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

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Melton West - and the 3337 postcode - was identified as one of the most affordable rental suburbs closest to Melbourne's central business district, according to Australia's first rental affordability index.
The index is a joint project between peak housing advocate National Shelter, Community Sector Banking and SGS Economics &amp; Planning.
Property Observer went looking for houses and apartments in Melbourne's Melton West to find a suitable range. These are the ones we came up with:
 1. A four-bedroom house on <a href="https://www.realestateview.com.au/rental-properties/19-lomandra-bowl-melton-west/Property-Details-rent-residential-9789526">19 Lomandra Bowl, MELTON WEST 3337</a> (above) is available for $370 a week. This one topped the rentals for houses. 
2. A three-bedroom house on <a href="https://www.realestateview.com.au/rental-properties/4-red-oak-street-melton-west/Property-Details-rent-residential-9784033">4 Red Oak Street, MELTON WEST 3337</a> (below) is available for $280 a week.
<img src="/images/2015/11/26/4-Red-Oak-Street-Melton-West-VIC-3337-Real-Estate-photo-1-large-9784033.jpg" alt="" width="469" height="352">
3. A two-bedroom unit on <a href="https://www.realestateview.com.au/rental-properties/2-7-fishburn-grove-melton-west/Property-Details-rent-residential-9787782" target="_blank">2/7 Fishburn Grove, MELTON WEST 3337</a> (below) is out for rent for $255 a week.
<img src="/images/2015/11/26/2-7-Fishburn-Grove-Melton-West-VIC-3337-Real-Estate-photo-1-large-9787782.jpg" alt="" width="500" height="333" style="font-size: 12.16px; line-height: 1.3em;">
4. A two-bedroom unit at <a href="https://www.realestateview.com.au/rental-properties/25u-scott-street-melton/Property-Details-rent-residential-9789004" target="_blank">25U Scott Street, MELTON 3337</a> (below) is available for $220 a week and was the cheapest. 
<img src="/images/2015/11/26/700_scott.jpg" alt="" width="540" height="328">
The median house rental for Melton West is $280 per week with a median gross yield of 4.7%, according to data on <a href="/news">www.propertyvalue.com.au</a>.
Its median gross yield is higher than the national average of 4.24%.
For units, the median rent is $260 per week, while the gross yield is 5.7%, also higher than the national average of 4.63%, the data shows. 
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j.ballantyne1990-6AQqhLzZaK

Melton West rental affordability: What landlords are asking from tenants

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SQM Research released its latest vacancies and asking rents figures up to October 2015, which showed vacancy rates steady across much of the east coast but rising in the resources capitals.    Reported vacancy rates were steady in Brisbane (2.6%) and Adelaide (1.9%), while Canberra (2.1%) saw a slight decline.   The vacancy rate in Sydney declined to 1.6%, which has been reflected in moderately rising asking rents for houses (+1.9%) and units (+3.1%) over the year, although the rents figures may mask divergent trends at the sub-regional level.   While both Melbourne (2.4%) and Hobart (1.1%) saw vacancy rates ticking up in October, over the past year both have recorded declines, and as such asking rents have been rising solidly in these cities too. 
Click to enlarge
<img src="/images/2015/11/18/Screen%20Shot%202015-11-19%20at%2010.43.38%20AM.png" alt="">
Resources woes
On the other hand vacancy rates rose further still in Perth (3.8%) and Darwin (3.5%).
Asking rents for houses in Darwin have tanked by more than 20% over the past year according to SQM, with Darwin set for a significant price correction.
Asking rents are down for houses in Perth too (-6.4%), albeit by a less dramatic margin.
Perth has reportedly seen the price of premium property fall sharply this year, although prices at the bottom end of the market have not shifted too much to date.
Perth will become an attractive buyers' market again in time, but most data - including the iron ore price which was walloped by another 4.5% overnight to be down by a stonking 76% since 2011 and 36% this calendar year alone - suggests that this time is not yet upon us!
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>.
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pwargent-M4siyDbqQY

Vacancy rates a mixed bag: Pete Wargent

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The level of residential vacancies rose nationally in October with a 2.3% increase over the month to 70, 827 according to SQM Research.
But Canberra and Sydney notched up monthly falls.
SQM Research managing director Louis Christopher said vacancies have been soaring in Perth and Darwin, while east coast capital cities have been stable.
<a href="/images/2015/11/16/Screen%20Shot%202015-11-17%20at%209.32.57%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/16/Screen%20Shot%202015-11-17%20at%209.32.57%20AM.png" alt="">
“There is a sharp contrast in the national rental market at this point in time," he said.
"Vacancies have been soaring in Perth and Darwin, while our east coast capital cities have generally been stable. This is just one indicator on how the mining downturn has effected the economy.
"Clearly, not everywhere has been effected, but those cities and townships that do have exposure have been hit hard.”
SQM Research reported vacancy rates stayed the same for Adelaide and Brisbane over the month, year-on-year vacancy rates dropped in both Melbourne and Hobart and Sydney vacancy rates remain unchanged over the last year, with figures from October 2015 recording a vacancy rate of 1.6%.
<a href="/images/2015/11/16/Screen%20Shot%202015-11-17%20at%209.33.12%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/16/Screen%20Shot%202015-11-17%20at%209.33.12%20AM.png" alt="">
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Sydney's October vacancy rate at low 1.6%: SQM Research

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Rents are lower in October in four of the eight capital cities, according to CoreLogic RP Data, who state combined capital city rents were down by 0.1% over the month.
CoreLogic RP Data's October Rent Review said the annual rate of change increased slightly from 0.5% in September to 0.6% in October, with research analyst Cameron Kusher adding all data points to an ongoing softening of rental growth, particularly throughout this year.
"With just two months remaining to year’s end, it seems that rental growth will be very soft over 2015,” he said.
“The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors are the major contributing factors to the slowing rental growth. 
“Sydney, Melbourne and Brisbane continued to record rental rises over the past year however, each city is seeing a slowing in the pace of rental growth relative to 12 months ago. Clearly, the increase in investment stock is providing landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher."
<a href="/images/2015/11/12/Screen%20Shot%202015-11-12%20at%2010.38.13%20AM.png" target="_blank">Click to enlarge</a>
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Rental rates show little sign of increasing: CoreLogic RP Data

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<div>Delving into the detail behind the Consumer Price Index figures for the third quarter reveals that annual rental price growth in Australia is now tracking at its lowest level since June 1995, with rents up nationally by just +1.5% over the year to September 2015.</div>
<div> </div>
<div>The data series captured at the capital city level shows the cylical nature of property prices and rents.</div>
<div> </div>
<div>The national level figures show the marked contrast beteween rental price inflation in periods when investors and housing starts were knocked out of the market (1985-1987) and those where investors have flooded the market with rentals and construction has boomed (2012-date).</div>
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<div><a href="/images/2015/10/30/Rents1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents1.jpg" alt=""></div>
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<div>
Naturally significant variances are evident across the capital cities. <div>Annual rental growth remained steady in Sydney (+2.5 per cent), but was softer in Melbourne (+2.2 per cent) and Brisbane (+1.1 per cent), while Perth has now slipped into negative territory on this series (-1.6 per cent) after a big run-up through the resources boom. </div>
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<div><a href="/images/2015/10/30/Rents4.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents4.jpg" alt=""></div>
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<div>Looking at the annualised data reveals the softening trend, particularly in Perth.</div>
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<div><a href="/images/2015/10/30/Rents2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents2.jpg" alt=""></div>
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<div>
In the smaller capital cities, Hobart appears likely to play host to a level of rental growth over the year ahead with vacancy rates in the Tasmanian capital having tightened sharply. On the other hand Darwin has the opposite problem and has now sunk into negative territory, joining Canberra where annual rents have been negative since the first quarter of calendar year 2014.
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<div>Click to enlarge</div>
<div><img src="/images/2015/10/30/Rents3.jpg" alt=""></div>
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<div> </div>
<div>Finally, a look at rental growth across 5 and 10 year time periods by capital city shows how the resources capitals enjoyed the bulk of rental growth until the end of the resources boom.</div>
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<div><a href="/images/2015/10/30/Rents5.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/10/30/Rents5.jpg" alt=""></div>
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<div>
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>.
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Rental inflation soft: Pete Wargent

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Owning a home in Australia has become more affordable since 2011, while renting has become more expensive, a recent report reveals, making a case for young people to consider buying a home rather than renting to boost their wealth, says Amanda Watt, the head of banking business act.
act. is a newly established banking service that redirects profits back into social projects.
Watts noted home owners with a mortgage paid an average of $453 per week on housing costs in 2013-14. In real terms, this was largely unchanged from 2011–12, according to the Australian Bureau of Statistics’s (ABS) Housing Occupancy and Costs 2013-14 report released recently. Combined with rising incomes, in real terms, or after inflation, buying a house has become more affordable.
The ABS said an increase in average household incomes has seen owners with a mortgage spending 16% of their income on housing costs in 2013-14, down from 18% in 2011-12. 
In contrast, households renting from private landlords paid an average of $376 per week in 2013-14, a rise of $12 from the 2011–12 average in real terms, the report said.
Lower income households renting from a private landlord paid on average $313 per week, which represented 34% of their gross weekly income. In comparison, lower income households with a mortgage paid $326 a week on average, or 27% of their gross weekly income, on housing costs. With interest rates at historically low levels, home ownership and paying off home loans has become more affordable when combined with an increase in income levels, act.’s Amanda Watt said. In addition, low unemployment would support young home buyers taking out a mortgage.
But home buyers needed a strategy to position themselves for a purchase.
“Save a bigger deposit. Time is money, so the more you borrow, the more you will repay in interest. If you are saving for your first home, start making the sacrifices now and save as much as you can before you buy. Claim the first home owner's grant and any other subsidies your state government offers," she said. 
“Once you get a loan, use an offset account. Offset accounts are a great way to cut interest costs. Offset accounts link your home loan to a savings or transaction account. The balance in the savings account is then used to offset the home loan balance, reducing interest costs. There are tax benefits also as tax isn’t paid on the interest credited to your savings account because the interest is not actually being earned as it offsets the home loan interest,” Watt said. Despite the increase in housing affordability, the report says that since 1994-95, the proportion of households that own their home outright has dropped to 31% from 42%. Households with a mortgage has increased to 36% from 30%, while the proportion of households renting privately has gone up to 26% from 18% between 1994-95 and 2013-14.    For each product act. has, including home loans, act. allocates ‘impact dollars’ – real dollars taken from the profit it earns – and gives them back to its customers, who can then donate to a project of their choice listed on <a href="https://letsact.com.au/" target="_blank">letsact.com.au</a>
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Owning a home more affordable than renting: report

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There was a time when a big infrastructure project was an economic gold mine for the local community.
The proponents hired local people and bought services from local businesses. Expert personnel brought in from outside rented local houses.
How quaint were those days. How very last century. 
Today you fly everyone in from a distance and build a temporary camp to accommodate them. A town can have a $2 billion project happening 5km down the road without any change in the local unemployment rate or the residential vacancy rate. 
In fact, the vacancy rate may well rise if developers build new dwellings in anticipation of increased demand. Gladstone’s influx of tens of thousands of new jobs coincided with its vacancy rate rising from near zero to 10%. Most of the worker stayed in camps on an offshore island.
If you live locally and want a job on the big new project that comes to town, you may need to migrate interstate because big companies prefer to fly their workers in from outside.
Most companies planning big mining projects put out press releases promising to hire local workers and services, but in most cases they’re lying.
And it’s not just resources projects using the modern-day scourge of FIFO workforces and temporary accommodation camps. Now, everyone’s doing it.
In Bundaberg in Queensland, a business that grows strawberries has received council approval for a nine-stage short-term accommodation development to house seasonal workers. The losers will be local landlords and owners of backpackers accommodation. 
In Toowoomba, a 500-room workers camp was proposed by one of the companies hoping to become the preferred tenderer for the $1.3 billion Toowoomba bypass, also known as the Toowoomba Second Range Crossing. 
As it happens the Rangelink consortium didn’t win the tender. But it demonstrates how the concept of mobile workforces and temporary workers camps is taking hold.
The PR for projects like this always put the number of jobs created up in lights. That used to mean local jobs and politicians would gush about the local benefits. Today it’s likely very few of those jobs will be people living locally. 
It’s changed the way property investors need to assess locations worthy of their attention. A big infrastructure development may create some economic ripples in the local community but these events no longer create the property booms of the past.
Today, the big infrastructure projects are more likely to create ghost towns than boom towns. Regional Australia is littered with towns that once thrived from the presence of big industrial developments or mining projects – places where investors enjoyed double-digit rental yields.
Now the vacancy rates read like this: Mackay 7%, Port Hedland 8%, Emerald 8%, Newman 9%, Chinchilla 17%, Miles 24%.
Many would speculate that this is evidence of the end of the resources boom. It’s not. In most cases, it’s evidence of the proponents of major mining or infrastructure projects bypassing the local town and putting up their workers in temporary camps.  
The property market in the WA town of Newman has crashed during the construction phase of the $9 billion Roy Hill iron ore mine. Seven thousand people are working on this project but Newman’s median price has dropped 24% in the past year and rents are about a quarter of their peak levels.
And the core message is that  this phenomenon is no longer just a resources sector scenario. It’s spread to other enterprises.
Terry Ryder is the founder of <a href="https://www.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://twitter.com/hotspotting" target="_blank">Twitter.</a>
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terryryder-YECXbqmri2

FIFO accommodation and the rental debacle: Terry Ryder

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A new survey has found moving house in Sydney can cost almost half of the annual monthly wage. 
Respondents to the to the Fair Go Finance ‘Make Moving Happen’, a survey of 3,383 Australian renters found $3,402 is spent on average to move properties.
 Sydney is the most expensive capital city for renters to move with Melbourne is the cheapest.
Fair Go Finance managing director Paul Walshe said the research also found one in four renters moves every two years, and nearly half (44%) of renters surveyed have needed some assistance to pay the bond.
"If people are using a bond loan purely for bridging finance between properties, they need to make sure they can repay it early without penalty," he said. 
"Features like this allow for greater flexibility when the need to move occurs, especially when it is unexpected due to job transfers or following a relationship breakdown.
"The biggest moving expense is furniture with renters spending around $880 to fit out their new rental. Removal companies were the second biggest expense ($200) and utilities’ connection fees the third ($195)."
Average weekly earnings 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="213">
Full-time adult average weekly total earnings
</td>
<td valign="bottom" nowrap width="71">
Weekly
</td>
<td valign="bottom" nowrap width="71">
Monthly
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave national
</td>
<td valign="bottom" nowrap width="71">
$1,545.6
</td>
<td valign="bottom" nowrap width="71">
$6,182.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave Vic
</td>
<td valign="bottom" nowrap width="71">
$1,396.6
</td>
<td valign="bottom" nowrap width="71">
$5,586.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave NSW
</td>
<td valign="bottom" nowrap width="71">
$1,512.1
</td>
<td valign="bottom" nowrap width="71">
$6,048.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave QLD
</td>
<td valign="bottom" nowrap width="71">
$1,440.9
</td>
<td valign="bottom" nowrap width="71">
$5,763.6
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave WA
</td>
<td valign="bottom" nowrap width="71">
$1,691.2
</td>
<td valign="bottom" nowrap width="71">
$6,764.8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave SA
</td>
<td valign="bottom" nowrap width="71">
$1,348.2
</td>
<td valign="bottom" nowrap width="71">
$5,392.8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
<a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0" target="_blank">Source: ABS</a>
</td>
<td valign="bottom" nowrap width="71"> </td>
<td valign="bottom" nowrap width="71"> </td>
</tr>
</tbody></table>
 
Moving cost and bond 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="130">
Average Moving Cost
</td>
<td valign="top" width="65">
National
</td>
<td valign="top" nowrap width="65">
Sydney
</td>
<td valign="top" nowrap width="65">
Perth
</td>
<td valign="top" nowrap width="65">
Adelaide
</td>
<td valign="top" nowrap width="65">
Brisbane
</td>
<td valign="top" width="65">
Melbourne
</td>
</tr>
<tr>
<td valign="bottom" width="130">
End-of-lease cleaning
</td>
<td nowrap width="65">
 $188
</td>
<td nowrap width="65">
 $149
</td>
<td nowrap width="65">
 $175
</td>
<td nowrap width="65">
 $151
</td>
<td nowrap width="65">
 $244
</td>
<td nowrap width="65">
 $161
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Hire of van
</td>
<td nowrap width="65">
 $142
</td>
<td nowrap width="65">
 $160
</td>
<td nowrap width="65">
 $118
</td>
<td nowrap width="65">
 $141
</td>
<td nowrap width="65">
 $134
</td>
<td nowrap width="65">
 $140
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Removal company
</td>
<td nowrap width="65">
 $200
</td>
<td nowrap width="65">
 $210
</td>
<td nowrap width="65">
 $148
</td>
<td nowrap width="65">
 $210
</td>
<td nowrap width="65">
 $228
</td>
<td nowrap width="65">
 $165
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Transport for family
</td>
<td nowrap width="65">
 $80
</td>
<td nowrap width="65">
 $38
</td>
<td nowrap width="65">
 $88
</td>
<td nowrap width="65">
 $81
</td>
<td nowrap width="65">
 $78
</td>
<td nowrap width="65">
 $47
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Transport for pets
</td>
<td nowrap width="65">
 $20
</td>
<td nowrap width="65">
 $6
</td>
<td nowrap width="65">
 $19
</td>
<td nowrap width="65">
 $13
</td>
<td nowrap width="65">
 $15
</td>
<td nowrap width="65">
 $15
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Buying furniture for new property
</td>
<td nowrap width="65">
 $880
</td>
<td nowrap width="65">
 $1,030
</td>
<td nowrap width="65">
 $1,076
</td>
<td nowrap width="65">
 $1,032
</td>
<td nowrap width="65">
 $795
</td>
<td nowrap width="65">
 $921
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Connection fees (for example connection to phone, electricity or internet)
</td>
<td nowrap width="65">
 $195
</td>
<td nowrap width="65">
 $195
</td>
<td nowrap width="65">
 $218
</td>
<td nowrap width="65">
 $235
</td>
<td nowrap width="65">
 $173
</td>
<td nowrap width="65">
 $203
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Storage (for furniture or items not moving into the new property)
</td>
<td nowrap width="65">
 $84
</td>
<td nowrap width="65">
 $76
</td>
<td nowrap width="65">
 $50
</td>
<td nowrap width="65">
 $53
</td>
<td nowrap width="65">
 $67
</td>
<td nowrap width="65">
 $70
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Other
</td>
<td nowrap width="65">
 $91
</td>
<td nowrap width="65">
 $96
</td>
<td nowrap width="65">
 $44
</td>
<td nowrap width="65">
 $69
</td>
<td nowrap width="65">
 $74
</td>
<td nowrap width="65">
 $73
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="130">
TOTAL
</td>
<td nowrap width="65">
$1,880
</td>
<td nowrap width="65">
$1,962
</td>
<td nowrap width="65">
$1,935
</td>
<td nowrap width="65">
$1,984
</td>
<td nowrap width="65">
$1,810
</td>
<td nowrap width="65">
$1,794
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="130">
AVERAGE BOND
</td>
<td nowrap width="65">
$1,522
</td>
<td nowrap width="65">
$1,816
</td>
<td nowrap width="65">
$1,768
</td>
<td nowrap width="65">
$1,670
</td>
<td nowrap width="65">
$1,578
</td>
<td nowrap width="65">
$1,514
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="130">
MOVING COSTS+BOND 
</td>
<td nowrap width="65">
$3,402
</td>
<td nowrap width="65">
$3,778
</td>
<td nowrap width="65">
$3,703
</td>
<td nowrap width="65">
$3,653
</td>
<td nowrap width="65">
$3,388
</td>
<td nowrap width="65">
$3,308
</td>
</tr>
</tbody></table>
**Excludes Darwin, Hobart and Canberra due to insufficient sample
Lost bond 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="65">
NATIONAL
</td>
<td valign="bottom" nowrap width="65">
 $1,083.64 
</td>
<td valign="bottom" nowrap width="65"> </td>
<td valign="bottom" nowrap width="65"> </td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
VIC
</td>
<td valign="bottom" nowrap width="65">
 $1,085.58
</td>
<td valign="bottom" nowrap width="65">
Melbourne
</td>
<td valign="bottom" nowrap width="65">
 $1,100.54
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
NSW
</td>
<td valign="bottom" nowrap width="65">
 $1,063.60
</td>
<td valign="bottom" nowrap width="65">
Sydney
</td>
<td valign="bottom" nowrap width="65">
 $1,180.76
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
QLD
</td>
<td valign="bottom" nowrap width="65">
 $998.32
</td>
<td valign="bottom" nowrap width="65">
Brisbane
</td>
<td valign="bottom" nowrap width="65">
 $975.44
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
WA
</td>
<td valign="bottom" nowrap width="65">
 $1,115.58
</td>
<td valign="bottom" nowrap width="65">
Perth
</td>
<td valign="bottom" nowrap width="65">
 $915.44
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
SA
</td>
<td valign="bottom" nowrap width="65">
 $1,292.27
</td>
<td valign="bottom" nowrap width="65">
Adelaide
</td>
<td valign="bottom" nowrap width="65">
 $1,407.28
</td>
</tr>
</tbody></table>
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Sydney most expensive capital city to move for renters

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The number of rental property vacancies across New South Wales fell 0.2% to 1.9% in July, according to the REINSW.
The July 2015 REINSW Vacancy Rate Survey found falls in Inner Sydney saw of 0.5 per cent to 2.1%, Middle Sydney fell 0.2% to 1.7% and Outer Sydney fell 0.1% to 1.6%.
REINSW President Malcolm Gunning said despite the 0.2% decline month on month a strong stream of property on the market starting to feed the migration into Sydney.
“Supply is still strong,” Gunning said. 
“Vacancy rates remain close to 2.0 per cent which shows that supply is starting to meet demand.
“Outer Sydney has hit levels last seen in December 2014.
Illawarra vacancy rates dropped 0.5% to 1.7%, Wollongong down 1.0% to 1.4%. Vacancies rose in the Hunter region 0.2 per cent to 3.7%, New England climbed 1.2% to 4.6% and Orana increased to 4.0%. 
<a href="/images/2015/08/18/Screen%20Shot%202015-08-18%20at%201.58.36%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/18/Screen%20Shot%202015-08-18%20at%201.58.36%20PM.png" alt="" width="746" height="232">
 
<a href="/images/2015/08/18/Screen%20Shot%202015-08-18%20at%202.00.59%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/08/18/Screen%20Shot%202015-08-18%20at%202.00.59%20PM.png" alt="">
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NSW rental property vacancies slide: REINSW

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Real estate agent John McGrath has given his tips on what property investors should do in a softening rental market, adding the current market situation is great news for renters.
In an opinion piece for Peter Switzer's Switzer Daily, McGrath said rental growth might be slowing down but it’s not going backwards, so many landlords won’t be in a position where they have to reduce rents, they’ll just have to keep them at the same level for a while. 
He wrote that more properties available for rent means more options for a growing community of renters – especially Gen Y Australians, many of whom have resigned themselves to a life of renting in expensive cities like Sydney. 
"When supply increases, landlords need to be extra careful to keep their tenants happy. The most important thing is responding to their needs – quickly. Don’t delay small repairs – accept the cost (which is almost always tax deductible or at least depreciable) and get it fixed. If your tenant believes you will look after them, the allure of a slightly better value option down the road won’t be enough to make them move out," McGrath said.
"If your property is going onto the market at a time of increasing supply, do something to make it stand out. You need to ‘wow’ tenants when supply is high. If your property looks well-kept, that will take it to the top of the list. Quality is important to tenants – remember, this is going to be their home.
"In terms of the importance of rental returns to landlords, of course we all want to receive the maximum yields possible. We’re in the game to make money, after all. But in the grand scheme of things, I have always seen rental yields as less important than capital gains. If you’re looking at buying an investment property, consider the potential for capital gain first. Don’t go buying a high yielding property that has little potential for growth in value. It won’t serve you well in the long run."
He added the ideal scenario is to have some blue chip investments in your portfolio that are delivering reliable long-term capital growth; and a couple of cheaper properties that deliver a great yield to help you afford the repayments on the blue chips (which are often negatively geared as high quality properties cost more to buy!). 
Rents across capital cities.
Median rents across the capital cities 
<ul>
<li>Sydney Houses $610 pw | Apartments $536 pw</li>
<li>Melbourne Houses $456 pw | Apartments $404 pw</li>
<li>Brisbane Houses $436 pw | Apartments $408 pw</li>
<li>Perth Houses $472 pw | Apartments $419 pw</li>
<li>Adelaide Houses $373 pw | Apartments $317 pw</li>
<li>Canberra Houses $504 pw | Apartments $403 pw</li>
<li>Darwin Houses $575 pw | Apartments $459 pw</li>
<li>Hobart Houses $343 pw | Apartments $298 pw</li>
</ul>
To view the original article on the Switzer Daily, <a href="https://www.switzer.com.au/the-experts/john-mcgrath-property-expert/what-to-do-in-a-softening-rental-market/" target="_blank">click here.</a>
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