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

Sydney

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Sydney has the highest prices for prime waterfront properties across the world, according to the new Knight Frank Global Waterfront Monitor.
Australia dominates the top five cities, with Sydney well out in front (89.3%), followed by the Gold Coast (64.1%) and Perth (53.2%).
Dubai (50.7%) and Paris (48%) round off the top five.
Michelle Ciesielski, Knight Frank’s director of research, said Sydney topped the charts because it has one of the world's best waterscapes.
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“From its iconic New Year celebrations to the starting point of the Sydney to Hobart yacht race on Boxing Day, residents are treated to expansive views of one of the world’s best waterscapes,” she said.
Prices for prime waterfront properties are on average 40% higher than comparable properties inland, Knight Frank's Global Waterfront Report 2019 suggests. 
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Liam Bailey, Knight Frank's global head of research partner said waterfront addresses are amongst the most desirable in the world, however not all prime waterfront properties are equal and the premiums vary depending on location and amenity.
“Our Global Waterfront Report 2019 found that being located alongside a harbour generates the highest premium of 59.1%," Bailey said.
"This is closely followed by beachfront homes which command an average uplift of 58.5%, with Sydney and the Gold Coast registering some of the highest uplifts for beachfront properties.
"River and lakeside residences are on average 36.8% and 32.7% higher, respectively.”
Bailey said new-build beachfront properties are in high demand in both Perth and Dubai as developments, such as the Palm Jumeriah in Dubai, provide prospective buyers with the opportunity to access the lifestyle and amenities waterfront properties are renowned for.
“In Paris new-build opportunities are scarce so waterfront residences are typically older high-ceilinged Haussman homes along the Seine. This is similar in Berlin where limited space for new-builds is expected to contribute to the increase in the premium waterfront properties generate, which currently sits at 28%.”
Click here <a href="https://www.propertyobserver.com.au/images/2018/12/20/Knight-Waterfront.jpg" target="_blank">to enlarge</a>.
<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/2018/12/20/Knight-Waterfront.jpg" alt=""> Source: Knight Frank
Prime waterfront residences in Sydney experience the largest uplift globally, according to Knight Frank Australia's head of residential partner Sarah Harding.
“Sydney sits in first place with waterfront properties generating an average premium of 89.3% (as at Q3 2018), when compared to similar properties located further inland without access to water. 
"Homeowners vie for the finest views of the Harbour Bridge and Opera House as it offers sprawling vistas of, and access to, one of the world’s best waterscapes.”
Harding said prospective buyers from all over the world search for waterfront properties, although there is particularly strong interest from the UK, US, Canada and Australia.
“Outside of the lifestyle and additional amenities a waterfront home provides, such as private moorings or jetties and easy access to numerous water sports, they are also an attractive opportunity for buyers as they are amongst the most liquid of properties.
“Even during a market downturn we see frontline waterfront properties remain in demand due to their position and scarcity. This sees them retain their value and also provide potential buyers with additional confidence in their future exit strategy should they need to sell.”
Knight Frank’s Erin van Tuil, partner of Crown Residences at One Barangaroo said developments such as the Crown Residences at One Barangaroo are creating a new benchmark for waterfront properties in Sydney and around the world.
"Each of the 82 six-star hotel-branded residences will provide expansive dual or triple aspect views over Sydney Harbour, from its iconic New Year celebrations to the starting point of the Sydney to Hobart yacht race on Boxing Day, making it one of Australia’s most prestigious residential addresses.”
 
 
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jrobinson-rf4aSBido9

Sydney generates the highest premium for waterfront properties globally: Knight Frank

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Sydney has been ranked in top six of ultra-prime cities globally for number of residential sales above US $25 million, according to Knight Frank's assessment of the global ultra-prime residential market.
Hong Kong is the city with the highest number of ultra-prime sales, with New York and London ranked in second and third place.
Sarah Harding, Knight Frank partner for head of residential, said in a global market, Sydney remains the destination of choice for high net worth individuals due to a number of factors including the lifestyle and relative political stability.
“All ultra-prime transactions in Sydney over the past three years occurred in the Eastern Suburbs and all were for houses," Harding said.
"However, this is based on completed properties and we expect that off-plan sales will further increase these numbers when further prestige apartment buildings in Sydney are completed.
“In the 12 months ending August 2018, the total value of ultra-prime properties (over US $25 million) sold in Sydney was US $219 million across five transactions.
“Whilst Sydney is one of the smallest city markets in regard to transaction levels, it has some of the most spacious properties with the typical transaction encompassing plots of land, and an average saleable area of 1,976 square metres.
“Not only do the properties cover large areas, but the majority have waterfront views and a private swimming pool." 
The 12 month period to August 2018 shows a slight decline in Sydney from last year, but well up on the total value of transactions from 2015 and 2016.
The number of transactions in Sydney has been steady since 2015.
Click here 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/2018/12/11/Knight-Frank.jpg" alt="">
Knight Frank partner, Crown Residences at One Barangaroo, Erin van Tuil, said Sydney is now established as one of the world’s top ultra-prime city markets. 
"We have seen the reality of this in the market response to Crown Residences at One Barangaroo. Crown Residences has now offered UHNWIs a viable alternative to the traditional, free-standing harbour-side home in Sydney. 
“In Crown Residences, Sydney now has apartments that actually respond to the needs of UHNWIs; space, views, location, stunning design and of course the impeccable service of Crown Resorts. 
"I would expect to see transactions over US$25m increase over the coming years in Sydney.” 
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Sydney ranks in top six of ultra-prime cities globally for amount of prestige sales

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EXPERT OBSERVATION
For the first time since 2016 the first and lowest price band of $0-$500,000 has opened to Sydney buyers, at 1.4% of the market, as shown in the latest <a href="https://www.prd.com.au/research-hub/affordable-liveable-property-guide-2nd-half-2018/" target="_blank">2018 Affordability and Livability Report</a> released by PRD nationwide.
Although this is a very marginal part of the market, this marks a more affordable Sydney.
For the first time since 2015 all the affordable and liveable suburbs in Sydney had negative annual median price growth, a sign of market cooling.
Prior to this, affordable and liveable suburbs showcased positive growth, thus, in the Livability and Affordability report it became a task of nominating suburbs with as moderate a softening as possible.
<img src="https://www.urban.com.au/images/2018/12/7/PRD%20Nationwide.JPG" alt="">
In Brisbane, all affordable and liveable suburbs were in the north.
This was different to previous reports, where affordable and liveable house hotspots were found in all pockets of Brisbane (i.e. north, south, east, etc.).
None of the affordable suburbs in Hobart were able to satisfy the liveability criteria.
To ensure liveability aspects were met, the median suburb price had to be raised above that of the Hobart metro median price.
This only occurred in Hobart, which suggests the strong need to develop a strategy that addresses liveability aspects in more affordable areas of Hobart.
<img src="https://www.urban.com.au/images/2018/12/7/PRD%20Nationwide%202.JPG" alt="">
Of all the capital cities, Melbourne has proven to be the most resilient market, both in terms of price growth (in comparison to Sydney) and in ease of satisfying liveability aspects in its more affordable suburbs.
Dr Diaswati (Asti) Mardiasmo National Research Manager | PRDnationwide | Colliers International
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j.ballantyne1990-6AQqhLzZaK

Sydney's sub-$500,000 affordable home market opens up for Sydney buyers: PRD research

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EXPERT OBSERVER
In 2019, there will be several political and economic factors that will continue to impact Sydney’s property market.
1.       Politics to have a major influence in 2019.
 The impending NSW state and federal elections in the first half of the year will heavily impact market conditions. If history teaches us anything, it is that when it comes to elections, people tend to sit on their hands.Uncertainty about changes in policy, such as Labor’s proposal to limit negative gearing tax breaks to new investments and halve the capital gains tax, will cause an extended period of stagnation. The Federal Government also has a difficult challenge in early 2019 to implement the recommendations from the banking royal commission. It is a genuine balancing act, as the Government needs to ensure future prudence, but also ensure that people are able to easily access credit.
2.       The rise and rise of first home buyers. 
It was not that long ago that first home buyers were sidelined in the property market and denounced by some commentators for their spending habits, despite the myriad economic and political forces at play that were locking them out. In 2018 the landscape has changed: financial stimulus was introduced to assist them, and simultaneously, macroprudential measures were introduced to limit investor activity, which has led to less competition and a subsequent correction in prices. First home buyers now account for approximately 25 per cent of all property purchases across our network, and with less investor activity, I fear the State Government may consider this job done. Any removal of concessions, however, would send the market into a spin, as many first home buyers would then not be able to afford to buy, and with less investors and less owner-occupiers, who is left to purchase property? All the pieces of the puzzle are currently in place for first home buyers, and it should stay that way in 2019.
3.       Bank valuations coming in under purchase price.
As property prices continue to fall, banks will become more prudent and low-ball buyers on valuations. We are already seeing many off-the-plan apartments that were bought 12-18 months ago now worth five to 10 per cent less than the original purchase price. Anyone who is struggling to secure lending should contest the valuation. It is possible to request a second opinion, or alternatively, provide extensive comparative evidence for similar properties that have sold in the area.
4.       Rates to stay unchanged in the first half of the year.
 The Reserve Bank of Australia has left interest rates unchanged for more than two years. Stagnant wage growth and a slowing market are keeping rates down, and it is unlikely we will see a change in the first half of 2019, which is good news for property owners. Beyond that, it is very difficult to say, as a few days in politics and economics is a long time, let alone a few months.
5.       People paying down mortgages more aggressively.
 While it may not be in the first half of next year, Australia’s record-low interest rates will change. It is advisable that homeowners pay down as much debt as they can while we have this advantageous environment. Accountants and banks will also be encouraging people to pay down debts before rates rise. Paying an additional $150 a month on a $600,000 loan could save a homeowner more than $10,000<a id="LPlnk175549" name="x__ftnref1" href="https://outlook.office.com/owa/?realm=student.uts.edu.au&amp;exsvurl=1&amp;ll-cc=1033&amp;modurl=0#x__ftn1">[1]</a> – and they will pay their debt down a year faster. I encourage anyone with disposable income to make a dent in their debt while they can.
6.       Fewer auctions with clearance rates of 50%. 
Fewer people will go to auction in 2019, as they fear the embarrassment of their property passing in. Auction clearance rates are likely to hover around 50 per cent next year. However, the instant nature of the reporting of auction clearance rates is not always an accurate market barometer. Sellers need to trust the auction process and know that several properties also sell before and after the actual auction day.
7.       Rental vacancies rates to rise. 
While historically house prices and rental performance have often been diametrically opposed, the current market does not really benefit either. While apartment development has been high over the last three to five years, half of these properties were snapped up by investors. With the market becoming more competitive, renters have more choice, and therefore, landlords need to be ultra-realistic with the prices they set. It may be tempting to try to wait for the right rental price, but investors need to listen to their agent’s advice next year, as holding out when there is no other interest could mean losing a month’s rent. Investors that have entered the market without a buffer may even be forced to sell in 2019 because they may not be able to balance the books.
DOUGLAS DRISCOLL is the Starr Partners CEO
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Landlords will need to be ultra-realistic with the rents they set: Douglas Driscoll's 2019 property forecast

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Sydney house values fell 9.2 percent over the past year, their largest annual fall since May 1983.
Overall Sydney dwelling values fell 8.1 percent over the past year.
Unit values declined by 5.5 percent.
<img src="https://www.urban.com.au/images/2018/12/3/CoreLogic%20Hob%20vs%20Per%201.JPG" alt="">
Headlining the November results, the CoreLogic hedonic home value index recorded its weakest month-on-month change in dwelling values since the Global Financial Crisis.
National dwelling values slipped 0.7 percent lower in November, led by larger falls in Sydney (1.4 percent) and Melbourne (1 percent) where the pace of decline has accelerated over the past month.
Nationally, dwelling values are down 4.2 percent since peaking in October last year, with dwelling values retracing back to levels last seen in December 2016.
<img src="https://www.urban.com.au/images/2018/12/3/CL%20Dec%203.JPG" alt="">
CoreLogic head of research Tim Lawless said the downwards pressure on national dwelling values is largely confined to Sydney and Melbourne which together, comprise approximately 55 percent of the value of Australia's housing asset class.
Since peaking in July last year, Sydney's housing market is down 9.5 percent which is on track to eclipse the previous record peak-to-trough decline set during the last recession when values fell 9.6 percent between 1989 and 1991.
Melbourne dwelling values peaked four months later than Sydney, in November 2017, and have since fallen by 5.8 percent through to the end of November 2018.
"Conditions across the Australian housing market are increasingly diverse," Lawless said.
Dwelling values are trending higher across five of the eight capital cities, albeit at a relatively slow pace compared with the previous surge in Sydney and Melbourne.
"Hobart and regional Tasmania continue to be the standouts for capital gain, with values up 1.7 percent across both regions over the past three months".
Tim Lawless points towards several factors that are influencing the downwards trend in Sydney and Melbourne, while other regions continue to see some level of growth.
"The tightening in finance conditions has been more pronounced across the investor segment of the market, where Sydney and Melbourne have recorded much higher concentrations of investment demand.
"Additionally, housing affordability constraints are more pronounced in these markets and rental yields are substantially lower, indicating an imbalance between rental values and dwelling values.
"The ramp up in housing supply has been more pronounced in these markets against a backdrop of slowing demand, and Sydney and Melbourne have also been more affected by the reduction in foreign buying activity."
"As a consequence of less market activity, advertised listings have surged higher, providing buyers with ample choice which provides for a strong negotiation position on price.
"The rebalancing towards buyers over sellers in Sydney and Melbourne is clear across CoreLogic's vendor metrics, with clearance rates tracking in the low 40 percent range while private treaty sales are showing substantially longer selling times and larger rates of discounting than they have over recent years."
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Sydney house values fell 9.2 percent over the past year, their largest annual fall since May 1983.

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For the first time since GFC, Sydney's auction clearance rate has fallen below 40%, according to Domain.
They found Sydney had a revised clearance rate of just 39.4% on 403 reported auctions of the week ending October 20, 2018.
Only $170 million dollars worth of property sold compared to the same period last year when $484 million worth of property sold.
There is still 9.3% unreported.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/29/Domain%20Auction.JPG" target="_blank">to enlarge.</a>
<img src="https://www.urban.com.au/images/2018/10/29/Domain%20Auction.JPG" alt="">
The consistent recent deterioration had market watchers anticipate auction clearance rates dipping into the 30s. 
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SQM's Louis Christopher recently noted three previous times when Sydney auction clearance rates sunk into the 30s.
"That was in October/November 2008 during the GFC, May 2004 after the NSW vendor stamp duty was introduced and July 1989 when the cash rate hit 17 percent."
Melbourne's revised clearance rate was also very low last week at 44.4%.
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<img src="https://www.urban.com.au/images/2018/10/29/Darlin.JPG" alt="">
The most expensive sale at auction in Sydney last weekend was <a href="https://www.realestate.com.au/sold/property-house-nsw-darling+point-129472518" target="_blank">13 Etham Avenue, Darling Point</a> (pictured above) which sold after auction for $5 million.
The five bedroom three bathroom home set on a 486 sqm parcel was held by the same family for over 60 years.
“We were quoting $5 million, the reserve was $5 million and it sold for $5 million,” selling agent Ben Collier at The Agency said.
 
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Sydney clearance rates dipped into the 30's for the first time since the GFC

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Sydney house prices will remain close to unchanged in the year to December 2019 after falling by about 8% in 2018, according to the latest Domain forecasts.
Domain predicts house prices will grow modestly in 2020.
They believe that house prices will fall by about 12% from their peak of almost $1.2 million in June 2017 to a low point of just above $1 million in mid-2019.
<img src="https://www.urban.com.au/images/2018/11/29/Sydney%20Domain%201.JPG" alt="">
Source: Domain
Sydney unit prices are expected to be more resilient than house prices.
Domain Economist Trent Wiltshire said: "Unit prices are expected to fall by about 3% over the year to December 2018, but then prices are expected to grow modestly over the next two years at about 3-5%.
"Sydney unit prices are predicted to fall by 6% from their peak of $769,000 in June 2017 to their lowest point of about $720,000.
"At this low point, Sydney unit prices will be back at their late-2016 level.
"The NSW government’s stamp duty concessions are also likely to support unit price growth."
<img src="https://www.urban.com.au/images/2018/11/29/Sydney%20Domain%202.JPG" alt="">
Source: Domain 
However, one risk to Sydney unit prices is whether the large pipeline of new unit construction is absorbed.
Given projected strong population growth, Domain is of the opinion that this will not result in city-wide price falls, although some areas with a particularly large amount of new construction may see prices remain weak.
"Tighter lending conditions have weighed heavily on Sydney property prices, particularly for more expensive properties, but we think this is likely to have played out by mid-2019," Wiltshire said. 
Click <a href="https://www.propertyobserver.com.au/images/2018/11/30/Domain%20forecasts%201.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2018/11/30/Domain%20forecasts%201.JPG" alt="">
Click <a href="https://www.propertyobserver.com.au/images/2018/11/30/Domain%20forecasts%202.JPG" target="_blank">here</a> to enlarge.
<img src="https://www.urban.com.au/images/2018/11/30/Domain%20forecasts%202.JPG" alt="">
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Sydney house prices will drop 12% from peak: Domain

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Earlier this week The Lord Mayor of Sydney, Clover Moore, joined Greenland Australia’s Managing Director, Sherwood Luo, in officially opening the striking Omnia building in Pott's Point.  Those in attendance at the ribbon-cutting ceremony included construction partners Probuild, architects Durbach Block Jaggers, SJB and Studioaria, in addition to other project consultants. 

The $320 million, 20-storey Omnia apartment building features 132 residences, and is uniquely located between Victoria Street and Darlinghurst Road, with the development already gaining widespread attention for its dramatic curved form sitting atop a uniquely sculptural retail podium, which houses a <a href="/news/greenland-australias-omnia-welcomes-wooloworths-metro-as-first-tenant-in-retail-podium">Woolworths Metro</a>.

Omnia marks Greenland Australia’s fourth completed project since commencing in Australia in 2013. Two of Omnia’s three luxury dual-level penthouses, remain for sale and are priced between $12 million and $15 million.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/_dsc6674_edited_horozontal.jpg" rel="gallery-all" title="The strikingly curvaceous form of Omnia draws on New York's Flatiron. Image: Supplied "><img alt="" class="image-article-full-width-580px" height="327" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/_dsc6674_edited_horozontal.jpg?itok=hGQ4ZR8w" title="The strikingly curvaceous form of Omnia draws on New York's Flatiron. Image: Supplied " width="580"></a>

<figcaption>The strikingly curvaceous form of Omnia draws on New York's Flatiron. Image: Supplied</figcaption></figure><h2>What they say...</h2>

<blockquote>
Probuild have been responsible for Omnia’s high-quality construction, Durbach Block Jaggers for its distinctive design, and SJB and Studioaria for its premium interiors. This exceptional build quality is important given Omnia’s high-profile location, which effectively redefines the gateway to Potts Point and Kings Cross, one of Sydney’s most iconic food and beverage and entertainment precincts.

As such, we felt the site warranted a world-class building with significant architectural merit, and thanks to our amazing project partners, I think we’ve more than delivered. The building’s distinctive hourglass shape wasn’t simple to execute, but I think you’d all agree it was well worth the challenge.  It’s truly unique.

Omnia is a premium offering in every respect – its luxurious interior design concepts, superior construction and finishes, and its setting in one of Sydney’s best-selling locations and one of the world’s best.

- Sherwood Luo, Greenland Australia’s Managing Director
</blockquote>

 

<blockquote>
Omnia has been a fantastic project to be involved with. As an adaptive re-use project, we completed partial demolition of the previous building while designing and constructed around the existing structure that remained.

The unique design introduces a dramatic architectural feature whereby each slab decreases by 180mm in length per floor over 10 levels and then increases again, resulting in the tower’s distinctive hour-glass shape.

We have a very close relationship with Greenland Australia and we look forward to continuing it as we complete our next iconic Sydney address together at the <a href="/buildings/the-greenland-centre-115-119-bathurst-street-sydney">Greenland Centre Sydney</a>, which will be Sydney’s tallest residential tower when built.

- NSW Managing Director of Probuild
</blockquote>

 
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Laurence Dragomir

Lord Mayor officially opens Greenland Australia's Omnia in Potts Point

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This week's episode of the Apartments.com.au podcast comes to you from the Harbour City, where I sat down with Atelier Ten Director Paul Stoller in the company's Sydney office on Pitt Street.

Paul tells me about the genesis of Atelier Ten and its history in Australia as well as Paul's own history working on Federation Square some 20 years ago. We also discuss a few of the projects Atelier Ten are currently involved with and the office's involvement in the winning design for the Southbank by Beulah competition. 

 

<iframe allow="autoplay" frameborder="no" height="166" scrolling="no" src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/540346626&amp;color=%23ff5500&amp;auto_play=true&amp;hide_related=false&amp;show_comments=true&amp;show_user=true&amp;show_reposts=false&amp;show_teaser=true" width="100%"></iframe>
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Weekly Podcast - Episode 42: Atelier Ten’s Paul Stoller

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EXPERT OBSERVATION
For years Melbourne has been renowned for its trend-setting restaurant and fashion scene, often teaching big sister Sydney a thing or two.
More recently, Melbourne’s property market has caught our eye with its striking and daring architectural designs and robust opportunities for investors.
It’s almost impossible to escape headlines declaring prices falling in housing markets in major Australian capital cities, spreading widespread concern and creating an irrational fear of residential property investment.
But all indicators point to Melbourne as a prime investment location supported by strong population growth, stable political leadership and a high level of government investment in infrastructure.
Despite on-going media reports on negative housing trends, Melbourne continues to show solid economic growth and is likely to come out of this ‘softening period’ relatively unscathed.
Melbourne has managed to counteract the alleged housing market slowdown as the city’s median house price is up 5% in the past 12 months.
According to the Real Estate Institute of Victoria (REIV), there was a 13.6% increase in the value of homes sold on the private market and an 0.6% increase in the value of those sold at auction over the past 12 months.
The good news for investors transcends stabilising house prices as 2018 has also seen a boom in population growth which has allowed Victoria to take out the number one spot this year in CommSec's "State of the States" economic rankings, outranking New South Wales for the very first time.
In fact, Victoria experienced Australia’s largest population growth between 2016 and 2017 with Melbourne experiencing the largest and fastest growth of all capital cities.
According to the Australian Bureau of Statistics, Melbourne grew by approximately 144,400 people at a growth rate of 2.7%.
This record population growth continues to fuel demand for housing maintaining an overall undersupply in the market.
It is predicted that Melbourne could become Australia’s largest city as early as 2030 with its population expecting to reach 6.1 million.
Melbourne is on the verge of overtaking Sydney as the nation’s largest city and remains a ‘safe bet’ for investors in terms of securing tenants and both rental and capital growth.
The city also has no shortage of infrastructure projects making the city desirable for new residential dwellings.
Melbourne has a larger land radius in the city centre than Sydney allowing for more development and will soon have Australia's tallest skyline, with more than 140 skyscrapers higher than 100 metres completed, planned or under construction.
The Victorian economy has arguably been the best managed State across both sides of government for decades providing a resilience unseen in other states.
The Victorian Government is committed to ongoing investment in world-class transport infrastructure including the $11 billion Metro Tunnel Metro Tunnel and the $1.75 billion Regional Rail Revival program.
The future outlook remains positive with forecast budget surpluses for the next four years provide a stable economic environment in Victoria, allowing the government to expand its ongoing investment in infrastructure.
The housing market slowdown will likely dominate the headlines for the foreseeable future, but the reality is the property market is dynamic and there are always opportunities if you know where to look.
Investors need to do their homework and seek professional advice and ensure the fundamentals are strong before leaping into an investment opportunity.
JAMES NIHILL is the Managing Director of Patrick Leo
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