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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An oversupply of properties is making it cheaper to rent in inner Melbourne and Sydney where advertised stock increased nearly 60 per cent between March and June, the latest ANZ CoreLogic Housing Affordability report shows.
Loss of income and travel restrictions contributed to excess stock levels which saw inner Melbourne record a 57 per cent increase in advertised rental properties while Sydney’s city and inner south both recorded a 53 per cent jump. All other capital cities saw a drop in total rental listings.
ANZ Economist Felicity Emmett said the fall in demand for rental properties in inner Melbourne and Sydney was due to their ‘service economies’, as people working in industries hardest hit by COVID-19 were also most likely to rent.
“Nearly 40 per cent of people who work in the accommodation and food services sectors rent,” Ms Emmett said. “Between the weeks ending 14 March and 27 June, 21% of hospitality workers lost their jobs, compared to an average of 6% across all industries.”
“The lack of overseas migration has also contributed to falling demand as about 80% of newly arrived migrants rent. This drop-off in demand will impact regions popular with migrants, including inner city and south-eastern Melbourne, and inner south west Sydney.”
The oversupply of inner city stock has pushed rental values down as much as 7 per cent in suburbs such as Haymarket and Barangaroo in Sydney and Southbank in Melbourne.
CoreLogic’s Head of Research, Eliza Owen, says while reduced competition for rental properties is good news for tenants looking to negotiate rent reductions, landlords shouldn’t panic.
“The oversupply of rental stock since March has been largely confined to inner city areas in Melbourne and Sydney, while all other capital cities have experienced a decline,” Ms Owen said.
“There are still opportunities for investors where rental markets have continued to tighten and rental values have increased, including select suburbs across Perth and Hobart where Airbnb stock may be reverted back to the short term rental market as inter-state travel resumes.”
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j.ballantyne1990-6AQqhLzZaK

Rents dip in inner Melbourne and Sydney amid record oversupply: ANZ

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Unit rentals have experienced the biggest price drop in more than 15 years, marking a historic rent price fall of 3.2% (equivalent to $15 per week) over the June quarter, according to the latest Domain Rental Report.
House and unit rental prices fell across most major cities, illustrating that no city was immune from the impact of coronavirus.
Sydney and Hobart unit rentals were hardest hit — both recorded the steepest quarterly fall on record.
Melbourne’s inner-city areas also saw large downturns.
Sydney’s median rental cost for units fell 3.8% to $500 per week.
Melbourne’s median rental cost for units fell 3.5% to $415.
Brisbane’s median rental cost for units fell 1.3% to $380.
Adelaide’s median rental cost for units stayed steady, with no month-on-month change from the previous quarter’s $320 per week figure.
Perth’s median rental cost for units also stayed steady, with no month-on-month change from the previous quarter’s $320 per week figure.
Hobart’s median rental cost fell further than any other major city, seeing a mammoth 8.4% fall in prices down to $380 per week.
Canberra’s median rental cost for units fell 2.1% to $470 per week.
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Unit rentals across the country see biggest price fall in 15 years: Domain June rental report

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EXPERT OBSERVER
Amid COVID-19, much attention has been given to weaker rental market conditions. But as with buying and selling property, market conditions vary substantially among regions. 
New data estimates from CoreLogic, calculating the portion of rental stock advertised, shows further variation in the performance of rental markets across different capital cities.  The percentage of rental housing advertised rose over the month of May in Sydney and Melbourne, while declining across the rest of the capital city regions. 4.5% of the total rental stock across Sydney was advertised over May, up from 4.3% in April. The portion of stock advertised across Melbourne saw an even larger jump, from 3.2% of listings advertised in April, to 3.6% of properties over May. While 3.6% may sound small, it represents a total rent listing uplift of more than 3,000 across Melbourne, up to about 27,000 properties for rent over the month. This corresponds to a rise in vacancies, and falling rental prices, particularly in inner-city Sydney and Melbourne.  How is rental stock on market measured?  The calculation of rental stock on market is derived by dividing total rental listings in a month by the estimated rental stock in an area.  An increase in the portion of stock on market suggests higher vacancies and a looser rental market, which would coincide with falling rent prices. However, it could also be a function of a change in the ‘denominator’ – ie, the size of the rental market is reduced while listings are steady.  CoreLogic has a ‘static’ estimate of the portion of properties that are rented. To get a dynamic indication of rental stock, the portion of dwellings estimated to be rentals was interpolated between the rental tenure reported at the 2016 census, and the latest CoreLogic imputation of the portion of rental stock. So it assumes there is a linear movement in the portion of rental properties from 2016 to 2020. A summary of the rental stock on market is presented below. 
<a href="https://www.propertyobserver.com.au/images/2020/6/22/RENTAL%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/22/RENTAL%201.jpg" alt="">
 
<a href="https://www.propertyobserver.com.au/images/2020/6/22/RENTAL%202.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/6/22/RENTAL%202.jpg" alt=""> 
Why is stock piling up in Sydney and Melbourne and not elsewhere?  One of the big drivers of demand for rental accommodation is overseas migration. Most people that come to Australia from overseas, whether they are a skilled migrant, a temporary visa visitor or a refugee, will rent when they first come to Australia. ABS data on migration suggests that Sydney and Melbourne received over 70,000 net overseas migrants over 2018-19, which is far higher than the other capital cities. This may be why an increasing amount of properties across the cities are sitting vacant.  Another factor contributing to less rental demand could relate to the predominance of Sydney and Melbourne for foreign student numbers. With foreign student numbers falling by close to 100% compared with a year ago, along with domestic students largely studying from home, rental demand from tertiary students has been depleted.  New South Wales and Victoria have also seen, by far, the largest number of investors relative to other states.  According to ABS housing finance data, almost two thirds (65%) of investment loans over the past ten months were in Australia’s two largest states.  Investor activity contributes to rental supply. When paired with the large number of units that have been built over the past few years, many of which are rentals, and it’s clear that rental supply has increased more in Sydney and Melbourne relative to the other cities.   Higher supply levels against a backdrop of weaker demand is a recipe for lower rents. The steady level of advertised stock across the ACT came amid very little change to advertised stock levels and total rental stock levels. Declines in the rate of advertised rental stock in May across other cities were all due to a decline in the total listings count over the month.  In some areas, this could be a continuation of steady market conditions. The advertised stock levels suggest that rental markets have been gradually tightening in the lead up to COVID-19. 
Perth in particular saw the portion of advertised stock decline over 200 basis points in the year to May, as both total rent listings, and the number of total rental properties declined. It may be the case that investors withdrawing from the market, where the property was sitting vacant for a long time, has helped to tighten rental conditions.  
ELIZA OWEN is the Head of Research for Australia at CoreLogic  
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Rental stock on market data shows Sydney and Melbourne markets loosen over May: CoreLogic's Eliza Owen

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EXPERT OBSERVER
COVID-19 is having varied impacts on residential property, but arguably the biggest impact could be in the rental space.
Prior to COVID-19, the Australian rental market was already weak. Now, new challenges are here. As Australian borders remain closed to tourists, and government policies restrict short-term rental arrangements, Airbnb rentals are converting to long-term rental supply. The added supply means rents could go down.
This is compounded by a decline in demand. Rising job losses are seeing some tenants negotiate lower rents, or find alternative accommodation, such as choosing to move back with parents. A pause on the flow of international student and migrant numbers could see more properties sitting empty, while domestic students are less inclined to rent close to universities, as they access study remotely.
But the impact on different regions will vary, depending on how exposed markets are to tourism, migration and job losses. Several datasets point to Inner Sydney and Melbourne being the most affected.
Inner city Sydney and Melbourne to be the hardest-hit rental markets
Preliminary listings data estimates that between the week ending 22nd of March and the week ending 26th of April, the number of properties for rent have increased 0.8% across Australia.
But the most remarkable increases were in the inner-city regions of Melbourne and Sydney, where rental listings have risen over this short period by 36.2% and 34.1% respectively.  
The chart below shows the SA4 regions across Australia where rental listings increased over the period following the 22nd of March. This was around the onset of the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-03-23/coronavirus-shutdown-in-australia-whats-open-whats-closed/12081074" target="_blank" rel="noopener noreferrer">strictest lockdowns in business operations</a>, and just after borders were <a href="https://www.pm.gov.au/media/border-restrictions" target="_blank" rel="noopener noreferrer">closed to non-residents and non-citizens. </a>
<a href="https://www.corelogic.com.au/sites/default/files/2020-04/image_1_0.png" target="_blank">Click to enlarge:</a>
<img src="https://www.corelogic.com.au/sites/default/files/2020-04/image_1_0.png" width="926" height="606">
As well as elevated levels of recently completed dwellings, part of the reason for higher vacancies in these areas is a negative demand shock from employment and temporary restrictions on migration.
Rental markets are particularly susceptible to declines in overseas migration, because the majority of <a href="https://treasury.gov.au/sites/default/files/2019-03/nhsc-state-of-supply-report-2011.pdf" target="_blank" rel="noopener noreferrer">new migrants seek rental housing upon arrival in Australia.</a>
This will impact Inner Melbourne, which has previously maintained stable rental conditions amid high housing supply, because of rapid growth in international migration. According to <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/3218.0Main%20Features152018-19?opendocument&amp;tabname=Summary&amp;prodno=3218.0&amp;issue=2018-19&amp;num=&amp;view=" target="_blank" rel="noopener noreferrer">ABS migration data</a>, the Melbourne council region population increased by 8,638 over 2018-19. But 99.5% of this increase was attributable to overseas migration.
This means that new rental demand in this area is almost entirely sourced from overseas migrants.
Areas vulnerable to job-loss also have a high portion of renting households
Furthermore, some of the regions in Australia that have been most vulnerable to job loss as a result of COVID-19, are also regions where a high portion of people rent.
This is fairly intuitive when considering the kinds of services and workers that have been most impacted by COVID-19. A recent ABS survey of changes in employment found that a substantial -25.6% of jobs had recently been lost in accommodation and food services. Arts and recreation services saw job losses of -18.7%. People employed in these industries, such as hospitality workers, are more likely to be young, and renting.
This is also supported by data. The scatter graph below compares two characteristics of SA4 geographies in Australia: the workforce exposure to food and accommodation and arts and recreation (horizontal axis), and the estimated portion of rental dwellings (vertical axis).
<a href="https://www.corelogic.com.au/sites/default/files/2020-04/image_2_0.png" target="_blank">Click to enlarge:</a>
<img src="https://www.corelogic.com.au/sites/default/files/2020-04/image_2_0.png" width="1087" height="669">
While there is not a perfectly correlated relationship between these industries and renting households, the chart does highlight that Inner Sydney and Melbourne have both a relatively high portion of workers exposed to potential job loss, and renting households. Inner Brisbane and Sydney’s Inner West may also have rental markets with a high incidence of job loss, but so far rental listings have not increased as dramatically.
Between high levels of migration and susceptibility to job loss, inner city Sydney and Melbourne are already experiencing a sharp rise in rental supply. This will have a range of implications, including the potential for downward pressure on purchase values, an erosion of rental yields and added settlement risk for off-the-plan purchases approaching completion. For potential renters still in employment, this will also create cheaper accommodation options close to the city
ELIZA OWEN is CoreLogic's <a href="https://www.corelogic.com.au/news/early-market-indicators-show-first-signs-housing-market-slowdown?utm_medium=email&amp;utm_source=newsletter&amp;utm_campaign=20200420_propertypulse" target="_blank">head of research</a> 
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Which rental markets are hit hardest by the pandemic? CoreLogic's Eliza Owen

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GUEST OBSERVER
The National Cabinet <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-04-01/coronavirus-eviction-moratorium-in-australia-what-does-it-mean/12105188" style="font-size: 12.16px;">announced a moratorium on evictions</a> just over a week ago in response to the COVID-19 pandemic. As government ministers and commentators have <a href="https://www.theguardian.com/australia-news/2020/apr/02/real-estate-agents-criticised-for-suggesting-tenants-consider-using-superannuation-to-pay-rent" style="font-size: 12.16px;">tried to make clear</a>, it’s intended only to stop evictions – not rent payments. But the sudden losses of jobs and incomes mean many households cannot continue to pay pre-crisis rents.
Tenants are seeking rent reductions or waivers from their landlords, with disturbingly mixed results. It is time for governments to step in and resolve the issue, by legally mandating rent reductions across the board.
<a href="https://www.tandfonline.com/doi/abs/10.1080/02673037.2019.1644297">Recent analysis</a> of renter and landlord household finances clearly shows the latter group are much better placed to take a financial hit from this pandemic.
Up to now the prime minister has encouraged tenants and landlords to make individual arrangements. In the absence of any government guidance, agents’ and tenants’ representatives agree on this much: the <a href="https://www.smh.com.au/politics/federal/a-mess-renters-landlords-and-agents-face-coronavirus-quagmire-20200406-p54hj9">situation is a mess</a>.
Some landlords and agents are responding sympathetically. Others are hesitant, apparently wary voluntary reductions may void their insurance. Some are insisting on full payment, or even increasing rents. And some were <a href="https://www.theguardian.com/australia-news/2020/apr/02/real-estate-agents-criticised-for-suggesting-tenants-consider-using-superannuation-to-pay-rent">advising tenants to draw on their superannuation</a> to pay rent – until <a href="https://asic.gov.au/about-asic/news-centre/articles/asic-letter-unlicensed-financial-advice-by-real-estate-agents-to-tenants/">ASIC warned them off</a>.
Why should government step in?
Yesterday the National Cabinet <a href="https://www.pm.gov.au/media/update-coronavirus-measures-070420">addressed commercial tenancies</a>, but again left aside residential tenancies. It is within the power of state and territory governments to sort this mess out. They could legislate to reduce rents to some fraction of current rents or to zero – a complete suspension of rent liabilities for the declared duration of the pandemic.
With federal government co-operation, mortgage interest could receive the same treatment: mandatorily reduced or suspended for the pandemic, with principal repayments deferred.
This is the appropriate response to the peculiar nature of this crisis. The key point here is that government is deliberately suppressing economic activity to prevent transmission of the virus. With household incomes much reduced – and governments trying to top them up with new payments – it makes sense also to reduce household outflows.
A look at renter and landlord finances
The biggest household expenses to reduce are rent and interest. Here’s a quick sketch of incomes and outflows in the Australian private rental sector, using the latest available figures from the <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4130.0Main+Features12017-18?OpenDocument">ABS</a>, the ATO, the <a href="https://www.pc.gov.au/research/completed/renters">Productivity Commission</a> and <a href="https://www.tandfonline.com/doi/abs/10.1080/02673037.2019.1644297">detailed analysis</a> of previous rounds of data last year by Kath Hulse, Margaret Reynolds and me.
About 2.5 million Australian households rent privately. Just over half are in the bottom 40% of households by income. About one-third are low-income households paying more than 30% of their income in rent – and that’s before the COVID-19 income losses.
Private renters pay about A$43 billion a year in rent to another, smaller group of households: Australia’s 1.3 million landlord households.
A little more than half of that rental income, A$22 billion, flows right out again to banks, as interest payments on investment loans. For 60% of landlords the interest outflow, plus other property-related expenses, is greater than their rental income: they are negatively geared. For them, rental income is not about putting food on the table; it is part-funding their investment or speculation in property.
This negatively geared group receives high incomes from work and other sources. Leaving aside their net rental losses, they have an average annual taxable income of about A$94,000, versus A$54,000 for non-landlords. Landlords’ other incomes may have taken a COVID-19 hit, but the most common occupations for this group – general managers, registered nurses and accountants – have probably fared better than the <a href="https://theconversation.com/australias-130-billion-jobkeeper-payment-what-the-experts-think-135043">casual and gig workers</a>.
Landlords who derive a net positive rental income mostly receive other income too. Their average annual taxable income is A$66,000 before net rent is added.
A relative few landlords, 16%, are post-retirement age. They may well rely on rental income for consumption, but, on average, they are rich, with almost A$3 million in net wealth.
A final point about landlords: they are more likely to have a partner than non-landlords. Presumably, then, they have access to shared resources when times are tough. The average disposable household income for landlords is A$135,000 a year, versus A$82,000 for non-landlords.
So, were tenants’ rental outflows reduced, landlord households are relatively well-positioned to bear a reduction in their rental incomes.
How to ease the burden on landlords
Landlords would, of course, also want to reduce their own outflows. They have probably already done so, because the pandemic has closed so many discretionary spending opportunities.
Another outflow – the A$3 billion a year they spend on real estate agents – would also be reduced, because agent fees are mostly calculated as a proportion of rent. This would cause pain for agents, but many of their activities – inspecting properties, handling eviction proceedings, conducting marketing campaigns – are not needed in a pandemic. <a href="https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_0.pdf">JobKeeper payments</a> could support their businesses.
 
The biggest pain would be the interest outflow. But let’s reduce or suspend interest too, for both owner-occupiers and landlords. This would reduce income for banks, which would have a problem when their own liabilities to whole funders come due.
And at that point a really useful negotiation could take place between banks and the Australian government. They could “sit down, talk to each other and work this out” – as the PM has suggested to millions of individuals – to keep finance operating, in return for reformed service and a public equity stake.
In ordinary times, rents and interest have a controversial role in the economy. They extract value from productive actors in the economy for the benefit of owners of property and financial assets, and are the object of speculation. But, as the political economist David Harvey <a href="https://www.versobooks.com/books/2814-the-limits-to-capital">observes</a>, they also have a co-ordinating role that drives competition and future production.
But these are not ordinary times. For the moment, at least, we don’t need rent to co-ordinate what the economy must do. We need to produce the essentials and whatever else can be safely done at home, with the rest of production in hibernation. And we need to ensure households retain enough income for the essentials, with reductions in income equitably shared.<img src="https://counter.theconversation.com/content/135929/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/chris-martin-203935">Chris Martin</a>, Senior Research Fellow, City Futures Research Centre, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/rents-can-and-should-be-reduced-or-suspended-for-the-coronavirus-pandemic-135929">original article</a>.
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Rents can and should be reduced or suspended for the coronavirus pandemic

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EXPERT OBSERVER
There are some challenges coming that are going to reshape our industry. I’m not trying to panic anyone, and I’m not being alarmist. But the impact of what we’re all going through with the virus and the pandemic that’s spread across the world is hitting the economy, and it’s going to keep on doing that.
Over the next six months, we’ll start to understand just how the country will recover financially, and what shape every industry will be in.
But in the short term, there are some questions a lot of people will be asking themselves.
One of the first is going to be around short-term vs. long-term gains in property, and what the right moves are from a strategic vantage point.
The Airbnb problem
Owners who have been planning on investing in or who already have built up a portfolio of short stay properties for guests using Airbnb are going to be worrying right now. The drop in travel, both domestically and internationally, is already being felt by the airlines, and it’s being felt by the hotel industry, and it’s being felt by individual owners too. Airbnb properties are designed to cater to a short-term stay, and when those guests dry up, the asset dries up too. 
Owners are going to be looking towards longer term rental options and wondering if that shift will be the right one for their portfolio. The higher nightly rate that Airbnb rentals can bring in is always going to be attractive, and it’s what drives many owners to embrace that option in the first place. What it brings with it, unfortunately, is that instability that we’re seeing in times of a downturn. If we’re anticipating that the current downtown could last a while – and at this point, we’ve got no idea of when international travel will pick up – the nightly rate becomes far less attractive when you can’t get guests into your asset. 
The stability of a longer-term occupancy gives you the chance to start recovering a lot sooner.
Longer-term rentals are still growth assets
The flexibility of the Airbnb market does appeal to owners who want to work on their property actively and push their income from it. But short stays aren’t the only way to do that. In fact, when you are able to rely on the longer-term occupancy of your tenants, and they are reliable, and they are dedicated to their living space as a home, you can actually do so much more. Where you could make minor experience, cleaning and fee adjustments on an Airbnb to change the real-time cashflow, if you invest into a longer term property in a smart way, making improvements and working with your tenants to better understand their needs, you can often increase your gains far more, over a longer period. A 12 month increase in rent that you know will last, is worth more than a spike over a few weekends.
Longer-term right now will need some patience
Yes, the longer-term rental market is going to be more stable. It’s a fact. Australian residents and local residents need a home, and renting is going to be the option. But with the downturn in the economy, you might find that you’ll need a little patience, a little empathy and space for tenants who might be hit hard financially, and the room to wait it out, in exchange for the longer-term wins and steadiness. But if you’re able to do that now, you actually have the chance to build a lasting and trusting relationship with good tenants who will stay with you for years, support rental increases in-line with your own investments in the property, and take care of it themselves while they do so.
You won’t get that from an Airbnb guest.
MARK TROWELL is the cofounder and CEO of <a href="https://www.yabonza.com" target="_blank" style="font-size: 12.16px;">yabonza</a> 
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Rethinking short-term property in the face of Covid-19: Yabonza's Mark Trowell

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Prime Minister Scott Morrison has said there will soon be an announcement for the hundreds of thousands of people who have lost their jobs and small business operators who can't pay rent. 
"A lot of progress has been made over the course of today and over the course of this week, we'll be looking to hopefully finalise some measures", Morrison said when responding when the government will announce how they will help to ease people's rent bill.
"This is obviously a complicated issue because you've got a tenant, you've got a landlord, you've got creditors and all of those issues and you need to solve for the entire chain that's there", Morrison said.
He said it will be considered tonight at the National Cabinet.
"The states, working together with the treasurer, have done some excellent work today and there's more work to be done on that."
He said it is the states that have the legislative authority when it comes to tenances, both commercial and residential, and the Commonwealth has other incentives and levers that it can pull to support and enable the chain of businesses and individuals who are caught up in rental stress.
Morrison suggested, aside from jobseeker payments and family tax benefits, that rent payments and how much people are paying on their energy bills, is another area that they are working with the energy companies.
"We've already seen some concessions on that, which we welcome", Morrison said.
He made mention of the mortgage relief, which the banks have already moved on.
"I think it's really good work to try and reduce the pressures that otherwise are falling on people at this incredibly difficult time."
 
 
 
 
 
 
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jrobinson-rf4aSBido9

Relief for tenants in complicated rental market being considered by coronavirus national cabinet

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There's been no official indications from the Australian state governments whether renters will be given any financial reprieve in the ongoing COVID-19 crisis.
Homeowners have been backed by the big banks, who have offered to pause mortgage repayments for up to six months for those affected financially by COVID-19. 
However there are some three million renters who haven't been formally told whether they're expecting any financial aid or abatement in keeping a roof over their heads.
There are about eight million occupying the residential rental premises.
The Prime Minister Scott Morrison has said landlords will be among those who "are going to be making sacrifices in the months ahead", adding that everyone has that role to play.
Last week the PM held a press conference in Canberra suggesting help for tenants is coming, but there's been no update forthcoming from the state governments who regulate the rental market.
"Further work will be done on identifying how relief can be provided for tenants in both commercial and residential tenancies to ensure that in hardship conditions, there will be relief available," Morrison said.
"All Australians are going to be making sacrifices obviously in the months ahead, and everyone does have that role to play, and that will include landlords at the end of the day."
“(States are) working to identify how relief can be provided for tenants in both commercial tenancies and residential tenancies, to ensure that in hardship conditions, there will be relief that will be available, and ensuring that tenancy legislation is protecting those tenants over the next six months at least,” Morrison added.
Treasurer Josh Frydenberg also called for landlords to act.
"This is a team Australia moment. Whether you are an energy company, whether you're a landlord, whether you're a bank, you need to fully understand the predicament in which your customers are finding themselves through no fault of their own", Frydenberg said last week.
Press conferences by Morrison and Frydenberg have suggested it will be a state by state financial relief package.
The REIA President Adrian Kelly has said the real estate industry across Australia is "extremely concerned" for the welfare of tenants
"We know that many of our tenants are employed in sectors that are likely to experience significant job losses during these uncertain times. "On behalf of the real estate industry I would like to communicate to our tenants that we absolutely understand the stress and anxiety that you may be feeling at this time."
He noted agents have a responsibility and a duty of care to look after the interests of both tenants and also property owners.
"Under normal circumstances if a tenant can no longer afford to pay their rent, we undertake the process of eviction. "However in these times of the Coronavirus pandemic, we are in unchartered waters.
"If a tenant is unable to pay their rent, due to a loss of income, the situation is further exacerbated by the fact they may need to self-isolate for a period of time."
Kelly indicated there was already an issue for property owners, particularly in Melbourne and Sydney, whose tenants are overseas student currently locked out of the country.
Kelly said he was in the process of writing to the larger banks and financial institutions to make them aware of these imminent situations. "The postponement of mortgage repayments by the banks and financial institutions, for impacted property owners, is a possible solution."
Kelly has also spoken to the federal housing minister Michael Sukkar to discuss the situation with him.
The US has seen eviction notices are still being pinned on doors of millions of tenants.
However the lockdown in the US have banned estate agents from functioning under the stay at home laws, so they are not able to show new tenants any new rental listings.
Donald Trump declared the Department of Housing and Urban Development (HUD) would be “providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April", cover 30 million homeowners from eviction, although it didn't cover the 40 million renters across the country.
New York, who has the largest public housing authority in the nation, has temporarily blocked evictions for renters, although that's only renters in federally subsidized apartments.
The Texas Supreme Court has ordered a halt to all tenant evictions until the end of April.
The UK however has protected their renters.
Housing secretary Robert Jenrick announced the new laws last week that would ban landlords in England and Wales from evicting tenants.
They will not be evicted from their homes for at least three months. 
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No forced evictions measures have been mooted for the nation's three million rental residential properties

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Perth’s median rent increased to $360 per week in February and is the first increase the Western Australian property market has seen since January 2017.
REIWA President Damian Collins said median rents had remained stable for the longest period since reiwa.com first started capturing rental data in 2001.
“While the overall increase in median rent was up by $10 per week in February, this is a significant step in the WA property market and one we have been waiting a long time for."
“This increase can be attributed to Perth’s vacancy rate dropping to 2.2 per cent, which is the lowest it has been since March 2013, coupled with listings for rent on reiwa.com being down compared to January.”
The top suburbs by median rent price growth for February include Stirling, Shenton Park, Ocean Reef, Thornlie and Bertram.
Mr Collins said, “leasing activity dropped nine per cent compared to January and days to lease has improved by one day to take on average only 28 days."
“As we head into March, which is usually one of the busiest months of the year for the rental market, it will be interesting to see how the market performs and if rents continue to rise, which is possible given the low vacancy rates,” he concluded.
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Perth rents up for the first time in over 3 years: REIWA

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Proptech company Instarent is described as the first fully integrated online solution for property owners to manage their own investment properties.
Launched only a year ago, the <a href="http://www.instarent.com.au" target="_blank">Instarent</a> platform hosts over 500 properties and is adding 100 new properties every month. 
The Australian property management market is currently worth $5.5 billion dollars and Instarent founder, AJ Chand, would like to capture up to twenty percent of it. To assist with this ambitious expansion plan, Instarent is embarking on an equity crowdfunding raise with Birchal.
An end-to-end solution for property management, Instarent manages and facilitates the entire property management ecosystem by automating the process for tenants, agents, landlords and tradespeople.
It launched with a freemium model, charging for add-on services such as background checks on tenants, photography packages for properties and end of year financial support.
The platform includes live notifications as well as integration with multiple strategic partners including Realestate and Domain.
Chand said, "intelligent algorithms do most of the work for you, and we have property management experts available 24/7, 365 days a year. Our business model has been developed so that we can rapidly expand to ensure we have the critical mass available to satisfy our fast-growing marketplace."
“Timing is everything, and Instarent has launched at the optimal time to capture not just the changed markets of today’s property management ecosystem, but future markets as the progression of technological know-how propels our technology into the hands of landlords and tenants wanting to cut out the middle person once and for all," he concluded.
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