<p data-end="186" data-start="128">ANZ believes the Reserve Bank is in no rush to move again.</p>

<p data-end="441" data-start="188">Following the release of the May Monetary Policy Board Minutes, ANZ has taken the view that the RBA is now firmly in a holding pattern, with the cumulative impact of previous rate hikes giving the Board scope to assess how the economy evolves from here.</p>

<p data-end="508" data-start="443">That positioning, in ANZ’s view, makes a June rate hike unlikely.</p>

<p data-end="680" data-start="510">The bank continues to expect the cash rate to remain unchanged at 4.35 per cent for an extended period, with the RBA adopting what is effectively a wait-and-see approach.</p>

<p data-end="1015" data-start="682">The Minutes point to a Board that sees financial conditions as already restrictive, but without a clear read on just how restrictive they are. That uncertainty has shifted the focus away from immediate policy action and toward monitoring both domestic conditions and global developments, particularly the conflict in the Middle East.</p>

<p data-end="1098" data-start="1017">As ANZ interprets it, the Board is deliberately avoiding strong forward guidance.</p>

<p data-end="1345" data-start="1100">Instead, it is allowing itself flexibility, acknowledging that monetary policy has limited ability to influence the near-term trajectory of inflation, while also recognising that economic growth is likely to remain below potential for some time.</p>

<p data-end="1436" data-start="1347">Despite that pause in momentum, ANZ notes that the Board still carries a tightening bias.</p>

<p data-end="1678" data-start="1438">The Minutes reveal that, in weighing up its decision, the Board seriously considered another 25 basis point increase. The key debate centred on the trade-off between inflation and activity, particularly in the context of global uncertainty.</p>

<p data-end="1755" data-start="1680">Ultimately, most members leaned toward the inflation side of that equation.</p>

<p data-end="2082" data-start="1757">Underlying inflation is still expected to remain above target for an extended period, regardless of how external risks evolve. That has led to a view within the Board that the risks to its inflation objective have increased, and that the current cash rate may not be sufficiently restrictive to fully contain those pressures.</p>

<p data-end="2101" data-start="2084">That’s important.</p>

<p data-end="2239" data-start="2103">While the decision, for now, is to hold, the underlying tone of the Minutes suggests the door to further tightening has not been closed.</p>

<p data-end="2597" data-start="2241">ANZ also points to commentary from Assistant Governor (Economic) Sarah Hunter, who highlighted the risk that inflation could pass through the economy more quickly and broadly than in previous cycles. Both Hunter and a majority of the Board expressed concern that inflation expectations could become less anchored after such a prolonged period above target.</p>

<p data-end="2733" data-start="2599">That combination, persistent inflation and the risk of expectations shifting, is what continues to underpin the RBA’s cautious stance.</p>

<p data-end="2807" data-start="2735">However, where ANZ diverges from the RBA is on the outlook for activity.</p>

<p data-end="3152" data-start="2809">The Board appears relatively comfortable with current spending patterns, effectively downplaying recent declines in business and consumer sentiment. It notes that sentiment has historically been only weakly correlated with actual spending, and that feedback from its liaison program has not yet pointed to a meaningful slowdown in consumption.</p>

<p data-end="3176" data-start="3154">ANZ is less convinced.</p>

<p data-end="3464" data-start="3178">The bank believes the link between household disposable income, sentiment and spending is more direct than the RBA is currently acknowledging. With inflation continuing to erode real incomes, ANZ expects household spending to soften more materially than the central bank is forecasting.</p>

<p data-end="3528" data-start="3466">That divergence matters because it shifts the balance of risk.</p>

<p data-end="3740" data-start="3530">If activity weakens more than expected, the trade-off between inflation and growth changes. In ANZ’s view, that would reduce the need for further tightening and reinforce the case for the RBA to remain on hold.</p>

<p data-end="3855" data-start="3742">It also suggests that the current policy setting may already be doing more work than the Board fully appreciates.</p>

<p data-end="3945" data-start="3857">The broader takeaway from ANZ’s interpretation is that the RBA is walking a narrow path.</p>

<p data-end="4135" data-start="3947">On one side sits the risk of inflation remaining elevated for longer than expected. On the other is the growing pressure on households and the potential for a sharper slowdown in activity.</p>

<p data-end="4176" data-start="4137">For now, the Board is choosing to wait.</p>

<p data-end="4286" data-start="4178">But it is a pause that still carries an underlying tightening bias, rather than a clear pivot toward easing.</p>

<p data-end="4423" data-start="4288">In practical terms, that leaves the cash rate anchored at 4.35 per cent for the foreseeable future, with the next move still uncertain.</p>

<p data-end="4494" data-start="4425">For borrowers, it reinforces the reality that relief is not imminent.</p>

<p data-end="4686" data-start="4496">And for the broader economy, it highlights the delicate balance the RBA is trying to strike, between bringing inflation back to target and avoiding an unnecessarily sharp slowdown in growth.</p>

<p data-end="4774" data-is-last-node="" data-is-only-node="" data-start="4688">According to ANZ, it is a balance that is becoming increasingly difficult to maintain.</p>


Joel Robinson

RBA to hold rates for "prolonged period" rather than hikes: ANZ

<p><a href="https://www.apartments.com.au/developers/venturecrowd-property-projects">VentureCrowd</a> is down to the final Canopy Villa release at Cumulus Grand Villas in Carrara, as construction continues on the 59-residence gated community positioned above 100 hectares of natural savanna on the Gold Coast.</p>

<p>The remaining Canopy Villa forms part of one of four collections within the <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>-designed community and has attracted interest from buyers seeking larger-format homes that combine privacy, security and low-maintenance living. Positioned within a private cul-de-sac and facing a protected black she oak forest, the four-bedroom villa includes a large private outdoor area suited to pet owners and families wanting more flexible space.</p>

<p><a href="https://www.apartments.com.au/new-townhouses/cumulus-grand-villas-carrara-17-baltimore-court-carrara-qld-4211">Cumulus Grand Villas</a>, located at 17 Baltimore Court, comprises a mix of three and four-bedroom villas across the Skyline, Canopy, Savanna and Broadview collections. Prices currently range from $1.455 million to $1.895 million, with the final Canopy Villa priced from $1.825 million.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360477]</p>

<p>The Canopy Collection villas offer four bedrooms, 2.5 bathrooms and approximately 245 sqm of internal space, alongside double garages and landscaped private areas. Expansive glazing, open-plan living spaces and private balconies have been designed to maximise natural light and outlooks toward the surrounding savanna landscape.</p>

<p>Construction is now underway across the fully funded development, which VentureCrowd says has become an increasingly important consideration for buyers assessing off-the-plan opportunities on the Gold Coast. The project is being delivered by <a href="https://www.apartments.com.au/builders/devcon">Devcon Property Group</a>, which has operated in South East Queensland since 1993 and delivered more than 1,000 homes across the region.</p>

<p>VentureCrowd Director of Property David Whitting previously said the project responds to changing buyer priorities in the prestige Gold Coast market.</p>

<p>“Flexible floorplans have proven particularly relevant for purchasers aged between 40 and 65, including next home buyers, downsizers and investors,” Whitting said.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360505]</p>

<p>The buyer profile at Cumulus has reflected that shift toward owner-occupier-driven demand. Stuart Towns and Tracey Loynes recently purchased a Canopy Villa, drawn to both the lifestyle offering and the flexibility the home provided for their next stage of living together.</p>

<p>The couple, who met three years ago, sold their Robina home earlier this year after identifying what they saw as strong long-term investment potential at Cumulus while remaining within the same Gold Coast market. The villa’s private backyard was a major drawcard for their dog Luna, while proximity to golf courses including Emerald Lakes also aligned with their lifestyle interests.</p>

<p>Beyond the residences themselves, the community has been planned around shared lifestyle and recreation amenities. The Infinity Terrace will include a 20-metre heated pool, barbecue facilities, alfresco dining spaces and elevated retreat areas overlooking the surrounding landscape. Walking trails, a private nature reserve, orchard and herb garden are also integrated into the masterplan.</p>

<p>[smartcode_project:default project_id=135663 project_image_fid=360473]</p>

<p>BDA Architecture Director Darren Greenaway said the design approach was heavily influenced by the site’s outlook and secluded setting.</p>

<p>The practice sought to create what Greenaway described as a “little piece of paradise,” drawing inspiration from the elevated views, surrounding greenery and quiet location.</p>

<p><a href="https://www.apartments.com.au/developments/carrara-qld-4211">Carrara</a> continues to attract buyers seeking larger homes within proximity to the coast but without direct beachfront pricing. Cumulus sits within easy reach of Broadbeach, Pacific Fair, Robina Town Centre and the M1, providing connections north to Brisbane and south toward the Gold Coast Airport and northern New South Wales.</p>

<p>The first stage of Cumulus Grand Villas is targeting completion in 2026.</p>

<p>[smartcode_project_cta:default project_id=135663]</p>


VentureCrowd nears sell-out of Canopy Collection at Cumulus Grand Villas in Carrara

<p data-end="89" data-start="0">Waverley Council has made a call that many councils have been reluctant to make publicly. Growth is coming, regardless of who controls it.</p>

<p data-end="659" data-start="141">The release of the Bondi Junction Vision and Master Plan is less about whether the Eastern Suburbs’ primary centre will change, and more about how that change is shaped, funded, and ultimately experienced on the ground. Waverley Council has released a 100-page plan which is effectively the first comprehensive blueprint for Bondi Junction in over two decades, and in doing so, signals a clear shift in how councils are positioning themselves in the current planning environment.</p>

<p data-end="1018" data-start="661">For the past 18 months, the conversation across New South Wales has been dominated by the State Government’s Low and Mid-Rise Housing reforms and the emergence of the Housing Delivery Authority pathway. Both have created faster, more centralised avenues for development approvals, particularly in well-located, infrastructure-rich areas like Bondi Junction.</p>

<p data-end="1087" data-start="1020">Waverley Council’s response has been to move early, and decisively.</p>

<p data-end="1547" data-start="1089">Rather than react to individual proposals as they come through the HDA or broader State-led reforms, Council has sought to establish a clear, place-based framework that sets the terms for how Bondi Junction evolves. The underlying position is relatively straightforward: if densification is inevitable, it should be tied to infrastructure, public domain improvements, and a cohesive vision for the centre, not delivered piecemeal through ad hoc applications.</p>

<p data-end="1547" data-start="1089"><img alt="bondi junction" data-entity-type="file" data-entity-uuid="7f1f729c-ed99-4c6c-bf87-ffbce6991941" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-19%20at%209.58.16%E2%80%AFAM.png?VersionId=ULX4OlXKjeJ5BvNCNGL86evgXCjCfMih" /></p>

<p data-end="2067" data-start="1591">At its core, the document is attempting to reposition Bondi Junction from what it largely functions as today, a transport interchange anchored by a major retail centre, into something far more layered. The ambition is to transform it into what the plan describes as the “civic and cultural heart of Sydney’s East,” a place that is active beyond commuting hours and capable of supporting a broader mix of uses, experiences and communities.</p>

<p data-end="2123" data-start="2069">That repositioning is built around four key ambitions.</p>

<p data-end="2424" data-start="2125">The first is to create a true destination. Bondi Junction already attracts significant foot traffic, with more than 86,000 daily transport users and millions of annual retail visits, but much of that activity is transient. People pass through, rather than stay.</p>

<p data-end="2897" data-start="2426">The Master Plan seeks to change that dynamic. It leans heavily into the idea of an “18-hour economy,” extending activity well beyond traditional retail hours through dining, cultural programming, events, and a more active night-time offering. This is not just about adding more hospitality venues, but about fundamentally shifting how the centre operates, from a daytime shopping destination to a place that functions across the full span of the day and into the evening.</p>

<p data-end="2951" data-start="2899">Oxford Street Mall sits at the centre of that shift.</p>

<p data-end="3478" data-start="2953">Long seen as underperforming relative to its potential, the Mall is identified as one of the key catalyst projects in the plan. It is to be reimagined as a day-to-night spine, combining retail, dining, wellness and cultural uses in a way that creates a continuous flow of activity. Outdoor dining, rooftop venues, laneway activation and a curated events program are all part of the strategy, alongside significant public domain upgrades that aim to improve comfort, safety and usability.</p>

<p data-end="3478" data-start="2953">&nbsp;</p>

<p data-end="3562" data-start="3480">The second ambition is to transform Bondi Junction into a world-class interchange.</p>

<p data-end="3890" data-start="3564">Despite being one of the most heavily used transport nodes in Sydney, the current experience is fragmented. Connections between the station, Westfield, Oxford Street Mall and surrounding streets are often unclear, and major roads create physical barriers that disrupt pedestrian movement.</p>

<p data-end="4240" data-start="3892">The Master Plan proposes a more seamless, people-focused network. That includes clearer pedestrian links, improved wayfinding, better integration between transport modes, and a rethinking of how arrival into the centre is experienced. The aim is to shift the perception of Bondi Junction from a place people move through, to a place they arrive in.</p>

<p data-end="4296" data-start="4242">The third ambition focuses on greening and open space.</p>

<p data-end="4709" data-start="4298">One of the more consistent pieces of community feedback throughout the Vision phase was the need for more greenery, better public spaces, and a more comfortable urban environment. Despite being surrounded by major parks, Bondi Junction itself has relatively limited accessible open space, with much of the public realm dominated by hard surfaces and traffic infrastructure.</p>

<p data-end="5076" data-start="4711">The plan responds with a network of new and upgraded public spaces, increased tree canopy, and what it terms the “Parkline,” a green link connecting Waverley Park through to Centennial Park. This is not just about aesthetics. It is about addressing heat, improving liveability, and ensuring that increased density is matched by access to high-quality outdoor space.</p>

<p data-end="5183" data-start="5078">The fourth ambition is perhaps the most important from a development perspective: growth that gives back.</p>

<p data-end="5501" data-start="5185">Bondi Junction is already the primary location for new housing supply in the Waverley LGA, and that is expected to continue. The area carries a target of 2,400 new dwellings by 2029, with further growth projected beyond that as demand for well-located housing continues to rise. The Master Plan does not seek to limit that growth. Instead, it attempts to shape it.</p>

<p data-end="5842" data-start="5590">New housing is to be concentrated around transport, with stepped building heights designed to protect the character of surrounding neighbourhoods. At the same time, the plan introduces a more explicit link between development uplift and public benefit. This is where value capture becomes central.</p>

<p data-end="6327" data-start="5890">The document outlines a framework where increased development potential is tied to contributions that fund public domain improvements, community infrastructure, open space, and affordable housing. It is an approach that recognises that much of the transformation of Bondi Junction will be delivered by the private sector, but seeks to ensure that the benefits of that growth are shared more broadly. The Civic Precinct is a key part of that equation.</p>

<p data-end="6732" data-start="6381">Leveraging Council-owned land, the plan proposes a consolidated civic and cultural hub centred around Ebley Street. This would include new community facilities, cultural spaces, and potentially a new Council Chambers, creating a focal point for civic life that currently does not exist in Bondi Junction at scale.</p>

<p data-end="6980" data-start="6734">It is one of several catalyst projects identified in the Master Plan, alongside the Oxford Street Mall transformation. These projects are intended to anchor change, acting as early interventions that unlock broader investment across the precinct.</p>

<p data-end="7137" data-start="6982">Importantly, the Master Plan is not just a design document. It includes a delivery framework that sets out how these ambitions are intended to be realised.</p>

<p data-end="7519" data-start="7139">Council is explicit in acknowledging that it cannot deliver the transformation alone. Implementation will require coordination between State agencies, private developers, landowners and the community, with a mix of planning agreements, infrastructure contributions and direct delivery mechanisms used to fund and stage improvements over time.</p>

<p data-end="7843" data-start="7556">The plan outlines a mix of short-term, medium-term and long-term actions, from immediate public domain upgrades and planning controls, through to larger-scale projects that will unfold over the next decade or more. In practical terms, the next 12 to 24 months will be the most important.</p>

<p data-end="8108" data-start="7845">This is when the Master Plan will move through exhibition, refinement and eventual adoption. It is also the period in which Council will seek to embed the framework into its planning controls, giving it weight in the assessment of future development applications.</p>

<p data-end="8528" data-start="8161">Council officers have indicated that once the Master Plan is in place, it could be used as a benchmark when assessing Housing Delivery Authority proposals, and potentially reduce the need for further HDA declarations within Bondi Junction. In effect, it is an attempt to bring planning control back to the local level, while still aligning with State housing targets.</p>

<p data-end="8654" data-start="8530">That tension between State-led reform and local planning control is not unique to Waverley. It is playing out across Sydney.</p>

<p data-end="8710" data-start="8656">&nbsp;</p>

<p data-end="8710" data-start="8656">&nbsp;</p>

<p data-end="9626" data-start="9587">&nbsp;</p>

<p data-end="10207" data-start="9884">If delivered as intended, Bondi Junction will become denser, more active, and more complex. It will support more residents, more workers, and a wider range of uses, extending beyond its current retail core into a more layered urban environment.</p>


“The civic and cultural heart of Sydney’s East”: Bondi Junction masterplan revealed

<p>Toorak's dress circle St Georges Road, home to some of the city's priciest homes, is set for a rare new apartment development.</p>

<p>Blood Diamond Group, an entity tied to Tina Brandi, wife of David Brandi who has been a prolific bidder on The Block over the years, has filed plans for an ultra-exclusive development across an amalgamated 3,662 sqm site at <a href="https://www.apartments.com.au/new-apartments/104-106-st-georges-road-toorak-vic-3142">104 and 106 St Georges Road</a>.</p>

<p>The proposal would replace two existing homes on the riverfront site with a five-level apartment building cascading down the steeply sloping land toward the Yarra River. Designed by Charles Wright Architects, the development has been carefully shaped around the site’s topography and river environs, with the upper levels stepping back to reduce visual bulk from both St Georges Road and the Yarra corridor.</p>

<p>Planning documents describe the proposal as “a site layout and building typology that is consistent with the emerging character of the area and which provides exceptional amenity for future residents without compromising that of neighbouring properties.”&nbsp;</p>

<p><img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ea19a17e-7528-4fa8-b727-05f2f7c025e5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20a_0.png?VersionId=rZ2IjdoUL_UrRl1sZ4wZHnQXbYUaEmUQ" /></p>

<p>The scheme comprises 12 apartments, including 10 three-bedroom residences, one one-bedroom apartment, and a substantial split-level five-bedroom penthouse. A 624 sqm communal rooftop terrace will crown the building, while three undercroft levels embedded into the hillside will accommodate apartments and basement parking.</p>

<p>The design leverages the site’s dramatic northern outlook across the Yarra River, with living areas and balconies oriented toward the water. A central atrium running the full height of the building is intended to draw natural light deep into the residences and improve internal amenity.</p>

<p>Landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jack-merlo">Jack Merlo Design &amp; Landscape</a> will play a major role in softening the built form, particularly along the river edge where significant setbacks have been introduced. The proposal includes a minimum 30-metre setback from the Yarra River boundary, preserving a substantial landscaped buffer between the development and the waterway.</p>

<p>While a mature English Oak near the front of the site is proposed for removal, the plans retain a large English Elm closer to the riverfront, alongside other established vegetation in the lower section of the property.</p>

<p><img alt="First look: Blood Diamond Group unveils riverfront apartment plans for Toorak Pavilion" data-entity-type="file" data-entity-uuid="ed3bf19b-5bc7-482f-bde7-41f709a13c3a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Toorak%20pavilion%20b.png?VersionId=SG_kBGu4rOaSPY8FtVcmPJfSCrstuOfg" /></p>

<p>Architecturally, the building adopts strong horizontal forms with expansive glazing and curved balcony edges facing the river. Planning documents note the upper levels “adopt a receding form” to ensure the building responds appropriately to the Yarra River environs overlay controls.&nbsp;</p>

<p>The surrounding streetscape is characterised by large contemporary homes embedded into the hillside, many presenting as modest one or two-storey forms to the street before expanding toward the river frontage below. The planning report notes this established pattern heavily influenced the massing strategy for Toorak Pavilion.&nbsp;</p>

<p>Until the recent sale of the landmark Clendon Road mansion Coonac for around $130 million, St Georges Road held the state's most expensive home, the $80,000,088 derelict "Ghost House" mansion that was bought by crypto king Ed Craven.&nbsp;</p>

<p>Blair House, also on St Georges Road, sold for $74.5 million in 2022.</p>


First look: Toorak Pavilions slated for dress circle St Georges Road

<p data-end="205" data-start="54">Six months after a development site on Kangaroo Point’s Shafston Avenue sold for $6.55 million, plans have been lodged for a 23-storey apartment tower.</p>

<p data-end="443" data-start="207">A company named JMT Mega Capital, understood to be interstate investors when the 1,222 sqm double block traded late last year through Patona Property, is proposing an 84-apartment development in place of the existing low-rise buildings.</p>

<p data-end="694" data-start="445">The slender tower at <a href="https://www.apartments.com.au/new-apartments/212-220-shafston-avenue-east-brisbane-qld-4169">212–220 Shafston Avenue</a>, overlooking the Brisbane River, has been designed by <a href="https://www.apartments.com.au/architects/aplus-design-group">Aplus Design Group</a>. It will comprise a mix of one-, two- and three-bedroom apartments above six basement levels, topped by rooftop resident amenities.</p>

<p><img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="7e17ba9e-553e-42ef-92b6-22081671521a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_3.png?VersionId=hlVUf99vrOjUs.vhQs0qV0DhOncUy9T8" /></p>

<p>The development has been designed as a vertically articulated tower with recessed balconies, curved façades and planted edges intended to soften its scale within the evolving Shafston Avenue skyline. In the submitted Urban Design Report, Aplus Design Group said the tower had been “shaped with a slender vertical expression, articulated façades, recessed balcony zones, integrated planting and a clearly defined podium relationship, helping to reduce perceived bulk and create a more elegant contribution to the Shafston Avenue streetscape and broader Kangaroo Point skyline.”</p>

<p>The scheme comprises 84 apartments, including 25 one-bedroom units, 34 two-bedroom apartments and 25 three-bedroom residences. A total of 104 car spaces are proposed across six basement levels, including resident, visitor and accessible parking.</p>

<p>Residents will have access to rooftop communal open space and shared amenities, while the development also incorporates deep planting zones and subtropical landscaping throughout the podium and tower levels. The project includes 35 per cent communal space coverage across the site and a 17.5 per cent deep soil zone allocation to support urban greening outcomes.</p>

<p>The application exceeds the mapped building height under the Kangaroo Point Peninsula Neighbourhood Plan and is being assessed under Brisbane City Council’s impact assessment pathway. The design team argues the additional height is supported by the site’s strategic inner-city location, existing high-density zoning, and proximity to transport and employment hubs.</p>

<p>“The design has been developed to make better use of a well-serviced urban site within an established high-density residential setting, while improving the street presentation and overall quality of the public realm interface,” the report states.</p>

<p><img alt="First look: 23-storey Kangaroo Point tower planned for Shafston Avenue riverfront precinct" data-entity-type="file" data-entity-uuid="1ab44b1e-ff45-4bf3-8da8-8aa0cd79db33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_10.png?VersionId=tSxeGekZOqj1e9g3PEn_yFoC3taKDp3U" /></p>

<p>The proposal adds to a growing pipeline of apartment developments reshaping Kangaroo Point ahead of the 2032 Brisbane Olympic Games, with demand continuing to strengthen for new housing supply in well-connected inner-city precincts.</p>

<p>Mosaic has nearly sold out its under-construction <a href="https://www.apartments.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point-qld-4169">The Bedford by Mosaic</a>&nbsp;and <a href="https://www.apartments.com.au/new-apartments/the-carter-by-mosaic-77-linton-street-kangaroo-point-qld-4169">The Carter</a>,&nbsp;while Pikos recently completed <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye Residences</a> nearby. Pikos is also delivering <a href="https://www.apartments.com.au/new-apartments/gaia-kangaroo-point-108-lambert-street-kangaroo-point-qld-4169">Gaia</a>, over 230 three- and four-bedroom apartments on Lambert Street.</p>


First look: 23-storey Kangaroo Point apartment tower planned for Shafston Avenue riverfront precinct

Corelogic Pain & Gain

<html><body>
<p>EXPERT INSIGHT</p>

<p>Hobart and regional Victoria profit most, shows latest CoreLogic Pain and Gain report</p>

<p>CoreLogic’s Pain and Gain report for the September 2020 quarter released today has revealed Hobart retained its position as the capital city with the highest rate of profit making resales at 96.6%, while regional Victoria was the most profitable ‘rest of state’ region with 97.5% of dwellings sold for a profit in the three months to September.</p>

<p>Nationally, the proportion of resales that made a profit was 88.1% or $24.8 billion in profits, up from 87.2% or $19.8 billion in the June 2020 quarter. However, the amount of losses also deepened on non-profitable sales, from -$885 million in the June quarter to -$1.2 billion in September.</p>

<p>The Pain and Gain analysis for the September quarter reflects the resilience seen in the property market throughout 2020.</p>

<p>Each of the greater capital city markets, with the exception of Melbourne, saw an increase in the rate of profit making sales over the September quarter. The highest rate of profit making sales was across Hobart, which has been the case since March 2018.</p>

<p>Coastal regional markets were also particularly profitable for sellers, with profit making sales representing over 95% of resales across six major coastal markets: Geelong, Illawarra, the Mid North Coast, the Newcastle Lake Macquarie region, the Richmond Tweed region and the Sunshine Coast. The Sunshine Coast hit a record high rate of profit making sales in the September quarter at 96.4%.</p>

<p>Comparing the capital cities to regional Australia, the portion of profit-making sales increased more rapidly across the regions than capitals.</p>

<p>The combined regional Australian market saw the rate of profit making sales increase 150 basis points, to 89.2% in the September quarter, while the rate of profitability across capital city markets expanded 30 basis points, to 87.2%. This also reflects the divergent performance between regional and capital city real estate markets through 2020.</p>

<p><strong>Houses vs Units</strong></p>

<p>The report also demonstrates that there was generally a higher rate of return for houses ($225,000) than units ($125,000).</p>

<p>Profitability across both houses and units rose across Australia in the September 2020 quarter. The portion of properties sold at a loss among houses fell from 10.2% in the three months to June to 9.6%, while the portion of loss making unit sales fell from 21.4% to 19.6%.</p>

<p>The differential between house and unit profitability narrowed to 10 percentage points in the September quarter, down from 11.2 percentage points in the three months to June. The narrowed differential was a result of unit profitability rising faster than that of houses. Even though the rate of loss making sales declined faster across the unit segment, units were still about 2 times more likely to sell for a loss than houses in the September quarter.</p>

<p><strong>Investors vs Owner Occupiers</strong></p>

<p>A higher portion of property investors sold their dwelling at a loss during the September quarter compared with owner occupiers. Investor sales in the September quarter saw 17.1% of properties sell for a loss, compared with 10.4% of owner occupied sales.</p>

<p>Despite the higher rate of loss observed in investor sales in the quarter, the rate of properties re-sold at a loss was down from 18.0% in the June quarter, while the rate of loss making sales among owner occupiers was down from 11.1%.</p>

<p>The only region where there was a higher incidence of loss making sales among owner occupiers was across Hobart. This has been a consistent trend across the past few quarters. In the three months to September, 3.2% of owner occupied resales saw a nominal loss, compared with just 1% of investor sales.</p>

<p>The relatively low level of loss making sales among both cohorts reflects the exceptional capital growth across the Hobart market. CoreLogic home value indices show dwelling values across Hobart have seen annualised growth of 7.9% for the 5 years to December 2020, the highest annualised growth rate of the capital city markets.</p>

<p><strong>Hold periods</strong></p>

<p>Analysing returns by hold period suggests a greater amount of gain comes from more time in the market.</p>

<p>Over the September 2020 quarter, the median hold period of re-sale events across Australia was approximately 8.5 years. For profit making sales, the median hold period was 9 years, while loss making sales were typically held for 6.7 years. For houses and units, typical hold periods were longer across profit making resales.</p>

<p>The Australian housing market is expected to improve further in the coming months. With record low mortgage rates, a faster than expected economic recovery and relatively low cases of COVID-19, profitability is tipped to trend upwards over the coming quarters.</p>

<p><strong>Eliza Owen<em> </em></strong><em>is CoreLogic’s Head of Research Australia</em></p>
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Regional Victoria and Hobart homes profited most in Q4 2020: CoreLogic's Eliza Owen

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<p>Indicative of the magnitude of the profits realised from property over the June 2017 quarter was property resales. Combined, resales earned sellers $18.2 billion in gross profits with the median profit recorded at $195,000. On the downside, gross resale losses totalled $469.6 million with the median loss recorded at $35,000.</p>
<p>The latest CoreLogic Pain &amp; Gain June 2017 quarter report – www.corelogic.com.au/paingain (a national profit and loss analysis of property resales over the June 2017 quarter) showed that 89.8% of dwellings which resold over the period did so for more than their purchase price; a 0.3% increase from the March 2017 quarter result of 89.5%. Of the property types to resell over the period, houses scored top billing with profit gains of 92.1%, while unit resales achieved an 87.5% gain.</p>
<p>Owner occupiers were the biggest winners in the property resale stakes with overall profits estimated at 92.3%. Investors resales earned significantly less and recorded 88.1%; Sydney was the only major region of the country in where investors were more likely to resell at a profit than owner occupiers.</p>
<p>Across the combined capital cities, a significant gap in the proportion of profit-making resales was recorded by owner occupiers and investors in a number of cities; 93.7% of owner occupiers and 90.3% of investors resold their properties for a profit over the June 2017 quarter.</p>
<h3>Proportion of total resales at a loss/gain,<br>houses vs. units, Jun 2017 quarter<br> </h3>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-06-painandgain.png" alt="2017-10-06--painandgain" width="570" height="404"></p>
<p> <br>CoreLogic research analyst Cameron Kusher said, “Investors were 4.8 times as likely to resell at a loss as owner occupiers in Melbourne, in Brisbane the figure was 2.8 times and in Canberra the figure was 3.5 times.” </p>
<p>Regional area resales also enjoyed a win. For the combined regional markets, 90.0% of owner occupiers and 83.7% of investors resold their properties for a profit over the June 2017 quarter.  A greater proportion of owner occupiers continued to resell at a profit over investors. However, the same extreme differences between the vendor types as seen across some of the capital cities was not seen in regional markets. <br> <br>Mr Kusher said, “For owner occupiers, the results show the benefits of selling in a buoyant market.  In a falling market, owner occupiers may be more prepared to sell at a loss if they are purchasing their next home at an equivalent or greater discount.  Because of taxation rules, investors may be more prepared to incur a loss because they, unlike owner occupiers, can offset those loses against future capital gains.”   </p>
<p>“Should home values fall in the future, investors, which have been increasingly active in the housing market, may be more inclined to sell at a loss and offset those losses which in turn could result in much more supply becoming available for purchase at a time in which demand for housing falls because values are declining.”  </p>
<p>Regions showing low profit-making resales continue to be headed by those linked closest to the mining and resources sector. <br>   <br>Mr Kusher said “While the June 2017 quarter results show a reduction in the proportion of profit-making sales in some of these regions, home owners seem willing to sell but there remains little demand to purchase in these regions which is resulting in a high proportion of vendors materialising losses. The regions with the lowest proportion of resales at a loss makes for interesting reading.  <br>  <br>“The Sydney and Melbourne housing markets have been powerhouses over recent years however, regions outside but adjacent to Sydney are seeing a lower proportion of resales at a loss.  Similarly in Victoria, Melbourne continues to see relatively few resales at a loss however, the proportion of loss-making resales is actually lower in both Geelong and Bendigo.”</p>
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Property resale winners outstrip the losers

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<p>Hobart recorded 7.6% of houses and 10.9% of units reselling at a loss over the September 2016 quarter, according to CoreLogic's latest Pain and Gain report.</p>
<p>The property data firm says that the occurrence of resales at a loss has fallen over the quarter for houses and units in Hobart.</p>
<p>The chart below relates to Hobart only losses in houses versus units.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/30/Corelogic-18.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/30/Corelogic-18.jpg" alt=""></p>
<p>The Hobart (5.9%), Clarence (9.1%) and Kingborough (11.0%) council areas had the lowest proportion of loss-making resales over the quarter.</p>
<p>The instances of resale loss were much higher in: Brighton (18.2%), Derwent Valley (17.4%) and Sorell (15.0%).</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/30/Corelogic-19%20copy%202.jpg" target="_blank">Click to enlarge</a></p>
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Derwent Valley resales at loss still high, but Hobart sales are increasingly profiable: CoreLogic Pain and Gain

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<p>As with March quarter results, resales in the three months to June in Perth council regions showed a fairly steady portion of loss making sales, according to the recent CoreLogic Pain and Gain report.</p>
<p>The portion of loss making sales was 36.2 per cent, which the second-highest of the capital city markets behind Darwin (where more than half of resales saw a nominal decline).</p>
<p>The overall rate of loss making sales was steady, the report noted.</p>
<p>Unit sales saw a 2.5 percentage point increase in the portion of loss making sales, to 57.5 per cent.</p>
<p>The portion of loss making house sales fell 50 basis points to 32.2 per cent.</p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/perth%201.png" target="_blank">Click here to enlarge</a>:</p>
<p><img src="https://www.urban.com.au/images/2020/10/7/perth%201.png" alt=""></p>
<p><span style="font-size: 12.16px;">Source: CoreLogic Pain and Gain report</span></p>
<p>The council with the highest count of loss making unit sales was Stirling (84 sales), followed by Perth (53). These two regions accounted for around 30 per cent of loss making unit sales across Greater Perth.</p>
<p>The outlook for profitability across the Perth market in the second half of 2020 is more positive, as there are signs the market is returning to the upswing seen before COVID-19, the report noted.</p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/perth%202.jpg" target="_blank">Click here to enlarge</a>:</p>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/perth%202.jpg" alt=""><span style="font-size: 12.16px;"> </span></p>
<p><span style="font-size: 12.16px;">Source: CoreLogic Pain and Gain report</span></p>
<p>Listings volumes and sales activity are rising across Perth, and through September CoreLogic’s home value index has shown signs of dwelling value increases.</p>
<p>As well as low mortgage rates and low COVID cases buoying market activity, WA has seen arguably the most demand-side housing stimulus from the state government on top of federal government schemes. This may serve to increase values and increase the incidence of profit making sales.</p>
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57.5% of Perth unit resales saw a loss: CoreLogic Pain & Gain report

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<p><span>Hobart has had the lowest rate of loss making sales among the capital city markets since March 2018, according to the recent CoreLogic Pain and Gain report. </span></p>
<p><span>The report notes this trend c</span><span style="font-size: 12.16px;">ontinued in the June quarter, as loss making sales </span><span style="font-size: 12.16px;">comprised 3.2% of resales, compared with an average of </span><span style="font-size: 12.16px;">20.0% across the other capital cities.</span></p>
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<p><span>Despite having the lowest portion of loss making sales of the </span><span style="font-size: 12.16px;">capital cities, the incidence of loss making sales did rise from 2.5% in the three months to March.</span></p>
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<p><span>The portion of profit making sales was 96.7% across houses, and 96.9% across units. </span></p>
<p><span>While units had a higher </span><span style="font-size: 12.16px;">incidence of profit making sales, the rate declined by a steeper 1.1 percentage points from the March quarter, the report noted. </span></p>
<p><span style="font-size: 12.16px;"><a href="https://www.propertyobserver.com.au/images/2020/10/7/hobart%201.jpg" target="_blank">Click here</a> to enlarge: </span></p>
<p><span style="font-size: 12.16px;"><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/2020/10/7/hobart%201.jpg" alt=""></span></p>
<p>Source: CoreLogic Pain and Gain report</p>
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<p><span>Hobart was also one of few areas in Australia that saw an increase in the </span><span>number </span><span>of loss making sales, from 16 in the March quarter, to 19 observed in the three months to June. </span></p>
<p><span>The unit segment across Hobart has been one of the worst affected rental markets since the onset of the pandemic.</span></p>
<p><span> Hobart unit rents fell 5.1% between March and August, driven by a fall in tourism which reportedly prompted an influx of short term accommodation supply into the long term rental market, and a fall in demand from locals working in the tourism industries. </span></p>
<p><span>The significant decline in rental incomes may prompt more investor sales until interstate borders are reopened, the report noted. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/adelaide%202.jpg" target="_blank">Click here </a>to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/adelaide%202.jpg" alt=""></span></p>
<p>Source: CoreLogic Pain and Gain report</p>
<p><span>However, the chance of this leading to an increase in loss making sales may be offset by the increase in dwelling values.</span></p>
<p><span> As with smaller markets such as Adelaide and the ACT, the Hobart dwelling market continued to increase in value from the onset of the pandemic. At August, dwelling values had risen 0.9% since the end of March.</span></p>
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Hobart dwelling market continued growing from the pandemic's onset: CoreLogic Pain & Gain report

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<p><span>Adelaide has seen an increase in the portion of profit making resales, with 9.2% of properties </span><span style="font-size: 12.16px;">seeing a nominal decline in the sale price, according to the recent CoreLogic Pain and Gain report. </span></p>
<p><span style="font-size: 12.16px;">The report notes the June quarter was a reversal of the trend seen in the March quarter, where loss making sales had trended up to 9.9% of resales.</span></p>
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<p><span>The increase in profitability was faster across houses, which saw a 70 basis point increase in the rate of profit making sales from the March to June quarter, as </span><span style="font-size: 12.16px;">opposed to a 20 basis point increase across units.</span></p>
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<p><span>93.2% of houses saw a nominal increase in price in the June quarter, compared with 79.9% of units. </span></p>
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<p><span>The portion of loss making sales was highest across the Adelaide (21.6%), Playford (21.6%) and Mallala (21.4%) LGA regions, the report notes. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/adelaide%201.jpg" target="_blank">Click here</a> to enlarge: </p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/adelaide%201.jpg" alt=""></span></p>
<p>Source: CoreLogic Pain and Gain report</p>
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<p><span>The vast majority of loss making sales across the Adelaide LGA were investor-owned units, which may have been prompted by a decline in unit rent values since the onset of the pandemic. </span></p>
<p><span>However, loss making sales were more varied in characteristics across Playford, and loss making sales across Mallala were off a very low base (13 sales).</span></p>
<p><span> Mount Barker saw the highest level of profitability, with just 2.9% of properties selling for less than the previous sale price in the June quarter.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/adelaide%202.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/adelaide%202.jpg" alt=""></span></p>
<p><span>Source: CoreLogic Pain and Gain report </span></p>
<p><span>Greater Adelaide has seen an increase in dwelling values since the onset of the pandemic. </span></p>
<p><span>This historically steady market will likely only see further rates of profitable sales in the second half of 2020, aided by low mortgage rates and greater consumer confidence amid low COVID case numbers, the report noted. </span></p>
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Greater Adelaide sees an increase in dwelling values: CoreLogic Pain & Gain report 

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<p><span>Over the March quarter, Adelaide saw an increase in the portion of loss-making resales, with 10 per cent of properties seeing a nominal decline in the sale price, according to CoreLogic's Pain and Gain March Quarter 2020 report. </span></p>
<p><span>This is a reversal of the trend seen in the December quarter, where loss- making sales had seen a consistent decline since September 2019.</span></p>
<p><span>Despite the increase in loss making sales, there were still pockets of the Greater Adelaide region where over 90.0 per cent of properties yielded a nominal gain. These include Tea Tree Gully, where 95.1 per cent of properties saw a profit, based on a typical hold period of 11.2 years. The median gain in the area was about $116,000.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/19_Adelaide%201.jpg" alt="" width="550" height="362"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The lowest portion of profit making sales across Adelaide was in the City of Adelaide. 22.8 per cent of sales in the quarter saw a decline in the resale price, based on a median hold period of 9.0 years, and typical losses were $30,000.</span></p>
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<p><span>The Adelaide dwelling market faces some headwinds in terms of persistently high levels of unemployment, which has only been worsened by the onset of social distancing measures in response to COVID-19. As of May 2020, South Australia continued to see the highest rate of unemployment of the states and territories, at 7.2 per cent.</span></p>
<p><span>Low interest rates and strong rental yields across the Adelaide dwelling market have continued to support growth in the Adelaide property market, which was up 0.7 per cent in the June quarter, but momentum in the growth rate has been slowing over time. The incidence of profitability in resales is likely to slip further over the coming months, until the lifting of social distancing measures sees a material improvement in the labour market.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/19_Adelaide%202.jpg" alt="" width="826" height="398"></span></p>
<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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Adelaide saw an increase in loss-making resales: CoreLogic Pain & Gain

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<p><span>Over the March quarter, the portion of loss making resales across Melbourne was 6.8 per cent, according to CoreLogic's Pain and Gain March Quarter 2020 report. </span></p>
<p><span>This is up from 6.3 per cent in the December quarter, and down 20 basis points from 7.0 per cent in the March 2019 quarter. The portion of loss making sales among units was higher than houses, at 15.5 per cent. The portion of loss making sales in the house segment was just 2.7 per cent.</span></p>
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<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/17_Melbourne%201.jpg" alt="" width="594" height="394"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The highest incidence of loss making sales, as has been a </span>trend for the past few quarters, were concentrated across the Melbourne LGA region. 33.6 per cent of resales saw a loss, and the median value of losses in the region was approximately $44,500. There were approximately 120 loss making sales observed across the Melbourne council region. All of these were units, and 68.6 per cent of these were owned by investors.</p>
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<p><span>For Melbourne and parts of Victoria, the recent rise in coronavirus cases presents ongoing risk to housing market demand. Government lockdowns have been a key determinant of economic performance since the onset of the pandemic. With dwelling value declines already being led by the Melbourne market, which saw dwelling value declines of 2.3 per cent in the June quarter, it is highly likely that there will be an increase in the portion of loss making sales in the metropolitan area over the coming months.</span></p>
<p><span>But despite the increase in the </span><span>rate </span><span>of loss making resales in Melbourne, 716 loss making sales were observed over the March quarter, compared with 904 observations over the December quarter. This reinforces a sense of stability that has been maintained in the housing market at a high level, as a result of lower transaction activity. Maintaining this stability will be dependent on the banking sector and government to extend relief of mortgage repayments, and income support, until the virus curve is once again flattened across the state.</span></p>
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<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/17_Melbourne%202.jpg" alt=""></p>
<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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6.8% of Melbourne resales made a loss: CoreLogic Pain & Gain

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<p>Some 7.6 per cent of resales saw a nominal loss across Sydney, according to CoreLogic's Pain and Gain Report March Quarter 2020. </p>
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<p><span>Alongside Hobart, Sydney was the only capital city to see a decline in </span><span>95 per cent </span><span>the portion of loss making sales, down from 7.9 per cent in the previous quarter. </span><span><br></span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/16_Sydney%201.jpg" alt="" width="414" height="250"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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<p><span>Across the council regions of Sydney, the highest portion of loss making sales were across Burwood (22.4 per cent), Parramatta (15.9 per cent), and Ryde and Strathfield (13.5 per cent). The Burwood council region had a high portion of loss marking sales off a </span><span>75 per cent </span><span>relatively low base. There were about 18 loss </span>making sales observed across the region, most of them units with a relatively low hold period.</p>
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<p><span>Higher levels of profitability tended to concentrate in higher socio-economic areas of Sydney, such as North Sydney, where profit making transactions made up 98.0 per cent of resales in the quarter.</span></p>
<p><span>The Blue Mountains also proved to be the second most profitable region for property sales in the March quarter, with 96.9 per cent of sales seeing an increase in the nominal sale price. However, the gain in the region was relatively low, at $287,250.</span></p>
<p><span>Increased profitability in resales was aided by a strong uplift in dwelling values over the quarter. March saw Sydney dwelling values increase 3.9 per cent. Importantly, the decline in demand resulting from responses to the pandemic has since seen values fall - 0.8 per cent over June, which will likely manifest in more loss making sales in the coming months.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/16_Sydney%202.jpg" alt="" width="710" height="504"></span></p>
<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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7.6% of Sydney resales saw a loss: CoreLogic Pain & Gain

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<p><span>Brisbane saw a fall in the incidence of profit-making resales in the March quarter, comprising 87 per cent of these transactions. This is down from 88 per cent in the December quarter, and 88.4 per cent in the March 2019 quarter.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/18_Brisbane%201.jpg" alt="" width="491" height="323"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The house market continued to show strong returns relative to the unit market. Over the quarter, 94.6 per cent of houses saw a nominal gain compared with 63.8 per cent of units. This is due to the ongoing, divergent capital growth performance between houses and units. In the 5 years to March 2020 annualised growth across Brisbane houses was 2.7 per cent, compared to</span><span> </span><span>-0.8 per cent in units.</span></p>
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<p><span>These conditions also inform the loss making sales seen across the Brisbane Council Region. In the March quarter, 15.1 per cent of resales saw a loss. Of these loss-making sales, 88.3 per cent were units. It is also noteworthy that across the Brisbane council region, 66.0 per cent of loss making sales had been held by investors.</span></p>
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<p><span>Interestingly, the area with the highest portion of loss making sales was the Lockyer Valley Council region. This portion is off a small base, with only 21 sales in the quarter seeing a nominal decline at resale. Most of these were houses, and had a relatively lengthy median hold period of 9.7 years. However, the median loss on these properties was also relatively small, at $20,000.</span></p>
<p><span>While dwelling market demand may continue to be impacted by COVID-19, a bright spot for ongoing demand in the Queensland market is interstate migration. Over the past few years, Queensland has been the largest recipient of interstate migrants, who typically come from New South Wales or Victoria. The imposed lock down which has seen many adapt to working from home could create added demand for South East Queensland property from owner occupiers as demand returns to the economy. This is because SEQ offers a far more affordable housing price point compared with those in Sydney and Melbourne, and may have greater lifestyle appeal for some.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/18_Brisbane%202.jpg" alt="" width="926" height="257"></span></p>
<p> </p>
<p><span>Source: CoreLogic Pain and Gain March Quarter 2020 report.</span></p>
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