<p>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.</p>

<p>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;</p>

<p>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;</p>

<p>“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;</p>

<p>[smartcode_project:default project_id=110291 project_image_fid=302785]</p>

<h2>Affordable product leads, premium demand remains resilient</h2>

<p>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;</p>

<p>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;</p>

<p>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.</p>

<p>Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.</p>

<p>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;</p>

<p>[smartcode_project:default project_id=148957 project_image_fid=364102]</p>

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

<p>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.</p>

<p>David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.</p>

<p>“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;</p>

<p>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.</p>

<p>[smartcode_project:default project_id=108869 project_image_fid=317905]</p>

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

<p>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;</p>

<p>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;</p>

<p>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”.</p>

<p>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;</p>


Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<p><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.</p>

<p>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.</p>

<p>Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.</p>

<p>“Brisbane was the right step for Sammut,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>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.</p>

<p>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.</p>

<p>“We are DA approved now which is very exciting,” Sammut said.</p>

<p>“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.”</p>

<p><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" /></p>

<p>Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.</p>

<p>“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.</p>

<p>The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.</p>

<p>“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.”</p>

<p>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.</p>

<p>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.</p>


Sammut secures approval for debut Brisbane apartment development in Toowong

<p>Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.</p>

<p>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.</p>

<p>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.</p>

<p>“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.</p>

<p>“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.”</p>

<p>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.</p>

<p>“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.</p>

<p>Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.</p>

<p>“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.</p>

<p>“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”</p>

<p>The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.</p>

<p>“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.</p>

<p>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.</p>

<p>&nbsp;</p>


Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

<p>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.</p>

<p>The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.</p>

<p>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.</p>

<p>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.</p>

<p>“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.</p>

<p>“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.”</p>

<p><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" /></p>

<p>GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.</p>

<p>“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.”</p>

<p>Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.</p>

<p>“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.</p>

<p><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" /></p>

<p>&nbsp;</p>

<p>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.</p>

<p>Green praised local policy settings.</p>

<p>“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.”</p>

<p>One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.</p>

<p>“The way we will be able to achieve economies of scale is through size,” Green added.</p>


One Living enters Sydney's new apartment market with Northern Beaches site acquisition

<p>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.</p>

<p>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.</p>

<p>Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be</p>

<p data-end="683" data-start="511">"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.</p>

<p data-end="882" data-start="690">"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."</p>

<p data-end="882" data-start="690">[smartcode_project:default project_id=134646 project_image_fid=6109]</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6110]</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project:default project_id=134646 project_image_fid=6116]</p>

<p data-end="247" data-is-last-node="" data-is-only-node="" data-start="0">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.</p>

<p>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.</p>

<p>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.</p>

<p>[smartcode_project_cta:default project_id=134646]</p>


WM Residences fills gap in Mordialloc townhouse market

Sydney

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<p>The sudden withdrawal of Chinese investors from the property market may lead the Reserve Bank to cut interest rates, according to investment bank Credit Suisse.</p>
<p>Research conducted by Credit Suisse's economics and equity teams found Chinese capital flows are tightly correlated to Sydney housing prices, with movements typically impacting property demand around 12 months on.</p>
<p>"Over the past few months, the Sydney housing market has not only cooled down, but has arguably turned cold," Credit Suisse advised, without giving any indication when the mooted cut would come.</p>
<p>"Over the past year, Chinese capital flows have fallen considerably, in part reflecting the impact of stricter capital controls.</p>
<p>"This fall foreshadows weakness in NSW housing demand in the year ahead."</p>
<p>It noted revised auction clearance rates — accounting for the many late reported results — had now dipped below 60 per cent in Sydney, the ABC noted.</p>
<p>"This is a significant development because recent RBA analysis suggests that a 60 per cent clearance rate is typically the break-even point for house price inflation," Credit Suisse noted.</p>
<p>"In other words, house prices tend to fall when the clearance rate is below 60 per cent."</p>
<p>While it is difficult to pin-point the exact impact Chinese buyers have on price, Credit Suisse said its modelling found that Chinese capital flows and real interest rates predict roughly three-quarters of the variation in NSW property transfers since 2010.</p>
<p>Credit Suisse reported the relationship between mortgage availability and auction clearance rates had broken down.<br>"Mortgage availability has plummeted to levels historically consistent with a collapse in clearance rates to around 20 per cent — yet actual clearance rates have remained elevated at 60-80per cent," Credit Suisse said.</p>
<p>Anecdotal evidence suggest there is significantly lower online interest for Australian property coming from China.</p>
<p>"The failure of local variables to explain the housing cycle suggests that there must be a strong foreign component to demand," Credit Suisse concluded given Chinese buyers have previously driven up valuations in certain areas such as expensive suburbs and apartment blocks.</p>
<p>"But this has positive spill-over effects for pricing in other segments of the market. We believe that Chinese buyers spark the cycle, while local investors chase the momentum," Credit Suisse said.</p>
<p>Credit Suisse said the Reserve Bank was in a difficult position because of lack of timely, accurate data about Chinese capital flows.</p>
<p>But the drying up of offshore investment was "a very big risk" to the economy.</p>
<p>"We understand that policy needs to be set on what is known, rather than what is unknown, and Chinese capital flows are a very big unknown because of the absence of high-quality and timely data," it said.</p>
<p>"But the issue for us is that the recent shift down in Chinese capital flows is having a visible, negative impact on house prices and consumer spending now."</p>
<p>Credit Suisse argued if its model was anything to go by, it is hard to see a meaningful recovery any time soon.</p>
<p>"We believe that the RBA will need to cut rates further to deal with the housing market slowdown in train," it noted.</p>
<p>"Without a healthy housing market, the economy does not have other growth drivers to lean on."</p>
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j.ballantyne1990-6AQqhLzZaK

Chinese buying in Sydney has gone cold which could prompt RBA to cut: Credit Suisse

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<p class="p1">The release of the draft Greater Sydney Region Plan along with the related draft Future Transport Strategy signals a major shift in the character of the city as it becomes more urban.</p>
<p class="p2">It is good that the NSW Government has released an integrated regional plan for Sydney as well as a transport and infrastructure plan.</p>
<p class="p2">The 20 year plans along with the 40 year visions signal big changes for Sydney and it will be important that political parties and community groups embrace these changes as they underpin the economic and cultural framework for Sydney as a global city.</p>
<p class="p2">The aspirations from the plan are to lift Sydney from being a top 20 global city up to a top 10 global city and this will deliver quality jobs and economic prosperity. To reach this level, however, means that Sydney must mature from being an essentially suburban city to now balancing this with a new urban, cosmopolitan density linked to metro rail public transport. The reality is that the top world’s global cities have much greater densities than Sydney currently has.</p>
<p class="p2">It is important that the NSW Opposition and community groups that are currently expressing concern that Sydney is changing get behind the need to manage growth for future generations. The Greater Sydney Region Plan and the Future Transport Strategy can underpin a strong future for Sydney.</p>
<p class="p2">By focussing the new urban, apartment form of the city around railway stations will mean that most of Sydney will remain as low rise suburban housing. To change this suburban model with town houses would spread the negative concerns about change across many suburbs.</p>
<p class="p2">The regional plan has sensible statements about the provision of affordable housing through increased residential floor space that ensure the viability of housing projects. The Urban Taskforce is concerned that individual councils across metropolitan Sydney, however, believe that all developers should contribute a percentage of their apartments as affordable homes with no uplift. All this will do is slow down housing supply and therefore increase the cost of new housing.</p>
<p class="p2">The Future Transport Strategy included an analysis of other global cities that demonstrated that Sydney’s current density of 410 people per square kilometre is well below Tokyo (6,200), London (5,800), Paris (6,000), Singapore (7,000) Berlin (3,900) or New York (11,000). Car based cities like Los Angeles are at 1,050 people per square kilometre which is double that of Sydney’s current density.</p>
<p class="p2">The plans for heavy rail, metro rail, and intermediate transport (busses, ferry, light rail) demonstrate a real commitment to how the next phase of a denser Sydney will operate. It will be important to turn these plans and visions into real projects in future years.</p>
<p class="p2">A key statistic in the data presented in the regional plan is how each of the three identified cities for Sydney will accommodate growth in housing over the next 20 years (page 9). The East City will lead the way with 43.4% of the growth followed by the West city at 29.2% and the Central City at 27.4%.</p>
<p class="p2">Unfortunately the NSW Opposition and community groups are building up campaigns against development close to the Eastern City including attacks on projects in Marrickville, the Sydenham to Bankstown corridor and along Anzac Parade. Clearly these are areas where the tension of a move from suburban houses to apartments is creating local concerns. It will be important that these communities understand that the housing is for their own children and grand-children.</p>
<p class="p2">The Greater Sydney Region Plan makes a strong statement in relation to the Eastern Harbour City about 'protecting all industrial land from conversion to residential development, including conversion to mixed- use zonings'. This will make it difficult to achieve the housing growth targets for the East City.</p>
<p class="p2">To communicate the quality of a more urban environment the planning and transport documents use language that implies better quality will come. Terms like ‘walkable great places’, ‘successful places’ and ‘better placed’ are used to encourage readers to see the positives of urban density. It will be important as the plans are rolled out to give communities confidence that a new more urban quality environment can be the product of Sydney’s growth.</p>
<p class="p2">The Urban Taskforce is keen to work with the Greater Sydney Commission and the NSW Government in ensuring that the well-meaning objectives in the Greater Sydney Region Plan and the Future Transport Strategy translate into results on the ground. Sydney still has a housing supply problem with at least 725,000 new homes required over a 20 year period. Even in boom times it has been difficult to reach the yearly average of 36,250 new homes.</p>
<p class="p2"><em>Chris Johnson is chief executive officer of property development industry group Urban Taskforce and can be contacted <a href="https://www.urbantaskforce.com.au/index.php?option=com_content&amp;view=article&amp;id=97&amp;Itemid=126#.Vdaart55dFI" target="_blank">here</a>.</em> </p>
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cjohnson-8xfqfuuCSq

Plan for Sydney must champion a more urban and global city

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<div>There's quite a bit been said on the apparent mass exodus from Sydney.</div>
<div> </div>
<div>Again, there's a strong element truth to this story.</div>
<div> </div>
<div>But it's equally important not to take away the wrong visual image from this. </div>
<div> </div>
<div>The fact is, New South Wales always loses people interstate, and it always will, largely to Brisbane, south east Queensland, and even to Melbourne.</div>
<div> </div>
<div>In reality, though, the numbers leaving the state on a net basis were dramatically lower in the 2011-2016 Census period than they were in the preceding five years.<br><br>And they were much, much lower than they were in the five years before that, with net interstate migration tracking at way under the half the rate of seen from 2001 to 2006.</div>
<p> </p>
<div class="separator"><a href="https://1.bp.blogspot.com/-tkZj2K3gX30/We7_dSCSWdI/AAAAAAAAmug/igPMz15WmG8_HIPuqq8mUqdxzrGXqo71gCLcBGAs/s1600/A1.jpg"><img src="https://1.bp.blogspot.com/-tkZj2K3gX30/We7_dSCSWdI/AAAAAAAAmug/igPMz15WmG8_HIPuqq8mUqdxzrGXqo71gCLcBGAs/s640/A1.jpg" width="640" height="396" data-original-height="831" data-original-width="1343"></a></div>
<p> </p>
<div>
<strong><span style="text-decoration: underline;">To the regions...</span></strong><br><br>Now it's true that more people, especially Baby Boomers, have been taking their newly-boosted Sydney equity to move out to regional New South Wales, such as to the Hunter Valley, or to the South Coast.</div>
<div> </div>
<div>However, this has been offset by a marked <a href="https://petewargent.blogspot.co.uk/2017/09/population-growth" target="_blank">increase in immigration to Sydney</a>, as migrants seek employment opportunities.<br><br>The harbour city of Greater Sydney is growing at a faster pace than previously, probably now at somewhere close to 100,000 per annum, which is well ahead of the decade average.</div>
<div> </div>
<div>This will presumably continue for as long as Sydney continues to create <a href="https://petewargent.blogspot.co.uk/2017/09/jobs-boom-to-continue" target="_blank">record job openings</a>. </div>
<div> </div>
<div>The net impact of this dynamic - high immigration and resident Sydneysiders moving outwards or interstate - is that Sydney has a substantial foreign-born population (which now comprises more Chinese-born residents than British-born, a remarkable statistic in its own right).<br><br>There's plenty of disingenuous 'analysis' of the capital city economies, focusing on resources exports and ignoring services exports, for example, while also ignoring Australia's record levels of household wealth and the comparative improvement in standard of living for so many immigrants.<br><br>The Productivity Commission ("PC") has delivered another long report on the importance of the large cities to Australian wealth, and why services industries and employment growth fare best within them, in part due to proximity to other businesses and labour supply.<br><br>The fact is that over the most recent year Sydney (38.6 per cent) and Melbourne (28.4 per cent) have unsurprisingly dominated contributions to Australia's GDP growth, according to analysis by Terry Rawnsley of SGS Economics &amp; Planning.<br><br><strong><span style="text-decoration: underline;">Challenges abound</span></strong>
</div>
<div> </div>
<div>All of the above having been said, it's reasonable expect to see interstate migration to south east Queensland accelerating again over the next five years.<br><br>One of the most noteworthy challenges identified by the PC is that about 60 per cent of new jobs are created within 10 kilometres of the Central Business Districts, but housing supply in those locations is not keeping up with this pace of growth by about half.<br><br>The PC found that most jobs that can be reached within 45 minutes by car are located in the inner city, while on the city fringe this is the case for fewer that 20 per cent of jobs.</div>
<div> </div>
<div>By 2050 an additional 10.8 million people are projected to be living in Australia's capital cities, as well as an extra 2.4 million people in the non-capital city areas. </div>
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pwargent-M4siyDbqQY

The population exodus from Sydney: Pete Wargent

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<p>The Greater Sydney Commission’s draft plan and strategy for Greater Sydney, which is expected to grow by another 1.7 million people in the next two decades, has been applauded by the Planning Institute Australia.</p>
<p>Earlier, the GSC launched the draft ‘Our Greater Sydney 2056’. The release includes the draft 20-year Greater Sydney Regional Plan and a 40-year vision. The GSC took note of the feedback from PIA for its draft.</p>
<p>The plan is accompanied by the state government’s draft Future Transport Strategy 2056. </p>
<p>PIA NSW president Jenny Rudolph said it is a blueprint for a city that is well networked, green and focussed around the needs of its people and businesses.</p>
<p>The structure plan expands on the theme of better connecting the Western, Central and Eastern Cities with their ’30-minute’ catchments. It creates the radial structure that Sydney needs to grow sustainably.</p>
<p>Rudolph added that the GSC had addressed the feedback from PIA and the planning industry, to focus on ensuring growth can be supported by creating great places to live and work.</p>
<p>PIA NSW has argued for the management of growth with local and state infrastructure in all submissions on the District Plans, Regional Plans and the EP&amp;A planning reforms. </p>
<p>In particular, it supports:</p>
<ul>
<li>Realignment of infrastructure investment to support the critical roles of Sydney’s Central and Western cities – especially passenger transit and freight links;</li>
<li>Engagement with community and councils in the preparation of Growth Infrastructure Compacts;</li>
<li>Funding the ‘Green Grid’ open space network and green infrastructure systems - and measures for a socially resilient and environmentally sustainable Greater Sydney</li>
<li>Affordable rental housing targets alongside initiatives improving housing diversity and targets for housing growth – via local housing strategies;</li>
<li>A focus on the productivity and networked connection of our strategic centres, business and freight hubs – especially supporting industrial lands for urban services and sustaining the economy of our key commercial cores;</li>
<li>Vision for stronger and faster connections with NSW regions; and</li>
<li>Recognition of the Metropolitan Rural Area for its landscape and rural productivity – not as urban land in waiting.</li>
</ul>
<p>Rudolph said the PIA expected improvements in living conditions to accompany sustainable growth, which would be the yardstick for the success of the plan.</p>
<p>The plan will be on exhibition until 15 December 2017. </p>
<p> </p>
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Blueprint for a Greater Sydney unveiled

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<p>Sydney is the most attractive Australian market for investment into the student accommodation sector, according to Savills.</p>
<p>The total development pipeline in Sydney for student accommodation has increased to 5,435 beds in 2017 from 3,665 beds in 2016, according to the recent Student Accommodation Market Report from Savills.</p>
<p>The supply and demand imbalance, world class universities and status as a global city are the main factors that are driving student accommodation in the Harbour City. </p>
<p>However, there are significant barriers to entry, the report notes. </p>
<p>The value of land associated with competing land uses, primarily residential in CBD fringe locations, continues to be an issue for private sector developers. </p>
<p>This has led to developers seeking locations outside of the CBD, primarily around transport hubs. The University of Sydney continues to be a significant participant within the Sydney market, with several new developments proposed. </p>
<p>The most significant purpose-built student accommodation (PBSA) completed this year has been Urbanest (picture above), delivering the first stage of their accommodation within the Darling Square precinct comprising 634 beds. </p>
<p>Their second stage of that project comprising 664 beds is programmed for completion during 2018. This will be the first off-campus fully catered accommodation available to the market. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/16/SydStudent1.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/16/SydStudent1.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/16/SydStudent2.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/16/SydStudent2.png" alt=""></p>
<p>Analysis of the development pipeline by room type indicates that approximately 30% of the new accommodation will be provided in the most expensive form of accommodation, which is self-contained studios. </p>
<p>The remaining accommodation will be provided in shared apartments, with approximately 34% of the pipeline in dormitory style rooms which is primarily influenced by the University developments.</p>
<p>“The affordability of student rents influencing the financial viability of delivering new accommodation will continue to be a critical issue for the Sydney market throughout the next 12 months,” says the report.</p>
<p>“Delivering new student accommodation within mixed use developments, such as Central Park and Darling Harbour will, in our opinion, be the main source of new opportunities in Central Sydney.”</p>
<p>Read the report <a href="https://www.savills.com.au/services-and-sectors/student-accommodation.aspx" target="_blank">here</a>.</p>
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Sydney most attractive for investing into student accommodation: Savills

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<p>Sydney has replaced London as the most expensive place to study for international students outside the US, with a monthly cost of $4,700, says a recent Savills report.</p>
<p>The strengthening Aussie dollar pushed Sydney higher than London to fourth position globally among the 20 cities examined.</p>
<p>London was dragged down by a weaker sterling, according to Savills annual World Student Housing cost of living, accommodation and tuition rankings.</p>
<p>It now costs $4,600 a month to be an international student in London.</p>
<p>Savills World Research, using data by Student.com, calculated that living and studying costs in London have dropped as fluctuations in the value of sterling has made the city cheaper for international students. </p>
<p>Boston, New York and San Francisco have retained their positions as the world’s top three most expensive cities for international students, each costing in excess of $5,500 a month, 20% more than the next dearest city. </p>
<p>Australia remains the third most popular country for international students, as the overseas student population continues to increase in both universities and other education sectors, said a recent Savills report.</p>
<p><em><a href="https://www.propertyobserver.com.au/images/2017/10/12/SavillsStudent1.png" target="_blank">Click to enlarge</a></em></p>
<p> <img src="https://www.urban.com.au/images/2017/10/12/SavillsStudent1.png" alt=""></p>
<p>Mainland European cities, however, stand apart for their affordability and are well positioned to attract cost-conscious globally mobile students, according to Savills.</p>
<p>Prague, Berlin, Vienna and Warsaw are the cheapest cities in which to study, on par with Shanghai. Tuition costs in these cities are minimal, accommodation costs are half the average of the 20 cities examined, while quality is improving thanks to an increase in purpose-built student housing.</p>
<p>The rapid growth in international student numbers has underpinned demand for high quality student housing across the globe, but the type of product they want varies by region. </p>
<p>Data from Student.com shows that students from the Middle East and China typically take the longest tenancies, 90% and 87% respectively for a full academic year, which may increase accommodation costs for students from these regions, while those from the US and Asia Pacific (including Australia) are most likely to rent for shorter periods. </p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/12/SavillsStudent2.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/12/SavillsStudent2.png" alt=""></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/10/12/SavillsStudent3.png" target="_blank">Click to enlarge</a></p>
<p><img src="https://www.urban.com.au/images/2017/10/12/SavillsStudent3.png" alt=""></p>
<p>When it comes to room type preferences, there is relative uniformity across the globe. Students from the Middle East are slightly more likely to rent an entire property or studio, however, echoing their typically larger average budgets.</p>
<p>“The optimum ratio for student housing varies not only by country, but by town or city. Many universities supply their own accommodation, but lack the funds or expertise to upgrade this to modern standards,” said Marcus Roberts, director in the residential capital markets team at Savills.</p>
<p>Roberts added that this opens up opportunities for JVs and partnering arrangements with private sector operators to deliver housing that ticks the boxes with students, particularly in the under-served middle tier between lower-quality university stock and more expensive premium products.</p>
<p>Luke Nolan, founder and CEO of Student.com, said students will always opt for at least some level of privacy, especially for the space in which they sleep and the feedback is that being close to campus is the number one priority.</p>
<p>The most popular social spaces revolve around fitness, entertainment and study.</p>
<p>"Students expect more and the industry caters to student requirements, which drives an upward pressure on rents – especially since most mature markets still don’t have enough student housing," Nolan said.</p>
<p>"Honestly, in the end, the winning factor is the community and not specs, so if you want to invest in anything, invest in the student experience."</p>
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jonathanchancellor-7SQnKwU6yx

Sydney more expensive than London for international students: Savills

<html><body>
<div dir="ltr" align="left"><span dir="ltr">Sydney’s median house price decreased by 1.9 per cent to $1,167,516 over the September quarter; the steepest decline in house prices of the state's capital cities.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left">
<span dir="ltr"> It was the first quarterly fall in the local market since December 2015, </span>said Domain chief economist, Dr Andrew Wilson.</div>
<div dir="ltr" align="left"> </div>
<div dir="ltr" align="left">
<div dir="ltr" align="left"><span dir="ltr">“The drop in Sydney’s house prices over the September quarter reflects the diminishing impact of the record-low interest rates that have fuelled market recently.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">"While Sydney’s property market has been the star performer nationally – with prices essentially doubling over the last five years –  affordability barriers are now acting to slow down demand and moderate price increases.<br> </span></div>
<div dir="ltr" align="left"><span dir="ltr">“The significant decrease in investor activity, as well as tightened lending restrictions for residential investors, has had a clear impact on the Sydney market. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">"We saw a similar house price dip in 2015, when similar policies were introduced."</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Despite recording a decline in both house and unit prices, Sydney clearly remains the highest priced of all capitals, well ahead of the next-highest, Melbourne, Dr Andrew Wilson noted.</span></div>
<div dir="ltr" align="left"> </div>
<div dir="ltr" align="left">
<div dir="ltr" align="left"><span dir="ltr">Sydney unit prices also dropped - by 0.8 per cent over the quarter to $732,321, but despite the decrease, remain 4.5 per cent higher than the same time last year.<br> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Median house rents in the Harbour city remained steady at $550 per week, as did median unit rents. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">While steady over the quarter, the results are up year-on-year by 3.8 per cent and 4.8 per cent respectively.</span></div>
<div dir="ltr" align="left">
<div id="1468469170927-5">
<div class="wpb_text_column wpb_content_element ">
<div class="wpb_wrapper">
<p class="domain-table-title">Domain quarterly stratified median house prices</p>
<div>
<table class="domain-table">
<thead><tr>
<td>HOUSE</td>
<td>SEP 2017</td>
<td>JUN 2017</td>
<td>SEP 2016</td>
<td>QOQ %</td>
<td>YOY %</td>
</tr></thead>
<tbody>
<tr>
<td>Sydney</td>
<td>$1,167,516</td>
<td>$1,190,677</td>
<td>$1,079,309</td>
<td class="negative">-1.9%</td>
<td class="positive">8.2%</td>
</tr>
<tr>
<td>Melbourne</td>
<td>$880,902</td>
<td>$869,598</td>
<td>$773,399</td>
<td class="positive">1.3%</td>
<td class="positive">13.9%</td>
</tr>
<tr>
<td>Brisbane</td>
<td>$551,840</td>
<td>$552,874</td>
<td>$531,767</td>
<td class="negative">-0.2%</td>
<td class="positive">3.8%</td>
</tr>
<tr>
<td>Adelaide</td>
<td>$519,517</td>
<td>$520,846</td>
<td>$498,971</td>
<td class="negative">-0.3%</td>
<td class="positive">4.1%</td>
</tr>
<tr>
<td>Perth</td>
<td>$554,095</td>
<td>$561,391</td>
<td>$567,314</td>
<td class="negative">-1.3%</td>
<td class="negative">-2.3%</td>
</tr>
<tr>
<td>Canberra</td>
<td>$723,980</td>
<td>$693,962</td>
<td>$655,468</td>
<td class="positive">4.3%</td>
<td class="positive">10.5%</td>
</tr>
<tr>
<td>Hobart</td>
<td>$409,592</td>
<td>$392,170</td>
<td>$356,916</td>
<td class="positive">4.4%</td>
<td class="positive">14.8%</td>
</tr>
<tr>
<td>Darwin</td>
<td>$593,329</td>
<td>$615,670</td>
<td>$610,510</td>
<td class="negative">-3.6%</td>
<td class="negative">-2.8%</td>
</tr>
<tr>
<td>National</td>
<td>$819,455</td>
<td>$823,381</td>
<td>$758,367</td>
<td class="negative">-0.5%</td>
<td class="positive">10.8%</td>
</tr>
</tbody>
</table>
</div>
</div>
</div>
</div>
</div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left">
<div dir="ltr" align="left"><span dir="ltr">The median house price in most capital cities declined over the September quarter, with the national median house price experiencing its sharpest dip in six years, according to the September quarter Domain State of the Market Report - Metro.<br> </span></div>
<div dir="ltr" align="left"><span dir="ltr">As tighter lending conditions come into play, demand for property in Sydney, Brisbane, Adelaide, Perth, and Darwin decreased over the quarter, with Sydney reporting one of the steepest declines in house prices of the capitals. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Hobart, Canberra, and Melbourne were the only cities to record house price growth over the quarter.<br> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Median unit prices across the country varied over the September quarter, with Hobart and Melbourne experiencing surges in unit price growth, while Brisbane, Perth, Sydney, and Darwin recorded declines in unit prices.<br> </span></div>
<div dir="ltr" align="left">
<p class="domain-table-title">Quarterly stratified median unit prices</p>
<div>
<table class="domain-table">
<thead><tr>
<td>UNIT</td>
<td>SEP 2017</td>
<td>JUN 2017</td>
<td>SEP 2016</td>
<td>QOQ %</td>
<td>YOY %</td>
</tr></thead>
<tbody>
<tr>
<td>Sydney</td>
<td>$732,321</td>
<td>$738,227</td>
<td>$700,656</td>
<td class="negative">-0.8%</td>
<td class="positive">4.5%</td>
</tr>
<tr>
<td>Melbourne</td>
<td>$<span>506,334</span>
</td>
<td>$<span>489,472</span>
</td>
<td>$<span>454,644</span>
</td>
<td class="positive">3.4%</td>
<td class="positive">11.4%</td>
</tr>
<tr>
<td>Brisbane</td>
<td>$<span>376,685</span>
</td>
<td>$<span>390,407</span>
</td>
<td>$<span>402,712</span>
</td>
<td class="negative">-3.5%</td>
<td class="negative">-6.5%</td>
</tr>
<tr>
<td>Adelaide</td>
<td>$<span>313,074</span>
</td>
<td>$<span>308,223</span>
</td>
<td>$<span>305,156</span>
</td>
<td class="positive">1.6%</td>
<td class="positive">2.6%</td>
</tr>
<tr>
<td>Perth</td>
<td>$<span>351,875</span>
</td>
<td>$<span>377,132</span>
</td>
<td>$<span>381,065</span>
</td>
<td class="negative">-6.7%</td>
<td class="negative">-7.7%</td>
</tr>
<tr>
<td>Canberra</td>
<td>$<span>427,391</span>
</td>
<td>$<span>419,451</span>
</td>
<td>$<span>429,751</span>
</td>
<td class="positive">1.9%</td>
<td class="negative">-0.5%</td>
</tr>
<tr>
<td>Hobart</td>
<td>$<span>323,174</span>
</td>
<td>$<span>304,077</span>
</td>
<td>$<span>257,214</span>
</td>
<td class="positive">6.3%</td>
<td class="positive">25.6%</td>
</tr>
<tr>
<td>Darwin</td>
<td>$<span>330,354</span>
</td>
<td>$<span>354,584</span>
</td>
<td>$<span>475,199</span>
</td>
<td class="negative">-6.8%</td>
<td class="negative">-30.5%</td>
</tr>
<tr>
<td>National</td>
<td>$<span>570,148</span>
</td>
<td>$<span>570,277</span>
</td>
<td>$<span>547,263</span>
</td>
<td>0.0%</td>
<td class="positive">4.2%</td>
</tr>
</tbody>
</table>
<p>Dr Andrew Wilson, said capital city housing markets generally tracked backward over the September quarter as the lower interest rate driver of recent years dissipated.</p>
</div>
</div>
<div dir="ltr" align="left">"Actions by policymakers to restrict residential investor activity through tighter lending conditions to that group have also acted to weaken prices growth over the last three months.”</div>
<div dir="ltr" align="left"> </div>
<div dir="ltr" align="left">
<div dir="ltr" align="left"><span dir="ltr">For investors, Hobart continues to provide the best gross rental yields for houses with 5.29 per cent recorded over the September quarter. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Sydney and Melbourne continue to record the lowest gross rental yields for houses of all capital cities, sitting at 3.12 per cent and 3.34 per cent respectively.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Canberra is the top performer for gross rental yields for units recording a result of 5.77 per cent over the quarter, closely followed by Darwin and Hobart at 5.65 per cent and 5.53 per cent respectively.<br> </span></div>
</div>
<span style="color: #222222; font-size: small;"><span dir="ltr"><br></span></span>
</div>
</div>
</div>
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Sydney house prices suffer deepest September quarter decline: Domain

<html><body>
<p class="p1">An office suite in Sydney’s Walsh Bay has been put up for sale with a price tag of $2.4 million. </p>
<p class="p1">The recent announcement that the Sydney Dance Company is set for an overhaul will reinvigorate the Walsh Bay Arts Precinct.</p>
<p>Suite 1 at <a href="https://jagonal.com.au/office/building/NSW/Sydney/Sydney-CBD/The-Rocks/13-Hickson-Road#gallery" target="_blank">13 Hickson Road</a> has an area of 148 sqm with parking and storage.</p>
<p>The Stephenson Mansell Group have a strong lease over the property with a long-term lease signed at market rents which have grown considerable as the undersupply of quality commercial accommodation in the CBD continues to diminish.</p>
<p>The suite is expected to attract strong interest as the NSW government focuses to rejuvenate the former working ports into a world class cultural precinct. </p>
<p><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/2017/10/09/WalshBay2.jpg" alt=""></p>
<p>The marketing agents are Matt Pontey and Tom O’Neill of Colliers International.</p>
<p>“This is an amazing opportunity to invest in what is shaping up to be the new cultural hub of Sydney,” said Matt Pontey of Colliers.</p>
<p>“The government is investing heavily in Walsh Bay to transform the area into a thriving arts precinct and community and prices will only increase in the area over the next few years as this plan comes to fruition.”</p>
</body></html>

Walsh Bay office suite listed with $2.4 million hopes

<html><body>
<p>St George-based developer, Level 33, has acquired a row of a dozen homes individually on the southern side of Regent Street in Sydney's southern suburb of Kogarah for a proposed 300 apartment development.</p>
<p>Level 33’s proposal includes building nearly 300 apartments across four separate buildings. Sales are expected to launch in early 2018 and construction is expected to commence mid to late 2018, the developer said.</p>
<p>The apartments are expected to be targeted towards first home buyers.</p>
<p>Level 33 said it spent 24 months negotiating the individual purchases as it had earmarked the potential site for its development due to its proximity to the centre of Kogarah.</p>
<p>Eddy Haddad of Level 33 said the best sites were always the hardest to purchase and patience and understanding was required to ensure the mutual benefit of all involved.  </p>
<div>The developer acquired 15 homes for a total of nearly $37 million.</div>
<p>“This site really ticked all of the boxes in terms of convenience, as it’s literally only a one-minute walk to Kogarah train station, the St George Hospital is 100 metres away, and all the other amenities in the centre of Kogarah are on the doorstep. You couldn’t live in a better part of Kogarah… it’s right in the beating heart,” said Haddad.  </p>
<p>“However, we fully understood we were dealing with families here and their pride and joy, so we really wanted to look after the owners and ensure they were happy with the outcome.</p>
<p>“A project of this scale is reasonably unique to this area and we are here for the long term, so we are really keen to work with the local community as our reputations at stake.” </p>
<p>Haddad said the project will have plenty of affordable apartments for local first home buyers struggling to enter the property market. </p>
<p>“This project will be really focused on addressing this issue”.  </p>
</body></html>

Developer Level 33 acquires Kogarah site for 300 apartment project

<html><body>
<p><span>The UBS Global Real Estate Bubble Index, designed to track the risk of housing bubbles in global financial centres, places Sydney as fifth riskiest.</span></p>
<p><span>Toronto tops the index in 2017, but a</span>ll sub-indicators "point unequivocally" to elevated risk in the Sydney housing market.</p>
<div class="page" title="Page 9">
<div class="layoutArea">
<div class="column">
<p><span>Sydney’s housing market has been overheating since the city became a target for Chinese investors several years ago, the index again noted.</span></p>
<p><span>"Low interest rates, rising wealth and exuberant expectations also buoyed local demand. </span></p>
<p><span>"So valuations soared and pushed the market into bubble risk zone," it concluded. </span></p>
<div class="page" title="Page 5">
<div class="layoutArea">
<div class="column">
<p><span>Since 1980 the average real annual price rise in Sydney has been 3.5 percent, the highest among all select cities. </span></p>
</div>
</div>
</div>
</div>
</div>
</div>
<p>"Real prices again shot up 12 percent in the last four quarters and are now 60 percent higher than in 2012.</p>
<p>"Incomes increased by a meagre 2 percent in infation-adjusted terms. Tax breaks and interest-only loans are whitewashing the worsening affordability for the time being." </p>
<p><span><span>According to the UBS Global Real Estate Bubble Index, the bubble risk in select world cities has increased significantly over the last five years.</span></span></p>
<p><span><span> Real house prices of those metropolises within the bubble-risk zone have climbed by almost 50% on average since 2011.</span></span></p>
<p><span><span> In the other financial centres prices had only risen by roughly 15%. </span></span></p>
<p><span><span>"This gap is grossly out of proportion to the differences in local economic growth and inflation rates," the report noted.</span></span></p>
<p><a href="https://www.propertyobserver.com.au/images/2017/09/29/UBSchart.jpg" target="_blank"><span><span>Click here to enlarge</span></span></a></p>
<p><span><span><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/2017/09/29/UBSchart.jpg" alt=""></span></span></p>
<p><span><span>Bubble risk seems greatest in Toronto. </span></span></p>
<p><span><span>Stockholm, Munich, Vancouver, Sydney, London and Hong Kong all remain in risk territory, with Amsterdam joining this group after falling into 'overvalued' territory last year. </span></span></p>
<p><span><span>Valuations are stretched in Paris, San Francisco, Los Angeles, Zurich, Frankfurt, Tokyo and Geneva as well. </span></span></p>
<p><span><span>In contrast, property markets in Boston, Singapore, New York and Milan seem fairly valued, while Chicago remains undervalued, just as it was last year.</span></span></p>
<p><span><span>Sydney ranked fourth most riskiest in the 2016 report which also advised <span>“Sydney’s housing market had been overheating since the city became a target for Chinese investors several years ago."</span></span></span></p>
<p>The latest report noted in Munich, Toronto, Amsterdam, Sydney and Hong Kong, prices rose more than 10% in the last year alone.</p>
<p>"Annual price-increase rates of 10 percent correspond to a doubling of house prices every seven years, which is not sustainable.</p>
<p>"Never-the-less, the fear of missing out on further appreciation predominates among home buyers.</p>
<p>"After all, the price increases appear rational, for three reasons," it suggested. First, financing conditions in many cities are now more attractive than ever before, it noted. Second, the global increase in wealthy households seemingly creates constant demand for the most attractive residential areas. Third, building activity cannot keep pace with this demand.</p>
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<p><span>"Expectations tend to be prone to exaggerations in boom phases," the annual report advised.</span></p>
<p><span>It suggested the optimistic projections of the trends "created ever-greater price fantasies."</span></p>
<p><span>However, should sentiment change or interest rates increase, a correction is practically inevitable. </span></p>
<p><span>"In the past, rising interest rates almost always triggered a crash in housing markets. </span></p>
<p><span>"In addition, the dependence of prices on international </span><span> ows of capital represents an incalculable risk. </span></p>
<p><span>"Plus, once demand fell, even the </span><span>low growth in supply would no longer provide an anchor," it </span>concluded.</p>
<p><span>Vastly overvalued housing markets</span><span> have historically been associated with a significantly heightened </span><span>probability of correction and greater downside than housing markets whose prices developed more in line with the local economy, UBS advised.</span></p>
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