Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

Perth

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It was a 50/50 split in Perth's affluent Peppermint Grove in the December quarter, according to the latest CoreLogic RP Data Pain and Gain report.
The research firm only recorded two home sales in the local government region in the final quarter, with one loss and one profit-making sale.
The vendors of <a href="https://www.realestate.com.au/property-apartment-wa-peppermint+grove-117769579" target="_blank">5/22 Stirling Street</a> (pictured below) in Peppermint Grove lost out on their November sale. The unit sold for $380,000, $15,000 less than their December 2011 purchase price of $395,000.
<img src="/images/2015/04/24/peppermint%20grove%20april%2024%20one.jpg" alt="">
The property's price reached its peak in 2009, when it traded for $415,000. Since 2007, the unit has been used as a rental property. In September 2007, it was advertised to rent at $320 per week, but in late 2008 its advertised rental rate descended to $300 per week. It's now rented out for $380 per week, with it selling in November at a 5.2% yield.
While CoreLogic RP Data only recorded two sales  in Peppermint Grove for the December quarter, a search through listings reveals more, including the sale of <a href="https://www.realestate.com.au/property-house-wa-peppermint+grove-117961647" target="_blank">46R Irvine Street</a> (pictured below), which sold in November. The home sold for $2.5 million, with the vendors paying $1.68 million in 2005.
<img src="/images/2015/04/24/peppermint%20grove%20april%2024%20two.jpg" alt="">
While Peppermint Grove's low sales volumes gave it the highest proportion of loss-making sales for the quarter, as recorded by CoreLogic, other regions had many more happy vendors. In the south-eastern region of Canning, which includes Cannington, Parkwood, Queens Park, Shelley and Wilson, only 1.4% of home resales made a loss.
Those that did make a loss had an average hold period of 1.9 years, with a median loss of $14,000. For profit-making sales, the average hold period was 9.5 years, with a median profit of $298,000. In total, Canning vendors made $87.4 million in the December quarter.
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jrichardson-uRX5hFdKfN

Mixed result in Perth's Peppermint Grove: CoreLogic RP Data

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There is no argument that the market has slowed since Christmas however this can be wonderful news for people looking to sell their current property to upgrade to a bigger and better home.
Right now there are approximately 14,000 properties on the market which is around 40% more than this time last year so upgraders do have a larger selection to choose from however many a worried that they won’t achieve a good price for their current property.
The brutal truth is that an upgrader may need to accept less on their current property but there is little doubt they will enjoy a parallel discount on the one they buy and this is when the sums really add up in their favour.
In an example where 12 months ago, a person was selling a $500,000 property to upgrade to one worth $800,000, the gap was $300,000. Today, in the slower market, although they may have to take $480,000 for their existing home they are now more likely to buy that $800,000 home for $760,000 reducing the gap to $280,000 and saving them $20,000.
It’s also very relevant that when the market slows the dearer properties are hit hardest while the cheaper homes, up to around $600,000 continue to sell readily as that is where the buyers are most prevalent.
The secret is to not look at selling and buying in isolation but to instead consider the whole changeover package and by doing so it can often be found that selling to upgrade in a slower market is an advantage rather than a disadvantage.
Geoff Baldwin is managing director of <a href="https://www.remaxwa.com.au/" target="_blank">RE/MAX Western Australia</a>.
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gbaldwin-aeU8VNq2Vh

Slower Perth market creates opportunity for upgraders: Geoff Baldwin

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Commercial property in West Perth, an area dominated by resource-related businesses, is in the doldrums as the downturn in mining investment hits the market.
Vacancy rates in the suburb climbed to 10.9% in January 2015 from 9.2% in July 2014, according to the Property Council of Australia.
Colliers International estimates that vacancy rate equates to 46,117 square metres of unoccupied commercial space in West Perth at the beginning of 2015.
<img src="/images/2015/03/25/perth-mar-25-four.jpg" alt="">
<img src="/images/2015/03/25/perth-mar-25-five.jpg" alt="">
A quick search on realcommercial.com.au of for lease listings in the area reveals more than 950 offices available. Numerous listings are advertising rent cuts and attractive lease terms.
Two properties on Hay Street, one at 1141 and the other at 1133, are advertising “massive” rent reductions, asking for rents that equate to just $195/sqm. The advertisements for the 317sqm and 460sqm offices declare: “ALL OFFERS CONSIDERED. OWNERS WANT THE PROPERTY LEASED YESTERDAY. YOU WILL NOT BE DISSAPOINTED WITH THE LEASE TERMS THAT ARE ON OFFER”.
Another property at 8 Parliament Place is available now asking just $150/sqm for a fully fitted out 399sqm office on a sub-lease.
Those asking rents represent a dramatic drop compared with 2011 and 2012 levels.
Average face rents for full-floor A Grade premises in West Perth have fallen to between $400/sqm and $475/sqm from around $550/sqm in late 2011 to early 2012, according to Colliers’s analysis. Offices in B Grade buildings are leasing for $350/sqm to $400/sqm, down from almost $500/sqm three years ago.
Savills’ Spotlight on West Perth, released in February, says net effective rents – which take into account incentives such as rent-free periods and assistance with fit-out costs – are even lower.
<img src="/images/2015/03/25/perth-mar-25-two.jpg" alt="">
<img src="/images/2015/03/25/perth-mar-25-one.jpg" alt="">
Incentives in the West Perth office rental market sit at around 30%, with landlords using a range of tactics to attract tenants in the slowing market.
“Incentives [are] now at such a level that the majority of fit-out costs can be covered,” Savills notes in its report.
A 463sqm office suite in Ventnor Avenue advertised for lease on realcommercial.com.au is offering a year’s free rent.
The average net effective rent for an A Grade property was $289/sqm in December 2014, down 26% compared with December 2013, Savills’ research shows. Net effective rents in A Grade buildings range from $254/sqm to $333/sqm net, and in secondary grade buildings from $210/sqm to $245/sqm net.
<img src="/images/2015/03/25/perth-mar-25-three.jpg" alt="">
The lower rents and higher incentives are being offered in response to weakening demand. More space is being vacated in West Perth than is being filled, with net absorption, which measures this difference falling by 4310sqm in the 12 months to December 2014, Savills reported.
Leasing activity was down by 50% in the 2014 calendar year compared with the year before. Just 9479sqm of space was leased, compared with the annual five-year average for the suburb of almost 20,000sqm.
 
Those tenants who have been leasing offices have taking advantage of the soft market to upgrade their premises. As such, vacancy rates are much higher in secondary properties in the area than in A Grade premises.
The vacancy rate for secondary properties, which make up about two thirds of the stock in West Perth, was 12.9% - almost double that of A Grade premises in the area which had a 6.8% vacancy rate, Savills reports. B Grade properties have the highest vacancy rate at 13.4%. 
Almost two thirds of the space that was leased was taken up by mining and utilities industries, with finance and insurance companies taking up the balance.
Savills expects vacancy rates in West Perth to rise further as mining investment continues to slow. It notes, however, that a lack of new developments planned and under construction in the area will lower vacancy rates in the medium to longer term.
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zfielding-GvX3Uq9KTa

Mining downturn hits West Perth commercial landlords

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Consumers should always treat the words of real estate agents and their representative bodies with caution.
Many of the grubbiest aspects of residential real estate – including dummy bidding at auctions, overquoting to get listings, underquoting to attract bigger auction crowds, and exaggerations or exclusions in advertising – have agency fingerprints all over them, although often<a href="/news/greedy-vendors-the-main-underquoting-cause-reinsw"> agents will try to blame vendors</a>.
As a buyer of real estate over the years, I’ve always been startled at the willingness of selling agents to talk down the price or prospects of a property to make an easier sale.
Here’s an example: “The property’s being sold because of a marriage breakup and they need a fast sale, so if you make a low offer it might be accepted”. Great for buyers, but the vendors would be horrified if they knew what their agents were saying about them and their properties.
Then there are the public statements. Usually these are designed to pump up the market or to influence decision-makers on policy such as stamp duty or interest rates.
It gets to the point sometimes where agency statements should come with a public health warning: Inhaling these words may be damaging to your financial health.
Sometimes, the pubic statements of the agency community have a strange twist, where their words appear counter-intuitive. But when agents deliberately talk down a market, it’s not because they’ve had an epiphany or been struck by lightning. There’s always an ulterior motive.
Here’s a current example. For some months the Real Estate Institute of Western Australia (REIWA) has been bagging the Perth property market.
The general theme is that the market’s in the toilet. Sales volumes are down, vacancies are up, there are too many sellers and not enough buyers, and price decline in inevitable.
In my view, they’re misrepresenting the situation. Perth’s market is not that bad and there are growth pockets across the city.
But there’s been a steady stream of REIWA media releases, all saying very negative things about Perth property. I’d imagine agents all over the city are quietly seething.
But it’s all part of a plan, indeed a concerted campaign. The objective? To condition sellers to accept they have to lower their asking prices.
You might think agents have a vested interest in higher prices. Their commission is a percentage of the selling price. The higher the price, the higher the commission.
But, no, the agency goal is a fast sale. The price doesn’t matter too much. If a property has an asking price of $500,000 and the agency has an offer of $480,000, many agents (not all) will work on the vendor to lower their expectations - rather than do what they’re paid to do, which is work on the buyer to raise their offer.
The difference in commission between $480,000 and $500,000 is not much, but it’s $20,000 of difference to the vendor.  Many agents (not all) will represent their own interests above those of their clients, the vendors.
Agents want vendors to have low price expectations, because it makes it easier to sell and earn commissions.
Hence the deliberate and persistent campaign by the REIWA to talk down the Perth market. As they see it, the Perth has had a couple of good years but is past its peak and now heading south. It’s going to be a tough market in which to operate as agents. They need to soften up vendors.
It’s a very dangerous tactic. The message they’re sending, whether they realise it or not, is that no one should be buying in Perth at the moment. According to the institute, the market’s falling and prices will decline. No one wants to buy and find that their property is worth less six months later.
But they’re pursuing their campaign nevertheless. In the latest episode, the REIWA declares that Perth is over-supplied with sales and rentals. This is not good news for owners, because nothing depresses values like a surplus.
This week’s media release says there’s been a 210% increase in rental properties available in the market since 2012. The vacancy rate is above 4%. Over-building has created oversupply, according to the REIWA. The city’s median house price dropped $5,000 last month and it’s now taking much longer to sell properties.
“With this large supply of homes for sale and rent, it’s likely we will see negligible price growth across 2015 and a fairly slow market for those selling property or looking for tenants,” says REIWA president David Airey in the media release.
What on earth are they playing at, being so negative? The answer comes in the next paragraph. “It is essential that sellers and owners listen closely to the advice of their selling agents and property managers to ensure the right marketing and pricing in what will prove to be a very competitive environment,” Airey said.
That’s right, folks, you need to drop your asking prices and rents.
As I’ve often said, real estate is run by narcissists - and the loudest noise in property is always the voice of vested interest.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
You can also read David Airey from REIWA response '<a href="/expert-insights/there-is-no-conspiracy-in-reiwa-market-commentary-david-airey">There is no conspiracy in REIWA market commentary</a>'.
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Caution - inhaling real estate agent's words may be dangerous to your financial health: Terry Ryder

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This article is a response to Terry Ryder's piece '<a href="/expert-insights/caution-inhaling-real-estate-agents-words-may-be-dangerous-to-your-financial-health-terry-ryder">Caution - inhaling real estate agent's words may be dangerous to your financial health'</a>.
There is no conspiracy in REIWA market commentary. We pride ourselves in ‘telling it like it is’, contrary to the cynical perception that many members of the public often have towards agents.
The fact is the Western Australian property market is very cyclical (usually counter-cyclical to the east coast), and very closely linked to the fortunes of the mining and resources sector. That has taken a dive, with as many as 25,000 jobs having gone in the last year.
After solid market growth through 2005 – 2007, market correction and the global financial crisis in 2008, followed by full market recovery in 2009, the WA housing market has bumped along for the last five years with modest growth and patchy sub-markets. First home buyers have been very active.
However, we are now facing a year in which our population growth rate is slowing, consumer sentiment is weak, job losses continue, people are moving house less often and a significant number of new dwellings are coming to market or planned for next year.
There are some 24,000 homes under construction, of which 8,300 are multi-residential. While this level of output is not so unusual, it has not previously occurred at a time when population growth was slowing. There is increasing concern about how this oversupply will impact across all markets as it comes to fruition.
Listings for both sales and rentals have spiked and continue to climb. Days on market have stretched out to 63 and the number of vendors discounting has increased to 57% with the average discount climbing to almost 6%.
The message we are hearing loudly and clearly from our agents and property managers is that many sellers and owners have unrealistic expectations and seem to have a mind-set that views that market as unchanged from a few years ago. This is wrong.
REIWA believes it has an obligation to advise the public about changing market conditions if sellers and owners want to achieve the best asking price or rental return and in a realistic time frame.
This is not to suggest that people shouldn’t buy or invest in the Perth market; far from it. But engaging in the market requires good research, good timing, realistic expectations and a long-term outlook. And it must be said that some sub-markets and regional centres are doing much better than Perth overall.  
Current indicators point to a weaker market in 2015 across our metropolitan area for the reasons outlined above. Growth will be negligible. Sellers and landlords will find it a more challenging year and we don’t resile from speaking this truth.
It will be interesting to revisit this topic in the December quarter, and I invite Mr Terry Ryder to return to this column about REIWA and Perth later in the year. I am confident our commentary will be proved accurate and prescient. 
David Airey is president of <a href="https://reiwa.com.au/" target="_blank">REIWA</a>.
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There is no conspiracy in REIWA market commentary: David Airey

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Significant price differentials between neighbouring Perth suburbs are increasing apparent to buyers willing to slightly compromise on location.
Peppermint Grove tops the city's list with a median price of $3.95 million - but that is almost three times more than neighbouring Mosman Park's $1.4 million median.
South of the river, North Coogee's $1.3 million is significantly more expensive than neighbouring Spearwood's $545,000, Coogee's $860,000 and Hamilton Hill's $554,000.
Realmark managing director John Percudani says suburbs bordering Rossmoyne's $1.1 million's include Bull Creek's $765,000 and Willetton's $772,000.
North of the river, coastal suburbs either side of Waterman’s Bay's $1.46 million median include North Beach's $950,000 and Marmion's $925,000.
Percudani explained to the local paper there was good reason for the differential in some areas, but maintained there was excellent value in certain suburbs adjacent to their more expensive neighbours.
He said buyers were becoming more focused on extracting value and less fixated on postcodes.
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Forget the postcode: Buying in next door suburb saves money in Perth

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The Perth housing market recorded modest price growth over 2014 with affordability barriers and declining economic activity impacting the market, according to the Domain Group's senior economist, Andrew Wilson.
Perth’s median house price increased by just 0.6% over 2014 - well down on the 9.6% of 2013.
<img src="/images/2015/03/12/perth-mar-12-one.jpg" alt="">
Source: Domain Group
"Perth was the early starter in the general capital city housing market revival that commenced with sharp cuts to interest rates in 2012-13," Wilson said.
"The local market is now stabilising following exceptional prices growth over 2012 and 2013."
Rising unemployment and lower economic growth, driven primarily by the decline in the resources sector, are impacting housing market activity, he said.
"Despite this, the local Perth economy remains relatively well placed compared to most other state economies."
<img src="/images/2015/03/12/perth-mar-12-two.jpg" alt="">
Source: Domain Group
Wilson tipped price growth over 2015 to remain steady in Perth helped by the proportion of first home buyers, which exceeds all other capital city markets, and the prospect of rising activity in the prestige market.
"Lower interest rates will also provide a stimulus to aspirational buyers in middle price ranges," he said.
"The recent solid performances in Perth’s higher-priced city suburban areas will continue with moderate buyer activity from the mid and budget range regions of the north, south, south-west and east."
Perth median house prices are forecast to rise between 1 and 3% over 2015.
<img src="/images/2015/03/12/perth-mar-12-three.jpg" alt="">
Source: Domain Group
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Perth prices to remain steady in 2015: Domain Group's Andrew Wilson

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Perth house sales during February were down on the same time last year. 
Turnover was down around 16% on last year, to 1,870 reported sales, according to REIWA.
The median house price eased by around 1%, or $5,000 to $547,000.  The REIWA president David Airey said reiwa.com data showed that sales lifted 12% in February after the festive season downturn. 
“Given that sales were down by 15% in January and now by a similar figure in February, it’s clear that the market is showing a trend of slow-down that is apparent even at a time when seasonal summer sales are usually stronger,” Airey said. 
Listings for sale increased by 4% in February to 13,456 properties. 
The rental market showed no sign of change in February, with the exception of the City of Belmont where median rents lifted by $20 to $450 per week. 
Perth’s median rent is unchanged at $440 per week and data shows a vacancy rate of just over 4%, Airey said.  
There were 6,251 rental homes looking for tenants in February, up by almost 30% on the same time last year. 
Top selling suburbs in February:
<ul>
<li>Northwest metropolitan Quinns Rocks, Woodvale, Duncraig, Clarkson, Butler. 
</li>
<li>Northeast metropolitan   Ellenbrook, Ballajura, Forrestfield, Lesmurdie, High Wycombe.  
</li>
<li>Central metropolitan  Willetton, Balga, Morley, Dianella, Karrinyup.  
</li>
<li>Southwest metropolitan  Baldivis, Secret Harbour, Waikiki, Rockingham, Warnbro.  
</li>
<li>Southeast metropolitan  Canning Vale, Armadale, Thornlie, Kelmscott, Byford. </li>
</ul>
Source: REIWA.
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Around 30% more homes for rent in Perth than last year: REIWA

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The Perth market is a good illustration of the need for investors to delve a little deeper with their research when assessing a market.
Many commentators give us sweeping generalisations, with comments about the state of play nationally or for a major city as a single market. This can disguise myriad differences in sub-markets and is often highly misleading.
Perth is top of mind because I flew there this week to address a seminar with the Blackburne Property Group.
The generalised figures show that Perth overall is a stagnating market. In the past 12 months, the median house price for the city overall has grown only 1% or so.
Perth, along with Darwin, was the national leader on price growth in 2012 and early 2013, before Sydney took over. Since then, Perth has gradually faded.
This shows up not only in the city median price data but in sales volumes – which peaked in Perth in mid-2013 and gradually declined since then.
But, as is always the case, there are many local differences. While there was little growth in the Perth median house price last year, many individual suburbs had good growth. Some recorded double-digit rises in their median house prices.
The areas that have continued to deliver good growth are mostly those who fit the simple formula I often write about: affordability plus infrastructure plus jobs nodes.
The suburb of Armadale recorded 350 house sales last year at a median price of $325,000, an annual rise of 7%. The suburb, and the LGA of the same name, is in the far south-east of the Perth metropolitan area, and is an example of markets that tick many boxes for home buyers and investors: affordable homes, good transport links, plenty of amenities, new infrastructure spending and proximity to jobs nodes.
Gosnells is another downmarket area that Perth people like to denigrate, often with the question: who’d want to live there? Well, someone does, because 439 houses sold there last year at a median price of $390,000, an annual rise of 8%.
Other suburbs around Perth did as well or better. Bentley was up 11%, Girrawheen 14%, Harrisdale 12%, Kewdale 17%, Mt Hawthorne 15%, Willard 13%, Langford 17% and Maddington 11%. There are many others. Not bad for a city where, according general media coverage, the market is dead and bereft of growth.
As an aside, a number of WA regional markets also did well in the past year, including Busselton, Mandurah and, surprisingly, previously-depressed Kalgoorlie.
So, what of this year? The sales trends suggest there will a lot of steady markets, based on their consistent sales patterns, and a smaller number of group suburbs, where sales activity is still rising.
The growth markets include a number of suburbs in the Armadale LGA including Kelmscott, the Rockingham LGA including Waikiki and the municipality of Wanneroo, including Tapping, Banksia Grove, Butler and Yanchep.
One of the standout features of the Perth market is the number of suburbs which produce highly consistent sales. That’s significant but suburbs that deliver the same numbers quarter after quarter have good price growth records.
High Wycombe is a good  example. Sales in the past nine consecutive quarters have been 84, 81, 89, 81, 80, 77. 83, 83 and 89. That’s a remarkable level of consistency. High Wycombe’s long-term capital growth record is 9% per year and it lifted its median house price 7% last year.
And there’s a suburb near High Wycombe that stands out for a variety of reasons. Forrestfield has a very good track record of growth and has increased its rate of sales significantly in the past 12 months, so further growth is likely. And there is a major boost in its future, with the $2.2 billion Forestfield-Airport Rail Link due to start construction next year.
TERRY RYDER is the founder of <a href="https://hotspotting.com.au/" target="_blank">hotspotting.com.au</a>. You can <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email him</a> or follow him on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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Many Perth suburbs still recording good growth: Terry Ryder

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GUEST OBSERVATION
It is shaping up to be the year of the buyer as favourable market conditions create an opportune time for investors in Western Australia.
While capital growth is widely tipped to be moderate in the Perth property market for the year ahead, the next 12 months will provide a good platform for investors to build their property portfolios for several reasons.
Firstly, we can be confident that finance will remain cheap as interest rates stay at record lows. The large majority of industry analysts are predicting that the Reserve Bank of Australia (RBA) will not hike rates this year.
Secondly, we have seen a 28% increase in housing stock available in Perth over the past year with the number of listings surpassing 13,000 at the end of 2014.
This provides investors with a much wider choice and buyers are more likely to find a better suited property to their needs.
Thirdly, given the softer outlook for the Perth property market, many buyers will delay their decision to acquire a dwelling until conditions improve.
This simply boils down to human nature as many investors take a herd mentality and become discouraged when the market isn’t recording robust capital growth.
As many buyers delay a property purchase, those that do choose to invest in property will encounter less competition.
Subsequently, investors can get more bang for their buck or are able to secure properties for less, or even below asking price, as reduced competition means buyers are less likely to be forced to outbid others.
Finally, buyers in softer markets will have more control over contract negotiations as less competition means they can be more demanding of sellers. We are already seeing great properties being purchased at fair prices.
While we don’t expect huge capital growth for the Perth property market, the fact is that cheap finance, higher stock levels and reduced competition means buyers will have the upper hand.
The long-term fundamentals for Perth remain very strong. It is forecast to have the fastest growing population and fastest growing economy over the next 10 years.
Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful”.
Those who make the most of the current favourable conditions and invest wisely in the next 12 months will be best placed to take advantage of the next upswing in the property market.
Damian Collins is the founder and managing director of <a href="https://www.momentumwealth.com.au/" target="_blank">Momentum Wealth</a>, a Perth-based property consultancy that specialises in building the long-term wealth of its clients by assisting in the strategic selection, financing, acquisition, development and management of their investment properties.
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