Growing national developer Time &amp; Place has announced its fifth new apartment development.

With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.

The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.

Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.

Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.

fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.

The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.

fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”

The new development will replace five existing two-storey homes.

“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”

Mosman has become increasingly popular with developers in recent years.

Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.

Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.

Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.

Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.

They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.

Joel Robinson

Time & Place to take on Mosman apartment market

Brunswick’s civic heart continues to consolidate around the Merri-bek Arts and Culture Precinct, where a growing cluster of cultural institutions, recreation facilities, and public infrastructure has created one of the inner north’s most defined community hubs.&nbsp;

Within this evolving precinct, <a href="https://www.apartments.com.au/new-apartments/saxon-street-by-milieu-brunswick-31-saxon-street-brunswick-vic-3056">Saxon Street by Milieu</a> introduces new housing directly alongside the civic anchors that shape daily life in the suburb.

At 31 Saxon Street, the project sits immediately beside Brunswick Baths and within moments of Brunswick Library and Town Hall, longstanding institutions that support both community services and everyday amenity.&nbsp;

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Next door, the newly delivered Balam Balam Place arts precinct has emerged as a central piece of Merri-bek Council’s cultural strategy, bringing together creative studios, exhibition spaces, maternal and child health services, and community programming in a purpose-built civic facility. Together, these destinations have reinforced the surrounding blocks as a focal point for public life in Brunswick.

This part of <a href="https://www.apartments.com.au/developments/brunswick-vic-3056">Brunswick</a> forms a key pocket within the suburb’s designated Major Activity Centre, where long-term planning has prioritised walkability, civic investment, and increased housing supply close to transport and services. The surrounding street network reflects that strategy, with compact blocks, established retail corridors and active transport links supporting a lifestyle that is largely navigable on foot.

Within a few minutes’ walk, Sydney Road delivers one of Melbourne’s most recognisable streets, known for its long-running mix of independent retailers, international dining venues and everyday convenience. Tram routes along Sydney Road provide frequent connections south toward the CBD and north through Brunswick and Coburg, while Jewell Station on the Upfield line sits within roughly a ten-minute walk, offering direct train access into the city.

[smartcode_project:default project_id=136434 project_image_fid=348839]

Active transport also plays a significant role locally. The nearby Upfield Bike Path forms a key north–south cycling corridor linking Brunswick through Parkville and into the central city, reinforcing the area’s reputation as one of Melbourne’s most accessible inner-urban neighbourhoods for cyclists and pedestrians alike.

The surrounding civic cluster extends beyond cultural infrastructure. Siteworks, a nearby creative hub supporting artists and community organisations, adds to the concentration of cultural activity in the immediate area. Educational institutions such as Brunswick North Primary School, Brunswick Secondary College and RMIT’s Brunswick campus are also within easy reach, contributing to the suburb’s diverse resident base spanning families, students and professionals.&nbsp;

[smartcode_project:default project_id=136434 project_image_fid=348841]

Designed by <a href="https://www.apartments.com.au/architects/jackson-clements-burrows-architects">Jackson Clements Burrows Architects</a> in collaboration with <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, the nine-level building has been shaped to respond to the surrounding streetscape, with lower levels aligning to the street and upper storeys stepping back to soften its scale and improve solar access.&nbsp;

Curved balcony forms reference nearby heritage architecture, while the development’s public realm improvements include a widened footpath along Saxon Street to strengthen pedestrian connections between the precinct’s civic sites.

Sustainability also underpins the project’s approach. The building is designed to operate entirely on electric infrastructure supported by rooftop solar, with an average 7.5-star NatHERS energy rating and EV-charging readiness across the development. Shared resident amenities will include a landscaped rooftop terrace with barbecue and covered dining areas intended to encourage informal interaction between residents.

Saxon Street marks developer Milieu's fifth project in Brunswick and continues its focus on design-led infill housing across Melbourne’s inner suburbs.&nbsp;

Construction has commenced through reputable builder Manresa, who will complete the project in 2027.

[smartcode_project_cta:default project_id=136434]

Saxon Street by Milieu connects residents to Brunswick’s cultural and civic core

Within <a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a>, <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>&nbsp;takes a different approach to larger residences, moving away from the constraints of a single level.

In Grand Residence 3.05, known as the Lustre, plays out across two levels, with a mezzanine configuration that is uncommon in apartment living.

Lustre is a four-bathroom residence where the layout creates a clear distinction between shared and private zones, with uninterrupted views toward the Dandenong Ranges extending the sense of openness from the main living areas.

Entry is to the primary living level, where the kitchen, dining, and living areas are arranged as one continuous space. Timber flooring runs throughout, with a fireplace set within the living zone. Full-height glazing brings in natural light, supported by double glazing that improves thermal performance.

[smartcode_project:default project_id=342 project_image_fid=357506]

The kitchen is configured as both a working and social space. A large island bench provides seating, while a walk-in pantry extends storage beyond typical apartment expectations.

Gaggenau appliances, including a 900mm gas cooktop and 600mm oven, are integrated into a layout that connects directly to the adjacent dining and living areas, and outward to the terrace. This balcony includes a built-in BBQ, reinforcing the apartment’s capacity to accommodate larger gatherings without compromising internal space.

A dedicated laundry room, powder room, and a wine cellar area sit discreetly off the main living zone, ensuring that functional requirements are resolved without encroaching on primary living areas. The master suite is also located on this level, designed as a retreat with a walk-through wardrobe and an ensuite that includes double vanities, a bath, and a dedicated dressing table.

[smartcode_project:default project_id=342 project_image_fid=357508]

The mezzanine level introduces a second layer of living, rather than simply additional bedrooms. Two large bedrooms with built-in robes are positioned alongside a central bathroom, while a secondary lounge and study area create a self-contained zone suited to children, guests, or extended family. A large storage room further supports long-term usability, addressing a common shortfall in apartment design.

This separation of levels is central to how the residence functions day-to-day. It allows the lower level to operate as the primary entertaining and living space, while the upper level provides privacy and flexibility. The result is closer in feel to a townhouse or standalone home, but with the benefits of apartment living, security, and low maintenance.

[smartcode_project:default project_id=342 project_image_fid=364553]

Candela is close to 80 per cent complete, with Ironside delivering construction ahead of its expected October 2026 completion. The development comprises 58 residences, with a strong owner-occupier profile and a mix of one to four-bedroom apartments and loft-style townhouses.

Candela has exclusive access to private amenities, including a residential lounge and rooftop terrace. A charming café and a lifestyle wellness centre are located on the ground level, designed to foster community connection and extend the living experience beyond individual apartments without competing with the scale of homes like Lustre.

Candela, positioned in the heart of Ivanhoe Village, reinforces the practicality of the address. With a Walk Score of 90, residents are within immediate reach of cafés, retail, parklands, and Ivanhoe Station, while also benefiting from proximity to established schools and healthcare services.

[smartcode_project_cta:default project_id=342]

Inside Lustre: Grand Residence 3.05 at Candela Ivanhoe

<a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a>’s <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a> is being shaped around a simple but increasingly rare premise in apartment development: that the built environment should actively support residents’ wellbeing.&nbsp;

Located on the former ABC Studios site on Gordon Street in Melbourne’s south-east, the new neighbourhood sits on an expansive 11,740 sqm site neighbouring the heritage-listed Rippon Lea Estate, whose gardens date back more than 140 years.

Rather than positioning wellness as an add-on amenity, the development integrates it into the physical planning of the site. Architecture by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> is arranged across six low-rise buildings set within extensive landscaping designed by <a href="https://www.apartments.com.au/landscape-architect/oculus">OCULUS</a>, with more than 40 per cent of the land dedicated to gardens and green space. Walking trails, pocket gardens, and mature trees are threaded between buildings, creating a network of green corridors that encourage residents to move through the precinct on foot and spend more time outdoors.

[smartcode_project:default project_id=136535 project_image_fid=288420]

Milieu has intentionally framed these gardens as an extension of the neighbouring Rippon Lea Estate. More than 16,000 new plants will be introduced across the site, with species carefully selected to protect and complement the area’s ecological significance. The approach focuses on strengthening existing environmental conditions while establishing new habitats that support native wildlife, reinforcing the role of the landscape as both an active ecosystem and a defining element of daily life.

A private resident gate will provide direct access to the historic grounds during opening hours, allowing residents to move seamlessly between the development’s landscaped gardens and the estate’s expansive lawns, lakes, and mature trees. The project’s gardens will also be maintained by the same gardeners responsible for Rippon Lea, reinforcing the visual and ecological continuity between the two landscapes.

Complementing the landscape is a dedicated wellness hub designed to support everyday health and recovery. Residents will have access to a gym alongside yoga and Pilates studios, while mineral pools and infrared saunas provide spaces for relaxation and restorative wellbeing. Shared lounges, workshop spaces, and pet care facilities expand the concept of wellness beyond fitness, creating opportunities for social connection and community interaction within the precinct.

Environmental performance is another key component of the project’s wellbeing focus. Elsternwick Gardens will be entirely fossil-fuel-free, with homes designed to operate on renewable electricity rather than gas. Passive design strategies, including cross-flow ventilation, high-performance insulation, and thermally broken double glazing, are intended to maintain comfortable indoor temperatures while reducing energy demand. Solar photovoltaic systems will power common building services, while rainwater harvesting will help irrigate the extensive landscaping across the site.

[smartcode_project:default project_id=136535 project_image_fid=361030]

Milieu Founder and Managing Director Michael McCormack says the scale and setting of the project allowed the team to take a different approach to urban apartment living.

“This site represents a once-in-a-lifetime opportunity to build something truly special,” McCormack says.

“Through that process, we arrived at a design that centres on a fully realised natural landscape – a series of private, interconnected gardens that encircle the homes and extend seamlessly from Rippon Lea Estate.”

Elsternwick Gardens will comprise three residential offerings, Gordon Place, Ripponlea Terrace, and The Garden Pavilion, each designed for owner-occupiers and shaped around high-quality interior design by Woods Bagot, K.P.D.O., and Flack Studio. The first stage, Gordon Place, includes one-, two-, and three-bedroom apartments designed with a strong focus on indoor-outdoor living and sustainability.

[smartcode_project:default project_id=136535 project_image_fid=288412]

Milieu recently appointed <a href="https://www.apartments.com.au/builders/brady-constructions">Brady Constructions</a> to deliver the project, marking a key milestone for the development. The appointment follows the demolition of the former studio buildings on the Gordon Street site, with construction progressing toward the delivery of the nature-led community.

Situated between the established villages of Elsternwick and Ripponlea, the development balances its garden setting with strong urban connectivity. Residents will be within walking distance of cafés, restaurants, and local retail, while nearby train and tram connections provide quick access to Melbourne’s CBD and the beaches of Elwood and St Kilda.

With construction underway and the first residents expected to move in by early 2027, Elsternwick Gardens represents a growing shift in apartment development toward environments that prioritise wellbeing as much as density or location. By placing landscape, sustainability, and shared spaces at the centre of the design, Milieu is positioning the project as a residential neighbourhood where wellness is not just promoted, but built into the structure of everyday life.

[smartcode_project_cta:default project_id=136535]

Elsternwick Gardens' wellness-first design strategy

Brisbane-based developer <a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a> has made a striking debut on the Gold Coast, officially unveiling its $250 million COMO development in Varsity Lakes, a lifestyle-driven residential project anchored by an extensive rooftop wellness and activity precinct.

Having recently launched to market, construction has already been fast-tracked by <a href="https://www.apartments.com.au/builders/5point-projects">5Point Projects</a>, ensuring momentum continues on what is set to become a landmark residential address for the growing Varsity Lakes community.

Located at 22 Lake Street, Varsity Lakes, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO</a> will comprise 156 apartments across 16 levels, comprising one-, two- and three-bedroom residences designed for modern living. However, it is the project’s rooftop amenity offering that sets COMO apart.

[smartcode_project:default project_id=135546 project_image_fid=363510]

Designed as a dedicated wellness and recreation hub, the rooftop will feature a 25-metre lap pool, fully equipped gymnasium, and multiple pickleball and paddleball courts - amenities rarely seen in boutique apartment projects.

Residents will also have access to a sauna and plunge baths, while landscaped gardens and relaxation zones will provide tranquil spaces overlooking sweeping panoramic views across the Gold Coast skyline.

The rooftop precinct has been designed to function as the social and wellness heart of the development, encouraging residents to embrace an active, balanced lifestyle within their own building.

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363512]

Red &amp; Co director David Laverty said the amenity offering was central to the project’s design from the outset.

“Amenities were at the forefront of our decisions,” Laverty said.

“Buyers today are looking for more than just an apartment - they want a lifestyle that promotes health, connection and balance.

“The rooftop at COMO has been designed to be the epicentre of that lifestyle, with a suite of wellness and recreation facilities that are quite unique for a boutique development of this scale.”

&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363514]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, the residences prioritise liveability, featuring spacious layouts, 2.7-metre ceilings and high-quality finishes throughout.

The development sits beside Bond University, placing residents within walking distance of education, retail and dining options within the vibrant Varsity Lakes precinct, including Robina Town Centre, Varsity Lakes Train Station and a range of leading schools.

[smartcode_project:default project_id=135546 project_image_fid=363511]

Laverty said the location was a key driver behind Red &amp; Co’s decision to bring the project to the Gold Coast.

“<a href="https://www.apartments.com.au/developments/varsity-lakes-qld-4227">Varsity Lakes</a> was a clear choice for us to invest in as it’s a lifestyle hub that seamlessly blends lakeside living with urbanity,” he said.&nbsp;

“Como will capitalize on this great location, delivering a project that not only creates premium homes, but a lifestyle defined by community, wellbeing, and connectivity.”

Red &amp; Co has delivered more than 500 apartments and townhouses across 26 projects in Brisbane in recent years, with COMO marking the company’s first major Gold Coast development.

[smartcode_project_cta:default project_id=135546]

Red & Co unveils amenity-rich Como development in Varsity Lakes

Australian property market

EXPERT OBSERVER

There&rsquo;s a strong argument that Brisbane is the leader among the major markets around Australia. Two-thirds of suburbs have rising sales activity and almost 90% have rising prices. Hotspotting&rsquo;s Autumn 2021 survey of sales activity three months ago identified 124 rising suburbs, easily a record for Brisbane. Our new winter survey has smashed that record, with 141 suburbs with rising sales activity.

The past four surveys have found 28, 56, 124 and now 141 rising suburbs, a pattern that encapsulates Brisbane&rsquo;s dramatic rise.

In our Spring 2019 survey, about 18 months ago, we classified 32 suburbs as declining markets and five as danger markets, with only 21 growth markets (most were plateau or consistency markets). Now, for the first time in five years, there are no suburbs we rank as declining or danger markets.

&nbsp;

<a href="/developments/brisbane-qld?source_news_article_id=102220&amp;ref=news_body_link"><img alt="" height="800" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/template_photoshop_brisbane_1.jpg" width="1200" /></a>

Partly this is due to dramatic improvements in the Brisbane-inner locations. This market has suffered in recent years from a major over-supply of apartments and most of the danger markets from previous surveys have been in this precinct: now vacancies are significantly lower and demand is rising for both houses and apartments.

Of the 22 Brisbane-inner suburbs ranked in our upcoming Winter edition of The Price Predictor Index, 17 are now classified as rising markets &ndash; and there are no longer any ranked as danger markets.

But there are large numbers of growth suburbs right across the Greater Brisbane Area, led by Moreton Bay Region in the far north (28 rising suburbs) and Logan City in the far south (25). The big improver is Ipswich City, which three months was still lagging the rest of Brisbane and had only five growth suburbs. Now, of the 14 Ipswich suburbs ranked in The Price Predictor Index, 11 are classified as growth suburbs. Bundamba (quarterly sales of 8 21 23 52) and Brassall (23 42 53 85) provide two dramatic examples. Both have median house prices in the low $300,000s.

Logan City, which showed major advances in our previous survey with 17 growth suburbs, has improved further and now has 25 growth suburbs. Woodridge sales have been 9 12 25 37 85 while Yarrabilba has been 42 51 69 93 and Eagleby 27 32 42 48 75, data which charts firstly recovery and then boom.

Moreton Bay Region is often the Brisbane market leader and this continues, with 28 growth&nbsp;suburbs, down slightly from 31 in the previous survey. Neighbouring Brisbane-north has also dropped slightly from 20 growth suburbs to 19, but remains a very strong market. There are also notable numbers of rising suburbs in the Brisbane-east, Brisbane-south and Redland City precincts.

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PRICES: When we did our prices analysis three months ago, 76% of suburbs had delivered annual growth in their median house prices. This latest analysis finds that 89% of suburbs have had growth in the past 12 months.

Similarly, there has been improvement in the apartment markets, from 56% to 64% of suburbs recording annual growth in their median unit prices. The uplift in house prices is spread right across the Greater Brisbane Area, through a variety of price points in the inner, middle and outer ring precincts.

The Brisbane East precinct is a particular standout, with 12 suburbs delivering annual growth between 8% and 19%. The best performers have been Carina Heights, up 17% to $775,000, and East Brisbane, up 19% to $930,000. Lota ($690,000), Balmoral ($1,180,000) and Murarrie ($710,000) have all lifted 13%, while Tingalpa ($600,000), Norman Park ($1,010,000), Manly ($935,000) and Camp Hill ($975,00) all rising 10-11%. Carindale, Manly West and Wynnum has all grown 8%.

The neighbouring Redlands City area has also produced multiple growth suburbs, led by Thorneside (up 12% to $610,000) and Cleveland (up 10% to $645,000). Alexandra Hills, Birkdale, Capalaba, Ormiston, Thornlands and Victoria Point have all increased 7-9%. There are numerous growth markets in the city&rsquo;s north. Increases in the Brisbane North precinct have been led by Ashgrove (up 16% to $1,140,000), Clayfield (up 17% to $12,40,000), Banyo (up 14% to $625,000) and Sandgate (up 13% to $800,000). Suburbs which have recorded annual growth between 7% and 9% include Ascot, Chermside, Everton Park, Hendra, Taigum, Kedron and Stafford Heights.

A little further north, growth in the Moreton Bay Region is led by Eatons Hill (up 13% to $690,000), while Banksia Beach, Clontarf, Everton Hills, Kippa Ring and Strathpine have all increased 7-8%.

In the Brisbane South precinct, Yeronga has been a city growth leader, with its median house price rising 31% to $1,115,000 in the past 12 months. Holland Park ($820,000) is up 13%, while Wishart ($800,000), Moorooka ($695,000), Tarragindi ($865,000) and Upper Mount Gravatt ($680,000) all have increased 10-12%.

Further south, growth markets in Logan City include Daisy Hill (up 20% to $570,000) and Windaroo (up 16% to $560,000), while Waterford, Underwood, Eagleby, Edens Landing and Jimboomba have all grown 7-9%.

Among the inner-city suburbs, New Farm has grown 20% to $1,855,000, Bardon is up 17% to $1,175,000, West End is up 13% to $1,115,000 and Woolloongabba has increased 15% to $870,000.

Of the Brisbane West suburbs, St Lucia has jumped 23% to $1,505,000, Graceville is up 17% to $1,035,000 and Taringa, Chapel Hill and Sinnamon Park have all increased 10-11%.

Two-thirds of suburbs have rising sales activity and almost 90% have rising prices

terryryder

Brisbane is now the leader among Australia's property markets: Terry Ryder

<h2>EXPERT INSIGHT</h2>

It&rsquo;s been quite the week for the Aussie property market. National home prices are straddling record highs, the value of new home lending commitments are at historic highs and council approvals to build new private detached houses are at all-time highs. Leading indicators of construction activity are also at the highest level on record, pointing to continued home price gains this year and next.

Commonwealth Bank (CBA) Group economists expect prices to lift by a combined 14 per cent in 2021 and 2022.&nbsp;

That said, home price growth and residential building activity could ease from elevated levels as affordability constraints for first home buyers, the HomeBuilder expiry, shortages of tradies, supply disruptions, rising building material costs and slower population growth combine to weigh on demand. Of course, a prolonged period of record low interest rates - as signalled by the Reserve Bank - remains a key support for new home building and &lsquo;renos&rsquo;. &nbsp; &nbsp; &nbsp;

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The Australian Industry Group (AiGroup) and Housing Industry Association&rsquo;s (HIA) Performance of Construction index (PCI) eased from historic highs in April. But the underlying activity index climbed 5.1 points to a record high of 62.8 points as building work increased ahead of the HomeBuilder grant deadline on March 31. While house building activity is a smidgen below February&rsquo;s record levels, engineering construction lifted 2.3 points to an all-time high of 63.8 as infrastructure-related building cranked up a gear courtesy of state government spending.

And the pipeline of residential building work is expected to remain elevated in the near-term if leading indicators of activity, such as building approvals, are any guide. Council approvals to build new homes surged by 17.4 per cent to 23,176 units in March &ndash; the most in 3 years. Approvals are up 47.4 per cent on a year ago &ndash; the strongest annual growth rate in 11 years. Private sector house approvals were up 0.1 per cent to an all-time high of 14,117 units. The value of alterations &amp; additions approved were up by 7.3 per cent in March to a record $1,072.5 million.

Western Australian building approvals - while down in March - were up a massive 129.2 per cent on a year ago. And the rolling annual number of Greater Perth building approvals hit a 4&frac12;-year high of 19,427 units in March. The building boom is also evident in Queensland and South Australia with March approvals up 82.2 per cent and 69.6 per cent, respectively, on a year ago. Rolling annual numbers are broadly at 2-year highs in both states. &nbsp;

New car sales have bounced back from their most recent cycle low in October 2020. Sales totalled 92,347 units in April &ndash; the most sales for an April month on record. Sales are up 137.2 per cent on a year ago &ndash; from the depths of pandemic lockdown.

While the global semiconductor chip shortage is weighing on the supply of new cars for eager car buyers, its boosting the profits of car dealerships with less price discounting due to low inventories and strong buyer demand. Peter Warren Automotive (PWA Holdings) made a successful Aussie sharemarket debut last week, joining Eagers Automotive and Autosports Group as the only car dealership groups on the Australian Stock Exchange.&nbsp;

What do you need to know?&nbsp;

Building Approvals &ndash; March

Council approvals to build new homes rose by 17.4 per cent to 23,176 units in March &ndash; the most in 3 years. Approvals are up 47.4 per cent on a year ago &ndash; the strongest annual growth rate in 11 years.

Total house approvals rose by 1.2 per cent to a record-high 14,404 units in March to be up 62.2 per cent on a year ago. Private sector house approvals were up 0.1 per cent to an all-time high of 14,117 units to be up 60.9 per cent on a year ago. Public sector house approvals surged 117.4 per cent in March to 287 units but were still up a massive 173.3 per cent on a year ago.

Apartment approvals jumped 59.4 per cent to a 2&frac12;-year high of 8,772 units in March to be up 28.1 per cent on a year ago.

Over the past year 198,439 new homes were approved - a 2-year high.

Dwelling approvals across states in March: NSW (+26.9 per cent); Victoria (+24.7 per cent); Queensland &nbsp; &nbsp; &nbsp; (+12.1 per cent); South Australia (+3.5 per cent); Western Australia (-6.4 per cent); Tasmania (-4.8 per cent).

The value of all commercial and residential building approvals rose by 36.3 per cent in March. Total residential approvals lifted 22.9 per cent with new building up 25.4 per cent and alterations &amp; additions up by 7.3 per cent to all-time highs. Commercial building umped 59.4 per cent.&nbsp;

New vehicle sales - April

New vehicle sales totalled 92,347 units in April &ndash; the highest number of sales for the month of April on record. Sales are up 137.2 per cent on a year ago.

The Federal Chamber of Automotive Industries reported:

&ldquo;The April 2021 market of 92,347 new vehicle sales is an increase of 53,421 vehicle sales or 137.2 per cent on April 2020 (38,926) vehicle sales. April 2021 had 23.6 selling days compared to April 2020 with 23.9 which resulted in an increase of 2284.3 vehicle sales per day.

The Passenger Vehicle Market is up by 8,906 vehicle sales (97.2 per cent) over the same month last year; the Sports Utility Market is up by 31,154 vehicle sales (172.9 per cent); the Light Commercial Market is up by 12,278 vehicle sales (130.1 per cent); and the Heavy Commercial Vehicle Market is up by 1,083 vehicle sales (46.9 per cent) versus April 2020.

Toyota was market leader in April, followed by Mazda and Mitsubishi. Toyota led Mazda with a margin of 10,156 vehicle sales and 11.0 market share points.&rdquo; &nbsp;

Sales across states and territories over the year to April: NSW (up 143.9 per cent); Victoria (up 142.0 per cent); Queensland (up 144.4 per cent); South Australia (up 134.7 per cent); Western Australia (up 139.0 per cent); Tasmania (up 157.6 per cent); Northern Territory (up 98.4 per cent); ACT (up 4.1 per cent).

In the 12 months to April, sales totalled 1,000,676 &ndash; a 13-month high &ndash; to be up 1.0 per cent on a year ago. In the year to April, SUVs accounted for a record 69.3 per cent of combined SUV and passenger car sales.

AiGroup &amp; HIA Performance of Construction index (PCI) &ndash; April

The Australian Industry Group (AiGroup) and HIA Performance of Construction index (PCI) eased from a record high of 61.8 in March to 59.1 in April. Readings above 50 indicate an expansion of activity.

In seasonally-adjusted terms, PCI activity rose 5.1 points in April to a record 62.8. But employment fell 3.9 points to 59.2. New orders lost 7.7 points to 57. Supplier deliveries were down 6.1 points to 56.0 &ndash; but all three readings are hovering just below historic highs in March. And input prices eased 0.4 points in April to 92.5. Selling prices rose 1.5 points to a record 73.3 and average wages fell 6.4 points to 65.4.

Ai-Group noted: &ldquo;The new orders index appears to have peaked in Q1 of 2021, reflecting the very successful HomeBuilders program. This is in line with recent house approvals and financing trends. Although approvals have already peaked, the pipeline of work created by this spike in demand is likely to keep home builders busy for many months to come.&rdquo;

And, &ldquo;Builders across all sectors continue to report shortages of skilled trades contractors, key supplies and components. They also report rising input prices, freight delays and high freight charges. Home builders remain wary of a post-HomeBuilder demand slump but are hopeful that low interest rates and other factors will help to support demand.&rdquo;

IHS Markit Purchasing Managers&rsquo; indexes (PMI) &ndash; April

The &lsquo;final&rsquo; IHS Markit services purchasing manager index rose from 55.5 in March to a record 58.8 in April. The composite index, which measures combined services and manufacturing output, rose from 55.5 to an historic high of 58.9. Readings above 50 indicate an expansion of activity. Data collection began in May 2016.

IHS Markit economists reported, &ldquo;April PMI data signalled that business activity across the Australian service sector rose at the strongest pace since data collection began in May 2016, reflecting further moves towards recovery. This was aided by the further easing of COVID-19 restrictions which boosted customer confidence and demand alike.&rdquo;

And, &ldquo;Service providers were enthused by the upturn in demand and expanding their workforce numbers at the joint-fastest pace on record. Nonetheless, strains on business capacity remained evident and intensified amid ongoing supplier delays.&rdquo;

What are the implications for investors?

The HomeBuilder stimulus has been incredibly successful. Commonwealth Treasury data shows that 121,363 HomeBuilder applications have been received since June 2020 with Victorian applications highest at 35,169 as at April 9, 2021. The federal government has said that the scheme has supported around $30 billion of residential projects, supporting jobs and boosting building activity following the pandemic shock.

While there are concerns that the demand pull-forward of council building approvals ahead of the HomeBuilder expiry could ease, construction bottlenecks have seen the federal government recently announce the extension of the building commencement requirement of the program, supporting activity. That said, construction prices are lifting with the PCI selling prices up 1.5 points in April to 73.3, signalling that builders are passing on their cost increases to home buyers and renovators. With inflationary pressures building - and home prices and new investor lending lifting &ndash; housing credit growth appears set to accelerate. Given this backdrop, an eventual policy response from regulators appears likely. &nbsp;

National home prices are straddling record highs, the value of new home lending commitments are at historic highs and council approvals to build new private detached houses are at all-time highs

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Home values to rise by combined 14% in 2021 and 2022: CBA's Ryan Felsman

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EXPERT INSIGHT

The Reserve Bank’s Financial Stability Review (FSR) has taken a balanced approach to the risks for the Australian economy associated with rising house prices.

On the one hand it points out that: “In an environment of accommodative financial conditions with rising asset prices it is particularly important that there is not excessive risk-taking by the financial sector ... increasing the debt-related risks to the economy and financial system from a fall in asset prices and borrowers’ income.”

The Bank describes these risks as: “looser lending standards for individual loan assessments, or a relaxation of internal limits on the share of riskier loans ... [or from] increased risk-taking by optimistic borrowers which could see a deterioration in the average quality of new lending”.

This last style of risk appears to be with investors in mind.

To date, however, the Bank describes lending standards as largely unchanged and remaining robust: “the share of high LVR lending increased over the second half of 2020 but remains low by historical standards.”

Furthermore: “credit growth has increased but remains modest and has mostly been driven by lending to owner occupiers" although “investor loan commitments have started to rise.”

Our own analysis of loan approvals points to investor commitments rising by 31% in the last six months compared to gains of 24% for 'upgraders' and 30% for first home buyers.

However the loan approvals to investors account for around 32% of the total housing loans (including all owner occupiers) compared to 65% in 2017 when APRA introduced a range of controls aimed at curtailing investor activity.

On the other hand the Bank points out the solid starting point that will support the resilience of the system to the potential “increased risk-taking by optimistic borrowers”. It highlights the improved quality of household balance sheets in the wake of higher house prices (“the share of loans for which the value of the loan exceeds the value of the property has fallen to around 1.25% down from 3% a year ago”).

Household balance sheets also remain in good shape from the perspective of repayment buffers ("Around half of all mortgages have prepayment buffers equivalent to more than 3 months' worth of repayments and, 
for more than one-quarter of loans the buffer exceeds 2 years' worth of repayments" while "the share of loans with prepayment buffers of only one month ... remains close to its pre pandemic level of 40%” and “most loans with low prepayments do not represent large risks to lenders”).

Around two thirds of those with low prepayment buffers are held by investors and/or fixed- rate borrowers with the remaining group of relatively 'risky' borrowers having declined to around 10% of all loans from 15% a year ago.

Other specific risks have also eased. In particular, housing loans on prepayment deferrals have declined to 0.7% of all housing loans from a peak of 11% in May 2020.

House price movements to date are also put into perspective – Sydney and Melbourne prices are now a little above their historical peaks in 2017/18, having risen by 5% over the year compared to the 11% increase in regional areas.

Westpac has forecast national dwelling prices to rise by around 20% over the course of 2021 and 2022. That would put Sydney and Melbourne prices 12–15% above their 2017 peaks by end 2022 – an annual rate of increase of 2–3%, hardly worthy of being described in the emotional vernacular as a 'bubble'.

While the FSR sketches out the risks to the economy of lending excesses associated with rising house prices, current observations point to lenders remaining well disciplined while, at the same time, household balance sheets have strengthened.

The overall impression from the Review is that authorities are some way from seeing the need to adopt any direct controls on lenders to address risks associated with rising house prices.

Westpac continues to expect no significant containment measures in 2021.

The FSR also highlights risks around the outlook for business insolvencies and commercial property.

1. Business insolvencies

Businesses in the arts and recreation, accommodation and food, and transport sectors have continued to receive significant support from the government. Firms in these sectors also tend to be more highly geared and have low levels of liquidity.

The highest risks in these areas are around SMEs (although the share of SMEs with deferred repayments has fallen to just over 1%).

Notwithstanding this, the Review expects insolvencies to rise further for some months although some factors are likely to help moderate the rise – cash supports that allowed businesses to wind down operations without entering into insolvency.

Changes to the insolvency framework and the recently announced SME Recovery Loan Scheme are expected to assist SMEs.

2. Commercial Property – Offices

The FSR notes: “impairment rates on commercial property remain low, consistent with relatively low LVRs and strong debt covenants”.

However these impairments are expected to rise in the CBD office markets where vacancy rates in Sydney and Melbourne have reached 20 year highs.

The low number of sales transactions increases the uncertainty about recent price trends.

3. Commercial Property – Retail

Rents and valuations have declined by 6 and 15% respectively since 2019 – particularly challenged by the rise of online shopping.

However the dominance of the large real estate investment trusts in this sector significantly reduces contagion risks. Nearly all REIT securities are held by institutions. They entered the pandemic in good financial health with low gearing and were well-placed to absorb the earnings reductions from rent waivers.

Bill Evans is the Chief Economist a Westpac
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The Reserve Bank's Financial Stability Review has taken a balanced approach to the risks for the Australian economy associated with rising house prices.

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RBA's Financial Stability Review notes risks but no immediate alarms around housing: Bill Evans

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Listings are up 2.2 percent in Melbourne on this time last year, which is the only capital city to have more stock for sale than last April.

Darwin sees the biggest drop in overall listings, down by 35.9 percent according to CoreLogic.

Other cities aren't too far behind with Canberra, Brisbane, Adelaide and Hobart all down more than 30 percent in stock levels of private treaty listings.

Related article: <a href="/news/urbans-top-five-melbourne-apartments-with-5-star-hotel-amenities-for-sale-in-april-2021">Urban's top five Melbourne apartments with 5-star hotel amenities for sale in April 2021</a>

Perth is down 22 percent.

Sydney has the lowest stock dip, at 16 percent.

The chart includes house and apartment resale listings.

<img alt="" height="379" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/cl_2021_cc_listings.jpg" width="644">

There are currently 83,000 property listings across the nation, which is 17 percent down on the same time last year.

The level of new stock, ie fresh offerings over the past four weeks, is not a consistent between the capitals.

[smartcode_project:default project_id=2772]

Related article: <a href="/news/vic/april-2021-the-top-5-two-bedroom-apartments-for-investors-in-melbourne-under-800-000">The top 5 two-bedroom apartments for investors in Melbourne under $800,000</a>

Perth sees a 64 percent jump in vendors arriving in the market.

Melbourne, Darwin and Adelaide have also seen a spike in fresh listings.

Hobart has seen a contraction in vendors.
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April 2021 sees far fewer overall listings than the same time in 2020

jchancellor

Melbourne is the only capital city with more listings than last April: CoreLogic

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If you’re considering buying a holiday home right now, you’re not alone. With Australians currently forced to put their plans for international travel on hold and the cost of Australian holiday home rentals on the rise, it's no wonder more people are keen to invest in a holiday home to call their own. 

Like anything in life, buying a holiday home has its pros and cons. Here’s what you should consider. 

<h2>Pros of buying a holiday home right now</h2>

The pandemic has put the importance of lifestyle into the spotlight. Having a holiday home to escape to regularly can be an excellent way to improve your quality of life. If you would usually travel overseas regularly, this can also be a good alternative. 

With the costs of renting a holiday home soaring thanks to huge local demand, combined with record low interest rates, we’re experiencing a unique situation where it may actually be more cost effective to buy rather than regularly rent a holiday home. For those who have managed to save more during the pandemic - such as through forgoing the costs of international travel - the costs of a deposit may also already be covered.

If you already spend money on going on holiday in Australia each year, especially if it's to the same place, then spending that money on a mortgage on a holiday home may make sense. Not only are you spending what you would have spent anyway, if not less, but once you’ve paid off the mortgage you then own an asset which will grow over time. If you can’t afford 100% of the mortgage on your own, then you can always rent it out part of the year until you have paid down the mortgage.

For those getting into the market right now, there’s a window of time where prices will remain affordable. We’re already seeing prices in some areas such as Byron Bay rise significantly. Across the board regional home values rose by 0.4 per cent in September or 4.3 per cent year-on-year.

For those looking to rent out their holiday home for part of the year, there has been a sharp increase in rents, resulting in a better return than usual, at least in the short-term.

<hr>
<address>READ: <a href="/news/qld/5-apartments-for-the-professional-couple-in-queenslands-broadbeach" target="_blank">5 apartments for the professional couple in Queensland’s Broadbeach</a>
</address>

<h2>What are the Cons?</h2>

If you’re looking to purchase a holiday home as an investment, it may not always be the best choice. The short-term surge in rental values might not last once the borders reopen and some people opt to head overseas for their holidays.

If you’re planning on renting out your holiday home when you’re not staying there, you need to be prepared to dedicate time and money to managing bookings, taking inquiries, cleaning and maintaining the property. This can prove burdensome for many people. If your holiday home is not your principal place of residence, then you may need to factor in taxes such as land tax which can impact the property’s affordability. 

If you opt to purchase a holiday home, you’re locked in to one holiday destination. For some people this may feel too limiting, especially once the borders open. 

Securing finance for a holiday home purchase can be more challenging. Lenders will look at the unpredictable rental income and may require a larger deposit, a shorter loan period or a higher interest rate. 

Ultimately, buying a holiday home is a personal choice. Talk to your financial adviser about whether it may be possible with your financial situation and consider your life and wealth goals. If you’ve always wanted to have your own holiday home and it’s an attainable and practical goal, then why not make it happen? 
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Ultimately, buying a holiday home is a personal choice. But, for those getting into the market right now, there’s a window of time where prices will remain affordable

max.kwok_55688

Is now the right time to buy a holiday home?

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If you’re confused about the <a href="/expert-insights/buying/4-reasons-to-have-faith-in-australia-s-property-market-for-the-long-run">Australian property market</a>, I don’t blame you.  

From some portrayals of the media, there’s nothing but doom and gloom, with talk that COVID-19 will burst Australia’s property ‘bubble’ and see property values tumble.

Others, however, argue that property investment remains a safe bet and will continue to be so for years to come.  

I’m in this camp. I firmly believe that there is still no better way to build wealth in Australia than through <a href="/guides/how-to-invest-in-property-in-2020-the-ultimate-guide">property investment</a>.  

Let me explain. 

There are a number of key factors that will continue to drive growth over the long-term. 

Scarcity of Supply and Growing Demand 

The value of anything is determined by its relative scarcity, and scarcity is fuelled by actual and perceived supply and demand. Where there is more demand than supply, the value of something is likely to rise. 

In Australia, a housing shortage will continue to drive the property market. Research from <a href="https://www.anz.com.au/personal/">ANZ</a> in 2016 revealed that Australia faces an estimated property shortage of more 250,000 dwellings, a deficit of 2.6% based on Australia’s housing stock of just under 10 million.  

Changing demographics 

Australians are living longer, and residing in smaller households. 

According to research from <a href="https://onlinelibrary.wiley.com/doi/10.1111/ajag.12113">Professor Graham Hugo</a>, average life expectancy has increased by more than 14 years (about 20%). Looking ahead, the ABS predicts that average life expectancy will be 92 for males and 95 for females by 2050. This means that people will need to be housed for much longer, putting more strain on housing availability. 

Since the mid-1960s, the household has also reduced from 3.4 to 2.4 persons. This 40% decrease is because Australians are choosing to remain single for longer, marrying, partnering and having children later in life, and unfortunately, divorce and separation continues to rise. For example, <a href="https://www.abs.gov.au/websitedbs/censushome.nsf/home/historicaldata?opendocument">ABS statistics from 1986 to 2006 r</a>evealed that one parent households rose by 120% and single households were up 80%.  

Population growth 

Australia has one of the <a href="/news/new-housing-development-aims-to-cater-to-significant-population-growth-anticipated-for-geelong">highest population growth rates</a> in the developed world. This is mostly due to our high immigration rate. 

And while there is a temporary hold on migration, once the borders are open this growth is set to continue as Australia continues to prove it is one of the safest and best places to live in the world. The ABS predicts that Australia’s population to rise to between 36.8 million and 48.3 million in 2061, reaching as high as 70 million by 2101.

Consider this simplified forecasting - Australia will have 16.5 million more people by 2061 and, based on the average household size of 2.4 persons, we’re looking at around 156,000 extra dwellings each year, on top of the existing national housing shortage of 250,000!

Is now a good time to buy property? 

History has repeatedly shown that property is very resilient to economic shocks as well as continues to hold its value and grow irrespective of <a href="/expert-insights/buying/covid-19-and-the-pathway-forward-for-property">unemployment levels</a> and negative economic growth. The after-effects of COVID-19 will be no different. 

In fact, current market conditions create a rare window of opportunity to secure <a href="/developments">good-quality properties </a>before the combined impact of continued share market volatility, historically low-interest rates and Australian dollar. In addition, massive government stimulus tips confidence and growing demand back into the property market including high-quality properties in scarce locations continue to rise in value. For smart investors, now is the time to pounce not to pause!

Of course, high-growth will not be across every city and region in Australia. It is expected that 70% of property market growth will come from the greater capital city regions of the eastern states: Queensland, New South Wales and Victoria. This will be driven by career opportunities (high employment), infrastructure investment and lifestyle needs. 

Property: ‘As safe as houses’

When it comes to property investment, it’s pretty clear that the numbers will continue to stack up. To emphasise the point, if the growth rates of property are equal to or even somewhat less than shares, the power of leverage will almost double your wealth creation compared to equities. 

Of course, before throwing yourself into the property market, make sure you do your <a href="/expert-insights/buying/how-to-research-an-off-the-plan-property-thoroughly-and-effectively">research</a>, seek advice from experts and put your own, personalised wealth plan in place. 
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vivian_48447

Is Property Still a Good Investment? Find out why..

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<h2>OPINION: </h2>

Australia’s housing market is a topic which I regularly encounter, whether with our customers, readers or even just friends. Whether you are a homeowner, investor or potential buyer, the housing market will impact you in one form or another.

Since the start of 2020, the market has been <a href="/guides/overwhelming-sales-statistics-last-week-reveal-reinstated-confidence-in-the-off-the-plan-market">performing strongly</a>, where we saw last week’s clearance rate around 80% in both Melbourne and Sydney. The number of properties going under the hammer was also the strongest since 2019, with 1000 and 800 respectively. This statistic was also reflected by the significant increase in listings in our weekly magazine.

While the signs look positive locally, how will the Coronavirus impact Australia’s property market? The main thing to look at is the impact on Australia’s economy. The Coronavirus is set to be declared a pandemic, due to the ease at which it appears to be spreading worldwide. If it can’t be contained quickly, then the impact on economic growth would look dire.

The way I see it, the impact of the virus on Chinese interests in Australian property will be both good and bad. <a href="https://firb.gov.au/">Foreign Investment Review Board (FIRB) reported</a> that foreign investment plunged by 58% year-on-year from $30 billion to $13 billion in the 2017/18 fiscal year – the lowest level in nearly a decade. This will be compounded by the uncertainty around the virus, so in the short term, we will definitely see a drop in demand.

The <a href="https://dfat.gov.au/news/news/Pages/continuing-travel-ban-to-protect-australians-from-the-coronavirus.aspx">current travel ban</a> has limited many Chinese nationals to enter Australia, especially the international students with many either buying for the short term or buying when they continue living in Australia after graduation. Also, if China continues to restrict the flow of funds out of their country to protect their own economy, it limits the ability of Chinese investors to <a href="/guides/2019/06/17/urbans-first-home-buyer-guide">buy property in Australia</a>. 

On the other hand, in the long term, many more Chinese may want to migrate overseas, as the virus has made them feel vulnerable in China. If so, we will see a resurgence of strong demand from Chinese foreign buyers in the near future. But a lot is dependent on how the Chinese Government limits the flow of funds to overseas if the economy is doing poorly and also if any easing of Australia’s policy towards foreigner buyers. 

Unfortunately, no one has a crystal ball to be able to accurately predict the future. We can’t be sure how the Coronavirus health crisis will pan out globally. We also can’t be exactly sure how it will affect the Australian economy or our property market until we see an end to the crisis.

<div class="rtecenter">Read next: <a href="/news/first-home-buyers-snap-up-property-due-to-fear-of-missing-out">First home buyers snap up property due to ‘fear of missing out’</a>
</div>
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