<p><a href="https://www.apartments.com.au/developers/mayd-group">MAYD Group</a> has set a new residential price record in Queensland with the $30 million sale of the penthouse at its <a href="https://www.apartments.com.au/new-apartments/one-burleigh-88-the-esplanade-burleigh-heads-qld-4220">ONE Burleigh</a> development in Burleigh Heads.</p>

<p>The sale equates to around $37,500 per sqm.</p>

<p>The two-level, 800 sqm penthouse, featuring five bedrooms, five bathrooms, five car spaces, and a private infinity pool overlooking the Pacific Ocean, was acquired by a Gold Coast-based entrepreneur, highlighting continued demand for ultra-premium beachfront product.</p>

<p>Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.</p>

<p>“There’s very limited opportunity to secure this level of scale and absolute beachfront position in <a href="https://www.apartments.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>,” Tehle said.</p>

<p>“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323057]</p>

<p>The sale comes as construction progresses on ONE Burleigh, a boutique development of 17 full-floor residences at 88 The Esplanade, scheduled for completion in early 2027.</p>

<p>Developed by MAYD Group and designed by <a href="https://www.apartments.com.au/architects/mas-architecture-studio">MAS Architecture</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/sici-design">Sici Design</a>, the project has been positioned as a collection of house-sized beachfront apartments, each occupying an entire floor with around 381 sqm of internal and external living space.</p>

<p>When construction commenced, MAYD director Todd Mould pointed to the long-term resilience of premium coastal real estate as a key driver behind the project.</p>

<p>“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.</p>

<p>“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323055]</p>

<p>Each residence has been configured with four bedrooms, multiple living zones, a private office, and expansive ocean-facing terraces. Interiors draw on a restrained material palette, including travertine stone, timber joinery, and integrated premium appliances.</p>

<p>Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.</p>

<p>“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”</p>

<p>Residents will have access to a suite of wellness-focused amenities, including pools, sauna facilities, and dedicated relaxation spaces, reflecting a broader shift toward lifestyle-driven apartment design on the Gold Coast.</p>

<p>[smartcode_project:default project_id=146358 project_image_fid=323052]</p>

<p>The project occupies a southern Esplanade site with uninterrupted beachfront frontage, an increasingly rare offering in Burleigh Heads, free from the Norfolk Pines that line much of the coastline and often limit direct ocean outlook.</p>

<p>Mould said the design intent was to balance that outlook with a sense of retreat.</p>

<p>“Living at ONE Burleigh is about how your day naturally unfolds, morning light across the ocean, coffee on the balcony, and being in Burleigh but elevated above the noise.”</p>

<p>The result further reinforces Burleigh Heads’ emergence as one of the Gold Coast’s most tightly held and supply-constrained beachfront markets, where boutique, owner-occupier-focused developments are increasingly setting new price benchmarks.</p>

<p>[smartcode_project_cta:default project_id=146358]</p>


Joel Robinson

MAYD Group sets Queensland record with $30 million penthouse sale at ONE Burleigh in Burleigh Heads

<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>


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>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

<html><body>
<p>The Australian Bureau of Statistics released construction work done data for the March 2016 quarter last week. </p>
<p>The data set looks at the value of construction work completed over the quarter and is an input to the national accounts (GDP) data.</p>
<p><a href="/images/2016/06/06/Chart-1-3-580x210.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/06/Chart-1-3-580x210.jpg" alt=""></p>
<p>Over the quarter, the value of construction work done was $47.928 billion which was down -5.5 percent over the quarter and -7.2 percent year-on-year.  In fact, the value of construction work done over the March 2016 quarter was the lowest since June 2011 and has been trending lower since the December 2012 quarter.</p>
<p><a href="/images/2016/06/06/Chart-2-2-580x208.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/06/Chart-2-2-580x208.jpg" alt=""></p>
<p>The decline in the value of work done is largely being driven by engineering construction which was bolstered until recent by the mining investment boom.  Over the quarter there was $24.9 billion worth of building work completed and $23.0 billion in engineering construction completed. </p>
<p>It shows that following a recent boost from infrastructure investment, building construction is now the key driver.  The value of engineering construction work done peaked at $34.7 billion in the September 2012 quarter and has since fallen by -33.6 percent while building activity peaked at $25.2 billion in the December 2015 quarter and has fallen by -1.0%.  With construction work in both the building and engineering sectors falling it is difficult to see how construction work done won’t continue to decline over the coming months.  Even the largest residential housing construction boom on record has not been enough to offset the previous largest engineering construction investment boom on record.</p>
<p><a href="/images/2016/06/06/Chart-3-2-580x210.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/06/Chart-3-2-580x210.jpg" alt=""></p>
<p>The building segment of construction work done consists of residential and non-residential construction (offices, retail shops, industrial properties).  The previous data showed building work has started to fall with the fall being driven by non-residential construction.  In fact residential construction work done is continuing to climb and is now at a record high $16.6 billion while non-residential is down -18.6 percent from its June 2010 peak.  While the largest residential construction boom in history continues to drive activity in that sector higher, it isn’t enough to offset the decline in the non-residential (and engineering construction) sector which is well below peak levels of activity.</p>
<p><a href="/images/2016/06/06/Chart-4-1-580x207.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/06/Chart-4-1-580x207.jpg" alt=""></p>
<p>The residential construction component is further broken down into three components: houses, other residential (units) and alterations and additions, including conversions. Unit construction work done reached a record high of $6.8 billion on the back of the biggest unit construction boom on record. </p>
<p>While unit construction activity continues to rise, the $7.7 billion in work done for houses is down -7.1 percent from its recent peak in March 2015 at $8.3 billion.  The value of alterations and additions completed was recorded at $2.0 billion over the quarter down -6.9 percent from its $2.1 billion peak over the September 2011 quarter.  It is anticipated work done for houses will continue to trend lower while unit work should trend higher over the next few quarters before starting to fall. </p>
<p>Meanwhile, the direction of alterations and additions is unclear but there could be some scope for an increase over the coming quarters and years given how much equity some home owners have and the costs associated with moving home.</p>
<p>Residential construction has been a large contributor to economic growth over recent years however, it looks as if it is likely to start detracting from growth as construction activity moves through a peak. </p>
<p>Housing construction activity has already been fading for a year while unit activity continues to rise however, we anticipate that it too will turn within the next 12 months. With the resources boom and concurrent infrastructure investment boom so important to Australia’s prosperity coming out of the financial crisis as it faded, building activity became extremely important, particularly residential construction activity. </p>
<p>With the residential construction boom starting to fade we need the next economic driver to rise in order to offset the slowing in building activity. An increase in infrastructure investment would seem to be a prime candidate however, Governments may not be willing to invest the money. The next boom will seemingly need to come from somewhere else; potentially from the education, health and tourism sectors as the lower Australian dollar makes these sectors more globally competitive as well as increased consumption if households start to ease their rate of saving.</p>
<p> </p>
<div class="sharedaddy sd-sharing-enabled">
<em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.</em> </div>
</body></html>

ckusher-ujnxiKuFQs

The value of construction work done for houses is falling with units likely to follow shortly: Cameron Kusher

<html><body>
<p>GUEST OBSERVER</p>
<p>The ongoing diversity in the housing market highlights the different growth drivers that are evident from region to region.</p>
<p>The economies of Sydney and Melbourne remain relatively sheltered from the downturn in the resources sector and have benefited from a very healthy services sector and positive population inflows while the mining states and territories are experiencing softer economic conditions and a sharp wind down in population growth, particularly from overseas migration.</p>
<p>The annual expansion in investor related housing credit has now dropped to a pace that is much lower than APRA’s mandated 10 percent growth per annum, while credit growth for owner occupiers is expanding.</p>
<p><a href="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.33.17%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.33.17%20AM.png" alt=""></p>
<p>With many banks now placing a premium on investment mortgage interest rates and also increasing mortgage rates and serviceability limits on all mortgages we have seen investment housing demand slow however, there has been a slight up-tick in demand from this segment over recent months.</p>
<p>It’s important to note, however, that lenders have been reclassifying existing mortgages from investment purposes to owner occupation, which is likely to be having an impact on the figures. Some lenders have recently relaxed previous restrictions on investors which could result in a rebound in demand from this segment over coming months.</p>
<p><a href="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.39.33%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.39.33%20AM.png" alt=""></p>
<p>The cumulative effect of tighter lending conditions, more expensive mortgage rates for investors and lower yields, as well as natural affordability constraints and higher levels of new housing supply, is likely to continue to impact the Sydney housing market resulting in a further slowdown over the year.</p>
<p>It is also expected that as the year progresses the rate of home value growth in Melbourne will also slow however, the slowdown is likely to be more moderate than the slowing in Sydney, at least during 2016. South-East Queensland looks set to see further increases in housing demand and potentially stronger value growth throughout the year.</p>
<p>Hobart and Canberra also appear better set for value growth over 2016 due to improving housing and economic conditions and relatively more affordable housing compared to Sydney and Melbourne. Adelaide is likely to show only moderate rates of value growth this year. In the meantime, we anticipate that values will continue to fall in trend terms throughout 2016 in Perth and Darwin.</p>
<p><a href="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.42.17%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/09/Screen%20Shot%202016-06-10%20at%208.42.17%20AM.png" alt=""></p>
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<p><em>Tim Lawless is head of the CoreLogic research and analytics team and can be contacted <a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank">here</a>.</em></p>
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tlawless-5VLUrbAk9s

Upturn on slowing investment housing demand: Tim Lawless

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<p>Key workers – such as teachers, nurses, ambulance and fire officers and the police – perform essential services.</p>
<p>Across the Sydney some 156,000 workers are employed in these occupations, equating to some six per cent of the workforce.</p>
<p>However, high property prices and high rents are placing barriers to their home ownership which were not experienced by previous generations. </p>
<p>There is now a serious mismatch between where key workers live and work, according to an important report prepared by Sydney University researchers for the Teachers Mutual Bank, Firefighters Mutual Bank, Police Bank and My Credit Union.</p>
<p>The report found that in the decade to 2016, key areas in Sydney lost up to 20 percent of teachers, nurses, policy and emergency service workers to outer and regional areas, while areas including the Illawarra, Southern Highlands and the Hunter Valley had net gains.</p>
<p>In 2006 more than 20 local government areas were affordable to a police senior constable. By 2016, that number had declined to four. </p>
<p>The majority of key workers now reside in outer ring suburbs, which the report advised was unlike other world cities, such as London, New York, or San Francisco.</p>
<p>The problem begins with the shortage of affordable rental homes near employment as this undermines the capacity to save for a deposit.</p>
<p>An enrolled nurse with five years experience on $57,000, requiring a one bedroom rental property, would be able to afford a median property in only 9 per cent of middle ring suburbs and in no inner ring suburbs. </p>
<p>As a consequence, many key workers are commuting long distances to get to work, or are living in unaffordable rental accommodation. </p>
<p>There's no doubting Sydney needs its Macquarie Street policy makers to improve key worker access to home ownership given the lack of affordable and appropriate homes.</p>
<p>But the report also identified one way to help restore housing options that requires innovative consideration of the plight of challenged home buyers bu the banking and superannuation sectors.</p>
<p>A key suggestion was the implementation of shared equity models that have long been used in the United Kingdom to help low and moderate income earners enter home ownership. </p>
<p>According to the UK Council of Mortgage Lenders, there are around 200,000 shared ownership homes in the UK where eligible households can purchase a minimum of 25 per cent of a property (and up to 75 per cent) and pay a rent of 3 per cent on the remaining share.</p>
<p>Over time the household can purchase the remaining equity in the property from the affordable housing provider partner (who owns the balance), or repay it when the house is sold. </p>
<p>We need mortgage lenders to embrace shared ownership.</p>
<p>It needs superannuation funds to joint venture with banks in this product. </p>
<p>This article was first published in the Saturday Daily Telegraph.</p>
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jchancellor-FAypfDUnLy

Banks need to embrace shared ownership concept as way forward for home affordability

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<p>I've written a lot here about Queensland's record apartment construction boom, which is now rebalancing. See <a href="http://petewargent.blogspot.com.au/2017/10/spirit-in-sky" target="_blank">here</a> and <a href="http://petewargent.blogspot.com.au/2018/02/filling-up" target="_blank">here</a>, for example. </p>
<p>The number of attached dwellings constructed through this cycle will exceed even the post-recession boom of the early 1990s. </p>
<p>The number of detached house starts is now rising steadily, but for attached dwellings new commencements are falling fast, especially for the higher-density projects.</p>
<p>And the official numbers are six to nine months old.  </p>
<p>A quick drive around central Brisbane reveals that many projects have been stalled or mothballed, and staged releases pushed out. </p>
<p>Developers simply can't shift many of them, with unusually 'flexible' terms being offered to prospective buyers in some cases. </p>
<p><a href="https://2.bp.blogspot.com/-Rg09ZgLw5Ww/WrdC6jxd5GI/AAAAAAAApGI/QOTtowImShEDYsVAlG0pkYKzK4srDyOcQCLcBGAs/s1600/QLD.jpg" target="_blank"><img src="https://2.bp.blogspot.com/-Rg09ZgLw5Ww/WrdC6jxd5GI/AAAAAAAApGI/QOTtowImShEDYsVAlG0pkYKzK4srDyOcQCLcBGAs/s640/QLD.jpg" width="640" height="390" data-original-height="830" data-original-width="1356"></a></p>
<p>Below annual dwelling starts for the state are mapped against the estimated change in the resident population. </p>
<p>I deliberately haven't messed around with the axes on the chart as some are inclined to do.</p>
<p>After all, this cycle has been characterised by record volumes of high-rise apartments, which might house fewer persons per unit on average previously (while there is arguably the issue of Chinese investors and vacant apartments to account for). </p>
<p>The numbers show total dwelling starts falling fast in 2017, as they needed to. </p>
<p>Queensland's net overseas immigration and therefore population growth pulled back hard after the peak of resources construction, leading to a dwelling stock overhang, in a similar vein to Western Australia. </p>
<p><a href="https://4.bp.blogspot.com/-MyszNFjMdGg/WrdCT_USiBI/AAAAAAAApF4/4K2K3u130jAvs7df950CNpjJjU_GvsVgACLcBGAs/s1600/A2.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-MyszNFjMdGg/WrdCT_USiBI/AAAAAAAApF4/4K2K3u130jAvs7df950CNpjJjU_GvsVgACLcBGAs/s640/A2.jpg" width="640" height="392" data-original-height="828" data-original-width="1347"></a></p>
<p>Fortunately for local developers, Queensland has become the state with the <a href="http://petewargent.blogspot.com.au/2018/03/where-why-population-growth-is" target="_blank">greatest internal population flows in the country</a>, which is helping to stabilise the ship.</p>
<p>They'll be looking to offload their final apartments quick-sharp and put the shutters up for the remainder of this cycle. </p>
<p>As ever, lots of variations are apparent when drilling down to the regional and suburb level. </p>
<p><span>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and </span><a href="https://petewargent.blogspot.com/" target="_blank">blogger</a><span>.</span></p>
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Queensland's internal population flows stabilising the CBD apartment ship: Pete Wargent

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<p><span>Research shows that over the 12 </span>months to December 2017, 16.1% of all houses and 9.5% of all units sold nationally transacted with a price tag excess of $1 million.</p>
<p>By comparison, 12 months earlier 14.8% of houses and 8.1% of units sold for more than $1 million.</p>
<p>At 16.1% of all house sales and 9.5%all unit sales in excess of $1 million, more houses and units sold for more than $1 million than sold for less than $200,000.</p>
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<p>Across the combined capital cities, 23.8% of all houses and 11.6% of all units sold over the year sold for more than $1 million.</p>
<p>The number sold for more than $1 million was up from 21.7% and 9.8% respectively a year earlier.</p>
<p>Five years ago just 9.8% of all houses and 3.9% of all units sold for more than $1 million. A greater number of houses sold for more than $1 million over the past year than sold for under $400,000. </p>
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<p><span>Across the combined regional markets, 4.6% of houses </span>and 3.8% of units sold over the year transacted at or above $1 million. The share of million dollar sales was up over the year from 3.8% for houses and 3.6% for units.</p>
<p>Five years earlier, 1.7% of houses and 2.2% of units sold throughout the year sold for $1 million. While in the combined capital cities the share of $1 million sales is significant it remains relatively small in those areas outside of the capitals. </p>
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<p><span>Sydney is the region that recorded the highest proportion </span>of sales of at least $1 million throughout 2017. Over the year, 49.3% of all houses sold were at least $1 million which was up from 45.4% at the end of 2016 and 18.8% at the end of 2012.</p>
<p>Over the 2012 calendar year, 5.4%  of all Sydney units sold over the year were at least $1 million, by 2016 the share had increased to 18.7% and 25% then by the end of 2017 it was up to 22.3%. More recently, values have begun to fall in Sydney, particularly for higher value properties, so there is a possibility in2018 Sydney will see a decline in the share of sales of at least $1 million. The share of $1 million plus sales in Melbourne has climbed significantly over recent years.</p>
<p>Throughout 2017, 28.3% of all houses and 8.3% of all units purchased were at least $1 million. The share of $1 million sales was up from 23.7% for houses and 7.2% of units a year earlier. The share of $1 million sales has risen substantially from five years ago when 9.7% of houses and 3.5% of units sold for at least $1 million. </p>
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<p><span>Although </span><span>value growth </span>has been fairly moderate in Brisbane over recent years, the share of $1 million sales has continued to climb. Throughout 2017, 8.3% of all houses and 3.4% of all units sold, transacted for at least $1 million. A year earlier, 7.5% of all houses and 2.8% of all units sold for at least $1 million and five years earlier just 3.6% and 2.1% of houses and units sold for at least $1 million.” </p>
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<p>Dwelling values in Adelaide have increased by just 2.2% over the past year, however, the share of stock selling for $1 million or more has continued to climb. Over the  2017 calendar year, 5.5% of all houses sold for at least  $1 million with the share climbing from 5.0% a year earlier and 2.8% five years previous.</p>
<p>For units, 1.6% of all sales were at least $1 million 2 years ago compared to 1.7% in 2016 and 1.9% in 2017. Over the past year there were more Adelaide houses sold for at least $1 million than there were sold for less than $200,000. </p>
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<p><span>Perth has been recording falls in values since 2014 and </span>the most expensive properties have recorded falls more substantial than the city wide average. The share of sales of $1 million or more has fallen over the year for house(10.4% to 10.3%) and units (4.5% to 3.2%). Although the share of sales of $1 million property has declined over the year it remains higher than it was five years ago for houses but lower for units when those sales accounted for 7.2% and 3.4% of all sales respectively. </p>
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<p>As the nation’s most affordable capital city housing market, Hobart has far fewer sales of $1 million properties than other capital cities. Notwithstanding, values of all capital cities and has seen a fairly significant lift in the share of $1 million sales over the past year.</p>
<p>Over the 2017 calendar year, 2.8% of all houses sold transacted for $1 million or more, up from 2.3% a year earlier and 1.4% five years earlier. The share of $1 million unit sales was steady over the year at 0.9% of all sales and down from five years earlier when 1.3% of all sales were at least $1 million. </p>
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<p><span>Darwin has been the </span><span>nation’s </span><span>weakest performing capital </span>city housing market for a number of years. At the end of February 2018, dwelling values were -22.3% lower than their peak. Predictably, such substantial value falls have led to a significant decline in $1 million sales.</p>
<p>Over the 2017 calendar year, 3.1% of all houses sold were at least $1 million compared to 4.1% a year earlier but a lower 2.4% five years earlier. 1.3% of all unit sales in 2017 were at least $1 million compared to 2.3% a year earlier and 1.7% five years earlier. </p>
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<p><span>Dwelling values in Canberra have increased by 3.2% </span>over the 12 months to February 2018 and as aresultthe share of sales of properties worth $1 million or more has also risen. At the end of 2017, 12.6% of all house sales throughout the year had been at least $1 million, up from 10.4% a year earlier and 4.8% five years earlier. For units, 2.5% of all sales were at least $1 million, up from  2.3% a year earlier and 1.3% five years earlier.</p>
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<p><span>The latest data is showing that a number of capital cities have now recorded falls in values, in particular the most expensive city, Sydney. </span></p>
<p><span>Additional data also indicates that values are falling by the greatest amount across the premium sector of the housing market. Should these declines continue, it may result in a decline in the share of sales of properties at or in excess of $1 million throughout 2018. </span></p>
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<p><span><em><span>CAMERON KUSHER</span> is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/"><span class="s2">here</span></a>.</em> </span></p>
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Nearly 25 percent of capital city houses sell for over $1 million in 2017

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<p class="p1">Price growth in the outer ring suburbs of Melbourne has been extraordinary in the past 12 months.</p>
<p class="p3"><span class="s2">Most suburbs in local government areas (LGAs) like Wyndham, Hume, Whittlesea and Casey have recorded double-digit growth in the median house prices. Many have grown more than 20% and some have topped 30%.</span></p>
<p class="p3"><span class="s2">The big price rises have come on the back on massive demand for homes from buyers of all sorts chasing affordability, against a background a strong Victorian economy and continuing high population growth.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s2">The strength of the growth in the outer-ring areas of Melbourne provides further evidence that proximity to the CBD is not an essential factor for buyers seeking capital growth.</span></p>
<p class="p3"><span class="s2">Proximity to employment is a core factor but the reality is that most people work in suburban jobs nodes, not in the CBD (that’s true in all capital cities, including Melbourne).</span></p>
<p class="p3"><span class="s2">In the City of Casey in the far south-east of the Melbourne metropolitan area, eight suburbs have each recorded over 330 house sales in the past 12 months.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s2">They include Narre Warren, Clyde North and Cranbourne North, which have each recorded more than 450 house sales, and Berwick where over 700 houses have been sold in the past year.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s2">Every suburb in the Casey LGA has had double-digit growth in median house prices. Cranbourne, Hallam, Cranbourne East, Hampton Park and Narre Warren have all had median price growth above 20%.</span></p>
<p class="p3"><span class="s2">It’s been a similar scenario in the Whittlesea LGA in the far north of the Melbourne metro area. Four suburbs have had over 400 house sales each in the past year and five more have each sold between 225 and 300 houses.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s2">All the suburbs of Whittlesea have had double-digit growth in their median house prices, including four (Epping, Lalor, Mernda and South Morang) which have grown 20-25% and one (Thomastown) which has risen 33%.</span></p>
<p class="p3"><span class="s2">The pattern is similar in the neighbouring Hume LGA. Broadmeadows, Greenvale, Meadow Heights and Roxburgh Park have each sold between 200 and 350 houses, while Craigieburn had made over 500 house sales.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s2">All the Hume suburbs have had double-digit growth in their median house prices, including six suburbs which have grown more than 20%. They include Jacana (up 26%), Gladstone Park (up 24%) and Broadmeadows (up 29%).</span></p>
<p class="p3"><span class="s2">Most of the suburbs of the Melton LGA in the far north-west have each sold over 200 houses in the past year, led by Melton West (335) and Caroline Springs (343).</span></p>
<p class="p3"><span class="s2">Every suburb has recorded at least 12% growth in median house prices, while Melton and Melton South are both up 27%.</span></p>
<p class="p3"><span class="s2">But, in terms of turnover, the star market is Wyndham City in the south-west heading towards Geelong.<span class="Apple-converted-space"> </span></span></p>
<p class="p3"><span class="s2">The sales turnover is prolific in Hoppers Crossing (682 house sales), Wyndham Vale (436), Tarneit (684), Werribee (791) and in particular Point Cook (953).</span></p>
<p class="p3"><span class="s2">All of the five suburbs mentioned have grown their median house prices at least 13% in the past year, led by Hoppers Crossing (up 21%) and Werribee (up 22%).</span></p>
<p class="p3"><span class="s2">The important lesson is that downmarket, outer-ring areas do record strong price growth and that affordability is a prime driver of activity and prices. That’s especially so in places where the infrastructure is good.</span></p>
<p class="p1"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p1"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p5"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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terryryder-YECXbqmri2

CBD proximity not essential growth factor as outer-rings soar

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<p class="post-title entry-title">EXPERT OBSERVER</p>
<p class="post-title entry-title"><a href="http://petewargent.blogspot.com.au/2018/04/housing-finance-at-6-month-high"></a><strong style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.16px;"><span style="text-decoration: underline;">Housing finance to slow</span></strong></p>
<div id="post-body-3782979424120573100" class="post-body entry-content">
<div>The Housing Finance figures were released for February 2018 this week, reported as "Housing finance falls in February" (Australian), "Falls felt for February" (Rate City), and so on.</div>
<div> </div>
<div>Interesting interpretations, given that housing finance was...well, up!</div>
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<div>Anyway, having allowed a few days to elapse, here are four thoughts.</div>
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<div><strong><span style="text-decoration: underline;">1 - Loan sizes up</span></strong></div>
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<div>One less well reported thing that I picked up was the rise in the average loan size over the past year to non-first homebuyers. </div>
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<br><div>Across the states, Victoria has been the main driver of rising average loan sizes, although each of the most populous states has seen an increase over the year. </div>
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<br><div>As a result, owner-occupier commitments rose +1.3 per cent in February, and investor loans were up +0.5 per cent, taking total housing finance to a 6-month high of $33.52 billion.</div>
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<div>Drilling the trendlines through the data shows that total housing finance has essentially been flat for 15 months now, while a fair chunk of refinancing has been in evidence within that total.</div>
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<br><div><strong><span style="text-decoration: underline;">2 - First homebuyer incentives bite</span></strong></div>
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<div>Another notable trend was that first homebuyer loans were up by a third from a year earlier, driven by New South Wales, where the number of first homebuyers doubled from February 2017.</div>
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<div>Homebuyer commitments for new dwellings rose by +6.6 per cent from a month earlier, but are now in a trend decline from 4-decade highs. </div>
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<br><div><strong><span style="text-decoration: underline;">3 - Prevalence of non-banks</span></strong></div>
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<div>Thirdly, the trend result for non-bank lending declined in the month, and remains at only around half the peak levels of a decade ago, but will nevertheless remain a key point of interest as lending standards come into focus. </div>
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<br><div><strong><span style="text-decoration: underline;">4 - Royal Commission to slow lending</span></strong></div>
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<div>Overall housing finance beat expectations despite a small decline in the actual number of home loans. </div>
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<div>The Reserve Bank of Australia (RBA) noted in its Financial Stability Review that an average of $120 billion of interest-only loans per annum are <strong><span style="text-decoration: underline;">due</span> </strong>for conversion between now and 2021.</div>
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<div>Nothing unknown there, though some people misread that as $480 billion of loans that <strong><span style="text-decoration: underline;">will</span></strong> convert to principal repayments, which isn't going to happen.</div>
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<div>Elsewhere, Moody's reported 30+ day delinquencies at 1.45 per cent, down from 1.52 per cent a year earlier, despite some trouble spots including Gladstone, central Queensland, some suburbs of Perth, and other parts of Western Australia. </div>
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<div>A final point, and a key outcome to watch over the days and weeks ahead is the impact of the Royal Commission into banking misconduct.</div>
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<div>It seems that borrowers will now be required to be provide statements on all debts, a loophole closure which appears likely to be a wise move. </div>
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<div>However, there could be some overreach in terms of brokers needing to audit bank statements to support declared living expenses broken down by category, the aim being to reduce the typical reliance on benchmarks. </div>
<div> </div>
<div>There are many problem with this, not least that borrowers tend to have multiple bank accounts and credit cards these days with different banks.<br><br>Certainly private banking clients and affluent borrowers have never been subjected to such scrutiny, which may lead to some interesting discussions! </div>
<div> </div>
<div>Given that loans are already being assessed at mortgage rates way in excess of the rate actually being paid, it seems like overkill.</div>
<div> </div>
<div>If implemented forcefully this will slow the mortgage market and reduce transaction volumes as brokers and borrowers get to grips with the new requirements.<br><br>Mortgage brokers would presumably also need to consider switching to a fee-for-service model to compensate for the exponential increase in paperwork and compliance.<br><br>Regulators in the UK went through their own mortgage market review (MMR) in 2014 which ultimately lowered the risk of borrowers over-stretching and made the industry more professional.<br><br>The MMR also temporarily gummed up the lending market, so we'll have to see what plays out Down Under. </div>
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Royal Commission to slow property lending: Pete Wargent

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<p><span>EXPERT OBSERVER</span></p>
<p><span>Housing finance data from The Australian Bureau of Statistics (ABS) on first home buyer activity has generally shown that this segment of the market has been tracking at below average levels over recent years. </span></p>
<p><span>However, w</span><span>ith </span><span>each state and territory offering some level of incentive to first home buyers including grants and tax concessions, this segment is moving along quite nicely.</span><span><br></span></p>
<p><span>Nationally, there were 8,782 housing finance commitments in February 2018. Although the volume of loans was down on levels in late 2017, it was 33.1% higher than the previous February.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/national.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/4/19/national.jpg" alt=""></span></p>
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<p><span>As </span><span>a share of all owner occupier commitments, first home buyers accounted for 17.9% in February 2018 compared to 13.3% the previous year.</span><span><br></span></p>
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<p><span>Across </span><span>the individual states and territories, </span><span>we’re </span><span>seeing </span>several varying trends emerge – all likely due to activity across other buyer types in the market and how recently certain incentives have become available.</p>
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<p><span>Performance around the States:</span></p>
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<p><span>NSW: February 2018 saw 2,246 first home buyer housing finance commitments compared to 1,105 the previous year which is an increase of 103.3%. Since the end of June 2017, stamp duty concessions have become available and over the 8 months there have been 18,400 commitments compared to </span><span>10,857 over the previous 8 months. First home buyers now account for 15.1% of owner occupier finance commitments up </span><span>from 7.5% a year earlier. </span>The 15.1% is the greatest share 3,000 since October 2012.</p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/nsw.jpg" target="_blank">to enlarge.</a></p>
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<p><span>Vic: 2,619 finance commitments to first home buyers in </span>February 2018. The number of commitments was 38.6% higher than a year earlier. Vic also saw stamp duty exemptions go live on July 1 last year. From the end of June there have been 23,996 first home buyer commitments compared to 17,522 over the previous 8 months. First home buyers accounted for 18.3% of commitments compared to 13.9% a year earlier.</p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/vic.jpg" target="_blank">to enlarge.</a></p>
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<p><span>Qld: Over the month there were 1,839 first home buyer housing finance commitments. The number of commitments was only marginally higher from a year ago (+3.8%). First home buyers have been much more active over recent years than in NSW and Vic although, it should be noted investors have been much less active in the Qld market. First home buyers accounted for 19.3% of the market in February 2018 compared to 17.6% a year earlier. </span></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/qld.jpg" target="_blank">to enlarge.</a></p>
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<p><span>SA: In February 2018 there were 443 first home buyer housing finance commitments. Although the number was lower than those recorded late last year, it was 17.8% higher than the previous February. Despite house values being the lowest of any mainland capital city, SA has the lowest share of first home buyer activity of any state or territory with 13.0% of owner occupier commitments going to first home buyers, a year ago they accounted for a 10.5% share so they have risen a little. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/SA.jpg" target="_blank">to enlarge.</a></p>
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<p><span>WA: There were 1,185 first home buyer finance commitments in February 2018 which was -0.1% fewer than the volume in</span><span> </span><span>FHB No. (LHS) </span><span>February 2017. WA is the only state or territory in which there </span><span>were fewer commitments to first home buyers than a year ago. </span><span>Despite the fall in volumes, first home buyers account for </span><span>25.0% of all owner occupier housing finance commitments </span><span>compared to 22.2% a year ago.</span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/WA.jpg" target="_blank">to enlarge.</a></p>
<p><span><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/2018/4/19/WA.jpg" alt=""></span></p>
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<p><span>Tas: Over the month of February 2017 there were 137 first home buyer housing finance commitments which was 2.2% higher than the previous February. As a share of all owner occupier housing finance commitments, first home buyers account for 13.9%, up marginally from 13.8% a year ago. A common commentary is that a lot of younger people are moving to TAS to buy a home because they </span><span>can’t </span><span>afford one on the mainland. Although the number of first home buyers </span><span>rose over the year, they remain very low which suggests, at </span><span>least at this stage, first home buyers in TAS are not particularly </span><span>active. </span></p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/TAS.jpg" target="_blank">to enlarge.</a></p>
<p><a href="https://www.propertyobserver.com.au/images/2018/4/19/TAS.jpg" target="_blank"><span><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/2018/4/19/TAS.jpg" alt=""></span></a></p>
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<p><span>NT: While 52 first home buyer commitments in February 2018 is quite a low number, it is 26.8% higher than the previous year despite a sharp monthly fall. As a share of all owner occupier commitments, first home buyers account for 19.4% compared to 14.7% a year earlier however, the share is currently trending lower. </span></p>
<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/NT.jpg" target="_blank">to enlarge.</a></p>
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<p><span>ACT: The 261 first home buyer housing finance commitments </span>in February 2018 was a 177.7% increase in the number from the previous year. As a share of all owner occupier commitments, first home buyers accounted for 25.6% in February 2018 which was the highest share since October 2009.</p>
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<p>Click here <a href="https://www.propertyobserver.com.au/images/2018/4/19/ACT.jpg" target="_blank">to enlarge.</a></p>
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<p><span>The latest trends in first home buyer activity highlights the </span>sensitivities of this important market segment to both affordability constraints as well as market incentives such as first home buyer grants and stamp duty concessions.</p>
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<p>Despite overall slowing conditions in Sydney and Melbourne, the CoreLogic home value indices results show that the more affordable end of the housing markets in these cities as still seeing values rise and likely generated by first home buyer activity.</p>
<p>In other cities where affordability constraints are less severe, in the absence of any changes to first home buyer incentives, first time buyers generally remain more active relative to Sydney and Melbourne.</p>
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<p><span>With </span><span>demand from the investment segment expected to continue to be weaker than it has over recent years, this may afford more opportunities for first home buyers to enter the market.</span><span><br></span></p>
<p><span>Outside </span><span>of the two largest cities, first home buyer volumes </span><span>may lift over the coming months due to ongoing low mortgage rates and relative affordability compared to Sydney and</span><span> </span><span>Melbourne. In fact, the outflow of people from NSW to other states and territories is continuing to rise which may result in </span><span>increases in first home buyers elsewhere.</span><span><br></span></p>
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<p><span><em><span>CAMERON KUSHER</span> is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/"><span class="s2">here</span></a>.</em></span></p>
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First home buyer levels tracking below average levels for years

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<div>SQM Research reported its always-excellent vacancy rates index today for the month of May 2018, with vacancy rates nationally at 2.1 per cent, down marginally from 2.3 per cent a year earlier. </div>
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<div>And the figures showed a fifth consecutive decline for vacancies in Brisbane.</div>
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<div>Brisbane's city-wide vacancy rate was down to 2.9 per cent, from 3.5 per cent a year earlier. </div>
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<div>This accords well with what we've been seeing on the ground in Brisbane.</div>
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<div>Indeed, family-appropriate dwelling stock is now often renting at the first open home, with numerous instances of multiple offers and rentals achieving above the asking price. </div>
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<div>There are still some notable pockets of pain, of course, most evidently in the inner-city high rise 'investor stock', where rental guarantees mask what is often optimistically pitched product.</div>
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<div>There are also more high-rise units in the post for the CBD, with the SkyTower construction now well underway. </div>
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<div>Generally speaking and across the city, however, the rental market is rebalancing as construction slows, thanks to positive interstate migration and somewhat pacier net overseas migration, and is in better nick than a year earlier.</div>
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<div>Plotted below are the vacancy rate figures by capital city smoothed on a 6mMA basis (not seasonally adjusted). </div>
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<div>As you can see, while Brisbane has now turned a corner, Sydney is now experiencing a high rate of unit completions with considerably more new apartment stock choice for renters. </div>
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<div>Sydney's vacancy rate of 2.5 per cent was well up from 1.7 per cent in May 2017. </div>
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<div>Elsewhere, Perth is grinding its way back from its punishing rental market nadir (please don't email about terminology: if you don't like it substitute with an antonym; it's really not that difficult!), while Hobart remains a tight rental market despite a slight loosening year-on-year.<br><br>It will be interesting to see at what point rising prices in Hobart spark a significant supply response, in what is a relatively small city, though some developers are reluctant to stray from the mainland due to the additional logistical challenges. </div>
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<div>Melbourne's vacancy rate was the same as it was a year earlier at just 1.4 per cent, despite hectic rates of dwelling construction. </div>
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<div>The Adelaide rental market has generally been tightening for some time now.<br><br>And finally, Canberra's rental vacancies have plummeted since the experiment with housing taxation, and it remains to be seen when a new rental market equilibrium is reached. </div>
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Brisbane rental guarantees mask optimistically pitched apartment product: Pete Wargent

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<div>The Reserve Bank released its Board Meeting Minutes today for June 2018. </div>
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<div>I noted the other day that there was an addition in June relating to declining mortgage rates on outstanding loans. </div>
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<div>It was interesting to note that in today's release the wording was given a little tweak to add a bit more clarity, suggesting that mortgage rates on new housing are no longer falling. </div>
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<div>There was a bit of discussion about the positive impacts of immigration on the ageing population.<br><br>Australia has experienced strong population growth over the past decade.<br><br>Thanks to young migrants, notably the median age had declined in New South Wales and Victoria.<br><br>There was a murmur of excitement due to there being no direct reference to the next move in rates being up.</div>
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<div>Not sure I'd read too much into that personally, although currency markets flickered a little!</div>
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<div>There was also a reference to wages being 'low and stable' which isn't wording that exactly screams imminent tightening, although there is reportedly some evidence of wage pressures in parts of the economy. </div>
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<div>In any event, reality is dawning on financial markets, with RBA meeting overnight indexed swaps looking increasingly skinny and now not pricing in a hike until 2020. </div>
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<div><em><span style="text-decoration: underline;">Source: Martin Whetton, ANZ</span></em></div>
<p><br><span>And a lot might change between now and 2020 - including the government.</span><br><br><span>As you were.</span></p>
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