Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Housing Affordability

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GUEST OBSERVER
Determining funding for the right housing measures in the upcoming Federal Budget (May 9) would be much easier if the Government had a national housing plan and a Minister for Housing according to the managing director of a leading community housing provider and housing commentator.
Budgets should be developed to meet strategic and operational plans.  It makes no sense that Australia does not have a national plan nor a Minister responsible for something as fundamental as housing.
Housing, including social and affordable housing, needs to be viewed as part of Australia’s social and economic infrastructure and integrated with other infrastructure planning. He agreed with the treasurer, The Hon Scott Morrison, that there is no silver bullet to the housing crisis but says with rising social housing waiting lists, high capital city house prices and an increasing number of working people experiencing housing stress, action is long overdue.  
An effective plan will only be realised if the Commonwealth Government recognises that housing is a fundamental human right and the responsibility of the national Government and a national Minister, not just the states and territories.
The Government’s national co-ordination and responsibility must include direct investment in social and affordable housing.
There are less public housing dwellings now than last decade despite around 200,000 people on public and social housing waiting lists and a general acceptance that Australia has a shortfall of between 200,000 and 400,000 dwellings.
Australia was in a similar situation in 1945s when the national Government took action in conjunction with the States.
Back then there was a need for austerity but there was also acknowledgement that workers needed housing and that constructing housing would stimulate the economy and get people working.
With the current downturn in manufacturing and mining we have many workers for whom constructing housing is a realistic use of their skills; another example of housing’s integration with social infrastructure.
This way, more social and affordable housing becomes possible on the back of economic infrastructure investment and job creation rather than as welfare subsidy.
If we had another “Affordable Housing Commission” type policy response the housing built could eventually sold by Government, as it was previously.
One example of possible integration of housing and other infrastructure planning was high speed rail links. He said such infrastructure is already being proposed and would create new commuter towns between those capital cities, taking pressure of capital city housing demand and boosting regional Australia’s economy.
 A rising tide can lift all ships and makes the provision of affordable housing and housing subsidies more sustainable.
A number of housing and community organisations, economists, academics and other experts have done considerable work to help the Government to create a national plan.
Where are Australia’s long term plans for infrastructure and housing? It is time for such plans rather than one off political cycle centric planning and initiatives.
You can budget for a plan.
Greg Budworth is a managing director of Compass Housing group and co-chair of the United Nations Habitat program’s civil society partner constituent group. he can be <a href="https://www.compasshousing.org" target="_blank">contacted here</a>.
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jchancellor-FAypfDUnLy

Infrastructure and housing plan needed before budget initiatives: Greg Budworth

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<img src="https://counter.theconversation.edu.au/content/75609/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Those who value “multiculturalism” and “access to the city” as key markers of a vibrant, progressive city will find these attributes in the Melbourne suburb of Footscray.
Yet, at the same time, they will find them under threat through the forces of gentrification. These are the same forces that have, through time, transformed former “slums” such as Carlton, Fitzroy, Abbotsford and Richmond into “blue-ribbon” suburbs of Melbourne.
It is, inevitably, Footscray’s turn because of its proximity to the CBD. Many outside stakeholders have aspirations and conceptualised visions for the suburb.
These emerged at the turn of the millennium, when the Melbourne 2030 plan and its subsequent updates envisioned a new “central activity area” in Footscray.
A suburb in transition
In response to the metropolitan plans, substantial changes have been made to the council’s planning framework. New schemes allow for developments up to 25 storeys high along the banks of the Maribyrnong River and over the Footscray Market site.
With public investment to match, further catalysts of urban renewal were the substantial upgrade of Footscray railway station and other investments to polish the public realm.
Following the script of urban intensification, apartments have mushroomed in and around the suburb – with developers and investors colluding to rewrite and perpetuate new narratives.
In a tacit attempt to dilute Footcray’s shadier reputation, the suburb has been reimagined as the next “St Kilda” or “Fitzroy”. This has helped to raise unit prices and attract different types of residents and businesses.
These market-led models of urban development and renewal discount Footscray’s existing socio-physical and cultural landscape. The result is exclusionary, culturally homogeneous places and spaces. These reflect the fundamental top-down global and cultural drivers of the city in the race to climb (or, in Melbourne’s case, retain) liveability rankings.
On the contrary, multiculturalism is essentially a bottom-up phenomenon: ethnic enclaves form organically in the process of migrants settling down and “accessing the city” economically, socially and culturally. This is something that cannot be planned nor designed, but can be assisted.
In fact, Footscray has been an exemplar of this practice. The suburb’s absorption of immigrants has given rise to distinct Vietnamese, South Asian and Horn of African commercial precincts.
Improvement or displacement?
Formal agents of change (politicians, administrators, planners, designers) seem to view this urban condition as a temporary, transitional state to be eventually “improved”. They are often narrowly focused on physical and economic benchmarks.
The changes are compounded by a contemporary housing affordability crisis. Footscray has been attracting a local migration of first-home buyers and “hipsters” searching for more affordable properties and rent.
One might argue that this is a recipe for a multiculturalism where differences co-exist – or at least are juxtaposed. That might be true, if only the local white gentrification culture does not displace the minority cultures and socio-economic groups, as is happening to newer outer centres such as Sunshine and Broadmeadows.
Footscray’s beating heart
Critically, many may not realise the tenuous vulnerability of the place.
Last December, Footscray lost one of its most substantial cultural institutions, when the Little Saigon Market burnt down due to an electrical fault. Befitting current development trends, there are now plans for the site to become a 12-storey “mixed use” apartment building.
Both Footscray Market and Little Saigon Market are the key urban centres that sustain the commercial, culinary and cultural life of the suburb. However, Footscray Market is wholly owned by an individual – and there has been a proposal to replace it with a ubiquitous “mixed use” tower-on-podium development. This would (and still could) hasten the demise of Footscray’s distinctive character.
This is in stark contrast to the hundreds of millions of dollars being invested in Melbourne’s Queen Victoria Market and other markets. Established during the European colonisation and migration period, these have accrued heritage status. This arguably implies that Footscray’s markets are “minority markets” for lesser sub-cultures.
Significantly, in Footscray, multiculturalism and access to the city are lived experiences. The spatial and social implications are reflected in the ways buildings are used and goods are sold on the street.
A walk along Leeds Street reveals the finest scale of commercial practice by individual vendors. They hand-carry or push their cultural-specific wares on shopping trolleys – tactics to camouflage their subversive practices in busy pedestrian areas.
A different story
What we advocate for here is that there are alternatives to the ubiquitous developer-driven urbanisation; these make it possible to carefully consider the local communities directly affected by developments.
The City of Melbourne’s complex negotiations between developers and key stakeholders at Queen Victoria Market offers a potential local model. There’s no reason this model could not be carefully applied and extended to Footscray’s markets.
Complementing the markets, Footscray’s small and fine-scaled businesses should be recognised as alternative models of urban vibrancy and participative, socioeconomic resilience.
These are highly interrelated practices, which help mitigate socio-economic inequity, while meaningfully contributing to and showcasing Melbourne’s multiculturalism.
Sidh Sintusingha is senior lecturer in Landscape Architecture, University of Melbourne and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/sidh-sintusingha-352893" target="_blank">here</a>.
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Footscray: When a suburb's turn for gentrification comes

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Anthony Millet, chief executive officer of BRICKX, says when it comes to investing in real estate we need to shift our mindsets.
"Property investment is possible without ever handing over the keys to the front door," he says.
It is an acknowledgement that the cost of housing within Sydney has well and truly moved away from the simple cost of land and building fundamentals, with a shortage of supply and unprecedented demand driving the market.  
With the Federal Budget due next month, housing affordability has emerged as a red hot issue.
"I don’t envy the Treasurer because it’s a complex issue with no quick fix," Millet told me.
"Changes to negative gearing, a superannuation plan for first home buyers, unlocking Government land for housing, a review of foreign property investment, public and social housing grants and the list of potential solutions goes on."
Millet is behind the innovative private enterprise scheme where owning a fractional share in a house or apartment is possible without the need to own the entire property. It has been taken up over the past few months by some 3300 plus participants.
BrickX buys properties in blue chip suburbs and divides the acquisition price into 10,000 shares, or ‘bricks,’ available to the public currently priced between $100 to $150.
In the past, fractional ownership has been a method where unrelated parties share in ownership of a high-value tangible asset, usually a jet, yacht and sometimes piece of resort real estate in paradise. 
BrickX offers premium residential suburb access with seven properties so far in Melbourne and Sydney, including Bondi Beach, Annandale and Mosman. There are plans to own in all capital cities, then its is likely they will consider regional centres.
Fifty percent of its customers are under the age of 35 and around three quarters had not invested in or owned real estate before. It has accordingly been described as the Uber of property investing, the newest way to keep up with the rising property market.
BrickX investors earn rental income from their proportion of the investment. They can also make capital gains by selling their bricks. 
The online platform, launched last September, offers a valuable insight into the world of property, and no doubt its pluses and minuses, and ups and downs. 
Those $100 bricks allow young savers an option other than a savings account while making progress towards to ultimate goal of home ownership.
Millet is keen on the debate moving on from housing affordability to housing accessibility in part because he says the so-called solving affordability solutions often actually equates to seeing house prices coming down. 
"With 65 percent of this nation’s wealth tied up in residential property, to the majority, it’s not in their interests for house prices to fall." 
 This article first appeared in the Daily Telegraph.
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Real estate investment mindshift needed: BRICKX

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Days before the Federal Budget in which Treasurer Scott Morrison is expected to announce housing affordability measures, the Treasurer has said that the apartment market has peaked and regulatory controls on investor lending are working.
"The apartment market is already turning," Morrison said in a pre-budget interview with The Australian Financial Review. "To the extent that we're going to have a landing in the Sydney housing market depends on a lot of the choices we make over the next little while."
His comments came a day after property analytics firm CoreLogic said dwelling values increased by just 0.1% across the combined capital cities in April, with housing market conditions slowing in both Sydney and Melbourne.
Corelogic’s head of Research, Tim Lawless noted that the April results mark the weakest monthly change in dwelling values across the Sydney market since December 2015, when CoreLogic reported a 1.2 percent fall in Sydney dwelling values. 
But at the same time, he advised caution, saying “We need to be cautious in calling a peak in the market after only one month of soft results.”
Morrison, however, was more upbeat and took a swipe at Labor, saying further measures such as cutting negative gearing or capital gains tax breaks as the opposition party proposes could risk crashing a market that is already slowing. 
"Labor's approach would give us a hard landing, potentially a crash landing. We're obviously going for a much more smooth process and that means you don't do things which potentially overreact, over-respond,” he told the AFR.
Emphasising the effect of APRA's tighter credit rules on property lending, Morrison sought to play down expectations of federal government intervention to improve housing affordability. 
Morrison said any changes to tax breaks were "enormously complex”. 
Labor is pushing for the curbs on investor demand and said last month it would bar SMSF borrowing to invest in property.
The property industry opposes any change to SMSF property tax breaks.  
Morrison, however, also rejected the idea that Howard-era changes making it easier for super funds to invest in property had stimulated demand.
"Bricks and mortar was already encouraged," Morrison said. "The thing about it, you've had Sydney house prices rise by 18 per cent. Who was getting 18 per cent in their self-managed super fund? It commends itself."
Tighter regulator-driven curbs on lending to foreign buyers had also slowed the apartment market, he said.
CoreLogic said Sydney units fell 1.2 per cent in value in April while houses gained just 0.2 per cent. Apartment values in the nation's second city, Melbourne, fell 0.9 per cent while detached houses gained 0.6 per cent. 
"You talk to developers in this city and they'll tell you," Morrison said. "At the moment you wouldn't get finance on a development that was expecting more than a quarter or even a third of the sales to go to foreign investors."
Morrison did say, however, housing affordability – particularly for renters – was necessary as this would reduce the country's growing social welfare bill in the long run.
"If you want to get your welfare budget under control then get young people into a job, get homeless people into a house, get people on low income into a rent that they can afford and not get kicked out of a house every six months and their kids have to change schools every time. If you want to deal with a welfare budget, deal with that," he said.
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jonathanchancellor-7SQnKwU6yx

Morrison says apartment market turning, APRA controls on lending taking effect

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Australia’s residential land market showed signs of increased supply pressures during the closing quarter of 2016, as demand for land continues to outstrip supply, according to the latest Housing Industry Association-CoreLogic Residential Land Report.
The report is another indicator of the challenges the government faces in its battle to make housing affordable. The federal budget to be unveiled on May 9 is expected to address the affordability problem. 
HIA senior economist Shane Garrett said the sharp dip in volume of residential lot transactions during the December 2016 quarter had placed pressure on land prices.
“With land being such a crucial ingredient in new home supply more challenging cost conditions in the market for residential land in 2017 will make the battle to improve housing affordability more difficult,” Garrett said.
“We need to make it easier and less costly to deliver additional stocks of shovel-ready residential land to market. This can only be done by tackling planning delays in zoning and subdivision, releasing government-held land and improving funding mechanisms for housing infrastructure.”  
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<img src="https://www.urban.com.au/images/2017/04/27/ResiLand.png" alt="">
Eliza Owen, CoreLogic’s commercial research analyst, said the continued fall of sales volumes against sustained value increases suggests demand is outstripping the available supply of vacant residential lots.
She said this was particularly evident in Melbourne, where the value of lots experienced the highest growth of all capital cities in the year to December (16.3 percent).
Sales volumes in the city fell 15.2 percent in the six months to December 2016.
“The median lot value in Melbourne is still lower than Sydney, which has consistently maintained the highest median lot price of the capital city markets. With a median vacant lot price of $455,000, this accounts for approximately 45 per cent of the median Sydney house price at the December quarter, assuming the median house was on the median lot. This median lot value has increased a staggering 65 per cent over the last five years,” she said. 
“With housing affordability high on all government’s agenda, and an increasing concern for households, particularly in Sydney and Melbourne, more attention must be paid to how increased supply of residential land could help ease demand,” concluded Eliza Owen. 
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<img src="https://www.urban.com.au/images/2017/04/27/ResiLand2.png" alt=""> 
According to the latest HIA-CoreLogic Residential Land Report, the weighted median land lot price rose by 4.8 percent to $254,406 during the December 2016 quarter – 9.3 percent higher than a year earlier. 
The report also indicates that the estimated number of land lot sales across Australia totalled 10,756 during the final quarter of 2016 – down by 22.7 percent compared with the previous quarter and 39.5 percent lower than a year earlier. 
Based on land transactions during the December 2016 quarter, the annual pace of residential land price growth was strongest in Melbourne (+16.3 percent), followed by Sydney (+10.7 percent) and Adelaide (+10.3 percent). Over the same period, Perth’s residential land market experienced the weakest price growth (+0.9 percent) with modest land price increases affecting Brisbane (+5.4 percent) and Hobart (+3.1 percent). 
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Supply pressures forcing land prices up: HIA-CoreLogic report

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Credit rating firm Moody's Investors Service says housing affordability deteriorated on average across Australia over the year to March 2017, which is a credit negative for Australian residential mortgage backed securities (RMBS).
Moody's conclusions are contained in a just-released report, RMBS -- Australia: Housing Affordability Worsening Amid Rising Property Prices, and measures housing affordability as the proportion of household income needed to meet mortgage repayments. 
Less affordable mortgages increase the risk of delinquencies and defaults and are therefore are a credit negative for Australian RMBS, it says. 
Housing affordability has been a hot topic ahead of the May 9 federal budget, and Treasurer Scott Morrison has also spoken about it in a recent speech.  
"Rising housing prices outstripped the positive effects of lower interest rates and moderate income growth," said Alena Chen, a senior analyst at Moody's.
"In the near term, we expect housing affordability to continue to deteriorate because of ongoing housing price increases.” 
On average across Australia, Australian households with two income earners needed 27.9 percent of their monthly income to meet monthly mortgage repayments in March 2017, up from 27.6 percent in March 2016.
Housing affordability deteriorated in Sydney, Melbourne and Adelaide, where housing prices rose the most over the year to March 2017, but improved in Perth and Brisbane.
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While household incomes increased by an average 1.6 percent and average mortgage interest rates declined by 0.35 percent percentage points over the year, the positive effects of higher incomes and lower interest rates were outweighed by the 6.4 percent rise in housing prices.
Sydney remains the least affordable city in Australia, with 37.5 percent of household income needed on average to meet monthly mortgage repayments in March 2017, compared to 30.3 percent in Melbourne, 23.9 percent in Brisbane, 23.0 percent in Adelaide and 19.9 percent in Perth.
The affordability of houses worsened over the year to March 2017, while the affordability of apartments was unchanged, it said.
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The credit rating firm expects new regulatory measures from APRA to restrict interest-only mortgage lending will have some impact on demand for housing, particularly apartments. But in the near term, there will be upward pressure on housing prices will amid the low interest rate environment.
Moody's also tested the impact of changes to housing prices, incomes and interest rates on housing affordability. Of all Australian cities, Sydney is the most sensitive to changes in the three variables.
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Housing affordability worsening amid rising property prices: Moody's

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Australia needs supply not demand focused solutions to address our national affordability challenges, said the Housing Industry Association.
“Attempts to remove demand for new housing will reduce supply, affordability and jobs,” said HIA’s Deputy Managing Director, Graham Wolfe.
“While several measures announced today by Labor to address Australia’s housing affordability challenges provide a sensible approach to increasing supply of new homes, others targeting demand will have an adverse impact on affordability now and into the future,” said Mr Wolfe.
“We can’t address housing affordability nationally with both eyes solely on Sydney and Melbourne,” said Mr Wolfe.
“Sydney house price increases have been driven by many factors, including significant population growth, a ten-year supply recession, low interest rates and the impact of extremely high stamp duty costs on sales in the established housing market.”
The dynamics in Perth, Adelaide, Northern Queensland and Darwin are very different.
Foreign investors and self-managed superannuation fund investors cannot be blamed for the recent fall in house prices in Perth and Darwin, or the slower level of new housing activity in Adelaide.
Inflicting demand side measures on these capital cities ignores the significant negative impact on housing supply, jobs and economic growth in these economies.
Right now, if foreign capital investment in Australia helped bring significant residential development projects to commencement in Perth, creating jobs and production, the Western Australian economy would be much better for it.
Australia needs a credible land planning body to provide national monitoring and forecasting of future land release and housing requirements.
The body would help to inform government policy on financing, infrastructure and demographics.
Other policies to address housing affordability must include a reduction in the imbedded taxation on new housing, government funding to support infrastructure and reforms to address unnecessary planning delays in bringing new residential developments to market.
Our national housing affordability challenge is complex, and necessitates a national ‘cost of housing’ inquiry to identify impediments to the supply of new housing.
Such an inquiry would bring together the overlapping impact of regulations, taxes and barriers imposed by all three levels of government, and importantly, inform governments in developing cohesive, integrated and responsible housing reforms, measures and programs,” concluded Mr Wolfe.
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The answer to our housing affordability challenge is housing supply: HIA

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<h2>GUEST OBSERVER </h2>
<div>New research from the Australian Housing and Urban Research Institute (AHURI) finds that, alongside the growing shortage of affordable housing, the country’s largest non-government affordable housing providers have substantial under-used capacity. Making more effective use of this resource calls for concerted and purposeful action from both levels of government to support the industry in playing a fully effective part in the expansion of affordable housing supply recently pledged by Federal Treasurer, Scott Morrison.</div>
<div> </div>
<div>The research, ‘Developing the scale and capacity of Australia’s affordable housing industry’, commissioned by AHURI and led by the University of New South Wales, highlights the role of affordable housing providers as players within a wider system. Importantly, this system extends beyond the organisations directly responsible for providing secure low-cost housing (mainly not-for-profit community housing providers) to include supporting entities and institutions such as service delivery partners, lenders, peak bodies and government policy-makers, program managers and regulators. </div>
<div> </div>
<div>The research identifies industry capacity challenges in four main areas: </div>
<ol>
<li>the lack of a resourced plan for tackling the national affordable housing shortage</li>
<li>a major loss of housing policy-maker expertise over the past 10–20 years and, over the past five years, a neglected and underperforming affordable housing regulatory system</li>
<li>stronger and more enduring leadership is needed from both governments and housing providers</li>
<li>support for the Indigenous housing sector has lagged behind that for mainstream providers.</li>
</ol>
<div>Key recommendations include revitalisation of the affordable housing regulatory system; official recognition of affordable housing as a long-term national policy goal (through the Council of Australian Governments), and the creation of a joint government-industry Affordable Housing Industry Council to direct and oversee industry development. </div>
<div> </div>
<div>The report also stresses the importance of Indigenous-controlled and culturally appropriate service models in better meeting the housing needs of Indigenous communities.</div>
<div> </div>
<div>‘We believe there is a case for national legislation that defines affordable housing and sets out the economic and social purpose of the industry,’ says Inquiry leader, Professor Hal Pawson. </div>
<div> </div>
<div>‘Australia’s leading affordable housing providers are, in our judgement, ready for further growth. With the right leadership, resourcing and regulatory accountability, they have what it takes to help this country tackle what has become a key problem governments can no longer ignore.’</div>
<div> </div>
<div>Hal Pawson is a Professor of Housing Research and Policy, Associate Director of the City Futures Research Centre, and Director of the UNSW AHURI Research Centre.</div>
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Affordable housing industry has capacity, lacks Government certainty: Hal Pawson

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Housing affordability is not a new problem, and as the Federal Treasurer Scott Morrison pointed out, he like anyone in Sydney has actual experience that it has actually never been easy to buy a home.
He rightly argues, dealing with housing affordability must involve a scalpel, not a chainsaw given the likely or unintended consequences of some policy.
He warns declining housing affordability can't be answered with lower economic growth.
It is likely the housing affordability will be an important policy focus of the Turnbull Government May budget.
And to try to shape the agenda, the Treasurer gave a 4600 word speech this month to outline some of the issues.
I took four nuggets from his speech to the Australian Housing and Urban Research Institute which highlight the complexity of it all.
1) Some two million taxpayers in Australia have an interest in a residential investment property. Around 72 per cent own just one property and 90 per cent own no more than two. Less than one percent of investors have six or more investments. Around 1.3 million of these taxpayers negatively gear, including 58,000 teachers and one in five police officers. 
2) Mum and dad investors are putting a roof over the head of around a quarter of all renting households in the country. If mum and dad investors were not part of our private rental market, there would be fewer rental properties available, meaning higher rents. Morrison notes disrupting negative gearing would come at a cost, especially to renters. It would not be good news for the 30 per cent of Australian households who rent. 
3) Morrison said you can't help first homebuyers save for a deposit by implementing policies that increase their rent. Over 85 per cent of private renters move within five years and almost one third of moves are forced. Around 47 per cent of low-income rental households in our capital cities spend more than 30 per cent of their household income on housing costs. His concern for families with children who need housing stability to have beneficial access to schools and medical assistance suggests we need longer term leases. 
4) Australian residential property investment is more geared to capital gain than yield. Morrison sees the need to establish a new institutional investment class as is occurring overseas. Property needs to be a longer term fixed interest investment that can comfortably sit within institutional investment portfolios and Australian super funds. 
"Previous governments have avoided dealing with these issues for fear of raising and disappointing expectations," Morrison concluded, adding that failure to confront these issues in the past can be traced back to the problems we face today. I only hope he hasn't overly raised expectations.
Morrison's first property purchase cost $330,000 with his wife, bought in Bronte in 1995, where he grew up as a child, and then they upgraded to the Shire at $920,000 in 2009.
This article first appeared in the Daily Telegraph. 
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Scott Morrison advises housing affordability is not a new problem

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Limiting how much investors of multiple properties could negatively gear and a possible cap on the number of investor properties has divided the industry even as the government toys with ideas to cool the overheated property market.
The suggestion was favoured by SQM Research managing director Louis Christopher, who said a limit was a good idea “conceptually”, according to Fairfax Media.
The new debate opened up after news broke that the government is examining the possibility of putting a limit on the number of properties investors can buy or impose a dollar value limit on how much can be negatively geared by investors.
Questions around the preferred option hinge on how to find a measure that recognises large differences between property markets around the country and avoids generating new regional or price-bracket distortions, The Australian Financial Review reported, citing sources.
“For those who own 20 properties that are all negative geared, it does need to be done,” Christopher said. “But where you draw the line is political – two properties? Five?
“It’s a very small proportion of the population when you get to three properties plus, and at that point it would only have a small effect [on the market].”
A limit of one property would, however, have an impact on the overall demand from investors, he said.
The government has ruled out dumping negative gearing, and has also shown reluctance to lowering capital gains tax concessions. It has promised a housing affordability package in the May budget.
Experts say the latest idea is not a fix for affordability.
Grattan Institute chief executive John Daley told Fairfax Media that the idea was “genuinely stupid”.
In fact, one of the major problems facing those in the housing market today was not multiple property owners but so-called “mum and dad” landlords with just one investment property, Daley said.
“One of the fundamental problems with the Australian rental market is that it doesn’t have enough multiple property landlords,” he said.
Data from the Australian Taxation Office found slightly fewer landlords in the market but more investment properties per landlord overall.
But a majority of Australia’s 2 million landlords did not have a substantial portfolio – 72 per cent had one property in the 2015-16 financial year and 90 per cent had two or fewer.
Daley said those with large portfolios – such as 10 or 20 investment properties – would be more inclined to offer long-term leases and stability for tenants.
“There are very few big landlords and very few long-term tenancies.”
He said while the idea of portfolio investors helping the market was “counter-intuitive”, it did not make sense to blame housing affordability on a small number of multiple property owners.
BIS Oxford Economics senior manager residential Angie Zigomanis said a cap was not a good idea.
“If someone wants to add more properties to the rental stock, I don’t think we should be stopping them,” Zigomanis said.
Limiting deductions that could be claimed was more effective, as it would “reduce the willingness of an investor to pay top dollar for the property”, he said.
Domain Group chief economist Andrew Wilson said any moves to interfere and reduce investment activity would be a “disruption in the rental market” – whether from altering the tax mix or limiting how many properties investors could buy.
“It would cause higher rents, and we already have a tight rental market,” Dr Wilson said.
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