A new 25-storey apartment tower proposed for Mercer Street would push Geelong’s western gateway skyline higher, with Morphy Birrell Property Group lodging plans for a project directly beside one of the city’s most significant heritage streetscapes.

The <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>-designed development at <a href="https://www.apartments.com.au/new-apartments/65-67-mercer-street-geelong-vic-3220">65-67 Mercer Street</a> has now been referred to Victoria’s Planning Minister. The site sits opposite the Geelong rail corridor and immediately south of the heritage-listed St Peter and Paul’s Catholic Church and Ashby Hall precinct.

Rather than compete with the neighbouring ecclesiastical buildings, the proposal adopts a sculpted podium intended to reference the materiality and scale of the heritage context. Planning documents note the design draws cues from the “dark stone brick” church and surrounding masonry buildings, while the tower above transitions into a softer, curved form oriented toward Corio Bay and the Geelong waterfront.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="b797d10c-d4a6-47af-b8df-1aeaa3b382be" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/public%20square.png?VersionId=QGIpcz1x1hKB6lQLl2iobyHqb6PS2Ztc" />

The development forms “Stage 5” of Morphy Birrell Property Group’s broader Mercer Street precinct strategy, following the completion of the 21-storey Miramar tower on Cavendish Street and several additional approved redevelopment stages nearby. Planning consultants Ratio said the proposal “represents an exemplary development outcome” aligned with the strategic ambitions for Central Geelong’s continued urban renewal.

The mixed-use project would replace an existing low-rise commercial building and surface parking area on the 3,320 sqm corner site. FK’s urban context report describes the proposal as a residential development comprising apartments, resident amenities, commercial space, and integrated landscaping positioned to maximise bay views and northern sunlight access.

Renders show a deeply articulated tower with curved balconies stepping above a lower masonry podium that frames a landscaped forecourt facing Mercer Street. The design intentionally preserves sightlines toward the adjacent church buildings, with the podium scaled to reinforce the heritage edge before the tower recedes upward.

<img alt="First look: Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct" data-entity-type="file" data-entity-uuid="2bdca91e-66f7-4ac7-8baa-2f93bd5b564e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/geelong%20site.png?VersionId=QOhbino4ZgzKYw5dW3QE14E.2yq.Sv87" />

The planning report highlights the site’s strategic location within 400 metres of key Geelong destinations including Cunningham Pier, the Geelong Station precinct, Deakin University, and the convention centre. Bus services run directly along Mercer Street, while the Corio Bay foreshore sits around 100 metres north of the site.

The proposal arrives amid accelerating redevelopment across central Geelong, where planning policy continues to encourage higher-density housing close to transport infrastructure and the waterfront. Mercer Street in particular has emerged as a focal point for taller apartment development due to its proximity to Geelong Station, the bay, and major civic infrastructure.

Joel Robinson

Morphy Birrell Property Group targets 25-storey Geelong tower beside landmark church precinct

Development giant&nbsp;<a href="https://www.apartments.com.au/developers/hamton">Hamton</a> and joint venture partner Hostplus have revealed the next residential stage of their $3 billion Moonee Valley Park masterplan, lodging plans for 512 more apartments within the precinct on surplus racecourse land at 110 Wilson Street, Moonee Ponds.

The proposed development, dubbed&nbsp;<a href="https://www.apartments.com.au/new-apartments/trackside-house-110-wilson-street-moonee-ponds-vic-3039">Trackside Gardens</a>&nbsp;in the planning application, follows the <a href="https://www.apartments.com.au/news/vic/first-look-exclusive-hamton-and-hostplus-reveal-sixth-stage-of-moonee-valley-park-masterplan">recent unveiling of the sixth-stage Cox Place Precinct</a> and continues the long-running transformation of the Moonee Valley Racecourse into one of Melbourne’s largest urban renewal projects.

Positioned on the north-eastern edge of the racecourse adjacent to CityLink, Trackside Gardens will comprise three residential buildings rising between 61.8 metres and 86.4 metres within a heavily landscaped precinct shaped by Hamton’s Nature Based Cities framework.

The project forms part of the broader Moonee Valley Park redevelopment being delivered by Hamton, Hostplus and the Moonee Valley Racing Club, which is reshaping the 40-hectare racecourse site into a mixed-use neighbourhood with housing, retail, commercial space, hotels, parkland and community infrastructure.

Trackside Gardens sits separately to the recently proposed Cox Place Precinct, a five-building stage comprising around 1,100 residences, two build-to-rent buildings, two build-to-sell towers, retail, office space, and a hotel overlooking the racetrack. Together, the projects continue to accelerate housing delivery across the precinct.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="5fc1941e-52d3-41c6-abc4-0f13fe8ae5ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/DA%20Edits%20%281%29.png?VersionId=7qwRHq5dcvXWNot2hNOgoQhN2GIWudNK" />

Designed by <a href="https://www.apartments.com.au/architects/dko-architecture">DKO Architecture</a> with landscape architecture by Tract, Trackside Gardens has been conceived as a botanical-style residential precinct prioritising canopy planting, communal green space, and vertical landscaping.

“The architectural vision for the proposed development centres around buildings in a botanical park setting that champions the important role of nature,” the planning submission states.

“The proposal incorporates principles of biophilic design, with landscape and environmentally sustainable development influencing the ultimate design response of the buildings and prioritising the ground plane to ensure a high amenity for both occupants and visitors.”&nbsp;

Trackside Gardens will deliver 512 apartments across the three buildings, alongside 518 basement car spaces and 523 bicycle spaces. Around 20 per cent affordable housing is proposed across the broader North East Precinct, equating to around 158 dwellings.&nbsp;

The affordable housing component will be concentrated within the Wilson East building, while the remaining apartments are expected to be delivered as build-to-sell residences.

Trackside Gardens has been designed around Hamton’s Nature Based Cities initiative, founded by Executive Chair Paul Hameister OAM in partnership with the University of Melbourne, Urbis, Ark Resources and Tract. The initiative promotes integrating higher-density urban development with significant biodiversity, tree canopy and landscape outcomes.

<img alt="First look: Hamton expands Moonee Valley Park masterplan with 512-home Trackside Gardens precinct" data-entity-type="file" data-entity-uuid="89353449-7b3c-42fd-8fd8-8bf64a5ef80f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_4.png?VersionId=X8jRt0P2L7fIWjLhfX6gPknXToXIBeLj" />

A comprehensive landscape strategy would introduce deep soil planting, vertical greening, communal gardens, and new pedestrian links throughout the site.

Planning documents state the development is targeting a 5 Star Green Star Buildings rating, a 7.5-star average NatHERS rating, and “Exemplary” Nature Based Cities certification.&nbsp;

The proposal joins an expanding pipeline of approved and proposed buildings within Moonee Valley Park, including the recently launched Eveline apartments and the approved Grandstand North and South towers.

Hamton has increasingly focused on precinct-scale, nature-led communities across Melbourne’s middle-ring suburbs, with projects spanning Hawthorn, Kew, and Moonee Ponds.

Hampton unveils Trackside Gardens, latest stage of $3 billion Moonee Valley Park masterplan

The Paul Gedoun-led <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Group</a> has achieved another milestone in its $1 billion transformation of Rainbow Bay on the southern Gold Coast with the completion of the company’s third project in four years, the $160 million <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a> residences.

Delivered by <a href="https://www.apartments.com.au/builders/hutchinson-builders">Hutchinson Builders</a> and designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker Architects</a>, Esprit buyers have now moved into the 94 apartments across two interconnected buildings at 217-227 Boundary Street.

The successful settlement of Esprit marks another astounding chapter in the S&amp;S story, which launched its highly successful Flow apartments three years ago and created its own ultra-luxury branded fingerprint on an area craving new luxury residences.

Most early purchasers have secured gains of well over $1 million since the project launched in 2021.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172129]

S&amp;S Projects Founding Director Paul Gedoun said the completion of Esprit reflects sustained demand for premium apartments in tightly held coastal locations.&nbsp; 
&nbsp;&nbsp; &nbsp; 
“Esprit has attracted buyers seeking a combination of quality design, considered amenity and a location that is becoming increasingly difficult to replicate,” said Gedoun.

“We identified some years ago that Rainbow Bay is a unique market where supply of luxury residences is limited, and we see the settlements in Esprit further underpinning this thinking - that for both owner-occupiers and investors.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172174]

A key feature of the development is ‘Club Esprit’, a 1,000sqm residents-only rooftop level combining wellness and recreation, believed to be a first for the Gold Coast, and which is fast becoming a signature of the S&amp;S brand.

Positioned to capture views across Snapper Rocks, Rainbow Bay and the Tweed River, the rooftop includes a 25-metre lap pool, gym, yoga lawn, sauna and steam facilities, ice bath, private dining spaces, outdoor cinema and landscaped areas for residents.&nbsp;

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> Director Jayde Pezet, who led the sales campaign for Esprit and S&amp;S’s Flow and Awaken apartments, said the project’s performance reflects both the strength of the product and the depth of demand for premium apartments on the southern Gold Coast.&nbsp;

“In some cases, we’ve seen values double since launch, which is a clear reflection of how tightly held Rainbow Bay has become and the level of demand for well-executed projects in this market,” said Pezet.&nbsp;

“Buyers recognised early what S&amp;S Projects was delivering here, and that conviction has been rewarded as the project has progressed towards completion.”&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=214819]

Esprit offers a mix of two- three and four-bedroom apartments and sits within walking distance of the beachfront, cafés and local amenities, reinforcing its appeal as both a lifestyle and investment destination.

The project is the third completed by S&amp;S Projects in Rainbow Bay, following Flow Residences and Awaken Residences, which together have contributed to the suburb’s emergence as one of the Gold Coast’s most sought-after coastal pockets. &nbsp;

S&amp;S Projects is continuing its investment in the area with Radia, a $215 million development currently under construction.&nbsp;

[smartcode_project:default project_id=102921 project_image_fid=172175]

Gedoun said the completion of Esprit signals continued confidence in the southern Gold Coast market.&nbsp;

“We’ve seen strong interest in well-located, high-quality apartments, particularly in areas where future development opportunities are limited."

“That’s been a key factor in the performance of Esprit and the broader Rainbow Bay market”.

[smartcode_project_cta:default project_id=102921]

Owners move in as Esprit completes at Rainbow Bay

Few developers can boast a portfolio across South East Queensland's luxury markets quite like <a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic Property Group</a>.

The builder-developer, founded in 2004 by Managing Director Brook Monahan, has projects in planning, on the market, and under construction, from Burleigh Heads and Broadbeach to Kangaroo Point and South Brisbane.

With a pipeline exceeding $2 billion, Mosaic remains highly selective when it comes to development sites, having spent years refining its strategy around feasibility research and product planning. The group is set to continue growing into 2026 and beyond.

In Brisbane, Mosaic currently has three projects in the market. It is in the final release stage at <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford</a> in Kangaroo Point, which is approaching complete sellout ahead of its late 2027 completion.

[smartcode_project:default project_id=134792 project_image_fid=328123]

Designed in collaboration with <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, The Bedford comprises 128 two- and three-bedroom residences. A selection of ultra-luxury Masterpiece Series Skyhomes, positioned across the top levels, offer expansive floor plans and sweeping views of the river and city.

High-end inclusions, such as natural stone benchtops, bespoke cabinetry, and Miele appliances, feature throughout all apartments, alongside the Rooftop Recreation &amp; Retreat Sky Terrace. This includes a resort-style pool with sun deck and loungers, spa, cold plunge pool, sauna, steam room, private dining room with a full kitchen, residents' lounge, multiple barbeque and relaxation zones, an outdoor viewing deck, and landscaped gardens with water features, all oriented to sweeping city and river views.

A gym with indoor and outdoor zones, and a golf simulator, further enhances recreational choice within the building.

[smartcode_project:default project_id=134792 project_image_fid=328119]

A defining feature of the development is its integrated mixed-use component, which will deliver Kangaroo Point's first major supermarket, alongside a café and liquor store, bringing long-awaited convenience to the peninsula.

Monahan says The Bedford represents the culmination of a near-decade-long journey, after first identifying the A-grade Prospect Street site in 2016. While they came close to acquiring it at the time, the site was ultimately purchased by Woolworths' development arm, Fabcot. The opportunity resurfaced in 2024 when the site, vacant for nearly three decades, was brought back to market.

Monahan says Mosaic projects often begin years before any formal plans are drawn. Their new South Brisbane development is no exception, with the site first earmarked in 2018.

"We aren't opportunistic," Monahan says. "Every site purchase is carefully considered. As seen with Kangaroo Point and South Brisbane, it can take years to eventuate. There are sites we're looking at now that we may not secure for several years."

[smartcode_project:default project_id=141711 project_image_fid=353495]

A similar story unfolded at <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a> in Kangaroo Point, opposite The Gabba. Like The Bedford, it is also approaching sellout of its 125 two- and three-bedroom apartments. The majority of sales are attributed to returning customers and referrals, with a balanced mix of investors and a strong majority of owner-occupiers.

BDA Architecture was again engaged to design the 22-storey building, which will feature a suite of wellness and lifestyle amenities, including a golf simulator and cinema, a commercial-grade gym, and a rooftop recreation level with a pool, steam room, sauna, cold plunge, teppanyaki bar, private dining spaces, and landscaped terraces.

Construction is on track for completion in mid-2027.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Mosaic's latest offering is its most ambitious yet, boasting a rare, north-facing riverfront position on Montague Road in South Brisbane.

<a href="https://www.apartments.com.au/new-apartments/the-riversdale-by-mosaic-south-brisbane-91-montague-road-south-brisbane-qld-4101">The Riversdale by Mosaic</a> is a 39-storey tower comprising just over 200 residences and Masterpiece Series Sky Homes. Designed in partnership with Bureau Proberts, it will feature nearly 3,000 sqm of genuine, internationally benchmarked six-star, hotel-style amenities, including a wellness precinct, pool, gym, massage and treatment rooms, cinema, golf simulator, and extensive outdoor dining areas across a two-level rooftop deck.

Early works are underway, with full construction expected to commence in the second half of 2026, and an anticipated late 2029 completion.

[smartcode_project:default project_id=151614 project_image_fid=362759]

Since 2012 alone, Mosaic has completed more than $2 billion in projects and is set to deliver another $2 billion worth of developments, comprising hundreds of luxury apartments, each defined by Mosaic's signature standards of quality, detail, and delivery.

"We never arrive, there is no finish line," says Monahan. "Our ambition is to keep evolving what luxury means, creating design- and lifestyle-led residences in incredible locations, places people genuinely aspire to and want to live, homes that are loved deeply and endure long beyond their moment."

Mosaic's Midas Touch

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> (Urban) has broken ground at Keira Place, its new major mixed-use residential precinct in the heart of Wollongong CBD.

Held at 120-122 Smith Street, the groundbreaking marked the commencement of construction on Stage 1 of <a href="https://www.apartments.com.au/new-apartments/keira-place-120-122-smith-street-wollongong-nsw-2500">Keira Place</a>, with the opening of the new display suite. 
&nbsp; 
Keira Place is a State Significant Development that will deliver new housing supply, affordable homes and inclusive living options within walking distance of Wollongong’s CBD, coastline, transport, hospital and education precincts.

[smartcode_project:default project_id=144442 project_image_fid=369868] 
&nbsp; 
Stage 1 is now under construction and will deliver 150 apartments across two residential buildings, including 27 affordable housing apartments and 18 specialist disability accommodation dwellings, along with activated ground-floor retail and commercial space. 
&nbsp; 
Urban Co-CEO Patrick Elias said the groundbreaking represented a significant milestone for Wollongong and reflected Urban’s long-term commitment to regional cities.

“Today’s groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong’s city centre,” Elias said. 
&nbsp; 
“Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection.”

[smartcode_project:default project_id=144442 project_image_fid=369869] 
&nbsp; 
Hon. Paul Scully MP, Minister for Planning and Public Spaces, Member for Wollongong said Keira Place is exactly the kind of development Wollongong needs – delivering new homes close to transport, employment and services, while supporting the continued growth and renewal of the CBD.

"This project reflects the Minns Labor Government's commitment to increasing housing supply in well-located areas." 
&nbsp; 
Wollongong Lord Mayor Cr Tania Brown said Keira Place would deliver lasting community benefits for the city. 
&nbsp; 
"Keira Place is a welcome addition to Wollongong's CBD delivering new housing, affordable homes and activated street-level spaces that will benefit our community for years to come," Brown said. 
&nbsp; 
"Urban Property Group's investment reflects the confidence that quality developers have in Wollongong's future, and I look forward to seeing this precinct come to life."

[smartcode_project:default project_id=144442 project_image_fid=369867] 
&nbsp; 
Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a>, with interiors by <a href="https://www.apartments.com.au/interior-designers/dko">DKO,</a> Keira Place prioritises liveability and long-term performance, with landscaped shared spaces, generous apartment layouts and a pedestrian-friendly streetscape along Smith Street. 
&nbsp; 
Residents will have access to landscaped podium areas, communal rooftop amenities with views to Mount Keira and the Wollongong skyline, and convenient ground-level retail.

The development will have 10-year Latent Defects Insurance by Resilience Insurance.

[smartcode_project_cta:default project_id=144442]

Groundbreaking marks start of construction at Keira Place in Wollongong CBD

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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A fully leased medical centre in Brisbane’s inner suburb of Nundah has sold for $6.6 million through Savills.
Nundah Medical Centre at 1220 Sandgate Road is on a 2,042 sqm corner site.
It was purchased by Heathley Limited for the Heathley Direct Medical Fund which secures medical properties throughout Australia. 
The on-market campaign realised an initial yield of 6.5 percent.
It sold through Savills agents Jack Morrison and Peter Chapple on behalf of a private investor.
“Heathley are highly experienced in the area of medical property investment and will draw on their extensive expertise in medical based property assets to continue to bolster the fundamentals of 1220 Sandgate Road long into the future,” Morrison said.
The site has long-term development potential in a rapidly gentrifying Northside precinct, according to the agents.
“The property attracted an unprecedented level of interest as many see Nundah as a premier investment area with an abundance of potential for future growth,” said Chapple.
The location is close to the Brisbane CBD, airport and is well serviced by transport.  
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j.ballantyne1990-6AQqhLzZaK

Heathley Direct Medical Fund secures Nundah medical centre

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A standalone office building in South Melbourne has sold for $5.5 million.
 The freehold building at <a href="https://www.realcommercial.com.au/property-offices-vic-south+melbourne-502307034" target="_blank">9-11 Palmerston Crescent</a> was sold with vacant possession having last traded for $1.1 million in 2008.
Its land area is 476 sqm with a floor area of 711 sqm.
The two-level fitted office building has potential for further development subject to council approval.
The zoning is Commercial 1. 
It is close to the new Domain train station. 
The selling agents were Michael Ryan, James Gregson and Joseph Walton of Allard Shelton.
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jonathanchancellor-7SQnKwU6yx

Office building in South Melbourne with development potential changes hands for $5.5 million

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A Woolworths/Caltex Service Station and convenience store in NSW’s Lower Hunter Valley has sold recently for $1,162,000 at auction.
The service station at <a href="https://www.commercialrealestate.com.au/property/54-ken-tubman-drive-maitland-nsw-2320-2013419286" target="_blank">54 Ken Tubman Drive</a> in Maitland opened circa 2006.   The lease on it has been renewed for five years to 2021 with two further options for renewals. 
It last sold for $795,000 in 2011.
Woolworths Caltex is a joint venture between Caltex Australia and Woolworths Limited with mor than 600 outlets.
The property is easy to manage as it is a single-tenant investment. 
Its current rent is $76,110.90 p.a. plus GST. 
The land area is 1546 sqm.
Maitland is a two-hour drive on the F3 north of Sydney. The property is close to the Maitland CBD and has good traffic exposure.
The selling agent was Jackie Wang of Raine &amp; Horne.
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Woolworths Caltex service station in Lower Hunter Valley fetches $1.16 million at auction

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Office leasing figures for Melbourne’s CBD jumped nearly 128 percent over the 12 months to March with the lion’s share bagged by government, according to preliminary data from Savills research.
The government and community sector drove the leasing surge, taking 38 percent of the space. 
Population growth and infrastructure projects have also been important market drivers. Savills associate director of Research, Monica Mondkar, said 569,810 square metre of leasing activity was recorded in the Central Melbourne office market in the last 12 months. 
“This is up 128 percent on the 250,000 square metres leased in the 12 months prior, and also up on the five-year average of 269,943 square metres, so these are quite remarkable figures in anybody’s language,’’ Mondkar said.
The Government &amp; Community sector was the dominant sector leasing 224,906 square metres, 83 per cent of which was Prime Grade. Direct leases totalled 77,868 square metres, while 81,000 square metres was pre-committed. Public administration was the largest sub-sector accounting for 65 per cent of the space taken-up under the Government &amp; Community sector, followed by Education at 23 percent.
Property and Business services was the next largest leasing sector at 28 percent followed by IT and Communication at 15 per cent and Finance and Insurance at 13 percent.
A number of factors contributed to the massive rise in leasing such as renewal of government leases, consolidation of government departments, population growth, government infrastructure projects, staff retention and recruitment requirements, and efficiency gains, added Phil Cullity, director, Office Leasing. 
“Last year, net absorption was 117,000 square metres which smashed the 10-year, 86,000 square metre average and all indications are that we are in for another 12 months like that,” he said.
Developers are pushing ahead with new buildings especially with economic rents being achieved, he added.
<a href="https://www.propertyobserver.com.au/images/2017/03/29/MelbourneCBDLeasing.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/29/MelbourneCBDLeasing.png" alt="">
“Overall governments – state and federal – have underpinned the massive take up with population growth also an important part of the equation,” he said.
Government departments had not upgraded during the GFC years of 2008/2009/2010 because of fewer options to go to, and a lot of government leases recently came up for renewal at the same time.
“The state government, in particular, has been proactive in taking advantage of market conditions, locking in rents and incentives, before rents begin to rise,” he said.
“Governments now realise that, as they are in competition with the private sector for the best young talent, they must offer a similar level of accommodation and that includes the latest building services including end of trip facilities, meeting facilities, amenities and access to transport, cafes.’’
Government tenants were also increasingly mindful of the need for more efficient buildings in reducing costs. 
The Victorian government’s current infrastructure programme including level crossing removals, the Metro Tunnel and the Western Distributor, was also driving the overall leasing market as companies associated with these projects were also taking leases in their vicinity, Cullity said.
<a href="https://www.propertyobserver.com.au/images/2017/03/29/MelbourneCBDLeases.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/03/29/MelbourneCBDLeases.png" alt="">
Source: Savills Research # Renewals
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prateek24-ezbwHMbNAk

Melbourne CBD office leasing up 128 percent in 12 months, helped by government renting: Savills

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The returns from Australian office assets in 2016 were well above the historical benchmark, according to a new report by leading property services firm JLL.
Investors are now accepting that returns for core real estate will be broadly between 6.50 percent and 8 percent, said the Australian Office Investment Review and Outlook. 
Investor mandates were more diverse in 2016, with a movement of capital into suburban office markets due to the positive market fundamentals. 
JLL recorded $5.1 billion of transactions across non-CBD office markets, or 37 percent of total office sales in 2016. Historically, suburban markets have only accounted for around 30 percent of transaction volumes per annum.
Head of Office Investments – Australia, Rob Sewell said the firm’s analysis is pointing to another good year of returns for the Australian office market after 2016 levels were above historical benchmarks. 
“Investment mandates are diverse and over the first part of 2017 we have capital ready to be deployed across the risk spectrum,” said Sewell. 
JLL’s area-weighted Total Return Index (TRI) for CBD office markets increased by 12.6 percent in 2016. 
“We are currently in the midst of an unprecedented liquidity cycle, which is being expressed both by high levels of transaction volumes and the number of bidders on major assets.
“Total office volumes last year were curtailed by a lack of available product. Nevertheless, 2016 still ranked as the third highest year of record for volumes at $14.46 billion. The number of under-bidders on campaigns in 2016 across geographies were at elevated levels.  
<a href="https://www.propertyobserver.com.au/images/2017/04/4/Apr5CommPropChart1.png" target="_blank">Click to enlarge</a>
 <img src="https://www.urban.com.au/images/2017/04/4/Apr5CommPropChart1.png" alt="">
He said new pricing levels would increase vendor motivation, while liquidity would create an opportunity to divest large less liquid assets.
Offshore investors accounted for 42 percent of total office transactions in 2016 at $6.19 billion, with Chinese, Singaporean and US investors dominating the market.  
“The Australian office sector remains a beneficiary of the great portfolio tilt to real estate and the Asia Pacific region,” said JLL’s head of International Investments – Australia, Simon Storry.
“Our review of the spread between target and current allocations by offshore investors shows potential sources of capital in 2017 include South Korea, Hong Kong, Singapore and Germany,” said Storry.
<a href="https://www.propertyobserver.com.au/images/2017/04/4/Apr5CommPropChart2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/4/Apr5CommPropChart2.png" alt=""> 
JLL’s Australian head of Research, Andrew Ballantyne said investors navigating the Australian office investment landscape have opportunities to satisfy diverse mandates. 
“Sydney and Melbourne can be classified as the high growth markets. Asset pricing is reflective of the strong rental growth outlook with prime net effective rents projected to rise by 34.9 percent in the Sydney CBD and by 18.7 percent in the Melbourne CBD from 2017 to 2019.”
“Brisbane and Perth offer counter-cyclical opportunities and are considered to the cheap side of fair value markets. Yield spreads to Sydney and Melbourne have widened beyond historical benchmarks and new sources of capital are exploring opportunities to gain exposure to a potential market recovery.
“Real estate investors have shown a bias for low risk assets. Adelaide and Canberra are the epitome of low risk with the volatility of returns typically lower through the cycle,” concluded Ballantyne. 
 
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Australian office investment returns above historical benchmark: JLL

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<img src="https://counter.theconversation.edu.au/content/73851/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVERS
Australia, one of the world’s most urbanised nations, is looking to up its investment in digital technologies to make our cities work better.
In coming months, tech companies, local governments and other eligible organisations will be teaming up to apply for round one of the federal government’s A$50 million Smart Cities and Suburbs Program. The program is seeking ideas for prototypes and platforms that can help solve a local urban challenge of some kind.
As the draft guidelines suggest, project funding could be used for anything from managing waste better, making local precincts more liveable, or helping citizens become more engaged with their councils, to developing systems that help planners better predict local development impacts.
Compared to other areas of federal infrastructure spending – like roads – $50 million for smart city investments may not sound like much. But it’s a bit of a windfall for an area that has struggled to get off the ground in Australia for the past few years.
Australia has been in no hurry to become smart. Overseas, many cities have put significant effort into building their profile as smart cities. They have invested in technology acceleration, data analytics, visualisation and instrumentation programs, and so on.
Before launching the federal program, Australia had made relatively few investments in smart city programs. Those investments remained relatively modest.
The benefits of not rushing in
In retrospect, perhaps this wasn’t such a bad thing. It’s now widely recognised that, despite the rhetoric of technology vendors, much of the early investment in smart cities failed to demonstrate significant benefits to cities and their citizens.
This period of “Smart Cities 1.0” investment was dominated by relatively small or experimental prototypes involving separate systems and infrastructures. Think a Cisco smart light trial, combined with a smart parking app. These have been small, interesting prototypes, but not necessarily generating the efficiencies and value sometimes claimed for smart cities.
Adelaide and Cisco have run a smart street lighting trial in the CBD.
The embrace of relatively small or experimental prototypes in Smart Cities 1.0 created vertical “data silos” and failed to scale or demonstrate real benefits. The emerging logic of “Smart Cities 2.0” is quite different. Smart Cities 2.0 investments focus on creating platforms for data access, sharing, re-use and inter-operability.
Part of the reason for this shift lies in the changing nature of the technologies themselves. Our urban environments are turning into landscapes populated by more and more connected “Things” equipped with many different sensors for data capture and analytics. This is driving a growing need for inter-operable platforms and standards that give more players wider access to city data.
A city that invests in these platforms can kick-start a wider technology ecosystem, enabling innovation in city services to thrive.
The emerging critical infrastructures for Smart Cities 2.0 are turning out to be city data markets, data exchanges, and data protocols, standards and specifications. These have been developed by groups like the Hypercat and LORA alliances.
It is becoming more clear that these infrastructures will require more strategic collaborations between governments, industry, communities, citizens and researchers.
Reinventing government as ‘a platform’?
For those of us who are happy to hear tech vendors talk about data sharing and open innovation, this all sounds great. We do hope some of this thinking makes its way into the funding of pilots and prototypes under the Smart Cities and Suburbs Program.
But we should be mindful here that what is perhaps most radical about this new phase is not the technologies themselves, but the way they are repositioning the role of government.
Governments are increasingly positioning themselves as the “platform” for wider innovation in data services. Australia’s Digital Transformation Office has embraced this idea of services “built on a shared (data) core”. Many other agencies are following suit.
But if cities “run on information” are going to make a real difference, we need to think about how these new platforms can be used to overcome the endemic governance challenges our cities face.
Major Australian cities are made up of a patchwork of local government areas overlaid with state and federal jurisdictions responsible for transport, education, health and so on. No single agency “runs” the city. Many of them even work against each other.
The result is that instruments for strategic planning, like the metropolitan strategy, have tended to remain relatively weak. Modelled on the Greater London Authority, the Greater Sydney Commission represents a shift towards metropolitan-scale governance. This creates an opportunity to scale up investments in data infrastructures, building scalable city-wide data architecture like the London Data Store.
Though we might not be able to solve the endemic challenges of patchwork municipal governance, we can encourage our city governments to invest in data-rich platforms to help foster data-driven collaborations and services that benefit our cities.
Responsive governance the key
The ingredients of a smart city include a raft of technology innovations, as well as a willingness to experiment with new ways of doing things.
Today’s Internet of Things technologies, data analytics platforms and sensor-enabled services are sure to deliver new ways to understand, visualise and analyse the nature and scale of many of our most pressing urban challenges.
But solving challenges such as waste management, urban liveability and land-use planning will require more than technology investments, data-capture services or digital prototypes. Solutions will also depend on effective long-term partnerships within and beyond government.
While the digital infrastructure is no doubt important, it will be the city governments that invest in new ways to collaborate and co-innovate that will ultimately lead the way in delivering the smarter, more responsive services our cities so desperately need.
 
<a href="https://theconversation.com/profiles/sarah-barns-110278" target="_blank">Sarah Barns </a>is Urban Studies Foundation Postdoctoral research fellow, Institute for Culture and Society, Western Sydney University. <a href="https://theconversation.com/profiles/donald-mcneill-98531" target="_blank">Donald McNeill </a>is professor of Urban and Cultural Geography, Western Sydney University. <a href="https://theconversation.com/profiles/ellie-cosgrave-183099" target="_blank">Ellie Cosgrave </a>is research associate, UCL. <a href="https://theconversation.com/profiles/michele-acuto-103167" target="_blank">Michele Acuto </a>is professor of Diplomacy and Urban Theory, UCL.
All are authors for The Conversation.
 
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jchancellor-FAypfDUnLy

From Smart Cities 1.0 to 2.0: it’s not (only) about the tech

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New and old apartments around inner Melbourne have been compared to see which were more valuable in 2016, according to Secret Agent’s recent report.
The sample included 1674 apartment sales across inner Melbourne’s suburbs and the CBD from January to December 2016.
New apartments are those built from the 90s onwards, excluding any recent off-the-plan apartment sales.
Old apartments include Art Deco units and flats located in 60s to 80s brick buildings.
The model accounted for location, size of the apartment (number of bedrooms, number of bathrooms, floor area of internal and external space) and whether a car park was included or not.
It was found that on average and holding all else constant, older style apartments in inner Melbourne are expected to sell for $38,000 more than new apartments, which is a 5.75% increase in average expected sale price.
This is significant at all levels of significance (p &lt; 0.01).
The results are shown in Table 1.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.40.07%20pm.jpg" target="_blank">Click to enlarge</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/2017/06/Screen%20Shot%202017-02-06%20at%201.40.07%20pm.jpg" alt="">
A comparison based on the number of bedrooms shows that one and two bedroom apartments of both styles had similar average sale prices.
It is mostly with very small (studio) and very large (three or more bedroom) apartments where we can observe the biggest price differences.
Old studio apartments sold on average for 27% more than new studios, while old apartments with three or more bedrooms sold for 19.5% more than their new counterparts.
Different apartment sizes can be accounted for by comparing them on a price per square metre basis.
Table 2 shows that for old apartments, the price per square metre declines as the number of bedrooms increases.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%201.40.15%20pm.jpg" target="_blank">Click to enlarge</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/2017/06/Screen%20Shot%202017-02-06%20at%201.40.15%20pm.jpg" alt="">
The best value is gained from apartments with at least three bedrooms, which sold on average for $8,600/m2, while older studio apartments were the most expensive per square metre at nearly $10,000/m2.
For new apartments, smaller apartments are all similarly valued, with 1 bedroom selling cheapest at $8,400/m2, nearly $800/ m2 cheaper than older brick and Art Deco apartments.
New apartments with three or more bedrooms are more expensive than larger old apartments at nearly $9,100/m2.
While this data alone gives no definite explanation as to why old apartments are valued more highly than newly built apartments, some possible reasons include:
• On average, older apartment buildings will be smaller than new buildings, which may make them more appealing to buyers. They may also be better located to buyer’s preferences.
• Well maintained or refurbished apartments located in older buildings often have a lot more character than new apartments.
• Our sample contained more than twice as many new apartments compared to old, suggesting that the relative rarity of good quality, older style apartments makes them more appealing.
• Older apartments often have more spacious layouts and higher ceilings.
Even so, it is somewhat surprising that the average sale price of older apartments surpasses that of new apartments.
Often more amenities (gym/pool, underground parking, etc.) are found in newer apartment buildings and they are generally easier to maintain.
This may suggest that new developments are not meeting the needs of buyers, who instead are willing to pay a premium for older apartments.
A three bedroom apartment at <a href="https://www.realestate.com.au/property-apartment-vic-st+kilda-125090398" target="_blank">7/29 Marine Parade</a>, St Kilda (above) has been listed for sale with interior filled characters and bay views for April 22 auction.
For more information from Secret Agent, <a href="https://secretagent.com.au/" target="_blank">click here</a>.
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Why three bedroom older apartments offer the best value

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There are growing signs that some regional markets impacted by the resources sector have passed the worst and are starting to improve.
These are locations where increased dwelling supply coincided with a downturn in demand as the mining investment boom subsided (or miners built workers camps), causing sales and prices to fall.
Places where demand appears to be rising again include NSW towns impacted by the coal industry (Muswellbrook, Singleton and Mudgee), WA centres for the iron ore and gas sectors (Port Hedland and Karratha), and Queensland towns impacted by coal (Emerald, Mackay and Moranbah).
But that’s not a signal for investors to start buying in these places again. I would hope the many boom-bust scenarios that occurred over the past 4-5 years has left a lasting impression on investors across Australia.
Before the end of the resources investment boom, far too many investors jumped into these markets without understanding the extreme volatility of them and/or their own risk profiles.
The extent of the slump in some of these locations is demonstrated by these figures: at the pinnacle of the resources investment boom, the median house price for Port Hedland in WA was well above $1 million. The latest figures shows a median price around $400,000, following a further 33 percent decline in the past year.
In the coal-mining town of Moranbah in Central Queensland, the median house price has fallen from above $700,000 at the peak of the boom to around $160,000 today.
These are some of the most extreme examples of decline but there are many others, including Queensland centres like Gladstone, Mackay, Emerald and Surat Basin towns such as Chinchilla.
In many cases the downturn in local markets was not caused by any decline in the key resources industry (in many cases it was the CSG/LNG sector which continued to create jobs and economic activity in the affected locations) but by a fundamental switch in the approach of the mining companies to accommodating personnel in workers camps.
Developers who built lots of new product in these places found out, too late, that there was not the expected demand for local dwellings. Places like Gladstone in Queensland and Newman in WA had a boom economy but a doom property market.
Now there is evidence that sales activity is rising in some of these places, after slumping significantly in the past three years. In 2015, each quarter had fewer than 45 sales for Port Hedland and South Hedland combined. But the past three quarters have each had more than 60 sales, with a pattern of rising sales numbers.
In Karratha, residential sales numbered fewer than 55 in most quarters throughout the three years covering 2013 to 2015. But sales activity rose noticeably in 2016, with the past three quarters each delivering more than 75 sales. The general trend is up and we await evidence that 2017 will continue the pattern.
In the meantime, I urge extreme caution for investors considering dipping a toe in these dangerous waters. Resources-related markets are at the high-risk end of the spectrum - there are periods of sharp rises, often followed by catastrophic decline.
I would never buy in these places, because the risks are too high. And the modern trend of workers camps mean that the dwelling demand generated by major mining projects is considerably lower than in the past.
A warning is timely because there is renewed confidence in the resources sector. New projects are being planned and mothballed ventures are being reactivated, particularly in Queensland and WA. As sales activity rises in resources centres, the industry will be pumping out press releases suggesting the boom days are returning.
Hopefully the massive price and rental decline of recent years will live long in the memories of investors.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/">hotspotting.com.au</a>. You can  <a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3Cspan%20style=/'display:%20none;/'%3E');%20//--%3E%20%3C/script%3EThis%20email%20address%20is%20being%20protected%20from%20spambots.%20You%20need%20JavaScript%20enabled%20to%20view%20it.%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20document.write('%3C/');%20document.write('span%3E');%20//--%3E%20%3C/script%3E">email him</a> or follow him on <a href="https://twitter.com/hotspotting">Twitter.</a>
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terryryder-YECXbqmri2

Growing signs resources-heavy regional property markets on the improve

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<h3 class="post-title entry-title"> </h3>
<div id="post-body-91815638045542133" class="post-body entry-content">
<div>Won't spend too much time on this, as the Financial Aggregates figures relate to before APRA's latest round of changes and therefore the landscape has once again shifted. </div>
<div> </div>
<div>The Reserve Bank's latest figures showed credit growth of 0.3 percent in February, following on from a result of just 0.2 percent in January. </div>
<div> </div>
<div>Housing credit increased by 0.6 percent in the month, but both business and personal credit growth were negative.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/4/RBA1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/4/RBA1.jpg" alt=""></div>
<div> </div>
<div>Over the year to February housing credit increased by 6.4 percent down from 7.3 percent a year ago, with investor credit rising a notch further to 6.7 percent. </div>
<div> </div>
<div>Annual credit growth slowed to 5 percent from 6.6 percent a year ago.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/4/RBA2.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/4/RBA2.jpg" alt=""></div>
<div> </div>
<div>Business credit growth in particular has slowed from 6.5 percent a year ago to just 3.7 percent.</div>
<div> </div>
<div>There are many ways to fund business expansion,of course, but this doesn't necessarily bode well for the business investment outlook. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/4/RBA3.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/4/RBA3.jpg" alt=""></div>
 As a result, housing now accounts for a record 61.7 percent of outstanding credit.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
<a href="https://www.propertyobserver.com.au/images/2017/04/4/RBA4.jpg" target="_blank">Click to enlarge</a> <div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/4/RBA4.jpg" alt=""></div>
 <div>There was a further $1 billion of housing loan purpose switching taking the total switched to owner-occupier from investor loans since July 2015 to $50 billion. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/4/RBA.jpg" target="_blank">Click to enlarge</a></div>
 <div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/4/RBA.jpg" alt=""></div>
 And housing credit outstanding increased to $1.65 trillion by February 2017. More measures have since been taken to slow the creation of new interest-only loans.</div>
<div class="post-body entry-content"> </div>
<div class="post-body entry-content">
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

Housing credit growth slows

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March combined capital city dwelling values increased 1.4 percent over the month, according to CoreLogic, with the combined capital city annual growth rate at 12.9 percent -  the highest annual rate of growth since the twelve months ending May 2010. 
Tim Lawless, CoreLogic head of research said while Sydney and Melbourne recorded the strongest growth conditions, the annual rate of capital gains has also moved into double-digit growth in both Hobart (+10.2 percent) and Canberra (+12.8 percent).
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.48.11%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.48.11%20AM.png" alt="">
"On an annual basis, dwelling values in Perth fell by -4.7 percent and by -4.4 percent in Darwin where economic conditions and migration trends remain weak across both cities," he said.
"Adelaide and Brisbane also saw dwelling values continue to trend higher at a sustainable pace with increases of 3.4 percent and 3.7 percent respectively in these cities over the past twelve months.
"The March results highlight the continued resurgence in the pace of capital gains. 
“This became evident through the second half of 2016, fueled largely by lower mortgage rates and a rebound in investment activity. Since June last year, the CoreLogic capital city hedonic index has increased by 9.3 percent.”
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.50.08%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.50.08%20AM.png" alt="">
He said the diversity of performance between houses and units is also a current key feature of the housing market.
"Across the combined capitals index, house values were 13.4 percent higher over the past twelve months compared with a 9.8 percent rise in unit values," he said.
“The disparity in growth rates is more significant in those cities where high new unit supply is more apparent. In Melbourne, house values were 17.2 percent higher over the past twelve months compared with a 5.2 percent increase across the unit sector. Similarly, in Brisbane, house values were 4.0% higher over the past twelve months compared with a 0.2% rise in unit values over the same period.”
“The weaker growth conditions within the unit markets’ sector reflect heightened levels of new supply across specific inner city precincts and also suggests that consumer confidence has been negatively affected by the warnings of a potential unit oversupply.”
“Given the recent policy announcements from the Australian Prudential Regulation Authority (APRA) are aimed at dampening investment related credit demand, we can expect lending conditions for investment purposes will tighten, particularly for investors with small deposits or those applying for an interest only loan. Additionally, higher mortgage rates handed down by Australia’s major banks may contribute towards cooling some of the exuberance being seen in the largest capital city housing markets.”
“Furthermore, organic constraints in the market are becoming more pronounced. As examples, record-low rental yields, which imply dwelling values are out of balance with rents, and heighted affordability constraints are preventing some prospective buyers from participating in the market.
<a href="https://www.propertyobserver.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.51.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/04/02/Screen%20Shot%202017-04-03%20at%209.51.12%20AM.png" alt="">
“Record-high levels of apartment supply are also likely to act as a brake on capital gains in those precincts where supply levels are high.
“Stronger buyer demand can be attributed to the rising number of investors participating in the market compared with a year ago as well as the lower cash rate stimulus and population growth. However, overall transaction numbers remain approximately 15.5 percent lower than their recent 2013/14 peaks.”
 “A shortage of advertised stock can contribute to upwards pressure on prices, as prospective buyers experience FOMO (fear of missing out) which reduces a buyers ability or willingness to negotiate on prices and causes some urgency in the decision making process.” 
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