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

Rental market

<html><body><div class="section">
Median house rentals in metropolitan Melbourne , according to the REIV, increased slightly to $420 from $415 a week, while in regional Victoria, the weekly median rent for houses increased to $300 from $290 a week.
The REIV's rental market snapshot to February 2016 found the proportion of vacant properties remained stable over February in metro Melbourne at 3.1 percent and regional Victoria at 2.4 percent. 
<a href="/images/2016/03/29/Screen%20Shot%202016-03-29%20at%203.44.36%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/29/Screen%20Shot%202016-03-29%20at%203.44.36%20PM.png" alt="">
</div></body></html>

jchancellor-FAypfDUnLy

Melbourne rents edge higher: REIV

<html><body>
The release of the 2013/14 financial year taxation statistics by the Australian Taxation Office (ATO) will no doubt add further fuel to the ongoing debate over the who, what, where, and why of rental property ownership.
Since I work in the industry and view properties more or less all the time, I don't need to look at any stats to know that investment properties are owned by a wide range of Australian income earners, largely "middle Australia". 
I know, because these people include my clients, because I can see it for myself every time I go to viewings, and most significantly, because I'm a property market insider. 
The genuinely wealthy generally have better things to do with their cash then invest in low-yielding residential property. 
Nevertheless, I would hopefully call out others on their useless anecdotes, so I shall do so on myself. 
Here are the headline numbers!
<a href="/images/2016/03/29/ATO1.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/29/ATO1.jpg" alt="">
The figures show that 15.7 per cent of those lodging a tax return or 2,033,973 individuals owned a rental in FY2014, with the vast majority owning only one or two properties.
The long run numbers speak for themselves, with rental property ownership becoming increasingly popular and accessible, and showing a fivefold increase since 1980, or a near-fourfold increase as a share of the total number of taxpayers. 
So much for rentals only being for the rich - there are now, quite literally, millions of landlords.
Happily for landlords, fewer of them declared a net rental loss in financial year 2014. 
Rental market trends - how much?
Adding a bit more texture on what happened to the rental markets and negative gearing deductions in financial year 2014, the ATO Taxation Statistics for 2013/14 showed that net rental income losses fell by more than half from $7.9 billion to $3.7 billion over the last two years. 
<a href="/images/2016/03/29/NG.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/29/NG.jpg" alt="">
The total rental loss claimed fell from $12.04 billion to $10.97 billion, but remember that negative gearing losses are a timing difference only, and as such these are not amounts which could be "saved" from the budget. 
The share of those 2.03 million folk who own a loss-making investment property fell from 64 percent to 62 percent.
OK, so that's the summary data. 
But what does it actually mean?
In terms of what this means in reality for the typical individual owning a property, the average rental loss has declined from well over five grand at $5,096 in the 2008 tax year to just $1,828 by FY2014, a whopping decline of more than 64 percent. 
<a href="/images/2016/03/29/NG2.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/29/NG2.jpg" alt="">
Furthermore, with the cash rate falling several times further since 1 July 2013, average net rental loss will decline for the next two or three tax years to come (just ask any capital city based landlord about their 2015 tax returns).
Rental market trends - who? 
The Tax Office also served up some interesting data on who is recording net rental losses. 
In terms of additional investors in the financial year, the numbers of individuals with a rental interest and a taxable income between $37,000 and $80,000 increased, if only moderately, with those within this taxable income bracket racking up a total of 707,000 taxpayers with a net rental interest. 
However, the greatest increase in volume of overall investors was reflected in an extra 42,400 individuals in the taxable income bracket of $80,001 to $180,000.
By way of contrast there were only an additional 9,000 individuals with an interest in the $180,000 to $250,000 taxable income bracket, and an additional 5,000 individuals in the $250,000 to $500,000 bracket. 
Looked at another way by income, 767,000 of those declaring a taxable income of under $80,000 accounted for 61 per cent of total net rental losses. 
With the largest increase in net rental interest over the year, and it does confirm that to a substantial extent "middle Australia" is buying into residential investment property, and so doing is not only "for the rich". 
It is worth highlighting here, however, that the "taxable income" declared on tax returns is reduced by negative gearing losses.  
Thus for example it should be acknowledged  that a person declaring a net rental interest and taxable income of under $80,000 could theoretically have income of $81,828 before an average net rental loss is deducted.
The overwhelming majority of landlords continue to only own one or two rental properties. 
Naturally when analysing the figures by age younger investors remain the most likely to rely upon negative gearing, with 82 per cent of all property investors aged between 18 and 29 declaring a net rental loss.
As the population ages it is little surprise to discover that more than one fifth of investors are now aged over 60, a share that will likely increase over time.
It goes almost without saying that the top 20 percent of income earners owe the bulk of investment housing debt, a point highlighted by the Reserve Bank of Australia as favourable for economic stability, since these investors are also best placed to service their debt.  
Finally, one other interesting trend was the surge in sundry rental deductions, suggesting that with the rental market softening and becoming more competitive landlords have had an increasing propensity to spend on property improvements, which has been of significant benefit to the trades sector. 
The wrap 
Overall, the figures again showed that rental properties are owned by a broad range of Australians by income, comprising a total of well over two million taxpayers. 
The good news from a budget repair perspective is that net rental losses have declined by well over half over the past two tax years alone. 
What's more, with interest rates since falling to record lows, we can look forward to seeing further declines over the next few years of data.
 
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>. 
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.
 
</body></html>

pwargent-M4siyDbqQY

New rental market trends: Pete Wargent

<html><body>
GUEST OBSERVER
More Australians than ever before owned a rental property and those relying upon negative gearing dropped, according to the latest ATO Taxation statistics release.
The 2013-14 year ATO taxation return statistics show a drop to 1.257 million people (or 62 percent) declaring a net rental loss out of the 2.03 million persons that own an investment property.
The total amount of net rental loss declined from $12.04 billion to $10.97 billion which shows that more rentals across Australia were being positively geared than ever before.
There is a year on year decrease in the loss made by a rental with lower interest rates supporting this outcome. 
In the past 12 months, Australia has seen a substantial rise in the number of individuals with a rental interest, which is mainly due to the increase of middle Australia into the residential market.
In terms of additional investors, the numbers of individuals with a rental interest and a taxable income between $37,000- $80,000 has increased by 8,872 over the year, with those in this taxable income bracket hitting 707,282 individuals with a net rental interest.
The largest volume increase in overall investors came through an additional 42,362 individuals in the $80,001- $180,000 taxable income bracket. Middle Australia is clearly buying into residential property and this is the largest increase in net rental interest over the year. This taxable income group makes up 34.7 percent of all individuals with a net rental interest.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.00.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.00.10%20PM.png" alt="" width="727" height="312">
In 2013-14 there was also a:
• 12.9 percent increase or a 9,029 additional individuals in the $180,001- $250,000 taxable income bracket with a net rental interest.
• 10.3 percent increase or a 5,023 additional individuals in the $250,001- $500,000 taxable income bracket with a net rental interest.
• 12.4 percent increase or a 1,431 additional individuals in the $500,001- $1,000,000 taxable income bracket with a net rental interest.
• 18.5 percent increase or an additional 729 individuals in the over $1,000,000 taxable income bracket with a net rental interest.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.13.08%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.13.08%20PM.png" alt="">
There has been a clear growth in the number of lower to middle income earners that have joined the investment ranks over the past several years with those earning over $80,000 growing the largest in terms over the 12 month period.
Although the percentage increases in net rental interest at the higher taxable income ranges are the largest, their actual additional numbers are quite small compared to the lower taxable income brackets. The scale of investment in these higher taxable income brackets would be expected to be much greater than at the lower end.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.15.00%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.15.00%20PM.png" alt="">
Total property investors increased by almost 67,000 persons over the year to surpass the 2 million mark for the first time. With an eye on retirement, 29,600 of these additional new investors were aged between 40-59.
In particular, low interest rates have seen Rent Interest deductions decline by around $1.08 billion on the previous year which reduces the number of investors making an annual loss on a property.
Also contributing to the positive gearing position, there was an increase in the total Gross Rental Return from all properties by around $2.19 billion compared to the previous year.
By age, younger investors are still the most likely to rely upon negative gearing with 82 percent of all property investors aged between 18-29 declaring a net rental loss.
All age groups except those over 70 saw a decline in the net rental loss with positively geared investment increasing across the age groups as investors get closer to retirement.
Some 13 percent of all persons across the country earning a taxable income under $80,000 had a rental property, whereas 26 percent of those earning over $80,000 per year had a rental interest. The likelihood of owning a rental increases as wages increase with 40 per cent of all those earning $500,000 -$1 million having a rental interest.
In vast numbers those earning in the lower tax brackets make up the largest proportion with a rental interest.
By income, 767,000 those declaring a taxable income under $80,000 made up 61 per cent of total net rent losses, with an average Net Rent Loss of $7,351 in the year.
Other Rental Deductions, which include deductable expenses on rental properties such as repairs, maintenance, cleaners, tradeswork, insurances and other costs paid out by investors to maintain a property, climbed by almost $1.4 billion from $16.99 billion to $18.38 billion over the year. 
Over the past 20 years the Other Rental Deduction category which reduces taxable income has grown from $4 billion to $18 billion per year, so there is clearly a shift in investment patterns around the repairs and maintenance which is beneficial for tenants, jobs and the economy.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.16.22%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.16.22%20PM.png" alt="">
The rise in Other Rental Deductions shows that despite average Net Rental Losses declining, there is an increasing propensity from all investors to plough some of the gains from lower interest rates back into the property. With the negative gearing concession being a motivating factor, the increase in Other Rental Deductions provides incentive to maintain the rental yield by putting money back into keeping the tenant happy in a more competitive rental market.
With average rents starting to flatten in 2013-14 as growth that corresponded to rapidly rising property values in the previous decade subsides in parts of the country, the Other Rental Deduction investment is clearly supporting and sustaining the yield.
This increase in Other Rental Deductions by way of investment in Australian property stock would be a supporting boost for the base level trades and maintenance services on upkeep and would have provided a significant boost to jobs across these areas.
What generally has been overlooked when considering the ATO Taxation statistics in previous years is the increasing value to the economy for the trades, cleaners, gardeners, plasterers, chippies, sparkies, plumbers and others that come from the property investor that pays out when things break, need repair or maintained.  
What hasn’t been factored into account is that there has been strong growth in the numbers of those small handy trades that comprise a significant part of the property and construction workforce.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.17.38%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.17.38%20PM.png" alt="">
The increase in foreign investment in residential real estate is becoming apparent in the 2013-14 year with an 82 percent increase in non resident investment in residential real estate compared to the previous years.
<a href="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.18.44%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/Screen%20Shot%202016-03-22%20at%2012.18.44%20PM.png" alt="" width="1120" height="726">
Nicholas Proud is principal of <a href="https://propertyanalytics.com.au" target="_blank">Property and Construction Analytics Australia</a>.
</body></html>

Middle Australia is buying into residential property 

<html><body>
The number of residential vacancies nationally fell during February, recording a vacancy rate of 2.3 percent, and 70,161 vacancies, latest figures from SQM Research show. 
Year-on-year results demonstrate that national vacancies appear to be slightly above the common seasonal trends expected at this time of year.
Melbourne had the largest monthly fall, with vacancies falling 0.5 percentage points in February. Brisbane, Canberra, Sydney and Darwin also experienced monthly falls, with percentage points down 0.2 percent.
<a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.32%20PM.png" alt="">
Despite this, both Darwin and Perth continue to record an alarming number of vacancies, compared with this time last year (February 2015).
February results for Hobart reveal the tightest rental market recording a vacancy rate of just 0.9% based on just 239 vacancies, the data shows.
Asking rents
Perth has recorded ongoing falls in asking rents of 10.5% for houses and 9.1% for units over the past 12 months. Darwin also saw yearly falls, with asking rents down 10.3% for houses and 11.2% for units. Hobart continues to record the most affordable rental accommodation with rents for houses at just $337 a week, while units on average rent for $286 a week.
“Overall, there was a noticeable fall in vacancies for the month driven by Melbourne and Sydney. However, year on year vacancies are still edging up for the country and we think this will still be the trend going forward. The cities and townships most exposed to the commodities downturn are causing this yearly rise. On the flip side Melbourne, Hobart and Canberra are all recording downward trends in vacancies now and this is resulting in upward pressure in rents for these three cities,” said Louis Christopher, managing director of SQM Research.
The calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties. 
Key Points
* Nationally, vacancies fell during February 2016, recording a vacancy rate of 2.3%, based on 70,161 vacancies.
* Perth recorded the highest vacancy rate in February 2016 of 3.9% based on 7,819 vacancies.
* Vacancy rates in Sydney have fallen 0.1 percentage points over the last year.
* Year-on-year, vacancy rates dropped in Sydney, Canberra, Melbourne and Hobart.
* Hobart recorded the lowest vacancy rate during February 2016, with a rate of 0.9% based on 239 vacancies.
* Over the past 12 months, Perth asking rents have also experienced excessive yearly falls with houses down 10.5% and a 9.1% fall for units.
<a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.47%20PM.png" target="_blank"> Click to enlarge</a>
<img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.47%20PM.png" alt="">
</body></html>

prateek24-ezbwHMbNAk

Melbourne leads the fall in February residential vacancies: SQM Research 

<html><body>
Melbourne recorded the largest monthly residential vacancy fall nationwide over February, down 0.5 percentage points with a vacancy rate of 2.3 percent, according to SQM Research.
Canberra, Sydney and Darwin fell 0.2 percentage points over February. 
<a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.32%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.32%20PM.png" alt="">
SQM Research managing director Louis Christopher said overall there was a noticeable fall in vacancies for the month driven by Melbourne and Sydney.
"However, year on year vacancies are still edging up for the country and we think this will still be the trend going forward," he said.
"The cities and townships most exposed to the commodities downturn are causing this yearly rise. On the flip side Melbourne, Hobart and Canberra are all recording downward trends in vacancies now and this is resulting in upward pressure in rents for these three cities.
"Perth has recorded ongoing falls in asking rents of 10.5% for houses and 9.1% for units over the past 12 months. Yearly falls have also been recorded in Darwin, with asking rents down 10.3% for houses and a considerable 11.2% for units. 
"Hobart continues to record the most affordable rental accommodation with rents for houses at just $337 a week, while units on average rent for $286 a week."
<a href="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.47%20PM.png" target="_blank" style="line-height: 1.3em;">Click to enlarge</a>
<img src="/images/2016/03/16/Screen%20Shot%202016-03-16%20at%2012.13.47%20PM.png" alt="">
</body></html>

po-LsXgBTHBmX

Melbourne takes largest monthly residential vacancy fall in February: SQM Research

<html><body>
With vacancy rates in a number of Australian capital cities remaining an issue, property managers are faced with three main challenges - improving communication, securing new managements and sourcing quality applicants to fill vacant properties, a new survey reveals.
A high proportion of respondents (64 percent) in rental property website Rent.com.au’s December property manager survey said they valued good communication with tenants and owners as a key focus in 2016, desiring to work more effectively and be capable of supporting both in their short-term and long-term objectives.
Other big challenges included implementing new technologies in a busy marketplace, sourcing and securing new managements and having renters attend viewings once a time slot is booked.
Another areas of focus were developing higher quality listings and tenant retention, especially in times of high vacancy rates.
“Our results show that property managers are aiming to strengthen communication with tenants and owners to establish the best possible level of customer service,” rent.com.au founder and CEO Mark Woschnak said. 
Property managers reported they would like further training in writing property listings, vendor paid advertising and responding to appraisals. 
Woschnak said the industry wanted to know how to create better-targeted, more successful online listings to fill vacancies quicker and with good tenants.
“The traditional forms of engagement with clients are rapidly changing and it’s becoming evident that property managers have a desire to improve their online marketing and multimedia application in order to boost their enquiry rates,” he said.
Developing strong tenant retention strategies will also be a major driver in 2016, Woschnak added. 
The survey revealed 82% of property managers considered building their rent roll to be ‘very important.’ Most respondents said they wished to grow their rent roll by 50% in 2016 (28%), while 26% expected it to increase by 11-20%. 
“Retaining good tenants is of paramount importance to the growth of any agency,” Woschnak said.
Key results of the survey:
• Most property management departments’ enquiries come in via email (83.33%), followed by phone (11.11%) and walk-ins (5.56%).
• 55.56% of respondents said they do not currently receive VPA for their rental listings.
• Key ways to secure property managements include an agency’s website (45.45%), walk-ins (27.27%) and Rent.com.au’s product RentQuotes. Other methods include word of mouth, referrals and through Google search.
• The majority of property managers (88.89%) indicated floor plans and videos were not presently a priority inclusion, adding the features to 0.25% of their listings. 11.11% said they added them to 26-50% of their listings.
• 72% of property managers add more than six photos to a listing, while the remaining 28% said they add between 3-5 photos.
• Property managers indicated an increase in the number of renters wanting more for less in today’s market, saying renters try hard to negotiate for better prices and want to dictate terms. 
For more information, <a href="https://www.rent.com.au" target="_blank">click here</a>.
</body></html>

Sourcing quality applicants among top challenges for property managers: rent.com.au survey

<html><body>
ASX-listed Rent.com.au Limited had more than 610,000 unique visitors to the website in February 2016, following on a record 615,405 visitors in January.
It also had almost 1,300 new landlord listings in the month, a new high, the company said in a regulatory announcement.
Rent managing director Mark Woschnak said the February UV traffic result was in line with expectations, representing sustained growth over January on a per day basis. 
“While strong UV numbers are important and demonstrate an increase in the awareness of <a href="https://www.rent.com.au/" target="_blank">Rent</a>, we are pleased with the launch of the national sales team ahead of schedule and continued gains made in agent and non‐agent registrations during the month of February," Woschnak said.
Rent now has more than 6,800 real estate agents registered with it and it has completed the deployment of its field sales team.
“We now have an on the ground agent sales presence right across the country and we are set to benefit from this continued increase in agent registrations. In addition to that, we have also had our biggest month yet for landlord listings,” said Woschnak. 
“Over the coming months we are focussing our resources on driving faster growth in agent and non‐agent registrations as we look to increase our overall level of listings content from the approximately 80 percent of national property listings that we currently have on site." 
</body></html>

Rent.com.au had record landlord listings in February: ASX announcement

<html><body>
Wollongong, NSW’s third-largest city (postcode 2500), was among the top searched suburbs in 2015 on rent.com.au, with median rental for advertised properties in the last 30 days at $400 per week.
The rental was $10 lower than the previous quarter, says the report.
The lowest rent in the last 30 days was $200 for a one-bedroom dwelling, while the highest was $700 for a four-bedroom one.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.33.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.33.34%20AM.png" alt="">
Though the median rent fell, the average days on the market in the last 90 days at 23 improved by nine days over the previous quarter.
This was also a day less than the surrounding suburbs of Coniston, Gwynneville, Mangerton, North Wollongong, Port Kembla and West Wollongong. However, Wollongong’s neighbourhood is cheaper, with the median rent in the last 30 days being $365, the report shows.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.31.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.31.35%20AM.png" alt="">
 
 
The trend in Wollongong for the last six months (see graph) also shows that the median rental per week for houses climbed from $400 in August ’15 to $550 in December before dropping sharply to $430 in January. For apartments, it fluctuated little with gradual rises or falls.
The number of rental properties advertised in the last 30 days was 125, up 35 from the previous 30 days.
<a href="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.35.34%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/2/Screen%20Shot%202016-03-02%20at%2011.35.34%20AM.png" alt="">
Wollongong has a total of 4,090 rental properties, making up 56% of all properties in the city, according to ABS 2011 data. 
The city’s property composition shows 69.2 percent apartments and 30.8 houses.
Property Observer found these two recent dwellings advertised on rent.com.au: 
<img src="/images/2016/02/23/gong1.jpg" alt="" width="486" height="400">
1. A refurbished two-bedroom apartment at <a href="https://www.rent.com.au/property-unit-wollongong-2500-1664724" target="_blank">5/35-37 Corrimal Street</a> (above) is up for rent at $380 per week. 
2. A fully furnished two-bedroom apartment at <a href="https://www.rent.com.au/property-apartment-wollongong-2500-1679764" target="_blank">21-23 Bligh Street</a> (below) can be rented for $430 per week.
<img src="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%209.26.33%20AM.png" alt="" width="682" height="520">
The ASX-listed Rent.com.au Ltd achieved a record 615,405 unique visitors to its website in January, followed by more than 610,000 unique visitors in February.
Landlords are able to list their property for free in a limited time offer on <a href="https://www.rent.com.au/" target="_blank">rent.com.au</a>. 
 
</body></html>

Wollongong captures rental attention on Australia's most searched suburbs: rent.com.au

<html><body>
<div>National residential vacancies fell to 2.5% during January, with year on year results showing vacancy levels above seasonal trends, according to SQM Research.</div>
<div> </div>
<div><a href="/images/2016/02/17/VRJan2016.png" target="_blank">Click to enlarge</a></div>
<div>
 <img src="/images/2016/02/17/VRJan2016.png" alt=""> Canberra had the largest fall, down 0.5 percentage points over the month of January, according to SQM Research managing director Louis Christopher.
</div>
<div> </div>
<div>"Darwin and to a lesser extent Sydney, also recorded monthly falls, with Darwin vacancies falling from 4.2% in December 2015 to 3.8%. Despite this, both Darwin and Perth continue to record an alarming number of vacancies, particularly when you consider the number of vacancies recorded this time last year (January 2015)," he said. "Overall, vacancies for January fell in line with the seasonal trends associated for this time of year. We believe the seasonality observed has much to do with the end and start of tertiary studies which normally see a significant movement of students. </div>
<div> </div>
<div>"Another trend observed in the data is the recovery of the Canberra rental market, which for about four years was in a slump. I would suggest that on the back of falling vacancy rates and rising asking rents that the rental slump is now over for the ACT." </div>
<div>According to SQM Hobart recorded the fastest rental rises for the capital cities, with asking rents rising 5.8% for houses, while units underperformed, falling by 2.3%. Average Hobart house rental is $337 a week, with units $274 a week. </div>
<div><a href="/images/2016/02/17/b3cb5918-34f8-4781-a837-6f74ce7101bc.png" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/02/17/b3cb5918-34f8-4781-a837-6f74ce7101bc.png" alt=""></div>
<div> </div>
</body></html>

Falling vacancies recorded for January 2016: SQM Research

<html><body>
GUEST OBSERVER
The Real Estate Institute of Queensland (REIQ) rejected Federal Treasurer Scott Morrison’s suggestion that curbing negative gearing was a responsible fiscal alternative to raising the GST.
Negative gearing was well established as a vital tool to encourage investors into the property market, where their continued investment was vital to ongoing rental affordability.
Removing negative gearing from property investment will only serve to drive investors to other assets such as shares, where the offset would remain intact.
This would further impact affordability as there would be fewer houses available to meet rental demand
A review of history would confirm this, with the Hawke government removing gearing benefits in in 1985 only to reinstate them in 1987 when rents surged approximately 24 per cent. 
Removing or scaling back negative gearing would actually hurt the most vulnerable in Queensland, with middle and low-income families unable to afford the resulting rising rents as stock dwindled.
In Queensland more than a third of our population is in rental accommodation, so it’s crucial that supply is maintained for this large section of the community.
If private rentals were drastically reduced this would place enormous strain on the limited resources in public housing.
In its 2013 report Housing 2020, the Queensland State Government outlined its public housing strategy to limit its public housing new builds and to actively transition residents through its public housing, moving them towards private rentals or home ownership.
The Government recognises that the private sector is able to gain more efficiencies in the housing market and the public sector is more costly and less efficient.
The Government strategy focuses on moving residents away from “a view that social housing is a home for life” and instead, places “greater emphasis on social housing as a transitional period on the path to private rental or home ownership”.
If supply was limited to the private rental market and public housing was being scaled back, the social consequences would be significant and detrimental.
Instruments such as negative gearing encouraged individuals to save and invest in property, and this boosted financial self-sufficiency for individuals later in retirement, a key plank of government policy.
There was a common misconception about investors who access negative gearing benefits and capital gains tax concessions, as very wealthy with a vast portfolio of property.
Recent ATO statistics, provided by the Property Council of Australia, revealed that about 70 per cent of investors who benefit from negative gearing earn less than $80,000 and about 73 per cent own just one investment property.
In Queensland, owner occupiers account for two-thirds of the residential dwelling market, with investors making up about a third (34 percent).
ANTONIA MERCORELLA is CEO of the <a href="https://www.reiq.com/" target="_blank">REIQ</a>.
 
</body></html>

Rental market

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Rental market

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News