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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The Urban Development Institute of Australia has called on government to remove stamp duty on property and support foreign investment into residential real estate, which it says will help boost the supply of land for development and improve housing affordability.
The calls follow the release of the UDIA’s latest State of the Land Report which showed the supply of new development land jumped by 30.8% in 2014 to 50,150 new lots, up from 38,350 lots released in 2013.
UDIA National President Cameron Shephard welcomed the increase but warned governments against complacency on land supply.
“Nationally, Australia still suffers from a marked undersupply of new housing stock, caused by inadequate investment in urban infrastructure, slow planning and approvals systems, and high taxes and charges on new housing supply,” Shephard said.
“Even now, we’re still not building enough new homes to meet underlying demand.”
The UDIA has urged the federal government to:
<ul>
<li>Assist state governments with replacing stamp duty on property with other forms of taxation.</li>
<li>Provide additional funding for investment in new urban infrastructure.  </li>
<li>Link funding for state governments to their performance on key land supply measures. </li>
<li>Cease plans to shift the cost of providing the National Broadband Network to new home buyers through up front connection, network and backhaul charges.  </li>
<li>Continue to encourage foreign investment into residential real estate, by supporting Australia’s existing foreign investment policy framework.</li>
</ul>
It has also called for state and local governments to:
<ul>
<li>Reform their planning systems to increase the supply of urban land and reduce delays and uncertainty associated with zoning, planning and approvals processes.  </li>
<li>Reduce upfront charges and levies on new housing and to instead recover costs over long time frames.</li>
</ul>
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Removing stamp duty, supporting foreign investment will boost affordability: UDIA

<html><body>
GUEST OBSERVATION
Whatever one’s opinion on the Intergenerational Report (IGR), it is undeniable that Australia faces challenging economic and personal realities over the next 40 years. Treasurer Joe Hockey has <a href="https://www.smh.com.au/federal-politics/political-news/intergenerational-report-joe-hockey-warns-difficult-days-lie-ahead-20150220-13jnkx" target="_blank">emphasised</a> the IGR highlights the need for Australia to respond to <a href="https://www.pc.gov.au/research/completed/ageing-australia" target="_blank">demographic changes</a>. Proposed responses include extending the average working life and increasing participation by Australian seniors.
On April 14, the Senate Economics References Committee is due to deliver its <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Affordable_housing_2013" target="_blank">report on affordable housing</a>. This report is expected to highlight shortfalls in affordable and <a href="https://www.jchs.harvard.edu/research/housing_americas_older_adults" target="_blank">age-appropriate housing</a>.
These major demographic and housing issues are closely connected. The challenges they present must be tackled against a background of deteriorating economic conditions and an oversubscribed health system.
The issues the IGR raises are many and varied. They are also subject to a plethora of contingencies. However, one issue that cannot be denied is the inescapable impact – one way or another – of an ageing population on Australia’s economic future.
The danger is that the government seems to be emphasising (albeit crucial) issues such as employment and health without taking a broader view of factors, of which housing is pivotal, that will nourish and buttress these aspirations.
Housing is tied to health and productivity
If Australian seniors are to remain healthy and work longer, the importance of appropriate housing cannot be underestimated. Much attention is being paid to the rising cost of health care for an ageing population. However, the nexus between secure accommodation and better health and financial outcomes for older people, the broader community and the economy is <a href="https://whqlibdoc.who.int/publications/2008/9789241563703_eng.pdf" target="_blank">largely overlooked</a>.
If older Australians are more secure in their accommodation, they are more likely to remain employed and in good physical and psychological health. All of the consequential benefits of this flow to the economy and the nation as a whole. Therefore, improved provision of affordable senior housing is vital to enable people to remain employed into their 60s, 70s and even 80s, and thereby lift Australia’s productivity and sustain economic growth.
To pursue these goals in the IGR, the government’s attention must extend to ensuring an adequate supply of affordable and suitable housing for seniors. The population of older Australians is naturally diverse, so individual housing preferences vary significantly.
The major asset of most Australian households is the family home. For seniors, housing equity makes up approximately half of their wealth. However, <a href="https://apo.org.au/research/asset-rich-income-poor-australian-housing-wealth-and-retirement-international-context" target="_blank">research to date</a> suggests few of these households are drawing on this wealth during retirement.
Insecurity has multiple harmful impacts
For older people who do not own a home and must find affordable accommodation in a competitive market, life can be particularly daunting. As social policy researcher Bruce Bradbury <a href="https://www.sprc.unsw.edu.au/media/SPRCFile/25_sprp_41.pdf">has noted</a>: "Australia is unusual in that economic exclusion among the elderly is closely linked to a lack of home ownership (or access to public housing)."
Seniors have different housing requirements to younger people and families. Older Australians <a href="https://theconversation.com/affordable-housing-is-a-problem-for-older-australians-too-21555" target="_blank">often require</a> smaller and more accessible housing located close to services, care and support.
Transitions in later life are complex. These transitions, it has been observed: "…challenge older adults to make projections of a future self and to anticipate their emotional, medical and financial needs."
Older people who are secure in the knowledge that they can stay in their accommodation for an extended period – or permanently – exhibit demonstrably <a href="https://www.pubfacts.com/detail/19246417/Reasons-for-relocation-to-retirement-communities:-a-qualitative-study." target="_blank">better physical and psychological health</a> than those in less stable accommodation. Insecurity in one’s home environment <a href="https://www.researchgate.net/publication/231759516_Anticipating_Relocation_Coping_Strategies_and_the_Meaning_of_Home_for_Older_People">heightens the risks</a> to <a href="https://www.propertyobserver.com.au/https://www.ncbi.nlm.nih.gov/pubmed/17327545" target="_blank">physical and psychological health</a> in the short and longer term, including <a href="https://www.propertyobserver.com.au/https://www.ncbi.nlm.nih.gov/pubmed/17327545" target="_blank">feelings of powerlessness</a>.
Insecure accommodation may also impact on older people’s social situations. They may become reluctant to engage in their local communities. If they have to relocate, they may lose <a href="https://www.healthyhousing.org.nz/wp-content/uploads/2010/01/Housing-and-health-in-older-people-aging-in-place.pdf" target="_blank">support and friendship networks</a>.
The prospect of possibly having to move weighs heavily on older people. This is especially so where options for accommodation elsewhere are limited.
Finally, significant economic costs are attached to the heightened risk of physical or psychological illnesses.
Beyond the headlines, a concerted strategy for an older – but healthier and more productive – population must be crafted. A focus on secure, affordable housing for seniors is a cornerstone for any such aspirations.
Eileen Webb is professor, Faculty of Law at University of Western Australia.
Gill North is associate professor of Law at Monash University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>.
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po-LsXgBTHBmX

Suitable, affordable housing is key to our population ageing well: Gill North & Eileen Webb

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As previously written under the article, '<a href="/expert-insights/the-property-investment-pandemic-how-to-avoid-spruikers-and-bad-advice">The property investment pandemic</a>', easy money is not the answer to affordable housing.
My view on this topic has not changed. All I see is the same pomposity from our leaders, just in a different package.
The notions proposed by our political parties; firstly, advocating <a href="https://www.smh.com.au/federal-politics/political-news/joe-hockey-flags-opening-up-super-funds-for-houses-job-training-20150307-13xwz1" target="_blank">use of super funds</a> to pay for the deposit and/or secondly, <a href="/expert-insights/investing/nsw-labor-promises-staggered-stamp-duty-for-first-home-buyers">staggered stamp duty payments</a>, is not the answer.
Easy money, contrary to popular belief, does not make housing affordable or cheaper to purchase. Utilising super funds for purposes of deposits on homes will not work. An opinion supported by the "super fund" fiasco created in Canada. It is a toxic idea at the very least.
Home grants passed on by the state governments and other government or non-government incentives only fuel home values. Perhaps many are of the opinion that developers, builders and home owners looking to sell and don’t listen to the news because they are too busy building and preparing?
Allow me to burst your bubble. Any easy money given out makes the property owner, developer and builders grin with inner most joy, as they can increase the value of the end property product by double that which is granted.
I can just see property owners rubbing their hands as they wait for one of the above incentives to be introduced.
If the government is serious about housing affordability they should look into the taxes and duties payable by developer/builders that are passed on to the consumer. Duties and taxes collected by all levels of government at the same time were fees that were meant to be abolished with the introduction of the GST.
Then there is my pet hate: over-inflated commissions.
Commissions paid to spruikers and financial institutions that sell real estate with no licences. Excessive fees that are added onto the property values, predominantly on newly built homes. This is an area which the governing bodies should look into if they want to get serious about affordability.
There is light at the end of the tunnel however in the form of the oversupply of property presently being built in Sydney. This may well be a welcomed relief to Sydney’s local first home buyers. I am one to believe, other property markets will soon be oversaturated as well.
No, easy money is not the answer. I have some friendly advice to the people wanting to enter the market in Sydney as first home buyers: wait. Wait and rent for now, it is becoming so much cheaper to rent where you would otherwise buy. Wait for the market to catch up.
For more property discussions join me on Twitter <a href="https://twitter.com/justthink1" target="_blank">@justthink1</a> and you can contact me on <a href="https://www.edwinalmeida.com/" target="_blank">edwinalmeida.com</a>. 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-thin.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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ealmedia-arK4DBYLjS

Easy money is not the answer to housing affordability: Edwin Almeida

<html><body>
CoreLogic RP Data have released a list of the most affordable capital city suburbs in Australia.
Unsurprisingly, given their respective placings at the bottom of capital city home values, Hobart and Adelaide suburbs make up the entire top 10 list.
Suburbs on the eastern shore of the Derwent River were the most affordable in Hobart, while Adelaide's northern Playford region hosts the city's cheapest suburbs for houses.
Top 10 most affordable capital city suburbs for houses
<ol>
<li>
<a href="/news">Gagebrook</a>, Brighton, Greater Hobart, TAS Median Value: $136,649 
</li>
<li>
<a href="/news">Herdsmans Cove</a>, Brighton, Greater Hobart, TAS Median Value: $139,664 
</li>
<li>
<a href="/news">Clarendon Vale</a>, Clarence, Greater Hobart, TAS Median Value: $158,883 
</li>
<li>
<a href="/news">Bridgewater</a>, Brighton, Greater Hobart, TAS Median Value: $169,691 
</li>
<li>
<a href="/news">Risdon Vale</a>, Clarence, Greater Hobart, TAS Median Value: $173,468 
</li>
<li>
<a href="/news">Elizabeth North</a>, Playford, Adelaide, SA Median Value: $174,191 
</li>
<li>
<a href="/news">Davoren Park</a>, Playford, Adelaide, SA Median Value: $178,657 
</li>
<li>
<a href="/news">Smithfield Plains</a>, Playford, Adelaide, SA Median Value: $184,904 
</li>
<li>
<a href="/news">Elizabeth Downs</a>, Playford, Adelaide, SA Median Value: $193,780 
</li>
<li>
<a href="/news">Elizabeth South</a>, Playford, Adelaide, SA Median Value: $196,362
</li>
</ol>
Source: CoreLogic RP Data
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No surprise: Australia's cheapest capital city suburbs

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Federal Liberal MP Kelly O'Dwyer says there is "no one silver bullet" when it comes to housing affordability.
However, at speech made today to the Committee for Economic Development of Australia (CEDA), O'Dwyer, who stood as the chair of a Federal Parliamentary inquiry into the role of foreign buyers in Australia's property market, noted the role of foreign investors in increasing housing supply.
"One of the most critical things I think that the government can do is make sure that we encourage foreign investment," she said.
O'Dwyer said foreign investment was "absolutely critical" to the supply of new dwelling stock and alleviating price pressure.
"This is something that the house standing committee on economics heard a lot about.
"We received evidence from not only economists and academics but also the Reserve Bank of Australia, who said that if you can increase dwelling stock, this has an impact on price... you can keep costs reasonably contained."
O'Dwyer answered questions to CEDA members following a speech on foreign investment, where she invoked the classic Australian comedy The Castle, referencing Australia's enthusiasm for home ownership. Having earlier commented on the Foreign Investment Review Board's (FIRB) lack of action on breaches of current regulation, which requires most foreign buyers to only purchase new housing stock, O'Dwyer noted the opposite effect that foreign investors can have in the established housing market.
"Now, when it comes to existing dwellings, it's somewhat different," she said.
"When there is restricted supply and increased competition, that will also have an impact on price."
O'Dwyer did, however, maintain that the issue of affordability remains a complex one.
"Now, I don't think it's the government's role to determine the price of people's home. It's the government's role to make sure the policy settings are broadly right, so that we encourage new dwellings to be constructed, so that we make sure that there are options for people... to purchase, to rent, or to build themselves.
"And this is a really complex equation. There is no one silver bullet to housing affordability, but we have to look at all these elements combined in order to make sure the dreams of particularly young Australians, to be able to purchase or own their own home – are still going to be a reality for them as they were for their parent's generation."
While O'Dwyer stressed the number of different factors affecting housing affordability, Prime Minister Tony Abbott <a href="/expert-insights/buying/tony-abbott-suggests-foreigners-pricing-out-young-home-buyers">also commented earlier this week</a> on his plans to tighten regulation around foreign investment to protect first home buyer's, saying "obviously, the last thing we want to be doing is pricing young home buyers out of the market".
 
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Foreign investment "absolutely critical" to increased housing supply: Kelly O'Dwyer

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House prices are soaring in comparison to incomes, making life difficult for many and threatening to undermine national economic performance. Western Australia has devised an innovative policy solution.
Using a shared equity model, the Shared Home Ownership scheme allows low-earning prospective homeowners who meet certain criteria to purchase a property by sharing up to 30% of the capital cost with the Department of Housing and borrow the rest with a SharedStart loan through state mortgage lender KeyStart Home Loans.
The loan is directly linked to a major construction expressions of interest project that means the department is able to procure newly built, affordable dwellings in bulk from the market at discounted rates. The discount to market prices gained by the department become its equity share in the portfolio of properties.
In recognition of its achievements, the Department of Housing won the overall award at the 2014 WA Premier’s Awards for Public Sector Excellence and the “Developing the Economy” award for the scheme.
Perhaps unsurprisingly given Australians’ obsession with home ownership, <a href="https://www.ahuri.edu.au/publications/projects/p70394" target="_blank">previous research conducted</a> with potential purchasers of shared equity homes showed focus group participants had two primary motivations that would impact on their interest in such schemes: wanting the security of having a place of their own on the one hand, and desiring asset accumulation on the other.
So unlike other shared ownership models where the government retains a permanent interest in the property, stunting the resident’s opportunities for wealth formation but ensuring long-term affordability is maintained, WA’s Shared Home Ownership scheme encourages the resident to eventually buy out the department’s share, offering a path to full home ownership.
Interest rates are set higher than the lowest variable market rate so that, while repayments will be lower for the period that the homebuyer owns only 70-80% of the property, they will be incentivised to refinance with a private institution once they buy out the department’s share.
So far the program has helped deliver home ownership to over 700 low-income households, many of whom would not have been able to do so otherwise. Though such a program cannot be targeted at the lowest socio-economic groups, as it still relies on a regular income to pay off a mortgage, it lowers barriers to entry for those making below-median incomes.
The program was developed “in response to an increased demand for affordable housing as rents became unaffordable in Western Australia”, says Adrian Warner, acting director of strategy and policy at the Department of Housing.
“In the March quarter of 2014, the median rent reached $460 in Perth, while the median house price increased to $540,000, up from $525,000 in the previous quarter,” he said.
<img class="aligncenter size-full wp-image-22441" src="https://www.themandarin.com.au/wp-content/uploads/2015/02/graph.png" alt="graph" width="504" height="405">
The program has been praised for its benefits to prospective purchasers, government and the wider community, he said:
<ul>
<li>Purchasers only need to borrow 70-80% of the property value;</li>
<li>The equity component is not dependent on a government grant or debt;</li>
<li>The supply of entry-level housing is increased;</li>
<li>It supports local industry and creates value for the economy — over $650 million in economic activity to date;</li>
<li>First home buyers require only a 2% or $2000 deposit;</li>
<li>No lender’s mortgage insurance or monthly account keeping fees.</li>
</ul>
According to figures provided by the Department of Housing, to date, SharedStart has delivered:
<ul>
<li>$149 million of direct construction activity;</li>
<li>$112 million of induced activity by suppliers;</li>
<li>1491 jobs supported;</li>
<li>722 households into home ownership;</li>
<li>Total economic benefit to the state of $465 million.</li>
</ul>
{qtube vid:=9w3-JRBmeis}
Return for households and government
A <a href="https://www.ahuri.edu.au/publications/projects/syn91" target="_blank">report by the Australian Housing and Urban Research Institute</a> in partnership with PricewaterhouseCoopers found the program was not only achieving its intended outcomes, but had generated significant returns for households, government and industry. AHURI found that the department’s practice of acquiring new homes had helped increase housing supply:
“The shared equity EOI initiative increased the overall supply of low-cost dwellings through its EOI procurement process. This distinguishes the EOI initiative from shared equity schemes that are linked to existing dwellings and therefore do not achieve an increase in the overall supply of dwellings …
“There was agreement amongst all stakeholders interviewed that the shared equity EOI initiative has been highly effective in increasing the supply of lower-cost housing. For example, a peak body representative described the effectiveness in relation to increasing lower-cost housing supply as ‘outstanding’ and a senior Keystart representative commented that the scheme has been highly effective in terms of providing low-cost properties, which were under $300,000 in several circumstances.
Resident satisfaction with housing affordability was very high:
“… the majority of respondents (87.4%) agreed or strongly agreed that their mortgage payments were affordable; and the majority of respondents (74.9%) agreed or strongly agreed that their home was affordable to run (e.g. in terms of utility bills).”
And the program has done well helping lower income people move into their own housing:
“The scheme was successful in providing home ownership opportunities to members of the targeted client groups. This included: eight public housing tenants who moved into home ownership via the shared equity EOI scheme; 188 survey respondents who were first home owners and 198 survey respondents who reported that they would never have been able to buy a home from the private market without the shared equity EOI scheme; six survey respondents who reported having a disability; and nine respondents who reported living with a person with a disability; 58 survey respondents who were single home owners with one child or more; and 42 survey respondents who were key workers [nurse, teacher, police etc].”
The program has encouraged more interest among developers for building one- and two-bedroom housing, something traditionally seen as more risky.
The report found that the typical expectation of housing assistance is that it is a form of subsidy to households that generates significant costs to government. “Instead,” said Warner, “this form of assistance makes a sustained, substantial difference to the financial wellbeing of lower-income households whilst also delivering a positive rate of return for government. Through this process, value has been created for government in the form of embedded equity stock.
“These initial equity shares had an estimated value of $58 million by September 2013 for 722 properties ($80,729 per property). These equity shares were created without capital expenditure by the department.
“Due to the nature of the SharedStart scheme, as house prices increase so will the value of equity shares held by the department. Additionally, the scheme ensures that the portfolio maintains a strong asset base as government sells down other state assets.”
The scheme is part of the government’s Affordable Housing Strategy 2010-2020, which sets a target of at least 20,000 new affordable homes by 2020.
“The government passed the halfway mark on its target just three years into the strategy,” said Warner. “Over 17,000 new affordable housing opportunities have been created since January 2010, on schedule to exceed the target of 20,000 by 2020.”
<a href="https://www.ahuri.edu.au/publications/projects/p80088">Research from 2003 showed</a> shared equity to be a more effective policy option than the First Home Owners Grant at assisting low-income earners into housing. According to modelling, shared equity would have a greater impact on home ownership rates, is more likely to be taken up by lower income households, and is less likely to simply bring forward home purchase decisions.
This article first appeared on <a href="https://www.themandarin.com.au/" target="_blank">The Mandarin</a>.
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How WA is tackling the housing affordability crisis

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GUEST OBSERVATION
Often when commentators use "income" to "property price" ratios and compare our property prices with other countries or even different periods in Australia and conclude that property prices are either over valued or undervalued, they are using the wrong statistics. 
We are currently being told that property prices when compared to our income levels make property prices unaffordable and therefore there will be a correction soon. 
We hear this especially from overseas commentators visiting Australian shores.
Harry Dent and Robert Kiyosaki are two such visitors to our shores recently who have said our property prices are overvalued when compared to our income levels. 
If you simply measured those two statistics against each other then one could arrive at that conclusion. 
However affordability is a function of house prices, income and interest rates. It's not simply between income and property prices. 
If you look at the graph below from BofA Merrill Lynch Global Research which compares: 
<ol>
<li>Implied price based on income growth  </li>
<li>Implied price based on income growth and interest rates </li>
</ol>
<img src="/images/2015/01/30/chan%20jan%2030%20one.png" alt="">
As you can see from the graph the red line is a lot below the blue line indicating that property prices are hugely overpriced. Most commentators use this line to run their argument that property prices as a ratio of income is in a bubble and a correction is imminent. 
If you look at the green line it is above the blue line which indicates that property prices as a ratio of income and interest rates are still affordable and not in a bubble. 
I think house price growth will slow in 2015 against a back drop of increasing unemployment figures amongst other indicators.
Ed Chan is founder and non executive chairman of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor Accountants</a>.
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Australian housing is not overpriced - and here's why: Ed Chan

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Australia’s housing affordability and supply problems are on the radar of the Urban Development Institute of Australia, whose new National Policy Agenda identifies four key areas for reform, and a number of things that the federal government can do.
Looking at the areas of taxation, red tape, infrastructure and planning, UDIA national president Cameron Shephard said that governments can address housing affordability but also need to counter the issue of supply, a fundamental cause of the issue.
“A chronic shortage of housing in many major cities has resulted in rapidly escalating prices and rents, which has led to worsening housing affordability, and put home ownership increasingly out of reach for many ordinary Australians,” said Shephard.
“Fundamentally, the solution to this problem lies in reducing and removing the barriers to new housing supply, such as high taxes and charges on new housing, poor planning, delays caused by red tape, and inadequate urban infrastructure."
A number of their recommendations were also to state and local governments, including the first three of the nine points below. They also recommended that state governments reduce their reliance on upfront developer charges by investigating alternatives, create long-term plans, reduce reliance on stamp duty and similar taxes, and look to planning system reform.
Here are their nine suggestions for the federal government:
<ol>
<li>Identify population growth trends through the use of regular growth forecasts. 
</li>
<li>Actively use population growth forecasts to underpin comprehensive strategic plans for increasing urban infrastructure investment, and improve land-use planning and land supply. 
</li>
<li>Ensure that sufficient resources are available across different levels of government to implement strategic land use and infrastructure plans over the short, medium and long term. 
</li>
<li>Ensure that infrastructure investment decisions are subject to rigorous and comprehensive cost benefit analysis, to ensure the greatest value for money on new projects. 
</li>
<li>Further investigate non-traditional methods of funding infrastructure, to increase the level of funding available for investment at both a federal and state level. 
</li>
<li>Ensure that all levels of government cooperate and coordinate their regulatory activities to identify best practice, standardise regulations where possible, and avoid conflicting legislation, to create certainty. 
</li>
<li>Work to reduce duplication with state and local government processes, including continuing to streamline federal and state environmental assessment and approval systems.  
</li>
<li>Assist state governments with phasing out stamp duty by broadening the base of the GST.  
</li>
<li>Include state and local government levies in GST cost base calculations to improve the integrity of the tax system and reduce the incidence of double taxation.</li>
</ol>
Source: UDIA
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Nine things the federal government needs to do to fix affordability: UDIA

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Australia’s property market has experienced a significant shift in lower-end priced properties. The selection for properties under the $400,000 mark is diminishing.  
Rising capital city dwelling values has meant that homes selling at a price below $400,000 has declined and is now down to 39.7% of all sales from 44.1% a year earlier.  
<img src="/images/2014/11/28/kiusher-nov-28-one.jpg" alt="">
Over the 12 months to August 2014, 37.3% of houses and 45.7% of units sold for less than $400,000.  At the same time a year earlier, 42.3% of houses and 48.5% of units sold for less than $400,000.  
Until 2004 the proportion of sales below $400,000 was fairly similar between houses and units.  Since that time the proportion of sales below $400,000 has trended lower however, the rate of decline has been greater for houses than for units.  
<img src="/images/2014/11/28/kiusher-nov-28-two.jpg" alt="">
This significant divergence in individual capital city home values and growth over recent years has also meant a large difference in the proportion of homes selling below $400,000.
Over the past year, the proportion of all house sales occurring below $400,000 has been recorded at: 
<ul>
<li>12.1% in Sydney;</li>
<li>25.1% in Melbourne;</li>
<li>32.4% in Brisbane;</li>
<li>47.9% in Adelaide;</li>
<li>15.3% in Perth;</li>
<li>62.8% in Hobart;</li>
<li>18.5% in Darwin;</li>
<li>7.5% in Canberra.    </li>
</ul>
20 years ago, more than nine out of every 10 house sales across each capital city were below $400,000. Of course over that time wages have increased, interest rates have tended to be much lower and credit has become much more freely available. Nevertheless, the drop in affordable housing across most capital cities has been substantial.  
Across the capital cities, the proportion of total unit sales below $400,000 over the past 12 months was: 
<ul>
<li>23.5% in Sydney;</li>
<li>37.3% in Melbourne;</li>
<li>53.8% in Brisbane;</li>
<li>67.8% in Adelaide;</li>
<li>38.2% in Perth;</li>
<li>82.9% in Hobart;</li>
<li>32.0% in Darwin;</li>
<li>39.0% in Canberra.    </li>
</ul>
Again 20 years ago almost every unit sold was less than $400,000.  While there has been a decline in unit sales under $400,000 across the board it has been markedly larger in markets like Sydney, Melbourne, Darwin and Canberra.  
Dwelling sales data produced by CoreLogic RP Data showed that over time, houses continued to outnumber units. This is the reason why house sales have a bigger influence on the overall result.    
Options for affordable housing supply, particularly in cities such as Sydney, Melbourne, Perth, Darwin and Canberra have sharply reduced over the past two decades.
<img src="/images/2014/11/28/kiusher-nov-28-three.jpg" alt="">
 
Although borrowing for a mortgage has become easier and wages have grown, the supply of lower priced homes drives many lower income earners out of ownership in these cities.
As an example, current figures to the 12 months to August 2014 indicate there has been just 16,345 homes sold below $400,000 in Sydney compared to 97,982 home sales in total. 
With home values continuing to rise in Sydney and Melbourne, we would expect even fewer sales below $400,000 over the coming 12 months. 
<img src="/images/2014/11/28/kiusher-nov-28-four.jpg" alt="">
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ckusher-ujnxiKuFQs

Pool of affordable housing in capital cities continues to evaporate

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It seems when buying property in Victoria, the further you are from Melbourne, the cheaper it gets.
According to RP Data, there are 13 suburbs in Victoria that had median house prices under $100,000 over the last 12 months and they are all in the north and north-west parts of the state.
Victorian House Median Prices
<ol>
<li>
<a href="/news">Sea Lake</a> - $70,000</li>
<li>
<a href="/news">Kaniva</a> - $73,000</li>
<li>
<a href="/news">Minyip </a>- $75,000</li>
<li>
<a href="/news">Rainbow</a> - $77,000</li>
<li>
<a href="/news">Ouyen</a> - $78,000</li>
<li>H<a href="/news">opetoun</a> - $80,000</li>
<li>
<a href="/news">Jeparit</a> - $82,000</li>
<li>
<a href="/news">Nyah West</a> - $85,000</li>
<li>
<a href="/news">Coleraine</a> - $88,000</li>
<li>
<a href="/news">Dimboola </a>- $89,000</li>
</ol>
Similarly, the cheapest units are found 100s of kilometres from Victoria’s major metropolitan areas. But these units aren’t just in small rural towns. According to RP Data, some of Victoria’s cheapest units are found in the large rural hubs of Victoria, in places such as Horsham, Mildura and Moe.
Victorian Unit Median Prices
<ol>
<li>
<a href="/news">Newborough </a>- $133,000</li>
<li>
<a href="/news">Moe</a> - $145,000</li>
<li>
<a href="/news">Morwell </a>- $149,000</li>
<li>
<a href="/news">Mildura</a> - $159,000</li>
<li>
<a href="/news">Alfredton</a> - $180,000</li>
<li>
<a href="/news">Maryborough </a>- $182,000</li>
<li>
<a href="/news">Wodonga </a>- $185,000</li>
<li>
<a href="/news">Bairnsdale</a> - $188,000</li>
<li>
<a href="/news">Horsham</a> - $188,000</li>
<li>
<a href="/news">Yarrawonga</a> - $193,000</li>
</ol>
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