<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.

The sale equates to around $37,500 per sqm.

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.

Selling agent Freddie Tehle of PRD Burleigh Heads said the result reflects tightening supply of high-quality, large-format apartments in Burleigh.

“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.

“Buyers are increasingly seeking apartments that genuinely replace a standalone home, and this penthouse delivers that with its size, privacy, and direct ocean frontage.”

[smartcode_project:default project_id=146358 project_image_fid=323057]

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.

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.

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.

“Real estate, particularly at the premium end, remains one of the most resilient and proven long-term investment avenues,” Mould said.

“Our ambition is that anyone who buys a MAYD-built product can genuinely feel the care, craftsmanship and commitment we bring to every detail.”

[smartcode_project:default project_id=146358 project_image_fid=323055]

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.

Interior designer Sici Design said the approach was to reflect the project’s coastal setting through both materiality and spatial planning.

“ONE Burleigh is our vision of luxury living, designed to bring the essence of Burleigh Heads' vibrant coastal beauty into an unparalleled residential experience.”

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.

[smartcode_project:default project_id=146358 project_image_fid=323052]

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.

Mould said the design intent was to balance that outlook with a sense of retreat.

“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.”

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.

[smartcode_project_cta:default project_id=146358]

Joel Robinson

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

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.

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.

[smartcode_project:default project_id=110588 project_image_fid=5346]

It was a strategic move for Big Projects to bring in a Sydney eye to the development.

“Our role is to give our design partners the space and freedom to explore,” says Matt Barrett, Director of Big Projects.

“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.”

There are only 39 apartments in The Frederick, including a striking beach house, just 100 metres from the booming Nobby Beach precinct.&nbsp;

[smartcode_project:default project_id=110588 project_image_fid=5347]

Yasmine Ghoniem, Director of YSG Studio, says their vision&nbsp;for The Frederick "reinvents coastal living."

“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.

"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.”

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.

[smartcode_project:default project_id=110588 project_image_fid=5360]

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.

“The rooftop was conceived as a collection of spaces where residents can unwind and connect, an extension of the Nobby’s lifestyle,” Barrett says.

Architecture for the project was led by Plus Architecture, with landscape design by LDG.

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.

"They’ve reviewed a number of projects, however this one has stood out for its design flair/ appeal,"&nbsp;Clydsdale says.

Site demolition is slated for this month, with construction commencing soon after. Big Projects is targeting a late 2027 completion.

[smartcode_project_cta:default project_id=110588]

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

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;

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;

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;

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;

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;

<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" />

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;

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;

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;

ALTA Property was launched by Nigel Givoni in 2023, bringing over 25 years of experience in multi level residential delivery.&nbsp;

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;

<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" />

For ALTA Property Founder Nigel Givoni, this performance speaks to the confidence he has in the Melbourne market.&nbsp;

“Queens Road represents a rare opportunity to continue to shape our presence in the Melbourne market.,"&nbsp;Givoni says.

"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.

“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."

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.

"We are really looking forward to the market’s response,” he said.&nbsp;

ALTA Property to deliver $200 million Queens Road apartment tower

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.

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.

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.

[smartcode_project:default project_id=150128 project_image_fid=366285]

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.

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.

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.

[smartcode_project:default project_id=150128 project_image_fid=366277]

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.

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.

[smartcode_project_cta:default project_id=150128]

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

A rare new apartment development has been proposed on the fringe of St Ives Village.

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.

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.

<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" />

“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.

“This palette references the established materiality of the suburb while elevating it through refined finishes to achieve a more luxurious architectural expression.”

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.

The proposal would replace two single-storey brick buildings currently on the site.

<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" />

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.

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.

NewQuest, a construction, design and development firm, has delivered over 24 projects across commercial, residential, industrial, and lad markets.&nbsp;

&nbsp;

&nbsp;

First look: NewQuest Property proposes new St Ives apartment development

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.

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;

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.

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.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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" />

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

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.

<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" />

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.<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" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

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;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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SPONSORED POST
As the latest Census results show, the strong shift towards apartment living in Australia continues, particularly in the major capital cities. A growing proportion of people are prioritising access to jobs and local amenity over the traditional Aussie dream of the big backyard.
<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/dwelling-structure-type.jpg" alt="">
Medium and higher density housing now makes up 26% of all Australian housing. In Sydney, this figure is even higher (42.1%).  Source: ABS 
At the same time, architects are continuing to push the envelope in apartment design. Over the last 10 years, apartment design has changed dramatically – and decidedly for the better, according to one of Australia’s leading multi-residential architects, Callum Fraser, Director at Elenberg Fraser.
<div id="attachment_6627" class="wp-caption alignleft">
<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/2017/08/callum-fraser.jpg" alt=""> Callum Fraser, Director, Elenberg Fraser
“Apartment buildings have become better for you than houses. They foster a richer community with a greater sense of belonging. They deliver this through active social groups and extensive facilities. Residents now have a plethora of unique spaces – karaoke rooms, private dining rooms, cellars, lounges, meditation areas etc – that deliver a more engaged and active life. “They now help us live longer and better – they are the future,” said Mr Fraser.
</div>
With demand for apartment living increasing, it is important to understand how to select the right property, with the right features to cater to today’s tenants/owners, and tenants/owners of the future.
<h4>So, how do you spot an apartment of the future? </h4>
<h4>“New apartment buildings create lighter, brighter and infinitely more liveable spaces that are so much more appealing and alluring than previous “box” type living offered by apartments of previous decades,” said Ironfish Property Director, Grant Ryan.</h4>
“There are 3 major transformative design themes that best summarise why this dramatic shift has resulted in growing demand for liveable buildings with the “cool” factor.”
1. Stunning Glass Facades
Most of the best buildings feature less brick and concrete in favour of more glazing. This design choice greatly enhances the building both externally in terms of aesthetics, and internally in terms of light and liveability. Residents enjoy unobstructed views via a floor-to-ceiling window from inside their apartment and interesting glazed external surface finishes add further light and texture.
Melbourne-based Elenberg Fraser architects were early adopters of bringing glazing manufacturing technology – previously dedicated to commercial buildings – into the residential space. The firm’s expertise in this area is now being utilised to deliver nearly half of all the apartments under construction or nearing completion in Melbourne.
<div id="attachment_6635" class="wp-caption alignnone">
<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/2017/08/Lighthouse.jpg" alt=""> Light House, designed by Elenberg Fraser architects, is a landmark building in the heart of Melbourne. Its innovative kaleidoscopic glass facade also helps to maximise natural light and ventilation, whilst carefully balancing privacy and views inside the apartment.
<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/St-Julien-glass.jpg" alt="">
</div>
<div id="attachment_6644" class="wp-caption alignnone">
St Julien Residences, developed by ARIA Property Group, feature floor to ceiling glass.
2. Designer Facilities
Gone are the days where there was either no resident amenity or just a pool and a small gym. The trend of increased facilities is here to stay through unwavering demand from residents for more luxurious, social and useful spaces that are an extension of residents’ own apartments.
</div>
Private dining rooms and cinemas for residents to book and use for parties, libraries and reading zones, BBQ areas, garden breakout spaces and resort style pools are now giving fresh reasons for people to live in new apartment buildings.
<div id="attachment_6647" class="wp-caption alignnone">
<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/FV-pool.jpg" alt=""> The stunning wrap-around roof-top infinity pool at FV, Fortitude Valley
<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/FV-cinema.jpg" alt="">
</div>
<div id="attachment_6648" class="wp-caption alignnone">
Gurner’s lavish FV apartment development or “urban resort” in Brisbane includes over 2,500sqm of communal spaces for residents, including a cinema, 4 pools, yoga studio and private dining areas.
Leading developers and architects are now putting a lot of additional thought into the “arrival experience” of residents into a building. Lobbies are being designed to exude an enhanced sense of luxury, intimacy and community.
</div>
Buildings that feel like a 5-star hotel in terms of style while providing the comforts of a home are particularly in vogue, and will have sustainable long-term appeal to current and future owners.
<div id="attachment_6649" class="wp-caption alignnone">
<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/Melbourne-village-lobby-e1504162325201.jpg" alt=""> The Melbourne Village apartment building lobby offers the experience of a high-end hotel at home, complete with concierge.
<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/2017/08/oxley-stirling-e1504162265345.jpg" alt="">
</div>
<div id="attachment_6650" class="wp-caption alignnone">
The lobby at Oxley &amp; Stirling, located in South Brisbane, and other shared spaces within the building were designed by Elenberg Fraser architects to echo the glamour of days gone by.
However, according to Mr Ryan, it’s important to note that this trend is not consistent across all buildings, locations and developers, as some have embraced it more than others and quality varies extensively.
</div>
“My observations, having reviewed projects nationally over the past decade, are that these trends were born out of Melbourne’s edgier and more adventurous architectural environment. And in a social media world – and the fact that many local and overseas developers have been expanding into developing across multiple capital cities and states – the trends have naturally expanded and now feature prominently across the major capital city markets,” he said.
In the April 2017 JLL Brisbane Apartment market research report, it states:
“Projects with a point of difference such as superior ground floor retail, finishes or resident amenity continue to outperform the wider market.”
These are key aspects buyers need to take into consideration when making their purchasing decisions.
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jrobinson-rf4aSBido9

What you need to know about new apartment trends

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Georg Chmiel chats with Harcourts co-owner Mike Green about secrets for real estate investing.
One of the most charming and gregarious people in the real estate industry calls himself an introvert. But what will really surprise you about Harcourts MD Mike Green is the job that he sought before becoming an agent and what he has to say about investing in apartments. 
Green is co-owner of international real estate network Harcourts – a New Zealand native who made the hop to Brisbane (for the weather) and has since conquered not only Australia but nine other countries as well. 
We will get into Green’s secrets for real estate investing, but first let’s look at how he climbed the business ladder. He got into real estate purely by accident.  
“I was looking through the newspaper for a job, having just left university” he says. “I applied for a job washing cars in a car yard, and the guy turned me down.” 
That rejection sent Green back to the employment classifieds (remember those?). Eventually, he talked his way into his first property job at 19 as a real estate sales consultant with no experience and only one year of university. He hasn’t looked back since.
Does he still pine for the missed opportunity to wash cars all day long? I didn’t ask him, but I imagine not.
“I went into a profession that I just clicked with,” he told me. “I love the freedom of it, the impact you can have on people’s lives. Eventually, my wife Irene and I opened our own Harcourts franchise. Now (Harcourts Chairman) Paul Wright, Irene and I are the owners of the Harcourts international franchisor.”
Green’s secrets to success in business are available to anyone. “The reality is,” he says, “if you hang around long enough, you end up at the top — as long as you don’t do anything stupid and don’t annoy people.”
I have managed hundreds of people in my career and, as simplistic as it sounds, this advice is actually quite profound.
DISRUPTON
Green runs a major international real estate agency network with more than 900 offices in 10 countries. Is he worried about losing it all to a tech giant like realestate.com.au, purplebricks.com or Google? 
Not a bit.
“The only thing we need to worry about is disrupting ourselves by not delivering value,” he told me. Selling a home “is such an emotional and traumatic experience. Our clients actually want an advisor to help them through the process. It’s very hard to disrupt when you have hundreds of thousands of people on the ground doing just that.”
But Green did admit that there are still risks. No real estate company has a monopoly. 
“If we don’t add value to clients we will disappear like so many other companies in other industries have.”  
COUPLES
For Green, one of the benefits of a career in real estate has been the opportunity to work alongside his wife Irene, who is herself extremely successful in the industry in her own right. 
“Irene and I have worked together for nearly 30 years,” he said, “and it certainly creates its own unique challenges. You never stop talking about the business. It’s a really dangerous place to be when your wife technically reports to you, which was the case for a very short period of time.” 
After all, we all know who the real boss is…
That said, Green encourages other couples to consider a property career, as long as you can “keep a sense of humor and understand that, while the business is important, the relationship is far more important.”
WHAT SHOULD FIRST BUYERS DO?
Now, let’s get to Green’s advice for first-time buyers who are in a tough position because of high prices. 
“Government is more attuned to first-home buyers now,” he says. “Study up on the available first-home buyer grants and other incentives available.”
You should choose a “good property that can be readily resold and has a wide market appeal. What they say about location is very true. If you buy in a good location you will always be fine in the long term.”
And watch out for interest rates, which are still at historic lows. “Reality says that will change,” advises Green. “You should say, ‘Hey if the rates go up two percent or three percent, will I be OK?’ 
“Also factor in starting a family. If you have to live on one income, how will that look?”
ADVICE FOR INVESTORS
Green advises property investors to play it safe, too. His preferred investment is a three-bedroom home on a little bit of land and with a garage.
“They are very easy to rent, and if you need to sell they sell easily. Some investors look for houses that have been split up for multiple revenue streams, but those are harder to sell. They only appeal to other investors. If you are under pressure and need to sell, chances are other investors will be, too.”
Green made a 38% profit on his first investment home after only two and a half years. It had cost him NZ$29,000. Today, the same home is worth as much as NZ$1.8 million. 
Now, about apartments. While Green lives in one for the care-free lifestyle it affords, he doesn’t recommend apartments as an investment.
“They don’t perform as well in terms of rental return or capital gain. I’d recommend you spend a bit more and buy a three-bedroom house.”
Green firmly believes property investors today can still leverage a small amount of capital into a large and successful portfolio that eventually lets them live off their earnings. His own sons and a number of their friends are following just this strategy.
“I think you can do it today,” he said. 
“You have got to be a bit careful because there is more money involved. But as rents and capital gains grow and the mortgage is paid down, you are building wealth. Property will never be cheaper than it is today!”
Georg Chmiel, the chairman of Juwai, a Chinese website for buyers of overseas property, was speaking to Mike Green in what will be a monthly insight into the leading minds of Australian property experts.
He has spoken with LJ Hooker agent Bill Malouf about the ins and out of the Sydney market and REINSW president Leanne Pilkington about women in real estate.
He most recently spoke with Melbourne property developer Larry Kestelman about developing your first property.
 
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Georg Chmiel chats with Harcourts boss Mike Green on real estate investment secrets

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<div>EXPERT OBSERVER</div>
<div> </div>
<div>An intriguing set of building activity figures as ever for the March 2018 quarter. </div>
<div> </div>
<div>The most interesting point of note was how thousands of building approvals in the Victorian pipeline were kicked off as dwelling starts in the first three months of the calendar year (recall how Melbourne saw nearly 10,000 townhouses and apartments approved in only a two-month period in October and November last year).</div>
<div> </div>
<div>In New South Wales, on the other hand, there are more houses and apartments approved but not yet commenced than ever before, as developers grapple with tighter financing and languishing apartment pre-sales. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-IBA7-WMHTY8/W0V1rvQfoZI/AAAAAAAArAE/uj3Kf3OMkg82lMDyY8usAtL_kner9f9igCEwYBhgL/s640/BA3.jpg" width="640" height="360" data-original-height="783" data-original-width="1389"></div>
 
<div>Following on from the above, there was a near-explosion in the number of quarterly dwelling commencements in Victoria, to a seasonally adjusted 22,150, well over double the equivalent figure from a decade earlier. Melbourne's population growth has been tracking at record highs, and demand for housing is high.</div>
<div> </div>
<div>This alone was significant enough to send the national trend for dwelling commencements northwards. </div>
 
<div class="separator"><img src="https://4.bp.blogspot.com/-JmNI8sM0-qc/W0V1s90dimI/AAAAAAAArAI/9cEGyLHhx3ApESqUvmIQ9VNP2Ny2qaXaACEwYBhgL/s640/BA5.jpg" width="640" height="392" data-original-height="804" data-original-width="1310"></div>
 
<div>In Queensland more houses are being commenced in response to strong demand from interstate migrants, but the number of attached dwelling starts continues to moderate as the Brisbane apartment market rebalances. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-BIMygTTR1rg/W0V1sDgFn7I/AAAAAAAArAI/kBXZooy2BQQxTdc9h7P2ikm31-d-5uF1ACEwYBhgL/s640/BA4.jpg" width="640" height="374" data-original-height="790" data-original-width="1350"></div>
 
<div>Pipeline is enormous</div>
<div> </div>
<div>The number of residential dwellings units under construction also increased as a result of the Melbourne building boom to more than 224,000, a record high.</div>
 
<div class="separator"><img src="https://3.bp.blogspot.com/-93XBQZlcR8Q/W0V1rWumBwI/AAAAAAAAq_k/WE_s0iLsrJM_prad2slt7pILMs7kag7NACLcBGAs/s640/BA1.jpg" width="640" height="376" data-original-height="785" data-original-width="1336"></div>
 
<div>You can also see the leap in Victorian attached dwellings under construction to a record level, while Sydney completions are now finally raining in, which should result in a spike in vacancy rates in the harbour city as the year rolls on. </div>
 
<div class="separator"><img src="https://4.bp.blogspot.com/-iLo-uVMONQA/W0V1rqS_n-I/AAAAAAAAq_o/UBeacRrqL74NiZEC1WXR7wIxlJL6UMiAwCLcBGAs/s640/BA2.jpg" width="640" height="378" data-original-height="801" data-original-width="1351"></div>
 
<div>Both the value of building work to be done ($71.4 billion) and total building work in the pipeline ($95.8 billion) are at all-time highs in current prices terms. </div>
<div> </div>
<div>The big question mark is how many of the buyers of off-the-plan apartments will be unable to settle, especially if more valuations at settlement start to come in at under the contract price. </div>
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Melbourne's population growth at record highs makes for strong demand for housing: Pete Wargent

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EXPERT OBSERVER
In previous instances when value growth has slowed or started to fall in Sydney and Melbourne the experience has often been that value growth has ramped-up in other capital cities. This makes sense given that as affordability deteriorates in certain areas of the country people start to turn their attention elsewhere.  
This week’s blog takes a look at the comparative value of housing in other capital cities and nearby markets relative to in Sydney and Melbourne.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg1.png" alt="Dwelling value premium in Sydney relative to other capital cities" width="584" height="191">
  Sydney is the nation’s most expensive capital city housing market currently with the median dwelling value in June 2018 recorded at $870,554. The premium for the median dwelling value in Sydney relative to the other national capital cities is: 21% for Melbourne, 76% for Brisbane, 98% for Adelaide, 89% for Perth, 99% for Hobart, 101% for Darwin and 48% for Canberra. With dwelling values in Sydney now falling, the premium is reducing however, the cost of housing in Sydney relative to other capital cities is generally significantly higher than the long-term averages. In fact only Melbourne (42%) and Hobart (103%) have a current differential which is lower than the long-term average.
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg2.png" alt="Dwelling value premium in Sydney relatice to Regional NSW areas" width="592" height="194">
  Of course, people that potentially migrate out of Sydney don’t necessarily only choose to go interstate, they may also migrate intrastate. The above chart highlights the value differential over time between Sydney and those regions adjoining the city as well as the Capital Region (adjoining Canberra) and Richmond-Tweed (adjoining South-East Queensland). The premium for Sydney dwellings compared to those in the other regions highlighted is currently: 105% for Capital Region, 176% for Central West, 113% for Hunter Valley exc Newcastle, 29% for Illawarra, 52% for Newcastle and Lake Macquarie, 64% for Richmond-Tweed and 47% for Shoalhaven. Although values have increased in regional NSW over the past year, the rate of growth has slowed substantially, particularly within Illawarra, Newcastle and Lake Macquarie and Southern Highlands and Shoalhaven. These three regions have been seeing strong value growth over the past five years and they are also the only three regions in which the value differential is lower (substantially so) than the long-term average.
<a href="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg3.png" target="_blank">Click</a> to enlarge
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg3.png" alt="Dwelling value premium in Melbourne relative to other capital cities" width="590" height="193">
  Looking at the value differential between Melbourne and other capital cities, except Sydney, Melbourne’s median dwelling value of $716,774 is higher than all other capital cities. The premium for Melbourne is currently recorded at: 45% for Brisbane, 63% for Adelaide, 55% for Perth, 64% for Hobart, 65% for Darwin and 22% for Canberra. The value differential for Melbourne to all these capital cities is greater than the long-term average. In fact, notwithstanding the recent slight reductions due to Melbourne value falls, the value gap between Melbourne and Brisbane, Melbourne and Adelaide and Melbourne and Darwin is the largest it has ever been.  
<img src="https://www.corelogic.com.au/sites/default/files/2018-07/2018-07-23-blogimg4.png" alt="Dwelling value premium in Melbourne relative to Regional Vic areas" width="590" height="193">
  The above chart looks at the dwelling value premium for Melbourne relative to the major regional areas adjoining the capital city. Melbourne retains a significant premium in terms of housing costs relative to these areas. What is very different to what was shown in the chart for Sydney and Regional NSW areas is that outside of Geelong, the housing cost premium in Melbourne remains well above the long-term average. This suggests that while value growth has been rippling out of Melbourne to Geelong for some time, it has only just started to spill-out into the other three regions recently.  The current premium for Melbourne dwellings relative to the other regions is: 99% for Ballarat (80% long-term average), 100% for Bendigo (74% long-term average), 29% for Geelong (40% long-term average), 123% for Latrobe-Gippsland (89% long-term average). 
There are some explainable reasons why dwelling values in Sydney and Melbourne have risen so substantially over recent years. These include but are not limited to: strong rates of migration to the cities, dramatically increased foreign investors, low mortgage rates, increased demand from investors and much stronger economic conditions than elsewhere in the country. The latest data shows a pull-back in net overseas migration, slowing interstate migration to NSW and Vic, foreign investment has reduced, fewer local investors and reduced availability of credit for housing despite still low mortgage rates. Sydney and Melbourne still have comparatively strong economies but we have started to see the economic performance elsewhere improve. Sydney and Melbourne have also seen a dramatic reduction in housing affordability over recent years as dwelling values have increased much faster than household incomes. The value gap between Sydney and Melbourne and other regions doesn’t necessarily mean that value growth will pick-up elsewhere where dwelling values are much lower. However, if other areas of the country can improve their economic performance, the lure of much more affordable housing may be enough of a lure to see an increasing number of Sydneysiders and Melbournians to migrate away from these two cities to other areas of the country.
Cameron Kusher is a property research analyst for CoreLogic
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Value differential of different capital cities in Australia over the years: Cameron Kusher

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EXPERT OBSERVER
Two years ago I researched media predictions about residential property and compared the forecasts with subsequent outcomes.
It showed the remarkably bad track record of spruikers, economists and attention-seekers in forecasting what will occur in our markets nationwide. 
Over the past 15 years or so, it’s become trendy to make doomsday forecasts about real estate. A popular number is 40 percent - i.e. the standard scary prediction is a 40 percent drop in our property values, usually tipped to take place in the next 12 months.
Every single one of these forecasts has been proven spectacularly wrong – not surprisingly, because most of them have been fanciful in the extreme and I’m quite certain that the forecasters themselves did not believe what they were saying. The goal has been to achieve some quick and easy publicity. 
Out of this research exercise I compiled a list entitled “Top 20 worst predictions about Australian property markets”.
No.1 on this list was a US spruiker called Jordan Wirsz (don’t feel bad if you’ve never heard of him) who visited Australia in 2012 and forecast a 60 percent fall in home values in a “bloodbath” to take place in the next year. He also tipped that land values would decline 90 percent.
Can you imagine that? He was claiming that our residential land would be virtually worthless. 
Nothing remotely like that has ever occurred in the history of planet Earth and it’s difficult to comprehend why anyone would think it could happen in Australia.
The most amazing thing was that Australian media gave these predictions credibility and gave the touring spruiker exactly what he wanted – lots of free publicity.
What followed this prediction was five years of major price increases in our two biggest cities and mostly steady markets in the rest of Australia.
Another US pontificator, Harry S Dent, has visited Australia several times in the past seven years and each time – including in 2011 and 2014 – has warned that our property prices would crash in the next 12 months.
Each time Australian media has treated him as a credible commentator, with oodles of free profile, notwithstanding his growing track record of getting his forecasts about our real estate markets utterly wrong. I’m sure that next time he visits the same will happen again.
My Top 20 list also includes local economists who have made similar predictions within specific time frames, with the same success rate.
Some have claimed that our homes are over-valued according to their favoured economic model and therefore prices must fall. Others have stated that, back in the days of rising interest rates, that the higher cost of money would cause a collapse of property values.
The head of one of our major banks said in 2011 that the sovereign debt crisis in Europe would force down our property values, only to be followed by several years of strong price rises.
One high-profile and much-quoted Australian economist declared in 2005 that there would be no growth in our home values for the next 10 years. Ouch.
Also on the Top 20 list are commentators who rushed – in 2013 and 2014 - to be the first to declare the end of the price boom in Sydney and Melbourne. 
One of them was a senior official at the Reserve Bank, while another was a Morgan Stanley analyst who famously said, about three years too early: “If you’re an investor, you’ve missed the boat.”
So now we have the notorious 60 Minutes debacle, with yet another forecast of property values falling 40 percent, based on nothing but a pre-conceived notion to boost ratings.
I note that virtually every independent commentator who has reacted on the 60 Minutes program has said that the forecast scenario was highly unlikely or plain silly. Even the key analysts featured on the Channel 9 program have claimed that their views were misrepresented through selective editing. I spoke to one of those who was featured on the program and he was horrified at the outcome.
I was approached by 60 Minutes in mid-August to take part in the program. But they dropped the planned interview when I told them I disagreed with their basic premise of collapsing property markets.
This is not how journalism is meant to work. In true journalism, you do your research and conduct your interviews - and then you come to some conclusions and decide your headline. 60 Minutes did it backwards by deciding the headline and then seeking comment that supported it.
I complained to the ABC television program Media Watch and last week they did a segment pointing out the many flaws in the 60 Minutes segment.
I’m sure the 60 Minutes program will feature prominently next time I update my Top 20 Worst Predictions list, with the same level of success as the many doomsday forecasters who have preceded them.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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The 20 worst crash predictions about the Australian property market: Hotspotting's Terry Ryder

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EXPERT OBSERVATION
Australia is moving through the peak of an unprecedented boom in apartment construction.
Over the twelve months ending March 2018 there were almost 97,000 medium to high density dwellings that completed construction across Australia; a year earlier there were 105,300 projects that finished construction (84% higher than the decade average).
As at March of this year there were still 155,275 medium to high density projects still under construction.
The majority of this construction work has been centered around the inner city areas of our largest capital cities, so it shouldn’t come as a surprise that population densities have surged higher across many inner city areas of our largest cities.
Based on an analysis of population data at the SA2 level (an SA2 region is a standard geographical classification roughly the size of a suburb in the cities or a town in regional areas), the highest density area in Australia is now Melbourne.
45,231 people reside within the 2.4 square kilometre area, equating to a population density of just over 19,100 people per square kilometre.
The population of the area has increased from 7,644 in 2001 – an increase of almost 500% over 16 years.
Apartment values in the area are relatively low with a median of $444,000, providing a relatively low cost entry point to a housing market located right in the middle of one of Australia’s largest working populations.
Back in 2001, the Melbourne SA2 region ranked 114th in the country with a population of only 3,229 and a population density of 7,644 persons per square kilometre.
Potts Point – Woolloomooloo showed the highest population density, followed by Surry Hills.
In fact, back in 2001, the top 12 areas of highest population density were all located in Sydney, with St Kilda East recording the highest population density outside of Sydney (6,259 people per square kilometre).
The 20 most densely populated areas of Australia are all confined to Sydney and Melbourne. Fifteen of the top 20 areas are in Sydney and five are in Melbourne.
While high density living may not be everyone’s cup of tea, it makes sense for many, especially for students and young professionals who work and play in and around the city centre.
Focusing on the Melbourne SA2 area again, two thirds of the resident population are aged between 20 and 34, with the most significant age group being 20-24 year olds (31% of the population).
High density living generally involves less time commuting, lower housing prices and plenty of choice for amenities.
Of course there are going to some downsides to high density living, like the potential for noise pollution, tight living spaces, elevator congestion at peak times, overcrowded or poorly maintained communal areas and limited access to green space.
The latest small area population numbers from the ABS are already a year old, and, considering the record number of apartments under construction across Australia, our inner city areas are going to increase in density further from here.
Densification makes sense from a town planning perspective – it reduces urban sprawl and the necessity to continually invest in transport infrastructure linking the outer fringes of the cities.
From a livability perspective, some people will thrive in a high density environment, while others will crave the peace and quiet of the burbs. Lucky Australia has such as broad range of housing options.
<a href="https://www.propertyobserver.com.au/images/2018/10/4/density%201.jpg" target="_blank">Click to open in new window</a> 
<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/2018/10/4/density%201.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2018/10/4/density%202.jpg" target="_blank">Click to open in new window</a>
<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/2018/10/4/density%202.jpg" alt="">
TIM LAWLESS heads up the CoreLogic RP Data research and analytics team and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
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The highest density living options in Australia: Tim Lawless

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<a href="http://petewargent.blogspot.com/2018/10/highway-jobbery">E</a>XPERT OBSERVER
<div>A year ago annual infrastructure project activity was forecast to peak at about $16 billion in 2019.</div>
<div> </div>
<div>But the government has anticipated the slowdown in apartment building and will use borrowed funds to plug the gap. </div>
<div> </div>
<div>Now the peak for infrastructure build is forecast to hit 3 years later and some 40 per cent higher at more than $22 billion across a raft of billion-dollar projects. </div>
<div> </div>
<div><img src="https://3.bp.blogspot.com/-gUfoi6QR7pY/W7m2cmgjQFI/AAAAAAAAsP8/cEKF4XF9oA0t8XZ6D-DMS82o1EX_L8OdACLcBGAs/s640/IA.jpg" width="640" height="416" data-original-height="759" data-original-width="1166"></div>
<div> </div>
<div>High-rise apartment construction, then, is set to be replaced by roads, rails, tunnels...and the odd level crossing removal.</div>
<div> </div>
<div>The obligatory cost overruns will also help spur the economy, of course. The Coalition love is free, and the freeway's long!</div>
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Infrastructure extended by government spending: Pete Wargent

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<div>EXPERT OBSERVER </div>
<div> </div>
<div>The latest available ABS figures show Australian capital city house and apartment prices 1.4 per cent below their December 2017 peak, albeit they've actually increased in Brisbane, Canberra, Adelaide, and Hobart. </div>
<div> </div>
<div class="separator"><img src="https://3.bp.blogspot.com/-Ya6Qb4aMVDo/W7zbQNm3zeI/AAAAAAAAsTE/y8JxatkGg3w13NZvQs7m5BCv0gMbGAgKQCLcBGAs/s640/A3.jpg" width="640" height="366" data-original-height="801" data-original-width="1394"></div>
 
<div>One market - Sydney - did experience a wild buying frenzy in the first quarter of 2017, forcing some (required) action from the regulator, since which time house prices have declined by 4 per cent and apartment prices 3 per cent on the ABS index, with further declines set to follow in H2 2018.</div>
<div> </div>
<div>I was an agog observer at some of those Q1 2017 Sydney auctions, and concluded at the time that the successful frenzied bidders could only be cash buyers or downsizers, as there's no way the bank vals could've passed otherwise. </div>
 
<div class="separator"><img src="https://1.bp.blogspot.com/-2ntZXNGLaWs/W7zbQJSQIGI/AAAAAAAAsTI/BZ1aa3jjXJMq3wxKbudU9W-oJmswhO2vwCLcBGAs/s640/A4.jpg" width="640" height="350" data-original-height="798" data-original-width="1459"></div>
 
<div>Very few leveraged buyers would've bought in that narrow window before the froth was blown off, then, but if there's a cohort that will feel the pain of the market responding the tighter lending standards signal it's off-the-plan buyers of new CBD apartments. </div>
<div>
 Although not overly familiar with Western Sydney I also witnessed some wild prices being paid for weatherboard renovators and fibro shacks, although all that seems to have calmed down now. </div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
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Australian housing off the peaks: Pete Wargent

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Over recent weeks, auction clearance rates across the nation’s two largest housing markets (Sydney and Melbourne) have been significantly lower than they were 12 months ago however, they haven’t necessarily been all that much lower than the previous years.  While comparing auction volumes and clearance rates to a year ago is valuable, it is much more valuable to look at how these metrics compare across a number of years.
<h3>Melbourne</h3>
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg1.png" alt="2017-11-27--melbourneweeklyauctionclearancerates" width="570" height="214">
Auction clearance rates in Melbourne are currently substantially lower than they were a year ago.  In fact, the clearance rate of 66.9% last week was the lowest since July of last year.  Although clearance rates are lower than they were a year ago, they are at fairly similar levels to what was being recorded at the same time of year in 2013, 2014 and 2015.  The chart really highlights just how much stronger the auction market in Melbourne was a year ago relative to other recent years.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg2.png" alt="2017-11-27--melbourneweeklyauctionvolumesoverrecentyears" width="570" height="214">
  The volume of properties being taken to auction, particularly over recent months, has generally been higher than over recent years.  By comparison, in 2016 when clearance rates were much higher than they have been this year, the number of properties being taken to auction was relatively lower than over recent years.  The higher number of properties being taken to auction is likely to be having some impact on the weaker clearance rates this year relative to last however, volumes are also much higher currently than they were in 2013, 2014 and 2015 a time at which clearance rates were fairly similar to current levels. Given this, clearance rates are actually holding up quite well considering much higher volumes of auctions.
<h3>Sydney</h3>
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg3.png" alt="2017-11-27--sydneyweeklyauctionclearancerates" width="570" height="214">
Auction clearance rate in Sydney have been at their lowest levels since 2012 over recent weeks and have been on a steady decline throughout 2017.  If you exclude the low volumes in January, last week’s auction clearance rate of 54.8% was the cities lowest clearance rate since December 2015.  Clearance rates have not been consistently as low at this time of year since 2012.  Clearance rates are substantially lower than they were a year ago and are also slightly lower than they were two years ago when APRAs first round of macroprudential policies were significantly impacting Sydney housing demand.  If the previous round of macroprudential policies is a guide we can expect a further weakening of clearance rates over the coming weeks.
<img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-11/2017-11-27-blogimg4.png" alt="2017-11-27--sydneyweeklyauctionvolumesoverrecentyears" width="570" height="214">
  Unlike Melbourne, Sydney is not seeing a substantially higher number of properties being taken to auction compared to recent years.  In fact over recent weeks there has been an equivalent number of auctions across the city to volumes last year when clearance rates were much higher than they are currently, while there have been fewer auctions than in 2015 when clearance rates were similarly weak.  
There has been clear evidence over recent weeks that auction clearance rates have softened in Sydney and Melbourne.  The falling clearance rates in Sydney are occurring on similar volumes of auctions to recent years but matches the recent declines in dwelling values.  In Melbourne, auction clearance rates have slowed and there has also been a moderate slowdown in value growth.  The big difference in Melbourne has been that auction volumes have been much higher so it is difficult to know if the weaker clearance rates are because of the market overall or due to their being too much stock being put up for auction each week. Keep in mind that clearance rates typically soften through Spring as auction volumes increase so we may have to wait until 2018 to truly understand what is driving the apparent weakness in the Melbourne auction market.
Cameron Kusher is head of research for CoreLogic. You can contact him <a href="https://blog.corelogic.com.au/about/">here</a>.
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What is driving the clearance rate weakness in Sydney and Melbourne? Cameron Kusher

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CoreLogic's September quarter regional area insights has once again confirmed The Illawarra region in New South Wales as the country’s standout regional performer by recording the largest annual increase in home values of 13.0 per cent for houses and 17.0 per cent for units.  
In contrast, Townsville stood as the only region where values for both houses and units fell over the year to September.  Based on overall transaction activity, the Gold Coast region experienced the biggest fall with dwelling sales down -8.7 per cent over the year to August 2017.    For rental rates, the Gold Coast saw the largest increase in advertised rental rates for houses, up 6.0 per cent ($30/week) over the year to September 2017, followed by Richmond-Tweed houses at 5.6 per cent ($25/week). Townsville and Bunbury were the only two regions to see rental rates fall over the 12 months to September 2017. 
<h3>New South Wales </h3>
<ul>
<li>Of the three regions analysed for this report (Newcastle and Lake Macquarie, Illawarra and Richmond-Tweed), all experienced home values growth over the year to September 2017; the largest increase was within the Illawarra region, where house and unit values increased by 13.0 per cent and 17.0 per cent respectively, followed by Newcastle and Lake Macquarie.  </li>
<li>In terms of sales activity for the three NSW regions, volumes fall over the year to August 2017 with The Illawarra region experiencing the biggest fall in sales activity with transactions down -5.4 per cent, or 323 fewer homes selling when compared to August 2016. Rental rates increased across all three regions.  </li>
<li>Houses in the Richmond-Tweed region saw the largest increase with rental rates up 5.6 per cent, followed by houses in the Newcastle and Lake Macquarie region (5.0 per cent).  </li>
</ul>
<h3>Queensland </h3>
<ul>
<li> Dwelling sales fell in four of the five regions over the year to August 2017 with the largest fall seen across the Gold Coast, where sales volumes are down -8.7 per cent, followed by Townsville (-6.3 per cent), Cairns (-5.3 per cent) and the Sunshine Coast (2.6 per cent). Across the Wide Bay, sales are in line with one year ago.  </li>
<li>Townsville was the only region to see home values fall, while the Sunshine Coast region saw the largest increase in house values (7.1 per cent), and the Gold Coast region saw the largest increase in unit values (6.9 per cent) values.  </li>
<li> Across the Queensland rental market, the Gold Coast region recorded the largest increase in rental rates for houses (6.0 per cent), while Townsville saw rental rates fall over the year.  </li>
</ul>
<h3>Victoria</h3>
<ul>
<li>Sales activity was down -1.9 per cent across Geelong, while the Latrobe-Gippsland region saw a slight increase (1.8 per cent) in the amount of homes transacting over the year to August. Both regions saw home values increase over the 12 months to September, with values increasing by 8.8 per cent for houses and 6.1 per cent for units in Geelong, compared to the Latrobe-Gippsland region, where house and unit values increased by 4.8 per cent and 1.9 per cent respectively.  </li>
</ul>
<h3>Western Australia </h3>
<ul>
<li>Bunbury region saw house values increase by 2.6 per cent over the year to September 2017, while unit values fell -4.4 per cent. Sales volumes across the region fell -3.9 per cent over the 12 months to August, with current activity -14 per cent below the five year average. Rental rates in the Bunbury region fell -3.6 per cent for houses and -9.1 per cent for units when compared to September 2016. </li>
</ul>
  Across all three quarters in 2017 (March, June and September) The Illawarra region has consistently recorded the largest annual increase in home values each quarter, followed by the Newcastle &amp; Lake Macquarie and Richmond-Tweed regions.     Cairns has seen minimal movement in home values, while Townsville has recorded a negative annual increase in home values each of the quarters. Townsville and Bunbury were the only regions to see rental rates fall over the 12 months to March, June and September for both houses and units, while Wide Bay units remained unchanged over the same period.    Overall, our latest data points to an increase of value growth in regional markets, particularly those which are located adjacent to capital cities. As people are priced out of certain capital cities, buyers now appear to be looking to these adjacent regions.
Home owners in Sydney and Melbourne have seen a substantial rise in housing equity over recent years. Subsequently, we are seeing some evidence that these buyers are starting to look for holiday and investment properties in certain regional markets which is also providing an impetus for some of the value growth we are currently seeing. 
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