -2.4 percent lower than its December 2015 peak while investment lending is -22.0 percent lower than its April 2015 peak.</p>
<p>Owner occupier lending remains quite strong and although investment lending has slowed significantly, there is now scope for it to increase over the coming months.  Without additional details on the number of investment loans it is difficult to know whether the increase is being driven by larger loan sizes, a larger number of loans or a combination of both.</p>
<p><strong>Auction clearance rates</strong></p>
<p>Auction clearance rates are one of the timeliest indicators of the housing market and they tend to be indicative of the broader housing market trends.  It is important to remember that far more homes sell by private sale than by auction and auctions are only a significant proportion of sales in the Sydney, Melbourne and Canberra housing markets.</p>
<p>Auction clearance rates in Sydney last week were at their highest levels in more than a year.  Sydney’s auction clearance rate has been above 70 percent for 18 consecutive weeks and in Melbourne they have been above 70 percent for 7 consecutive weeks.</p>
<p>As already discussed, the supply of homes available for sale, particularly in Sydney and Melbourne, is much lower than it has been over recent years.  This is particularly evident when looking at auction volumes. </p>
<p>Over 2016 so far there have been 18,619 auctions in Sydney compared to 25,399 auctions at the same point in 2015.  This represents a -26.7 percent decline in the number of auctions in Sydney over the year to-date. </p>
<p>In Melbourne there have been 23,779 auctions so far this year which is -9.5 percent lower than the 26,282 auctions to the same point last year.  The low volume of auction stock is likely to be resulting in the ongoing strength in clearance rates across each city.  Less stock for sale creates a sense of urgency for those looking to purchase.</p>
<p><strong>So what does this mean for Spring?</strong></p>
<p>It is too early to say definitively what will happen this Spring but I would be very comfortable stating that what happens with property listings will have a substantial influence on the market’s performance over the period. </p>
<p>Spring is typically characterised by a fairly significant upswing in stock for sale, this is driven by the belief that Spring is the best time of year to sell (that is a topic for another day).  As supply increases, the value growth performance can slow and as we saw last year, auction clearance rates can actually start to dip.  So the amount of stock which becomes available for sale will be an important factor for the strength of the Sydney housing market.</p>
<p>The recent interest rate cut is another important consideration for the market’s performance. Although mortgages and the availability of them, is calculated on the borrower’s ability to repay the mortgage at a much higher interest rate, lower mortgage rates impact households by giving them the option to reduce mortgage repayments and therefore having more money each week in their pocket. </p>
<p>This is because most mortgages are on a variable rate and changes to the interest rate on their largest commitment (the mortgage) have an immediate impact on household balance sheets. </p>
<p>With the recent cut to interest rates, it is unlikely to mean that people that could not previously borrow now can, but it does mean that households that previously weren’t considering moving home or buying an investment property may now be more inclined to do so. </p>
<p>This may result in more confidence from those looking to upgrade their property to list their home which means that they also become an additional purchaser.  If someone is now starting to consider buying an investment property it also means additional demand for housing. </p>
<p>How many new buyers there are in Spring remains to be seen but it may encourage an increase in demand for purchase and could result in more people looking to sell their home.</p>
<p>The other major consideration, particularly in Sydney and Melbourne, but also across the rest of the country is what the prospects are for additional increases in home values over the short and medium term. </p>
<p>Combined capital city home values have been rising for more than four years now however, this has largely been driven by Sydney and Melbourne due to their much stronger economies. While the economies in these cities remain strong, the increasing cost of housing due to the four plus years of value growth may be starting to deter buyers.</p>
<p>When you also consider that rents are increasing at record low levels (falling in some areas) and gross rental yields are at record lows, purchasing a property, particularly an investment, is looking less attractive than it has for some time.  Especially when you also factor in the heightened level of housing construction, most of which is inner city units, which is currently underway.</p>
<p>It is going to be interesting to see how all of these factors play out over the next few months and ultimately how the housing market performs.</p>
<p><em>Cameron Kusher is research analyst for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em></p>
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ckusher-ujnxiKuFQs

Where to for the housing market in Spring? Cameron Kusher

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<div>The Reserve Bank of Australia (RBA) released its Statement on Monetary Policy for February 2017.</div>
<div> </div>
<div>Lots to digest as usual!</div>
<div> </div>
<div>Firstly, and probably the most interesting part, I thought, was the section concerning inflation forecasts. </div>
<p><span>The RBA sees inflation returning to the 2 to 3 percent target range, and as such interest rates are now likely to be on hold unless the labour market deteriorates from here. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/13/RBA1.jpg">Click to enlarge</a></p>
<div class="separator">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/13/RBA1.jpg" alt=""> </div>
<div> </div>
<div>Secondly, it also looks as though forecasts for growth in the economy are quite upbeat, tracking at around 3 per cent in 2017/18 and 3 per cent in 2018/19, before potentially rising further. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/02/13/RBA2.jpg" target="_blank">Click to enlarge</a></div>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/13/RBA2.jpg" alt=""></p>
<div class="separator"> </div>
<div>Finally, housing.<br><br>There was lots to look at in terms of housing markets, although nothing particularly ground-breaking. </div>
<div> </div>
<div>Rental price growth is soft, apartment approvals are falling sharply, and turnover in the housing market is well below the average since 2008, reflecting low levels of stock on the market.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/02/13/TO.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/13/TO.jpg" alt=""></div>
<div> </div>
<div> </div>
<div>On another related point, it's interesting to see that after copping a huge amount of heat for possibly 'overstating' dwelling price growth, CoreLogic's index has now seen other data providers catch up towards a similar rate of growth.</div>
<div> </div>
<div><a href="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s1600/RBA1.jpg" target="_blank">Click to enlarge</a></div>
<div class="separator"><a href="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s1600/RBA1.jpg"><img src="https://4.bp.blogspot.com/-fwYuSVH_zK0/WJ1xtkyg0nI/AAAAAAAAhq4/yj9DVQpv9DcgG2YagkiH7egejLALYgDhQCLcB/s400/RBA1.jpg" width="391" height="400"></a></div>
<div class="separator"> </div>
<div class="separator">
<em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em>
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Apartment approvals are falling sharply: Pete Wargent

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<p>Over recent months the average number of days it takes to sell a residential property has been falling, reflecting the overall improvement in housing market conditions.</p>
<p>The average days on market figure provides valuable insight into the performance of the housing market.  The figure measures the average difference between the date at which a property is listed for sale and the day at which it goes under contract. The figure is only calculated across those properties that sold by private treaty, excluding tenders and auction sales.  When homes are selling quicker it points to stronger buyer demand and vice versa.</p>
<p>Across the combined capital cities, it took an average of 38 days to sell a home in December 2016. This figure was lower than the 41 days a year earlier and is down from high throughout 2016 of 50 days in August 2016. </p>
<p>Four of the eight capital cities now have an average days on market figure below 40 days while most of the other capital cities are now seeing the days on market figure starting to trend lower.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.41.37%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.41.37%20AM.png" alt=""></p>
<p>The typical Sydney dwelling sold after an average of 33 days in December 2016 compared to 39 days in December 2015.</p>
<p>Melbourne dwellings took an average of 35 days to sell in December 2015 with the figure falling to an historic low of 29 days at the end of 2016. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.43.15%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.43.15%20AM.png" alt=""></p>
<p>Dwellings were taking an average of 57 days to sell at the end of 2016 in Brisbane compared to 43 days a year earlier.  Brisbane is only city in which the days on market figure has trended higher.</p>
<p>Adelaide dwellings were taking 43 days to sell at the end of last year, which is as long as they were taking a year earlier however, the days on market figure has fallen over recent months.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.44.20%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.44.20%20AM.png" alt=""> </p>
<p>The typical Perth dwelling was taking 65 days to sell at the end of 2016 compared to 58 days at the end of 2015 however, the days on market figure has reduced over the past few months.</p>
<p>Hobart has recorded a large fall in the days on market figure over the past year, reducing from 47 days in December 2015 to 35 days in December 2016.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.45.17%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.45.17%20AM.png" alt=""></p>
<p>Dwellings in Darwin were taking an average of 86 days to sell at the end of 2016, up from 74 days at the end of 2015 however, over recent months the figure has begun to fall.</p>
<p>At the end of 2015, the typical Canberra dwelling was taking 47 days to sell compared to 37 days at the end of 2016.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.46.13%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/02/14/Screen%20Shot%202017-02-14%20at%208.46.13%20AM.png" alt=""></p>
<p>The days on market figures will be important to follow throughout 2017.  After the current growth phase has run for more than four and a half years, we are still seeing a rapid rate of sale in Sydney and Melbourne.  Low levels of stock available for sale and many willing purchases continue to drive a rapid rate of sale in Sydney and Melbourne while the rate of sale is improving in most other capital cities. </p>
<p>The days on market figure will provide a good indication of the strength of individual housing markets throughout 2017.  Keep in mind that the next two months of data (January and February) will show the regular seasonal spike but thereafter the data will be much more representative of the housing market’s performance across each capital city.</p>
<p class="p1"><span class="s1"><em>Cameron Kusher is research analyst for CoreLogic. You can contact him </em><a href="https://blog.corelogic.com.au/about/"><span class="s2"><em>here</em></span></a><em>.</em></span></p>
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Melbourne properties selling the fastest of any capital city: Cameron Kusher 

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<p>Commercial lending finance was weaker in the month of December, giving back a fair chunk of the 15 percent jump from November.</p>
<p>Nevertheless the trend for monthly lending finance hit it highest ever level at more than $73 billion. </p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A2.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A2.jpg" alt=""></span></p>
<p class="p3"><span class="s1">At the industry level, there are no signs of any rebound in financing for the mining sector, suggesting that the recent boom in coal and iron ore prices is unlikely to lead to any significant increase in resources investment. </span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">In fact, financing for the mining sector crashed by more than two-thirds over 2016, with the best performing sectors instead including construction and transport. </span></p>
<p class="p6"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A4.jpg" target="_blank">Click to enlarge</a></p>
<p class="p6"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A4.jpg" alt=""></p>
<p class="p3"><span class="s2"><strong>Investor loans - a mixed picture</strong></span></p>
<p class="p3"><span class="s1">The national rebound in investor loans in 2016 masks a huge divergence in fortunes around the traps.</span><span style="font-size: 12.16px;"> </span></p>
<p class="p3"><span class="s1">In Sydney, investors are well and truly back with $6.3 billion of investor loans in December 2016 being some 36 per cent higher than the $4.6 billion seen only a year previously. </span></p>
<p class="p3"><span class="s1">There was also a resurgence in investor lending in Victoria, but most other states and territories are only seeing activity levels that are lower than in the prior year. </span></p>
<p class="p6"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A1.jpg" target="_blank">Click to enlarge</a></p>
<p class="p6"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A1.jpg" alt=""></p>
<p class="p3"><span class="s1">In the resources-focused Northern Territory, meanwhile, the 12-month moving average for the value of investor loans has collapsed by 51 per cent from the peak.</span></p>
<p class="p3"><a href="https://www.propertyobserver.com.au/images/2017/02/15/A3.jpg" target="_blank"><span class="s1">Click to enlarge</span></a></p>
<p class="p3"><span class="s1"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/15/A3.jpg" alt=""></span></p>
<p><strong>The wrap</strong></p>
<p>Clearly a mixed picture for property investment loans, then, with the Sydney market looking set for a strong first half of 2017. </p>
<p class="p3"><span class="s1">The commercial finance picture is patchier, although the Reserve Bank's optimism appears to have been justified by a stonking NAB Business Survey.</span></p>
<p class="p3"><span class="s1">NAB reported today that business conditions had blown off spectacularly from a December reading of +9.9 to a 9-year high of +16.2 (New South Wales the clear leader of the states with </span>a reading of +23).</p>
<p>This was the strongest result since the financial crisis and miles above the long-run average reading of +5.</p>
<p>Business confidence also tore higher from +5.7 to +9.8 in January, while the employment index hit its highest level since 2011.</p>
<p>A seriously bullish survey.</p>
<p class="p1"><span class="s1"><em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em></span></p>
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